Automotive News - November 10, 2008 - (Page 22) 22 • NOVEMBER 10, 2008 INSIGHT SEE PROFIT POTENTIAL LIKE NEVER BEFORE! Dealers plunge into plug-ins Leslie J. Allen lallen@crain.com with Crystal Fusion windshield protection… Boost Profits • A proven profit-generating program • Easy to sell; easy to install • Five Year Warranty administered by Safe-Guard Products International, LLC Energize F & I • Adds revenue to the sale and transferable value to the vehicle • Offers a tangible, easily recognized benefit Enhance the Driver Experience • Improves visibility and driver reaction time • Makes glass up to 10x stronger • Significantly reduces night glare Boston-area Toyota dealer Peter Tonelli is placing a bet on the next move in green technology, despite a frosty response from Toyota Motor Sales U.S.A. Tonelli’s Westboro Toyota is one of a handful of mainstream dealerships using $10,000 aftermarket kits to turn Toyota Priuses into plug-in hybrids, complete with lithium ion batteries. It’s a job normally handled by specialty garages, not franchised dealers. Tonelli acknowledges that there’s little return on the dollar for such work, but he sees a greater purpose. “It’s more making a statement that it’s possible. It’s making a statement to the oil companies that we don’t need to necessarily have cars that only get 20 miles to the gallon,” Tonelli says. Westboro Toyota has completed at least 21 plug-in module installations since late September. The kits are from Hymotion, the aftermarket arm of battery maker A123 Systems of Watertown, Mass. Plug-in hybrids extend the electric range of regular hybrids by using banks of batteries to store electricity from ordinary household outlets. Hymotion says that with the 180pound battery pack installed and fully charged, a Prius can go 30 to 40 miles on a charge. A full charge takes about 5½ hours. JON CHASE Toyota dealer Peter Tonelli uses aftermarket kits to turn Priuses into plug-in hybrids. There’s little profit, he says, but it shows oil companies that “we don’t need to necessarily have cars that only get 20 miles to the gallon.” public stock offering with the Securities and Exchange Commission. But in an interview with Automotive News last year, CEO David Vieau called the conversion kits “a great demonstration of what the technology can do.” This demonstration is expensive. The nanophosphate lithium ion battery pack, designed for 2004-08 Priuses, will cost customers about $10,400. It has a three-year warranty. Dealer Jack Fitzgerald, chairman of Fitzgerald Auto Malls near Washington, says most of the 40 or so people who have had conversions done at his Gaithersburg, Md., Toyota dealership have been referred to him by A123. Fitzgerald says he believes in the technology and wants consumers to have a choice of how to fuel their vehicles, whether it’s petroleum, electricity, natural gas or ethanol. “Oil needs a competitor,” he says. An overnight charge will give the vehicle five kilowatts of power and cost only about 50 cents, Fitzgerald says. “You’re talking about a little over a penny a mile to run a car on electricity. That’s a real competitor for oil, wouldn’t you say?” He says one customer reported driving 2,000 miles on one tank of gas. Fitzgerald says Toyota has not opposed his offering plug-in conversions but wants him to make it clear that the automaker has nothing to do with the kits, and that the work is not covered by Toyota’s warranty. Denny Hecker Automotive Group, near Minneapolis, is doing Prius conversions, but not at its Toyota dealership. Instead, it sends Prius owners to its Volkswagen dealership to have the work done. Hecker is promoting the program with the help of Minneapolis Mayor R.T. Rybak, himself a plugin Prius driver, as part of the mayor’s “green-collar jobs” initiative. Plug-in outlets These dealers are installing Hymotion’s aftermarket plug-in conversion kit in the Toyota Prius. The Green Car Co., Bellevue, Wash. Green Gears/Pat’s Garage, San Francisco Galpin Auto Sports, Van Nuys, Calif. Burt’s Hybrid Conversions, Englewood, Colo. Denny Hecker Automotive Group, Inver Grove Heights, Minn. Fitzgerald Toyota, Gaithersburg, Md. Westboro Toyota, Westboro, Mass. Source: Hymotion Voided warranty? Toyota advises against modifying the Prius. But it says the conversion won’t necessarily void the vehicle’s warranty unless a problem arises that is a direct result of the modification. Tonelli said A123, attracted by Westboro’s reputation as a prolific hybrid seller, approached the dealership about doing installations. An A123 spokeswoman said company officials could not comment because A123 recently filed an initial 1-866-529-5999 mention code 1027 • see www.cftproducts.com ® PurigeN98 tire inflation pumps 98% pure nitrogen into your customers’ tires while pumping more profits into your business. Not sold Not all Toyota dealers are sold on the idea. One of the first dealerships recruited by A123 was Toyota of Hollywood, near Los Angeles. But after learning that Toyota strongly recommended against plug-in conversion, the store dropped the program. Bradley Berman, editor of the Web site www.hybridcars.com, says Toyota is being cautious in light of its own plan to roll out a plug-in hybrid at the end of next year. Toyota is targeting The likeness of Jeff Gordon and other related trademarks and copyrights are used with the permission of Jeff Gordon, Inc. fleet customers for its first plug-in Prius, which will have a lithium ion battery. Toyota also is working on a redesigned Prius for consumers that will use a nickel-metal hydride battery. “Corporate Toyota wants to manage the expectations very carefully,” Berman says. “You can imagine the issues they have to consider.” Edmunds.com editor John O’Dell says: “They are going to have a retail plug-in of their own, so why would you want to encourage your dealers to get used to someone else’s product?” Nonetheless, Berman says he believes the market is ready now, at least for customers who have the money. “It’s like a big, full-functioning electric vehicle. You can’t help, if you’re a hybrid driver, but want one.” Toyota dealer Earl Stewart, owner of Earl Stewart Toyota in North Palm Beach, Fla., is wary of plug-in conversions. “We have had several inquiries, and we advise against it,” Stewart told Automotive News. Stewart prefers to wait for Toyota to roll out its own Prius plug-in. “The Prius hybrid system is one of the most sophisticated and complex feats of science and engineering ever,” Stewart said. “Slapping an aftermarket kit onto this fine, complicated machine is asking for trouble.” That Toyota is moving so cautiously is telling, he said. “Even Toyota is nervous about the final product and won’t sell this next-generation Prius to retail customers until they field test them with fleets.” c http://www.cftproducts.com http://www.cftproducts.com http://www.Edmunds.com http://www.purigen98.com/an http://www.hybridcars.com http://www.purigen98.com/an
Table of Contents Feed for the Digital Edition of Automotive News - November 10, 2008 Life at 11 million: Slash, rethink The options: Bailout or disaster Can Toyota reheat the frozen Tundra? Chrysler dealers cheer halt to merger talk VW will unveil roadster at Detroit auto show BMW boosts dealers' year-end ad money Mercedes' $220 million flagship Mercedes hit hard in Northeast, once a sales stronghold Mercedes will kill CLK, add larger coupe, convertible Mitsubishi reclaims its finance business Toyota's Esmond to speak at congress Loss is more: Europe snatches bigger share of U.S. market Cash burn rates threaten GM, Ford GMAC: We're nobody's captive As losses mount, suppliers risk cash-flow crunch Tata: Yes to Jaguar XF derivative, no to SUV U.S. aid is needed now, but not to help Cerberus They are too big to fail Why should we help GM and Chrysler? First and foremost, you must be flexible U.S. trade policy gives it all away To the Editor: A rough ride is nothing new for autos Dealer's politics were pertinent Chrysler's 1st electric: Probably a cargo van Auto meltdown forces Mercedes to scrap prediction of sales record Boosting mpg will bump up stickers, too Adding up the tab for fuel economy Camaro Black: Eye-catching, affordable and available Honda sees green in Civic HFP's street performance Honda offers peek at future Fit Ford F-150 Raptor flies off-road Souped-up, tricked-out â and headed for the showroom Report: Toyota plans $5,000 car Amid gloom, Mazda chief sees revival in 2009-10 Report: Past-due subprime loans jump Toyota aims to win loyalty with credit card Study: Car buyers turn green for different reasons Thanks, buddy Hyundai helps Dealers Metaldyne offers pennies to bondholders Obituaries Personnel As expected, Oct. sales sank Another Chinese automaker plans Mexico factory Honda backs off U.S. clean diesels Industry pal, foe vie for key post in Congress Industry expects more activism from D.C. N.A. output falls 19.9% Toyota moves in striking distance of GM's U.S. sales crown Going, going . . . An ex-GM exec's view: It's going to get nasty Sex, Nazis, chicken and BMW: A scandal that puts fiction writers to shame Recession rips up roadster market Toyota takes heat for 'the herpes of the advertising world' Want to boost mpg? Turn up the heat on AC Cutting energy loss: A nibble here, a nibble there ... Carbon slashes weight, but it's still too pricey Carmakers shift to gears in search of mpg gains Natural gas draws interest as alternative fuel Friction? Ay, there's the rub Electric for a week Automotive News - November 10, 2008 Automotive News - November 10, 2008 - (Page Intro) Automotive News - November 10, 2008 - (Page Bellyband1) Automotive News - November 10, 2008 - (Page Bellyband2) Automotive News - November 10, 2008 - The options: Bailout or disaster (Page 1) Automotive News - November 10, 2008 - The options: Bailout or disaster (Page 2) Automotive News - November 10, 2008 - VW will unveil roadster at Detroit auto show (Page 3) Automotive News - November 10, 2008 - Mercedes hit hard in Northeast, once a sales stronghold (Page 4) Automotive News - November 10, 2008 - Mercedes hit hard in Northeast, once a sales stronghold (Page 5) Automotive News - November 10, 2008 - Loss is more: Europe snatches bigger share of U.S. market (Page 6) Automotive News - November 10, 2008 - Loss is more: Europe snatches bigger share of U.S. market (Page 7) Automotive News - November 10, 2008 - As losses mount, suppliers risk cash-flow crunch (Page 8) Automotive News - November 10, 2008 - As losses mount, suppliers risk cash-flow crunch (Page 9) Automotive News - November 10, 2008 - Tata: Yes to Jaguar XF derivative, no to SUV (Page 10) Automotive News - November 10, 2008 - Tata: Yes to Jaguar XF derivative, no to SUV (Page 11) Automotive News - November 10, 2008 - First and foremost, you must be flexible (Page 12) Automotive News - November 10, 2008 - First and foremost, you must be flexible (Page 13) Automotive News - November 10, 2008 - Dealer's politics were pertinent (Page 14) Automotive News - November 10, 2008 - Dealer's politics were pertinent (Page 15) Automotive News - November 10, 2008 - Auto meltdown forces Mercedes to scrap prediction of sales record (Page 16) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 17) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 18) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 19) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 20) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 21) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22a) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22b) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22c) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22d) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22e) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22f) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22g) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22h) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22i) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22j) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22k) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22l) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 23) Automotive News - November 10, 2008 - Souped-up, tricked-out â and headed for the showroom (Page 24) Automotive News - November 10, 2008 - Amid gloom, Mazda chief sees revival in 2009-10 (Page 25) Automotive News - November 10, 2008 - Toyota aims to win loyalty with credit card (Page 26) Automotive News - November 10, 2008 - Hyundai helps (Page 27) Automotive News - November 10, 2008 - Dealers (Page 28) Automotive News - November 10, 2008 - Personnel (Page 29) Automotive News - November 10, 2008 - Personnel (Page 30) Automotive News - November 10, 2008 - Personnel (Page 31) Automotive News - November 10, 2008 - Personnel (Page 32) Automotive News - November 10, 2008 - Personnel (Page 33) Automotive News - November 10, 2008 - Personnel (Page 34) Automotive News - November 10, 2008 - Personnel (Page 35) Automotive News - November 10, 2008 - Personnel (Page 36) Automotive News - November 10, 2008 - As expected, Oct. sales sank (Page 37) Automotive News - November 10, 2008 - Honda backs off U.S. clean diesels (Page 38) Automotive News - November 10, 2008 - Industry expects more activism from D.C. (Page 39) Automotive News - November 10, 2008 - Industry expects more activism from D.C. (Page 40) Automotive News - November 10, 2008 - N.A. output falls 19.9% (Page 41) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 42) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 43) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 44)
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