Flint Journal Editorial: A reason to hope - North American International Auto Show offers future view, Genesee County's role

Times may be dire, but a few glimmers of hope deserve to be noted, if for no other reason than that dwelling on the negative will do nothing to improve our community's situation.

Trying to build on the positive, however, just might.

With that in mind, take a peek inside the 2009 North American International Auto Show in Detroit. The engines for two of the vehicles General Motors is banking on to survive and win back market share will be manufactured in Flint.

They are the backup 1.4-liter engine for the battery-operated Chevy Volt and the 1.4-liter turbocharged engine for the Chevy Cruze. The 1.4-liter turbo engine is essential for the company to meet higher fuel-efficiency standards, industry experts contend.

Both vehicles represent the future for GM. As such, the production of these engines locally will play a part in our area's future as well.

Fuel prices may have dropped in recent weeks, but the likelihood of them staying low is slim. Already, they are inching back up. Vehicles that are fuel-efficient, as well as those that are environmentally friendly, will be in demand.

Which brings us to another reason for optimism. State lawmakers recently passed a bill that Gov. Jennifer Granholm says will help position Michigan as "the battery capital of the world."

At present, Asia leads in developing battery technology. GM has already announced that it will import lithium-ion cells for the Volt and other battery-powered vehicles from a South Korean company.

The new legislation offers tax incentives for GM and others to buy their lithium-ion cells in Michigan, which should in turn ensure the state a leg up on production of the cells in the future.

In tough times, it's sometimes hard to look ahead with optimism. But these developments, with their long-term ramifications, hint at a brighter future.

The auto show continues through Saturday at Cobo Center in Detroit. On a related note, Granholm also recently signed legislation to allow updates to Cobo, as well as the addition of 166,000 square feet -- changes that should help guarantee the center remains the home of the auto show, which pumps half a billion dollars into that area's economy, for years to come.

Finally, the ‘Lexus Prius’ Is Coming

Since 2000, Toyota has offered only one hybrid-electric car designed from the wheels up to be a hybrid: the Toyota Prius. But late this summer, Lexus will get its own dedicated hybrid, the HS250h.

Toyota introduced the HS250h on Sunday at the North American International Auto Show in Detroit, calling it the “world’s first dedicated hybrid vehicle.” Or, as some car buffs have named it, “the Lexus Prius.”

Mark Templin, the general manager of Lexus, insists that his vehicle is not simply tarted up Prius. “If all you care about is m.p.g., go buy a Prius,” Mr. Templin said in an interview.

What Lexus customers want in their hybrid is the “Lexus experience,” said James Lentz, the president of Toyota Motor Sales U.S.A. He and Mr. Templin defined that as a quiet car, filled with the latest technology and creature comforts like heated seats. The company will also offer owners free loaner cars, a free car wash and other extras at Lexus dealerships.

Mr. Lentz said Toyota aims to sell about 30,000 HS models a year. The HS is the fourth model with a hybrid engine to be sold by Lexus, but the first that was conceived purely as a hybrid. At Lexus, it will fit into the lineup between the IS, a small performance sedan aimed at younger buyers, and the ES, which is its bread-and-butter luxury car and one of the two original Lexus models.

The HS will be equipped with a 2.4-liter, 4-cylinder engine — the first to be offered at Lexus — which generates 187 horsepower. The model name, by the way, stands for “hybrid sedan” with the little “h” on the end because every Lexus hybrid has a little “h” at the end, Mr. Templin said. (He agreed that it didn’t make a whole lot of sense.)

Although it does not share a body style with any other Toyota model, Mr. Templin said it has some underpinnings from the Toyota Avensis, a car sold in Europe. Matt Hardigree on Jalopnik.com called it a “Prius for the country club set.”

Toyota didn’t estimate the HS’s fuel efficiency, but Mr. Templin said it will get better miles per gallon in city driving than the Smart car, which is a fraction of the size of the HS. That’s in the neighborhood of 33 m.p.g. Its price probably also will be in the $30,000-plus range, although Toyota isn’t saying yet what it will cost.

The need for a dedicated Lexus hybrid became apparent over the past few years, when sales of the Prius began to climb as gasoline prices set new records.

Prius customers included many Lexus owners (including me) who were eager for better gas mileage, but weren’t satisfied with the fuel economy ratings on vehicles like the 400h, the hybrid-electric version of the Lexus RX. “Had a Lexus hybrid existed, they would have bought a Lexus instead,” Mr. Lentz said.

Mr. Lentz said that in the past, Toyota stressed the performance of its Lexus hybrid models — almost to a fault. In 2006, it claimed the Lexus LS 600 hL, an ultra-luxury hybrid sedan, would take the brand “where it had never been.”

That stratosphere apparently is too high for many potential hybrid customers, a reason why Lexus finally is adding a 4-cylinder engine to its offerings. (Car buffs may recall that the original Lexus LS featured a V-8 engine that Toyota then claimed was equal to the engines developed by German manufacturers.)

Still, it may be a challenge for Toyota to lure some Prius owners back. Mr. Lentz said 70 percent of them buy another Prius, the highest owner loyalty rate at Toyota and in the car business.