A University of Michigan Auto Researcher says it’s possible to triple fuel economy of cars—without plugging them in.

In a new study released today, John DeCicco (who has been a contributor to this site) shows that optimizing internal combustion engines plus rising adoption of “grid-free hybrids” will enable new fleet efficiency to reach 52 MPG by 2025 and 74 MPG by 2035.

“To push efficiency really far, it means a lot more hybrids than previous studies have indicated,” DeCicco said, in an interview with HybridCars.com. “Hybrids are going to rule the world, that is, if we want to be serious about reducing oil use and greenhouse gases.”

DeCicco questions the prevailing wisdom of public support for cars that use energy from the grid. DeCicco, a senior lecturer at the School of Natural Resources and Environment at the University of Michigan, is apparently referring to plug-in cars when he advocates for avoiding “politically trendy breakthrough technologies” that will remain too expensive for most consumers. "If we really prioritize efficiency, we can get just as far with less sticker shock," he said, in a press release issued by University of Michigan.

It’s a Policy Thing

“I’m not opposed to plugging in, but there’s no justification for massive subsidies,” DeCicco told us. “Let automakers and willing customers explore this on their own nickel. We ought to have policies that give us the biggest bang for the buck, and most efficiency can occur without plugging in.

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Infiniti will debut the company’s first hybrid model at this fall’s Los Angeles Auto Show. The 2012 Infiniti M Hybrid goes on sale this spring.

The Infiniti M35 hybrid uses a front-engine rear-wheel-drive approach—with a one motor-two clutch system. The first clutch is installed between the engine and the electric motor. This clutch allows the full decoupling of the V6 when running in electric modes—in order to reduce mechanical drag and boost the efficiency of the electric motor. The M35 is one of the first hybrids to use lithium ion batteries.

Pricing, MPG and other details are not yet available. The base MSRP for the 2010 conventional M35 is $45,800. The M35 Hybrid should be priced just below $50,000 and will likely qualify for a tax incentive of about $1,000. Nissan first unveiled the Infiniti M35 Hybrid at the 2010 Geneva Motor Show in March 2010

Infiniti touts the new luxury hybrid as giving V-8 performance with four-cylinder fuel economy.

Rear-Wheel-Drive Hybrids on the Way

As Infiniti prepares for the unveiling of the M35 Hybrid, Nissan engineers are already planning other hybrid models. Larry Dominque, Nissan North America's vice president of product planning for the Americas, says the M hybrid system was designed to fit all of Infiniti's rear-wheel-drive models, including the G sedan and coupe and the EX and FX crossovers.

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Will consumers stay away from cars that get a "D" on the environment?

After many months of deliberation, the US Department of Transportation (DOT) and the US Environmental Protection Agency (EPA) have released proposed ideas for new fuel economy labels that consumers see on windows of new vehicles. The designs recognize that advanced technology vehicles, from plug-in hybrids to electric cars, require a modified approach to communicating the benefits of various fuel-efficient technologies.

The boldest scheme uses a prominent report-card-style letter grade, ranging from A+ to D, to communicate overall fuel economy as well as greenhouse gas emissions. A second tier of information assigns a dollar value to the anticipated fuel savings over five years of a vehicle compared to the average vehicle on the road. A third tier provides an entire set of efficiency numbers of varying degrees of complexity depending on the type of technology in use.

Conventional gas-powered cars will carry familiar metrics such as city and highway MPG, but also add gallons per 100 miles, CO2 per mile, and anticipated annual fuel cost. For electric cars, plug-in hybrids, and natural gas-powered vehicles, the label will identify driving range, annual fuel cost, and a translated equivalent of MPG (referred to as MPGe). For plug-in hybrids, such as the Chevy Volt and the Prius Plug-in Hybrid, the label gets even more complex, featuring two rows: one for different modes of operation—such as when a plug-in hybrid is primarily using electricity and after it has depleted its batteries.

This design is more familiar, but requires an awkward conversion to MPG equivalent (or MPGe) for plug-in cars.

A second proposed label design retains the current label’s focus on miles per gallon and annual fuel costs. In this scheme, converting the efficiency of plug-in cars—which use electricity as fuel—into an MPG equivalent becomes paramount. In the sample design, the efficiency a plug-in hybrid (or “dual fuel vehicle”) is rated with an MPGe of 98 while using electricity during its first 30 miles of operation, and then 38 MPG when “electricity is used up.” Vehicle efficiency experts warn against “dumbing down” plug-in car efficiency to numbers that could be irrelevant or meaningless to consumers.

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In developing car markets like China and India, the short-term strategy for carmakers seems to be "small, cheap and fuel-efficient." Fully electric powertrains are expected to catch on eventually, but where the intermediary step for the United States is expected be hybrids—and turbocharged diesels in Europe—small, 4-cylinder engines that deliver high MPGs at a low cost are the name of the game in most of Asia.

It's for this reason that the Toyota Prius, which in America and Japan has been one of the most influential vehicles on the market for the better part of a decade, only came to India last year. When it did, it was priced and marketed more as a high-priced luxury car than an everyday vehicle for the country's emerging middle class.

But while the Prius was never expected to be major seller in India—just 80 vehicles sold in three months—a dedicated hybrid version of the Etios small car marketed specifically for that market, is apparently on the horizon. While production numbers are yet to be announced, the fact that Toyota is premiering a new hybrid in India suggests that the carmaker is confident in its sales potential. Toyota is yet to announce whether the car will be available in other markets.

The price tag is another big question mark. If Toyota has managed to bring costs down to the point that the fuel savings associated with the vehicle actually surpass its "hybrid premium," the Etios could be an important player. If not, the car will more likely be just another green also-ran. The gasoline version of the Etios is expected to sell 65,000 units next year.

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Once again, the media is declaring the death of hybrid cars. It made for catchy headlines this week, like the Wall Street Journal’s “Hybrids Are Running Out of Gas,” and USA Today’s “As Sales Fall, Is the Hybrid Car Fad Over?” But it simply ain’t true. Global automakers are now preparing for their biggest push ever into gas-electric vehicles.

Yes, it’s true that this year’s hybrid sales are down by about 5% compared to last year. But a closer examination of the trends shows that hybrids got a big boost last year with the Cash for Clunkers program. In addition, the drop in hybrid sales is focused on specific models, like the Honda Civic Hybrid, which is down 72% for the year. Meanwhile, the Toyota Prius is up by 7%; the Honda Insight is up by 2%; The Lexus RX450h SUV is up more than 17%; and the Ford Fusion Hybrid is up 45%.

From Early Adopters to Mainstream Buyers

Yet, the media and other pundits dig up attention-seeking factoids, like the decline of new hybrid registrations in the San Francisco Bay Area, an historic hot spot for hybrid adoption. The Wall Street Journal points to data from R.L. Polk which shows new hybrid registrations in the San Francisco-Oakland-San Jose area making up 6.1% of the overall U.S. share last year, down from 7.8% in 2007 and 8.1% in 2006. Could the shift of the hybrid sales balance away from the Bay Area, known for its preponderance of high-tech early adopters, to the rest of the country indicate that hybrids are moving into a much larger mainstream market?

The signs point to yes, according to Toyota’s new production targets, reported yesterday by Reuters and others. After selling nearly 2.7 million hybrids globally in the past 13 years, Toyota yesterday reiterated its goal of selling 1 million hybrid cars annually and an accumulated 5 million units by the first half of this decade. To achieve these goals, the company will eventually introduce hybrids across its entire vehicle lineup, and will soon launch a family of Priuses, ranging from a compact model to a crossover SUV.

Who’s on the Hybrid Bandwagon? Everybody

Moreover, Toyota announced yesterday that it plans to improve its average fuel efficiency by 25% by 2015 compared with that of 2005. Why is Toyota setting that goal? The same reason that every major global auto manufacturer is aiming for unprecedented gains in fuel economy: to meet stricter government regulations. According to our discussions with regulators and environmental organizations, these tougher standards could require hybrids in as much as 40% of automobiles in the next 15 years. Early this month, Hyundai announced that its entire vehicle lineup will average a whopping 50 mpg by 2025—a target that lawmakers could very well establish for around 2020. Hyundai expects hybrids to make up 20% of its sales by that time.

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After three years of speculation about the introduction of a Fit Hybrid, Honda is set to unveil the world’s first subcompact hybrid next month at the Paris Motor Show this September. Not only will the Fit Hybrid be the smallest hybrid on the market, it could carry the lowest price tag.

A hybrid version will go on sale in Japan in October, and is expected in the U.S. in 2011. As we reported earlier this month, Honda plans to sell the Fit Hybrid in Japan for about $18,600. That’s approximately $3,500 less than the Honda Insight, currently the cheapest hybrid, and about $4,600 more than the gas-powered Fit. Pricing for the Japanese market does not move in sync with U.S. pricing—but a similar strategy in the U.S. would put the base MSRP around $17,000.

Exact mpg will be released at the Paris Motor Show, which will run from September 30 to October 17, but we anticipate a significant step up from the gas-powered version, which is rated at 28 mpg in the city and 35 on the highway. The Fit Hybrid is likely to become the second most fuel-efficient hybrid, right behind the Toyota Prius (51/48 mpg). The auto industry is still figuring out how to rate the fuel economy of plug-in cars, such as the Nissan LEAF and Chevy Volt.

The Fit, marketed as the Jazz in Europe, will use Honda’s IMA system— an 87-horsepower 1.3-liter engine combined with a CVT gearbox—currently found in Honda's Insight and CR-Z hybrids.

The new Fit/Jazz is updated for 2011—with revised headlights and rear lights, a new front grille, and restyled bumpers and tailgate. Inside, there’s a darker single-color dashboard and blue-lit dials and instruments. The new hybrid is also available with leather trim, the first time this has been available on a Jazz model in Europe.

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Sex sells the Fisker Karma plug-in hybrid.

The company behind the bold and beautiful $87,000 Fisker Karma plug-in hybrid has a credibility challenge. The sleek vision of a four-door sports car combining 400 horsepower and 100-mpg fuel economy is alluring. Yet, the company has failed to deliver on scheduled production dates, and has not allowed journalists to drive the car or delve into details. With the next announced launch date scheduled in a few months, Fisker’s marketing plan starts to look like a tease.

Fisker’s new red-hot sexy television commercial does little to change that perception. The images are incredible loaded: A femme fatale in high heels steps past a spent flaccid gas pump nozzle, grabs hold of a charging wand, as a single ice cube slides down the curves of the vehicle’s body, and the Fisker Karma wheels spins in circles. The female model opens her mouth before the tag line, “Designed To Get You Hot, Not the Planet.”

This ad represents the boldest attempt so far to sex up the hybrid. Carmakers have been trying to undo the ultra-nerdy image of the hybrid almost from the beginning of the hybrid market in the U.S.: Honda tried it by adding horsepower to the failed Accord Hybrid; Honda is trying again with the CR-Z sporty coupe; G.M. and others tried beefing up hybrids with highway power and towing capacity in SUV Hybrids; and Ford is nullifying unsexy hybrid geekiness by making gas-electric technology an invisible element of mainstream vehicles.

Does Fisker go too far? Not far enough? Is it good for the green car movement? And the biggest question of all: Can Fisker deliver on its increasingly potent promise?

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The Porsche Cayenne S Hybrid will go on sale later this year.

The Porsche Cayenne S Hybrid, a $68,000 gas-electric SUV, will not be a big seller. Like other luxury hybrid SUVs from BMW and Cadillac, the Cayenne Hybrid is more of a platform for technology experimentation—rather than a whole-hearted effort to reinvent hybrids for high living. The Cayenne S Hybrid, Porsche’s first full hybrid, will go on sale in a few months.

If only a handful of well-heeled buyers will fork over the dollars for the Cayenne S Hybrid, then why should folks interested in hybrids—as a means to cut emissions and reduce use of petroleum—care about this vehicle? Light and Fast

First, Porsche’s willingness to shift down in vehicle weight is noteworthy. Porsche reduced the weight of the Cayenne Hybrid by about 400 pounds by using a lighter all-wheel-drive system rather than a 4x4 drivetrain. In addition, Porsche designers replaced heavier steel elements with more aluminum in the vehicle body. The weight trimming still leaves the hybrid nearly 500 pounds heavier than the gas-powered Cayenne V6, but it points to the industry’s trend toward using advanced materials and forgoing features to reduce weight across all segments of vehicles. These measures are cost-effective strategies for improving fuel efficiency—even if it doesn’t result in immediate cost savings for Porsche consumers. The Cayenne S Hybrid is about $20,000 more than the gas-powered V6 Cayenne.

The other trend that green car fans should acknowledge is the use of hybrid and plug-in technology in the high-performance segment. We’ve written quite a bit about green high-tech in motorsports—perhaps best illustrated by Porsche’s own 480-horsepower 911 GT3 R Hybrid.

Porsche took green speed even further when the company last month decided to put the 718-horsepower 918 Spyder plug-in hybrid supercar into production. The Porsche 918 Spyder is capable of 0-60 mph in about 3 seconds and a top speed of 198 mph. And it will cost approximately $650,000.

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122 horsepower. 37 mpg. 2 seats. And $20,000.

Those are the key stats for the all-new 2011 Honda CR-Z Sport Hybrid Coupe. We took the car out for a 125-mile loop to see how it fared on the two categories by which the CR-Z will be measured: efficiency and fun. Honda is billing the CR-Z as a zippy sports car that uses less fuel.

Our mileage loop consisted of a broad sampling of road conditions: highways, town streets, and sweeping country roads. We did not apply hyper-mile techniques, but instead moved right with the traffic—a fairly light touch on open roads, and slightly more aggressive in city traffic. At the end of the run, our automatic CR-Z tester tallied 35.3 miles per gallon—a couple of mpgs shy of the EPA ratings of 36 miles per gallon in the city and 38 on the highway with a CVT automatic transmission. (The fuel economy rating of the standard six-speed manual CR-Z, the only manual hybrid on the market, is 31/37 mpg.)

Perhaps other journalists babied the CR-Z to bring the mileage nearly to 40 mpg, but we would expect everyday driving to produce the same results we got: mileage smack in the middle of the 30s. That’s a far cry from a breakthrough on hybrid fuel efficiency, with the midsize, five-seat Toyota Prius earning close to 50 mpg for most drivers.

Still, A Fun Ride

On the other hand, we believe Honda made somewhat of a breakthrough on the hybrid fun factor—especially when most people think of hybrids as the goody two-shoes of the automotive world. During our drive, the CR-Z proved to be nimble, agile, and responsive. The car actually felt quick, and took corners with confidence. The smallness and lightness of the CR-Z, combined with its tuning for a sporty ride, gives it more zip than the 122-horsepower rating would suggest.

The CR-Z's three driving modes include Sport, Normal and Economy. The Sport mode alters throttle response, electric power steering effort, and electric motor power assist for faster reaction. The inner ring of the tachometer glows red while in sport mode. We spent equal amounts of time in each of the three modes. The torque and acceleration is noticeably higher in sport mode. While the economy mode boosts efficiency by a few points, it didn’t rob the CR-Z of the power required for everyday driving.

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Don't call it a comeback. As General Motors moves forward with plans to recapture its status as a publicly traded company, one question seems to dominate coverage in the financial press: Why now?

Despite two consecutive profitable quarters, consumer confidence continues to drag and most analysts are pessimistic about the short-term outlook for both domestic and international auto sales across the industry. Meanwhile, GM's market share has continued to shrink. As Dennis Virag, president of Automotive Consulting Group put it on Bloomberg Television today, there is a strong suspicion that the company's decision to move forward with an IPO at this stage is “more political than practical.”

Still, GM's S-1 filing with the SEC does provide us with some valuable insight into how it plans to turn things around in the coming years—even if it sends some confusing signals about what role the company's newfound commitment to fuel economy will play in that process.

Now or Later?

On Tuesday, we summarized General Motors's fuel economy strategy as follows: “Mild Hybrids, Then Full Hybrids, Then EVs, In That Order." And while there's certainly no question that winning the long-term market strategy battle is essential to success in the automotive industry, one questions just how far behind GM actually is in the efficiency race. What should be perfectly clear from reading GM's S-1 filing though, is that the company would very much prefer that gas prices remain low for the time being.

The carmaker is still heavily dependent on truck and SUV sales, and according to Consumer Reports, only one of the company's nine best vehicles gets more than 25 mpg in fuel economy. As GM itself put it in today's filing, “Any future increases in the price of oil in the U.S. or in our other markets or any sustained shortage of oil... could reduce our market share in affected markets, decrease profitability, and have a material adverse effect on our business.”

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