The car industry is under pressure to improve fuel efficiency. It is not that they have been sitting on their thumbs. Automakers have achieved large increases in fuel efficiency through better technology in recent decades, says MIT economist Christopher Knittel.

The problem is:

“Most of that technological progress has gone into compensating for weight and horsepower.”

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Amid Volvo’s announcement of a plug-in hybrid for markets besides diesel-loving Europe came another tidbit about the lone Swedish brand’s future direction. Rather than 5, 6 or 8 cylinder engines like years past, Volvo will be downsizing, much like BMW – and using modular engines to boot, much like their Bavarian rivals.

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Wamp wamp! That’s the sound of the sad trombone playing for the Chevrolet Volt, which missed its 2011 sales target by 2,329 units. General Motors hoped that the Volt would sell 10,000 units in 2011, but it was not to be.

Bloomberg reports that the bow tie brand sold only 7,671 Volts in 2011, but has plants to increase annual production to 60,000 units annually. 45,000 of those will be sold in the United States. The Volt had only been on sale nationwide for the final three months of 2011.

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There was ample hand-wringing when Volvo announced the death of their iconic station wagon in North America. While enthusiasts mourned the death of a cult classic, Volvo also announced a plug-in hybrid version of their V60 wagon, powered by a diesel engine and a hybrid drivetrain. Naturally, this vehicle was not destined for sale in North America.

The non-available V60 plug-in constituted the ultimate slap in the face for the Volvo faithful. Here was the newest generation of Volvo wagon (as opposed to the warmed over XC70 offered recently) with an environmental bent and the Euro-cachet of a diesel engine – but where was it? As Jamie Kitman of Automobile magazine rightfully pointed out, their core buyer is “green” but refusing to import such a vehicle may not be “lunacy”, because the Swedes have something more suited for American tastes – the same hybrid goodness, packaged as a gasoline-powered crossover.

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It’s been a few years since we last detected much of a pulse from Honda [Ed: in fact, Paul Niedermeyer declared Hyundai the "new Honda" in terms of engine technology leadership way back in 2009]. But just when we were wondering if all hope was lost, and that it might be time to pull the plug…signs of life. In Japan, for the Tokyo auto show, Honda has unveiled ambitious new powertrain plans [via Automotive News [sub]].

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Toyota’s Chief Engineer Satoshi Ogiso figures that efficiency improvements of traditional gasoline engines may soon hit a wall. He gives the gasoline engine an improvement potential of “maybe 10 to 20 percent.” Today, we have proof that it is a fight of diminishing returns. Mazda is now at a point where it saves up to 10 percent of gas by idling the alternator. How is that done? (Read More…)

Everyone knows TTAC hearts data, so this little NPR/Edmunds collaboration, which maps hybrid and EV sales by locality, is right up our HOV lane.

Last Monday, we regaled you out with stories of Toyota coming to grips with the “new peak oil,” and other topics related to the growing gap (or lack thereof?) between global production and consumption oil. This week I’m feeling a little less apocalyptic, and little bit more indulgent. And really, why not celebrate those precious hydrocarbons while they’re still cheap and plentiful? This Mercedes SLS AMG Black Series may burn ‘em by the bushel, but it sure sounds good doing it. And though cars like the forthcoming 650 HP Shelby Mustang GT500 prove that performance is still alive in the 21st Century, high-revving, large-displacement, naturally-aspirated V8s like the AMG Black’s are going to be facing special challenges under future emissions standards. Which makes its gargling, chortling music all the sweeter to my ears…

Volkswagen had painted a bulls-eye on Toyota and wanted to beat the Japanese by 2018. At least in terms of production numbers, Volkswagen will have Toyota beat this year. Instead, VW has to contend with GM.

The long-term new energy strategy of Volkswagen and Toyota on the other hand could have been devised in a joint planning session. Volkswagen believes that near-term, the plug-in-hybrid has a great future, whereas Volkswagen’s CEO Martin Winterkorn won’t live long enough to witness the boom of the pure electric car.

The German newspaper Handelsblatt has an interview today with Winterkorn. It echoes in large parts the interview which I had ten days ago with Toyota’s Chief Engineer Satoshi Ogiso. The two sound amazingly similar: Bullish on plug-in hybrids. Cautious on EVs. (Read More…)

Between the tsunamis, floods, and poorly-received Civic, Honda has had  a rough 2011. But the brand is hoping to put all that behind it by emphasizing its environmentally-friendly product portfolio, announcing a Fit EV which will be made available in California, Oregon and six east coast markets next summer. Unlike Nissan, however, Honda isn’t actually selling the electric commuter cars, but is offering them at a $399/month lease rate. And no wonder: Honda only expects 1,000 of these Fit EVs to find homes over the next three years, probably due at least in part to its north-of-$36k price point. Which may be why the natural gas-powered Civic GX just won the Green Car Of The Year award for Honda. It may not be as radical or purely “green” as a pure EV, but it can sell in volume… in fact, Wards Auto [sub] just reported that Honda is bumping production of the CNG Civic in order to catch up with demand. At a time when Honda is desperate for some good news (and nobody is losing their mind over the new CR-V), a little publicity for one of Honda’s most unique and under-marketed vehicles probably feels like manna from heaven…