The Truth About Cars » ngv The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Thu, 24 Jul 2014 14:26:12 +0000 en-US hourly 1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » ngv GM’s Pickup Truck CNG Conversion Costs $11,000 Wed, 18 Apr 2012 19:50:28 +0000

Compressed natural gas may cost the equivalent of $1.89 per gallon of gasoline, but retrofitting your GMC Sierra or Chevrolet Silverado will cost you $11,000 – and GM still think it will save you money.

According to GM, “…Customers could save $5,000 to $10,000 over a three-year period, depending on their driving habits.” How GM came to this number is a bit of a mystery, and we’re doing some digging to try and figure it out – because it’s a conversion, there is no EPA rating on it and data is difficult to find.

What we did notice was this little tidbit

Businesses are looking for ways to control their costs while reducing vehicle emissions and becoming less dependent on fluctuating gas prices. The low cost of ownership makes these vehicles a realistic solution,” 

$11,000 is a lot of cash for a business to tie up in one truck. In the absence of any data on how many miles it would take to break even (as well as the gas price number used to come up with it), it appears that GM is hoping to sway buyers with the prospect of unstable or rising fuel prices in the future. Emissions are almost certainly a secondary concern. It’s a wonder that GM didn’t promote the fact that CNG can legitimately claim to be a domestically sourced form of clean energy, seeing as they (barely) did back in March.

We contacted GM to try and get more information on the CNG conversion, and more specifically, how they came to their savings figures. Please leave all accusations of anti-GM bias, skulduggery and wrongdoing in the comments section.

EDIT: General Motors says that they calculated the savings based on a truck driving 24,000 miles a year, with gas prices at $4 per gallon and a CNG gallon equivalent of $2. GM’s Mike Jones, Product Manager for Fleet and Commercial Operations, thinks that there will continue to be “…a pretty significant price separation…” between gasoline and CNG.

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Low Natural Gas Prices Aren’t Spurring Demand For NGVs Mon, 02 Apr 2012 16:42:57 +0000

Even with gasoline prices reaching higher and higher, and natural gas prices at decade lows, consumers are doing as little as possible to adopt natural gas vehicles. As investment blog Seeking Alpha found out, the answer isn’t so complex.

The issue is of course, a classic chicken-and-egg problem. Looking at fleet customers as an example, a firm called PLS Logistics published a white paper on natural gas vehicles (specifically, LNG, or liquefied natural gas, commonly used in commercial applications like trucking). The biggest stumbling block by far was the lack of infrastructure available for fueling NGVs. Even in the face of substantial awareness about NGVs, as well as optimism that they will be adopted in the future in some capacity, literally no one is planning on purchasing NGVs in the next 12 months.

One interesting takeaway is that a quarter of respondents thought that there was zero price difference between diesel and natural gas. Natural gas is about $1.50 per diesel equivalent gallon (the unit used by PLS to measure an equivalent quantity of natural gas). Good news for NGVs comes in the form of a GE-backed project to build 250 filling stations for both CNG and LNG fuels - though as Seeking Alpha notes, demand for NGVs may be affected as much by low natural gas prices as high gasoline prices.

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Honda Tells Dealers: Build CNG Fueling Stations, And They Will Come Fri, 09 Mar 2012 19:05:44 +0000

This is the Honda Civic GX, a vehicle that runs on propane and propane accessories compressed natural gas. Despite the Civic GX’s title as one of America’s “Greenest Vehicles“, the Civic GX is pricey, and CNG refueling stations are few and far between – apparently there are only 830 in the entire United States, with not all of them open to the public. Honda wants to change that – but it wants dealers to bear the costs, monetary and otherwise, of building new fueling outlets.

Honda’s Steve Center, in charge of environmental business development, wants to put CNG fueling stations in at least two dealerships in California this year. Center told Bloomberg

“If the dealer had a fueling station, it would really reduce some of that concern for the customer,” Center said at Honda’s U.S. headquarters in Torrance, California. “It’s not our place to create infrastructure, but it’s a chicken-and-egg situation and we’re going to have to nurse that egg along.”

So, it’s not Honda’s place to build infrastructure - but the dealers can go ahead and do it. The costs of the project weren’t disclosed, but off the bat there appears to be some value in installing these stations; getting customers to keep coming back to the dealer can help them build relationships, sell aftermarket parts, servicing other vehicles and build good will among customers.

Honda’s pitch appears to be in the beginning stages, but one can guess how they’re going to market the CNG Civic; great fuel economy, from a clean, domestic energy source that’s also free from serious range anxiety (the Civic GX gets about 225-250 miles per tank). In addition to the dealer filling stations, there are home units available too – but they take about 8-10 hours to fill the car up (since the gas isn’t pressurized like commercial stations) and cost about $3,400 for the unit alone.

The days of Jim Cardiges and kickbacks are long over, but there’s no reason to think that there may be positive incentives to signing on with the program. Maybe there will be a better allocation of cars. Maybe warranty claims would get paid quicker. Maybe co-op advertising campaigns would get a bigger share of their costs picked up by Honda. For now, this looks like a test program, and Honda will be helping dealers get financing, incentives and approval from local governments. Yesterday’s initial article on natural gas vehicles (yes, including LPG/Propane as well as CNG vehicles) had great commentary from the B&B, particularly on the drawbacks of natural gas vehicles.  I’m confident that the increasing price of gas along with the eminently marketable angle of a domestic clean energy source means we’ll be hearing a lot more about natural gas in light vehicles, regardless of the fuel’s merits.

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