Toyota Hedges its Bets on Plug-In Hybrids (Part Two)

(MoneyWatch)  My post earlier this week on Toyota's problems with plug-in hybrid cars apparently hit a nerve with a lot of readers. Yes, some influential voices in the American branch of the company question whether plug-ins make sense--largely because they add weight, cost and complexity.

But Toyota spokesman John Hanson, after reading the earlier post, says the company's position is actually more nuanced than that. "We have an important global Prius [plug-in hybrid] 'demonstration project'--beginning later this year. We wouldn't be investing so much if we didn't consider it viable and promising."

The obstacle, Hanson said, is that "due to the high cost of lithium batteries, the cost premium may not justify the all-electric feature [for] customers with long commute cycles. And many customers will simply not have access to charging stations--some not even at home."

Some of these same objections are raised in academic reports from Duke and Carnegie Mellon Universities. Duke expresses concern about increased electricity demand from large fleets of plug-in hybrids, and Carnegie Mellon said that larger plug-ins, with 40 miles of all-electric range, "do not offer the lowest lifetime cost in any scenario, although they could minimize greenhouse gas emissions for some drivers and provide potential to shift air pollutant emissions away from population centers."

Toyota will start leasing a fleet of 500 plug-in hybrids in Japan, Europe and the U.S. by the end of the year. The company does have a history of skepticism about plug-in hybrid cars. The late Dave Hermance, executive engineer for advanced technology, made that a regular theme.

But Felix Kramer of CalCars.org, a tireless advocate for plug-in hybrids, points out that Toyota "doesn't offer equivalent objections to any other solutions it advocates." He thinks the company will change its position when plug-ins are rolled out and become a success in the marketplace. Kramer's more detailed thoughts are posted in response to my earlier story here.