Asian Companies Spark Emissions Initiatives with Hybrid Cars

After a month on the road, all my news and interests are still focused on Asia. There is a tremendous amount of discussion in the Asian media about emissions and what to do about them, which is why I find it so easy to meet with global companies that have an Asian presence. But one of the emerging problems in Asia is relatively new: emissions from automobiles that contribute to global warming.

Automobiles have grown in both popularity and affordability in Asia over the past two decades. In China, where everyone used to ride a bicycle, and in India, where there are still cows in the road, a growing middle class is becoming addicted to the automobile as we in the U.S. have always been.

Asian companies are trying to take a leadership role, however, in controlling their emissions, and one of the best efforts has been made by an automobile manufacturer who has actually ridden to greater popularity on the heels of emission control initiatives. Toyota, the Japanese auto manufacturer, upended the automobile market when it released the hybrid Prius, which gets 60 miles per gallon, according to the company. Toyota sold 300,000 Prius models last year and plans to sell a million a year by 2010.

Toyota also released a hybrid version of its Lexus SUV last year, a hybrid Toyota Highlander, and has just extended its product line to a hybrid Lexus luxury sedan.

The Lexus buyer is the man (woman) at the head of his (her) company, not the person who can’t afford rising gas prices. The hybrid luxury cars sell because at the top of every enterprise is someone who understands the issues involved in climate change and has the responsibility to shareholders for governance, risk and compliance. This person is moving toward personal lifestyle changes. Toyota expects to sell 7,000 hybrid luxury sedans next year worldwide – 4,000 of them in Japan.

What will this do to the rest of the automobile industry? In America, we seem to be counting on ethanol, but if every ear of corn in the U.S. went to make ethanol, we would not meet 20 percent of our needs for fuel. When are YOU planning to switch to a hybrid vehicle?

Add comment May 17th, 2007