Green Cars: marketing dilemma of selling Green Cars or standard models. Green movement. Worldwide production of green vehicles.

Green theme dominates Toyko (1997 Tokyo Motor Show).

The 1997 Tokyo Motor Show highlighted several vehicles that break away from the traditional internal-combustion engine. The automobiles in the exhibition were environment-friendly and were associated with the green movement. Top automobile manufacturers such as Nissan Motor Co, Toyota Motor Co, Mazda Motor Corp and Honda Motor Corp participated in the exhibition.

Japanese makers display radical new powertrains

In a clear demonstration of their ability to master new technology and bring it to market quickly, Japanese carmakers last week rolled out a glittering array of production-ready "green" vehicles for the 1997 Tokyo Motor Show.

The exhibition was expected. But in a departure from the expected, not all of the offerings were the small commuter cars that have come to be associated with the green movement.

For example, Nissan showed the Stylish6, a large parallel-hybrid utility-wagon concept slated to go into production in 1998. Nissan also showed its R'nessa EV, a pure electric car that will be sold in California next year as the Altra. It is a large station wagon that Nissan calls a minivan. And Toyota grabbed center stage with a parallel-hybrid Corolla-sized sedan that will go on sale in Japan in December.

"This Tokyo Motor Show, automakers are showing EVs that are very practical," said Nissan Motor Co. President Yoshikazu Hanawa.

"Five or six years ago, who would have believed it possible?" he said.

So, as the global auto industry struggles to chart a course toward a future that no longer relies on the traditional internal-combustion engine, the Japanese carmakers' displays offered a look at how they intend to get there. The alternative powertrains they showed this year fall into three categories:

1. For the near term, there is a widespread Japanese interest in direct-injection engines, both gasoline and diesel, often mated to continuously variable transmissions. Those engines often provide improvements of 20 to 30 percent in fuel economy and emissions. Mitsubishi Motors Corp., a leader in the direct-injection engine movement, will install direct-injection engines in all its gasoline-powered vehicles by early in the next century, said President Takemune Kimura.

2. For the intermediate term, automakers are turning to hybrid powertrains. Those powerplants, which combine electric and internal-combustion engines, were shown in a variety of configurations. Toyota, Audi, Nissan and Honda are believed to be the farthest along in bringing hybrids to market, but other makers hinted that they are readying hybrids as well. "We will see more hybrids as we go forward," said General Motors Chairman Jack Smith.

3. Longer term, fuel-cell vehicles may be the answer. Toyota and Mercedes-Benz showed experimental fuel-cell vehicles, and several other makers are working on them.

BUZZ ABOUT THE PRIUS

The most significant car at the Tokyo show was powered by a parallel hybrid system: the Toyota Prius. While other carmakers showed hybrid powertrains or concept cars powered by them, the Prius is a production vehicle. It was displayed alongside other for-sale models, not up on a stand away from the public.

It goes on sale in Japan Dec. 10, beating a price tag of [yen]2.15 million, or about $17,900 at current exchange rates. The car drew considerable comment, especially since Toyota is selling the Prius below cost. Toyota President Hiroshi Okuda admits that the company will not earn a profit on the car even if, as expected, volume is raised to 1,500 a month from the initial 1,000 a month. Christopher Redl, Tokyo-based auto analyst for ING Baring Securities Japan, estimates that Toyota will lose $6,670 on each Prius, after capital spending and research and development costs. Nonetheless, he endorsed the decision to put the car on the market. "It's the best investment Toyota's made this year, considering they've bought a wooden-home builder and a helicopter company," Redl said.

THE PRICE DEBATE

To Mazda Motor Corp. President Henry Wallace, "the big issue that hasn't been answered is what price consumers will pay for this technology." Nissan's Hanawa agreed that the possibility of hybrids becoming a significant powertrain in Japan in the next few years depends on cost.

"The hardware is, technically speaking, completed," he said. "We plan to bring out a hybrid car in fiscal 1998. By that time, I'd like to bring down the cost. We're not in business to operate in the red."

After Toyota, Honda Motor Co. made perhaps the biggest environmental splash, displaying an internal combustion engine with one-tenth the emissions of the already-clean ultra-low-emissions vehicle. Also displayed were a natural-gas-powered Civic and a concept coupe powered by a hybrid powertrain. Honda likewise announced it will sell low-emissions vehicles in Asia next year. Honda President Nobuhiko Kawamoto said Honda's clean-car efforts are its "biggest responsibility."

"Emissions of toxic gases we can overcome with some costs, but the use of energy itself must be reduced also. We must have the reverse of the industrial revolution. This materialism embraces a structural problem in that it will exceed the earth's limits," Kawamoto said.

INVISIBLE TECHNOLOGY

Kawamoto understands the marketing dilemma behind selling green cars, which is why Honda's target is to sell cleaner ears that have no discernible difference in performance from standard models.

Kawamoto said the bottom line was not the primary concern when developing environmental technology.

"For a short time, profit may be lower. But we're looking at hundreds of years. We must have cleaner emissions for our next generation," he said.

"If what we hear about global warming is true, we have no lead time and no remedy at all."

Some industry observers viewed the Japanese environmental displays as little more than posturing before December's global warming conference in Kyoto, while others sniped that the Japanese industry was moving as a herd under Japanese governmental guidance, rather than in response to customer wants.

"This show is like this because of Kyoto," said Francois Castaing, Chrysler Corp. executive vice president for Powertrain Operations.

"And if you read between the lines, none of the Japanese inventions here today are going to the U.S. I don't believe they are ahead of anybody else."

Yet a Honda official said his company is entirely serious in its efforts.

"You heard the same things when we unveiled the ULEV Accord concept in Los Angeles two years ago, but now we're selling it. These are not just show cars. These things are going to happen," said American Honda spokesman Kurt Antonius.

BOXY DESIGNS

As show cars, the Japanese offerings in Tokyo often failed to excite. In an attempt to maximize internal space, most Japanese models were minivans and microvans, sport-utilities and station wagons. Many had boxy, squared-off rear ends. Few makers were willing to sacrifice interior space for, say, inward-pinching rear windows on station wagons. Indeed, the Subaru Exiga wagon is so wide and rectangular at the back that it uses two rear-window wipers.

Much was made of the consistent boxiness of Japanese design. A couple of Japanese designers, in fact, admitted that they were disappointed with some of their own efforts. Akihiro "Dezi" Nagaya, who designed the 1998 Lexus GS sedan series, said the Japanese economy remains in a conservative mode - which translates into conservative car design.

Neil Brooker, vice president of Samsung Design America, said Japanese design is still finding its way because it does not have the heritage of the great American and European marques. "It's maturing, but it's not there yet," Brooker said. "Usually at auto shows, them is at least one design that catches my attention. I haven't seen that here."