Cheap oil is a thing of the past. That’s why everybody and their collective mothers are trying to figure out ways to make vehicles burn less fuel. Chrysler’s working with the EPA to make nifty hydraulic hybrid transmission . . . that’s actually been around for ages.

Chrysler, along with GM, Mercedes, and BMW, spent billions developing the Hemi-based Two-Mode V8 hybrid. The system uses complex computer-controlled transmission that determines how to split power between the engine and electric motor in real time. Two-Mode hybrid systems appeared in large Chrysler and GM SUVs. They worked well, but the behemoths didn’t deliver press-worthy MPG figures. Plus, the system isn’t used in tiny commuter cars.

Enter Chrysler’s partnership with the EPA. The dynamic, publicly funded duo are co-opting a hybrid system commonly used in industrial trucks. As you can see, from the nice illustration above, it’s a hydraulic system that captures energy from braking in the form of compressed hydraulic fluid. In stop-and-go traffic the system builds up a heap of pressure, which can be used to drive the car at low speeds. When the brake pressure wanes, the engine drives a pump to keep pressure up in the system. The system actually decouples the engine from the driveline. Hydraulic pressure alone spins the wheels. That means the engine can be stopped and stared while driving, just like an electric hybrid. But there’s a huge bonus: No batteries.

Hydraulic hybrid systems have been used for ages in delivery and refuse trucks and are proven to be rock-solid  and very efficient.

Chrysler is testing their system in a Town & Country minivan with a 2.4-liter inline four. No word on how much gas the system saves, but Chrysler has high hopes. If it pans out, the system could be a great way to increase fuel economy without decreasing power or increasing cost (that much).

Source: The Truth About Cars, Chrysler

The Edison2 Very Light Car (VLC) positively stomped the competition a few months ago during the Progressive Insurance Automotive X-Prize challenge, returning an impressive 102.5 miles per gallon on E85 ethanol. Now the aeronautical four-seater is at the North American International Auto show in detroit to show off its wind-cheating body and hyper-efficient engine. Hit the jump to see a video tour by engadget.

The Edison2 VLC was designed to be insanely efficient. It has a steel-tube chassis and a carbon fiber body. Every part of the automobile was is simple and lightweight. Your typical lug nut weighs about an ounce. A VLC lug nut weighs one-tenth of an ounce. Total weight of the VLC? 800 pounds.

But ultimate efficiency isn’t just about (lack of) weight. The VLC has one of the most aerodynamic bodies ever conceived. And indeed, it looks like the offspring of a Leer jet and a bullet, which means it disturbs nary a molecule of air as it sails down the road.

Motivation is provided by a turbocharged one-cylinder engine that runs through a six-speed sequential gearbox. The engine generates 40 horsepower and 29 foot-pounds of torque, which is just enough to get you around. But straight-line performance isn’t what the VLC is about. Efficiency comes first, followed, surprisingly, by handling prowess. Despite its skinny, low-rolling-resistance tires, the VLC pulls 1.18g on the skidpad, matching the Pagani Zonda C12 S.

Check out this walk-around video tour to get a better idea of what the VLC is like in person. Personally, I think it’s great and would love to drive around town in one. All it needs is a HUD and a few heat-seeking missiles.

Looking back on 2010, it was one hell of a roller coaster. Like any other year, it had it’s good times and bad times, but the good times seemed fewer and farther between than in years passed. On the automotive front, enthusiasts got some great new choices, greens got the first modern mass produced electric car (and the first serial hybrid) and everyone else got improved quality and reliability. Car sales were up, despite a down economy, and both Audi and Hyundai posted record years. GM proved that they’re well on the way back to financial health, and Ford continued their growth in market share. Even Chrysler rallied in 2010, introducing the new Jeep Grand Cherokee, the Fiat 500 and the revised 2011 Charger and Challenger.

If 2010 was a roller coaster, I’d expect more of the same in 2011. I’m not reading tea leaves here, and I’m not posting any predictions with political motivation. From where I sit, this is what I expect to happen in the next 12 months. I wouldn’t start building that Unimog for the zombie apocalypse just yet, but it would probably be a very good idea to make yourself a go bag and come up with an evacuation plan, just to be safe. In no particular order, here’s what I expect to happen in 2011.

Gas will top $4.00 per gallon. Maybe it’ll be tied to a natural disaster, or maybe it’ll be tied to increased demand from China or India, but whatever reason the oil companies give us, expect the price of gas to begin it’s migration upward. I’m not sure it will stay there long, but I’d expect $3.00 per gallon pricing to become the new norm. Plan accordingly.

The Fisker Karma and the Tesla Model S will both see “production delays”. In fact, I’d be surprised if the Fisker Karma ever sees production, and the Tesla Model S’ viability depends on the relationship between Toyota and Tesla. If Toyota decides an all-electric Camry is a top priority, expect the Tesla Model S to get put on the back burner.

Recalls: expect lots of them. The Toyota recall debacle has left everyone in the auto industry gun shy, and no one wants to be the next company to receive record fines. If you thought 2010 had a lot of recalls, just wait for 2011 and beyond.

Implementation of new CAFE standards will be delayed. We may see the jump from a 27.5 MPG requirement (for passenger cars) to a 30.3 MPG requirement in 2011, but I don’t expect that the current mandate of 39 MPG by 2016 will remain unchanged. A cost effective technology that’s applicable to everything ranging from commuter cars to sports cars simply doesn’t exist, and automakers will ramp up pressure on politicians in the coming year.

The downsizing of horsepower. I suspect that 2011, or maybe 2012, will be the end of the current horsepower race. Cars like the 556 horsepower Cadillac CTS-V can’t exist in a politically correct society, and Cadillac will need to sell an awful lot of ATS hybrids to offset a single CTS-V. Like it or not, the future belongs to hybrid drivetrains and small displacement turbocharged motors. If you want a Mustang GT or a Camaro SS, I wouldn’t wait beyond 2012 to buy one.

Am I right? Am I crazy? We’ll know for sure by the end of next year, but I’d love to have your thoughts on the above predictions.

To absolutely no one’s surprise, the price of gasoline is on the rise again, just in time for the holidays. The driving factor is the current price of crude oil, which has now topped $90 per barrel. It doesn’t matter that the gasoline already in the system was refined when oil was less expensive; what matters is that people drive more at the holidays, so retailers can charge more for the product. In fairness, I’m sure gasoline suppliers are charging more to the retailers already, so feel free to pass the blame up the food chain. I know from first hand experience that the gasoline retail business is not for the faint of heart, and only casinos are more relentless in their pursuit of profit than oil companies.

Most of us can absorb a pretty significant increase in the cost of gasoline without any major re-budgeting. Still, there comes a point when you have to take a step back and ponder your options, which may include driving less (fat chance), taking public transportation (if available to you) or even buying a more fuel efficient vehicle. I used to drive around 45,000 miles per year, including 27,000 miles per year just for my commute. At $2.85 per gallon for premium unleaded (in 2007) and with a fuel economy of 26 miles per gallon, I was spending nearly $5,000 per year on gas. Had the price of gas risen by $0.50 per gallon, my costs would have increased by nearly $800 per year, or roughly $67 per month. That would have translated to one less dinner out, but really wouldn’t have changed my life much. At $5.00 per gallon, however, it would have been an entirely different story, and the car would have been parked for all but essential trips. I’d have been racking up miles on the motorcycle, which averages better than 40 mpg.

I suspect we haven’t reached the tipping point yet, at least not for most people. Historically, gas goes up in price, then it comes back down, so most people choose to wait it out and maybe drive a little less when gas is expensive. Here’s my question: what do you pay for gas in your area (regular or premium), and at what point would you start considering other options for transportation? At what price would you consider buying a more fuel efficient car, or even a hybrid? Is there a price at which you’d call gasoline “too expensive”?

Remember a few years back, when fuel prices closed in on the $4.00 per gallon mark, and naysayers told us it was the beginning of the end? We were either at or approaching peak oil, and gas prices were sure to continue their upward trend. Suddenly, buying a Smart franchise seemed like a sensible thing to do, but by the end of summer 2008, the madness had passed. Gas prices returned to normal levels, below $3.00 per gallon, and U.S. consumers (those who were still employed, at least) went about business as usual.

Americans either aren’t learning from the lessons of the past, or we aren’t too concerned about them: Left Lane News tells us that large SUV sales are up by 11% at GM and 28% at Ford year to date. Overall, the industry is reporting growth of 20% in the segment, surprising all but the product specialists behind the big SUVs. Mark Clawson, Chevrolet’s marketing manager, was quoted as saying, “Unless the country decides to limit people to only having two kids, only having one activity and not having things like snowmobiles, jet skis and boats, then there will be some people who will still want these vehicles.” In other words, large SUVs are just like potato chips: crunch all you want, and they’ll make more.

Expect manufacturers to focus on improving fuel economy in large SUVs over the next few years, via a mixture of smaller displacement turbocharged motors and expanded hybrid drivetrain offerings. I’d love to see turbodiesel motors worked into the product mix, but don’t expect that to happen any time soon. U.S. automakers are still convinced that Americans don’t want diesel motors, largely due to diesel fuel’s high cost on these shores.

Remember the old “eat here, get gas” gag? Suzuki is offering a “buy here, get gas” program for U.S. customers. Buy any new 2010 Suzuki model between May 1 and August 31, and Suzuki will give you a prepaid gas card good for the estimated amount of fuel that vehicle will use over a three month period. The value of the prepaid card ranges from $280 to $442, depending upon the EPA mileage estimate for the model purchased.

Per Koichi Suzuki, executive vice president of American Suzuki Automotive Operations:

“Suzuki recognizes the economic challenges Americans continue to face and thought this promotion was a great way to provide relief for car buyers. Working through our U.S. dealer network, we’re happy to extend this program to consumers across the country, providing potential buyers even more reason to consider purchasing a Suzuki during the summer shopping season.”

The program includes Suzuki’s highly regarded Kizashi, a mid-sized four door sedan available with FWD or AWD. Unlike Suzuki’s of the past, which targeted niche and entry level markets, the Kizashi is meant to appeal to a more mainstream buyer. We’ll have a writeup on the 2010 Kizashi in the near future.

Source: Suzuki Offers Free Gas For Summer

No one knows exactly how much oil is left hidden beneath the earth’s surface, but we can all agree on one thing: it is a finite supply. The U.S. military is well aware of this, and is looking at developing alternative energy solutions for troop and material deployment to preserve the fossil fuel we have left. As you’d imagine, the Department of Defense probably has more than a few people assigned to the task of projecting just how much fermented dinosaur juice remains untapped. Their recent findings don’t bode well for those of us who enjoy the sound of a V8 at full throttle.

Per the D.O.D’s less-than-optimistic projections, surplus oil production will cease as soon as 2012, with production falling behind demand to the tune of 10 million barrels per day by 2015. Worldwide demand for oil is expected to exceed 86.6 million barrels per day in 2010, exceeding the record of 86.5 million barrels per day set in 2007, before the global economy was flushed down the crapper. Add in the growing demand for automobiles in places like China and India, and you can safely bet that worldwide demand for fossil fuel isn’t going to be decreasing any time soon.

Let’s hope that these projections are truly the dire worst case; after all, our military isn’t known for viewing the glass as being half full. As unpleasant as it may be, I can learn to embrace a future without gasoline powered cars and motorcycles (once the bugs are worked out of electric vehicles, of course). It’s the rest of the baggage associated with the collapse of the oil industry that concerns me.

Source: US Military Sees Massive Oil Shortages As Soon As 2015

Driving naked saves weight

Oil prices have once again topped $80.00 per barrel, so if history is a good indicator, we’ll soon be paying $3.00 per gallon at the pump. Despite what the tiny ads in the back of Popular Mechanics claim, you can’t double your fuel mileage by magnetizing your fuel line. You can’t ‘grow your manhood’ by taking pills, either, but that’s a topic for a different blog.

Money’s tight for all of us these days, and you can only cut back on your driving by so much. Want to keep a little bit more green in your pocket? Follow the advice below, after the jump, and you’ll see a noticeable reduction in your weekly fuel bill.

Inflate your tires

Tires are the most overlooked part of any car. Unless one is flat, most drivers ignore them until it’s time for new ones. Want to get better mileage? Make sure your tires are inflated to the pressure recommended by the manufacturer. This info is in the owner’s manual, and it’s also located on the door frame or inside the fuel door. If you don’t mind a harsher ride, it’s OK to inflate tires a little more than manufacturer’s recommend, but don’t go more than 2 psi higher per wheel.

Tires will lose air over time, so check them monthly. We’ve told you how before, but here’s a friendly reminder – always check tires cold, before you’ve driven on them. If you forget, wait three hours for the tires to cool before setting the pressure.

Change your air cleaner

Air cleaners are another often overlooked part, since today’s cars can go much longer between tuneup intervals. I change my air cleaner every 10,000 miles; if you can’t remember the last time you changed yours, it’s probably overdue.

Change your oil to a synthetic and run the thinnest grade you can

Manufacturers are very careful to specify what oils can be used in your vehicle, and typically there is more than one choice. Unless you’re towing a boat or a trailer, or driving at wide open throttle across the desert, you can squeeze out a few more mpg by opting for a lower viscosity oil (choosing 0w20 over 5w30, for example).

Synthetic oil is more expensive than the cheaper petroleum based stuff, but it lasts longer between oil changes and does give you a slight increase in mpg. Don’t want to spring for the good stuff? At least make sure you change your oil at factory recommended intervals.

A few words of caution here: if you manufacturer specifies synthetic oil, use it. Don’t cheap out and try to get by with petroleum based oils, because there’s a reason the manufacturer’s engineers want you to use the good stuff. Also, make sure you follow the owner’s manual for you car. If it doesn’t say that 0w20 oil is safe to use, then don’t use it.

Shut your engine off at long traffic lights

Here in Jacksonville, we’re cursed with more traffic lights than any other city I’ve ever seen. Some of these, especially at off hours, are ridiculously long, in excess of three minutes per cycle. A five mile cross-town trip can take you thirty minutes if you hit the lights wrong, and that’s a lot of time for your engine to be idling. Assuming you have a good battery, put you car in park (with an automatic transmission) and turn it off at traffic lights that have cycles longer than two minutes. When you see the light in the opposite direction go from green to yellow, start up your car again. It takes less fuel to start a car than it does to keep it running.

Short shift

With a manual transmission or a shiftable automatic, you can shift gears at a lower RPM to save fuel. Don’t shift too soon, since lugging the engine can cause premature wear on expensive parts. As a general rule, shift at 3,000 RPM. If your car accelerates smoothly in the next gear, you’re fine. If it bucks or strains to accelerate, shift at 3,500 RPM next time.

Also, avoid downshifting where possible. Keeping the car in the highest usable gear will save fuel.

Avoid using A/C and electronics

Tough call on this, since a car with the windows down will get worse mileage than one with the windows up and the A/C on, especially at high speeds. Lowered windows change a cars aerodynamic profile and create drag, which reduces fuel mileage. At low speeds, this is less of an issue.

Use your A/C sparingly, and try to limit the use of plug in chargers for phones, laptops, DVD players, etc. Any device that draws current (including the radio, vent fan, defroster, headlights, etc.) will put additional demand on the motor and reduce fuel mileage by a fraction of a percent. Every little bit helps though, right?

Reduce your speed

For me, that’s just crazy talk. If you can resist the temptation to launch your car from traffic light to traffic light and accelerate gently, you’ll boost your mpg. Or so I’m told.

Add lightness

Colin Chapman was right – adding lightness makes a car go faster and boosts your mpg. It never ceases to amaze me how much unnecessary crap people haul around in their vehicles. That portable jump starter that you got as a Christmas gift two years ago and haven’t ever needed? Pull it out. That rear cover that hides the contents of your SUV or station wagon? Unless you’re shopping for Christmas or birthdays, pull it out.

The more you can reduce the weight of your vehicle (and its driver), the more fuel you’ll save.

Use cruise control

If you’re driving on the highway (in dry weather), use cruise control as much as possible. Cruise control does a much better job of maintaining a constant throttle setting than the average driver can. Constant throttle, with little acceleration or deceleration, produces the best mileage.

Never use cruise control in the rain or on slippery surfaces, as it can lead to a loss of control if one wheel loses traction.

Advanced drivers only: big rigs are your friend

I’m not advocating tailgating, especially not for the untrained driver. However, following a semi at the closest possible safe distance will reduce your fuel consumption. Try this: approach a tractor trailer on the highway. At a few hundred feet behind them, you’ll feel buffeting caused by “dirty” air coming off the back of the trailer. As you continue to drive closer, the buffeting will be reduced. The trick is finding the pocket where you’re getting as little buffeting as possible while maintaining a safe following distance from the truck.

DO NOT attempt this while texting, talking on the cell phone, programming your GPS, checking email, eating breakfast / lunch / dinner, shaving, applying makeup, reading the paper or milking the one-eyed gopher. If you can’t give your full and undivided attention to driving, just back off and join the rest of the lemmings.

Honda is planning on giving the Toyota Prius a challenge…..again. Although the consumers have spoken and proved that they prefer the Prius rather than the Honda Insight, Honda is not willing to wave the white flag.

These numbers do not lie……

2009 Honda Insight Sales: 20,572

2009 Toyota Prius Sales: 139,682

Honda Insight MPG City/Highway: 40/43

Toyota Prius MPG City/Highway: 51/48

Can you blame drivers for choosing the Prius over the Insight? Let’s just say the average American drives 12,000 miles a year, and the average gallon of gas costs $2.75. We could save ourselves a decent chunk of change with the Prius. Even though the Prius is slightly more expensive, with the amount of complaints we have seen about the Insight, it makes the price worth it. Honda needs to step their game up. They have already worked up a new advertisement campaign for the Insight, and they are also looking farther into the future in hopes of eclipsing the famed Prius. Honda CEO Takanobu Ito alledgedly has told his researchers to develop a hybrid that has a better miles per gallon rating than the world’s most beloved hybrid(Prius). If the the next hybrid is going to be an improvement to the already establish Insight or a brand new design is unknown right now but its going to have to be something quite impressive to knock off the reigning champ.

GM’s announcement that they’re closing the Pontiac (the city, not the defunct brand, in Michigan) truck plant after 37 years puts a big fat “!” at the end of news that truck sales have fallen off to their lowest point since Reagan was in office. High margin pickup trucks were the bread-n-butter of Detroit’s strategy since car buyers defected to the Japanese in the ’80s and ’90s, making up 15% of all light passenger vehicles being sold. That percentage has now dropped to 10% of the market, and unless something drastic happens those numbers are expected to slide further.

The bottom line is that the customer demographics are shifting; it’s professionals like contractors and construction workers who are becoming the bulk of the buyers, rather than the daily-driver “lifestyle” suburban buyers that flocked to conspicuously consume big trucks in the past 15 years. Case in point, the Cadillac Escalade EXT pictured above – completely worthless as a work truck, it’s all “lifestyle” all the time. And that’s why sales of the EXT have dropped off of a cliff, from a high of 13,000 units in 2002 to the insignificant 4,700 units sold last year. The days of cheap gas (and the attendant gas-powered toys) are over, at least for now, and it looks like the biggest casualty will be domestic automakers’ bottom lines.