Challenging Hybrids’ Hegemony

audi1Audi woos green consumers with luxury and fuel efficiency

By Corey Scholibo

With Main Street still not recovered from the recession that swept the country in early 2009, ostentation has taken a backseat to more earthy values—at least in some circles. Whereas “old American luxury” was epitomized by McMansions, yachts and gas-guzzling SUVs, an Audi rep explains, the “new luxury” will be a more “progressive luxury,” with smaller homes and cars (an Audi in this scenario, of course), “a sense of Zen” and “new-age values.” There will be no shortage of people wealthy enough to afford luxury cars, Audi believes, but consumers will be spending their cash on brands that don’t scream, “Look at me.” Perhaps more importantly, their purchases will be dictated, or at least informed, by a sense of global responsibility.

Eclipsed by Lexus, BMW and Mercedes, Audi is an also-ran for the luxury crown and until now has been a non-contender in the eco market. However there is an understated elegance to Audi that lends itself to a more utilitarian, post-real estate boom aesthetic. Increasing their market share means appealing to the green-conscious contingent, but Audi has gone about it in a way that seems strange to American consumers. While rivals have been rolling out hybrids and promoting plug-ins, Audi’s short-term solution for the environment is distinctly low-tech: diesel.

“When American’s think of diesel they think of big rigs and trucks,” says Chas Murphy, product manager for Audi of America, “they don’t see the clean diesel that we see in Europe.” Audi is manufactured in Germany where, like the rest of that continent, the more efficient diesel has been widely available for years. Diesel engines don’t get us off fossil fuels, but they use less fuel to achieve the same amount of energy (on average, about 30 percent better fuel efficiency than gasoline), and the engine life is nearly double that of a traditional gasoline engine. Old diesel engines were louder, smellier and pricier than gas-fueled vehicles, so although a shift was attempted in the 1980s, following the gas shortages of the previous decade, diesel never caught on.

Since that time vast improvements have been made to the diesel engine, and it was Audi that introduced the first TDI version in 1989. TDI stands for Turbo Direct Injection, and refers to the way in which the fuel is delivered to the engine—directly, at very high pressure. This system increases performance and cuts down on emissions because the pressure atomizes the particles associated with combustion, lowering the residue and therefore the emissions.

“It wasn’t a conscious decision to choose one over the other, hybrids versus diesel,” explains Murphy, “but we were leaders in TDI, and if anyone could introduce it to the United States, it would be us.”

audi3Weighing the Options

While he doesn’t think of it as an end game, John O’Dell at Edmunds, the popular consumer car site, thinks diesel in the near term cannot be overlooked. “Diesel can be, particularly with the fuel standards and the new NOx filtrating systems, every bit as green, and possibly more so than a hybrid.”

All engines emit NOx, or nitrous oxide, a greenhouse gas, though diesel engines emit more. However, in the Audi filtrating system the gases pass through filters and oxidizers that convert the nitrous oxides into simple nitrogen and water, reducing NOx emissions by 90 percent.

“Also, it depends on how far back the food chain you want to go,” O’Dell elaborates. “Look at the nickel mining of hybrid batteries, for instance; and you still burn gasoline in a gas-electric hybrid. It is only when you get to fuel cell that you get rid of the on-board consumption of a petroleum-based or biofuel, and people forget about that.”

Though Audi isn’t downplaying the future of hybrid—Murphy says we can expect to see hybrid and electric vehicles from Audi in the next two years—what the company is maintaining is that hybrids are not the only way to go. “For instance, there is a distinct weight advantage diesel engines have over hybrids,” says Murphy. “Most hybrids have to have two full power trains, one for each system, and that adds to the overall weight of the vehicle,” which increases fuel consumption. Audi’s new R8 sports car is made entirely from aluminum, and lightweight aluminum body parts are standard components in many of the company’s other cars.

Fuel Efficiency Factors

Hybrids have seen their market share jump since gas prices rose last year, but many hybrid models have been add-ons to previously existing lines of SUVs and large passenger vehicles, so while their fuel efficiency has been increased, they’re still being surpassed by smaller non-hybrids. Additionally, life expectancy concerns about the production and disposal of hybrid batteries, some of which are made from lead and nickel, have also caused many consumers to hesitate. The concept of a hybrid goes far in assuaging the conscience of the eco-conscious consumer, but as Murphy points out, “You can get to efficiency in a lot of different ways.”

To that end Audi is introducing their all new A3 TDI, a passenger sedan that will get 42 miles per gallon on the highway, comparable to many hybrids currently on the market, and impressive even to Paul Scott, vice president and co-founder of Plug In America, a nonprofit that promotes and advocates for plug-in cars. While Scott says he doesn’t want to encourage people to buy any car without a plug on the end of it, he admits that choice is pretty limited, citing only the $109,000 Tesla Roadster as an option for consumers at the moment. Plug-ins also have to draw their power from somewhere, and it’s not always renewable sources like wind and solar. Though Scott encourages people to wait a couple more years till more plug-ins are on the market—Nissan will debut the zero-emission Leaf in 2010, but a full eight-hour charge will buy only 100 miles in range—he understands that the idea is not practical for everyone and why diesel has become a bridge fuel.

“I like Audis. I like their cars, their styling, and switching to anything that improves efficiency is a good thing,” Scott concedes. “I will take a minor improvement.”

Of course there are several determining factors in a car’s fuel efficiency that are actually in the hands of drivers, and the new Audi helps drivers to get there. The optional side assist feature, a small light in the side view mirrors that comes on when someone is in the driver’s blind spot, prevents unnecessary braking and traffic interruption. “[Traffic] is like a river flowing,” explains Jae Min, chief designer at Audi Design Center California. “The goal is to keep everyone moving along smoothly with few interruptions.” Additional cameras for backing up and to help prevent quick braking are intended to cut down on the overall need to re-accelerate, not only for the driver but also for surrounding vehicles.

The Bigger Green Picture

Audi is making big efforts to be a greener manufacturer. They’ve sunk $7.5 million into the newly created Audi Environmental Foundation, which they hope will take their efforts beyond the world of automobiles; have pledged to cut emissions 20 percent by 2012; and ship cars as much as possible by rail.

They’ve also cut down on C02 use in the construction and manufacturing phase. Scrap metal being sent to recycle is crushed into tiny cubes, so that subcontracted transporters will use less fuel (and reduce fuel costs in the bargain, a saving that brings no financial gain to Audi).

All of their paints are water based, and contain no lead and minimal solvent; and using robots to apply the solvent saves 10 percent on solvent emissions per vehicle. The air is extracted after painting to create a thermal burn-off process, and the heat is used in the drying ovens. Audi does not use chromium, a toxic chemical traditionally employed in leather tanning, and is a leader in LED lighting, which is available inside and out for all of their vehicles. More than 90 percent of the waste produced by its plants is recycled, and the cars themselves are 100 percent recyclable. For their new A4 they created a process called SiCon, a system for shredding vehicle components and separating/refining them into materials that can be used as secondary raw materials in things like fluff for seats and insulation. Glass components are made into sand.

Many of these practices are not necessarily distinct from those of other car manufacturers, but for a smaller car maker that is seeing growth, even during the recession, they are important. In addition, BMW recently started promoting its diesel models in the United States, a sign of consensus on the diesel question.

Nevertheless, the company unveiled a new electric sports car concept at the Frankfurt auto show in September, and is introducing a hybrid version of the Q5 SUV in 2011. Neither hybrids nor diesel are the long-term solution, but until technology catches up with us, Audi’s betting their efficient, high-end performance vehicle will be a more satisfying solution for some savvy consumers.

—L.A. journalist Corey Scholibo can’t wait for plug-in cars.