Modern Energy Roundup - September 25, 2012

Claiming the company misread the market, Toyota (NYSE:TM) is scrapping its plans for a global roll-out of an electric mini-car called the eQ.

To be honest, I’m not particularly surprised. Toyota has not been very aggressive, or interested really, in pursuing the electric vehicle (EV) market. And I get it. When it comes to delivering a superior conventional hybrid vehicle, Toyota still runs the show. The Prius is one of the most popular vehicles in the marketplace, with more than 3 million units sold since the hybrid superstar first launched.

My point is, it doesn’t need EVs to lure fuel economy-conscious drivers into showrooms.

Look, it’s no secret that when gas prices head north, so do Prius sales.

Hell, back when oil crossed the $140 mark and gasoline was well over $4.00 a gallon, folks were running to Toyota dealers and paying above sticker price to get one of these vehicles. Even today, boasting 50 miles-per-gallon can certainly help provide a nice hedge against unstable gas prices.

So when it comes to superior fuel economy, Toyota’s got a good thing going. And I suspect the company has no interest in pouring a bunch of capital into EV development, when all it has to do to keep fuel economy-conscious drivers coming in, is continue to inch those miles-per-gallon up every few years with Prius upgrades.

That being said, I do wish company reps would back off the anti-EV rhetoric – however subtle it may be.

Here’s what I mean. . .

In response to this recent decision, Toyota’s vice chairman Takeshi Uchiyamada said:

“The current capabilities of electric vehicles do not meet society’s needs, whether it may be the distance the cars can run, or the costs, or how it takes a long time to charge.”

Do not meet society’s needs?

Roughly 70 percent of US consumers drive no more than 40 miles per day. Every all-electric car from a major automaker on the road today can deliver that – and then some.

How long it takes to charge?

This is such a bullshit argument. Every EV owner I know charges while he sleeps, wakes up, drives to work, returns home and plugs back in. It ain’t rocket science, and unless you only sleep for four hours a night, long charging times are really not the deal-breaking issue that some would have you believe.

Look, the thing is, Toyota doesn’t need to come at it this way. The company does not need to justify its decision to anyone. And certainly management doesn’t need to recite the tired and inaccurate arguments of the anti-EV brigade.

Truth is, Toyota has done a lot to help integrate fuel economy into the car-buying lexicon. The company charged forward with its hybrid offerings when a lot of folks mocked the technology and the ability of Toyota to even make it work economically.

The company proved the naysayers wrong, and today Toyota gets the last laugh.

So if Toyota decides not to pursue electric vehicles right now, that’s fine. This doesn’t change my opinion of the company or of the Prius, which is a superior vehicle. And it definitely doesn’t change my opinion regarding Toyota’s leadership role in providing vehicles that can help us reduce our foreign oil consumption.

But putting out those careless and untrue comments about the electric vehicle market? Come on, Toyota. You’re better than that!

Modern Energy Roundup – September 25, 2012 originally appeared in Green Chip Stocks. Green Chip Review is a free 2x-per-week newsletter, is the first advisory to focus exclusively on investments in alternative and renewable energies.