Honda is now offering a $500 rebate to customers who purchased a Civic Hybrid between 2003-2007 but aren’t happy with the gas mileage they are getting. This offer, which must be used towards the purchase of a new Honda (alternatively you can take $100 cash) is the result of a lawsuit by musician and disgruntled Honda Civic Hybrid (HCH) owner John True. True said he was only able to achieve 32 miles per gallon on his vehicle.

American cars with turbochargers are currently few and far between, but that may soon be changing. While a significant and sustained increase in the price of fuel would greatly boost demand for turbochargers, auto manufacturers’ need to comply with carbon emissions and fuel economy targets will be the primary drivers of the domestic turbocharger market. When compared with cars with similar horsepower, those with turbocharged smaller engines can reduce emissions by 20 to 40 percent, and can increase fuel economy by 15 to 20 percent.

As is often the case, the U.S. lags Europe in adoption of this technology, partly because it has primarily been used with diesel engines. Turbochargers are now used in about half of all European cars. By comparison, U.S. penetration is at just five percent.

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In recent years a greater emphasis on MPG during car shopping has emerged. Between fluctuating gasoline prices, a broader selection of hybrid vehicles, and the promise of plug-ins and battery electric vehicles, and mandated increases in CAFE standards, fuel economy is becoming an important vehicle characteristic for many consumers.

Makers of ICEs are looking to accentuate the efficiency of many of their “traditional” models to meet federal requirements and better compete with hybrid vehicles. This includes the addition of a turbocharger, which enables manufacturers to use smaller engines while increasing fuel economy by up to 20 percent. Turbochargers reduce emissions as they burn exhaust gas as fuel, and also provide additional power for acceleration.

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The combination of electric motors and diesel engines has worked well in locomotives and heavy trucks for years, but carmakers haven’t been successful in getting beyond the concept car stage for light duty vehicles. Five years after I started writing about the potential for diesel hybrids, the passenger vehicle market is still relatively quiet — but that at last may change.

The premium paid for diesel engines and additional cost of an electric motor has scared off auto manufacturers. However, the two powertrains have compelling complementary performance characteristics. For city driving, electric motors (powered by batteries that recapture energy from frequent braking) provide needed acceleration. Diesel engines thrive in comparison to gasoline engines when hauling heavy loads and maintaining highway speeds.

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Detroit car makers would increase profits by $3 billion annually and significantly boost sales if they improve the fuel economy of their vehicles by 30 percent to 50 percent, according to a new study.

Conducted by the University of Michigan’s Transportation Research Institute, the study found that a major reason for the precipitous decline of Detroit’s sales and profits in recent years was the refusal of the Big Three automakers to recognize the importance of fuel economy to consumers. That failure meant the steady loss of market share to foreign car companies whose vehicles got significantly better mileage, the study said. Had the Big Three paid attention to their own market research showing the importance of fuel economy, “they would not be in Chapter 11 today,” said a co-author of the study.

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