Special Report January 10, 2008, 1:55PM EST

Fear and Loathing and Green Tech in Detroit

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That's the kind of mojo the Big Three need. Toyota has a strong lead, both in building green cars and branding itself as a green car maker, but Ford and GM are pushing to close the gap. This fall, Ford will launch the first in a series of smaller engines it is calling gas turbocharged direct-injection, or GTDI, engines, (BusinessWeek.com, 8/14/08), and GM is spending millions developing hybrid technology (BusinessWeek.com, 11/14/07) aimed at vaulting ahead of Toyota.

The hybrid bandwagon has gotten so crowded that critics such as the Union of Concerned Scientists are warning that the term "hybrid" is being thrown around loosely. The Washington (D.C.) environmental watchdog group says automakers are pushing hybrid technology as a marketing tool, without getting the maximum advantage in fuel efficiency or reduced emissions.

Hybrids No Longer Just a California Fad

Even Toyota gets some of this criticism. The UCS considers the Lexus RX400h (BusinessWeek.com, 7/13/07) from Toyota to be what the group calls a "muscle hybrid," since its electric motor mostly just improves the performance.

Nevertheless, demand for hybrids and other alternate-fuel vehicles can no longer be dismissed as a fad confined to Southern California. Alternate-fuel vehicles are front and center for the Detroit auto show, including fuel cells, battery power, biomass, clean diesels, and a growing variety of hybrid models that combine traditional internal combustion engines with electric motors.

The green theme is so pronounced that the usual macho auto show fare, such as the 620-hp Corvette ZRI (BusinessWeek.com, 12/28/07) looks practically Neanderthal in comparison, even though it incorporates a lot of high technology derived from racing. Naturally, the public will see many more conventionally powered cars than alternate-fuel ones, but the public-relations effort behind the press introduction shows the message automakers are trying to convey.

No National Infrastructure to Deliver Hydrogen

There will be plenty of competition, of course. Toyota will show a hybrid compact pickup called the A-BAT concept (BusinessWeek.com, 12/28/07). Its gasoline-electric hybrid power train is similar to the Toyota Prius.

Other alternative-fuel concepts on display include the fuel-cell-powered Cadillac Provoq, which is a crossover SUV targeted at affluent consumers who want to be "green," but don't want to squeeze themselves into an econobox.

However, there are big issues to overcome before fuel cells can be made widely available, namely the lack of a national infrastructure to deliver hydrogen at retail filling stations. In addition, there are ongoing efforts to improve the cost and performance of both the on-board tanks used to store hydrogen and the batteries used to store electricity in fuel-cell cars.

Strict State Rules Have Hurt Diesels in the Past

So-called clean diesels are another high-mileage alternative. Diesel fuel has the virtue of being widely available at existing gas stations, but diesel passenger cars have not yet lived down their reputation from the 1980s for being noisy, smelly, and underpowered.

Cars like the upcoming Mercedes-Benz GLK from Daimler (DAI) should help start to change that. In Detroit, Mercedes-Benz will show the Vision GLK, a small diesel-powered SUV that will be virtually identical to the production car scheduled to go on sale later this year.

Until this year, stricter state air pollution rules meant diesels could not be sold in New York, California, Massachusetts, Maine, or Vermont, but cleaner diesel fuel and improved technology will allow "50-state" diesels this year. Modern, clean diesels are virtually undetectable, compared with previous technologies.

Chrysler's Jeep Div. will show a diesel model, the Jeep Renegade Concept, in Detroit. It's a hybrid SUV that combines a small diesel engine with battery power.

According to a recent consumer poll on auto shopping Web site myride.com, only 10% of the respondents said "power and performance" will matter most during their next vehicle purchase, while 38% named "gas mileage and environmental friendliness."

The Detroit show will end on Jan. 27, but concern for the environment and for high gas prices will stick around.

Click here to see the highlights of the 2008 Detroit auto show.

Henry is a reporter covering the automotive industry and automotive trends in BusinessWeek's New York office.

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