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Krafcik says US Gov. shutdown is slowing Oct. auto sales

The government shutdown is eroding consumer confidence in the auto market, says John Krafcik, CEO of Hyundai's US sales unit, and could lower October sales by as much as 10 percent, Automotive News reports. "It's that anxiety that keeps customers, potential buyers, on the sidelines when making a big purchase like an automobile," Krafcik says, adding that industry sales could be off by five to 10 percent in October compared to September.
The fourth quarter, which started October 1, usually consists of increased auto sales as dealerships clear their lots to make room for the next year's models. Leading up to the fourth quarter this year, the auto industry was doing well in the fragile, recovering US economy, although September deliveries decreased by 4.2 percent, due in part to this year's Labor Day sales being recorded for August.
To help its customers, Hyundai announced it is deferring new-car loan and lease payments for furloughed federal workers until they're called back to work and also offering them a three-month payment deferral if they buy a new Hyundai in October. "We have already had requests from over a thousand people to have their payments deferred," Krafcik says.

Next Toyota Prius may get optional all-wheel drive

We've been hearing rumors about the next generation of the Toyota Prius for the last couple of years on a pretty regular basis. From the expectation of lithium-ion battery packs with more capacity for electric-only miles to wireless charging and more emotional styling, there's been no shortage of talking points for the car that's expected to see its first light of day at the very end of 2015 (we hope). But one thing we've yet to hear about, until now that is, is all-wheel drive. According to a report from Automotive News, Koei Saga, senior managing officer in charge of powertrain development of the Prius, said in an interview last week, "I think we will possibly do [all-wheel drive]" for the car's next generation. There isn't any further indication on how the AWD system would work, but we'd put our money on something similar, at least in principle, to the E-Four system that just debuted on the 2015 Lexus NX 300h, which uses an electric motor mounted at the rear to power the car's back wheels when the front wheels lose traction. The AN report also repeats a rumor we've heard before – that Toyota may offer two different battery pack options in its next Prius, one using lithium-ion chemistry and one using the nickel metal hydride technology that the Prius has featured from its very beginning. While the automaker has yet to talk efficiency, it's natural to expect more capacity for EV driving from newer lithium-based technology over that of nickel-based packs to go along with what we'd also expect would be a somewhat higher price. We're sure you're just as curious about the next Prius as much as we are, and so we'll leave you with these words, again from Saga: "The batteries will be renewed. Everything will be revised. And I think we will come up with a fuel economy that will surprise everyone."

Recharge Wrap-up: First EV to attempt Dakar Rally, Mazda makes bioplastic parts

Zap and Jonway Auto brought their Urbee EV and their new Falcon A-380 SUV to the Peru Motor Show in Lima. Jonway sells its SUV and minivan in Lima through Dai-Ichi Motors, which displayed the cars at the show. According to the companies, their cars "received tremendous interest from the public," including private citizens as well as groups who would use the EVs for security guard service or campus use. Read more in the press release below. California is the US leader when it comes to EVs. In 2013, California had 70,000 battery electric and 104,000 plug-in hybrids. The state boasts almost half of the country's electric vehicles, thanks largely to state and local EV incentives that go beyond the federal tax rebate. California also leads the way in legislation, and nine other states have adopted California's ZEV mandate. Washington, Maryland, Georgia and DC also have their own EV incentives, while some utility companies also offer benefits for EV owners in other states. Still, EV sales have only made up about 0.7 percent of new vehicle sales in 2014. Read more at the US Energy Information Administration website. Toyota will be using landfill gas to help power its Kentucky manufacturing facility. Beginning in 2015, Toyota's Georgetown assembly plant will use electricity converted from landfill-sourced methane gas from Waste Services of the Bluegrass. It will provide enough energy to produce 10,000 vehicles each year. Plus it diverts methane - a greenhouse gas - from entering the atmosphere and helps improve the local air quality. Learn more in the video or Toyota's press release below. Mazda has developed a plant-derived bioplastic for making exterior and interior parts. The dyed plastic doesn't require painting, and it reduces petroleum consumption and carbon emissions in the manufacturing process. The bioplastic will be used for interior parts in the all-new MX-5 before being put into use on the exterior of future vehicles. Mazda will display prototype parts at the Eco-Products 2014 exhibit in Tokyo. Read more in the press release below. Acciona will enter the first-ever zero-emissions vehicle (pictured) to compete in the Dakar Rally. The vehicle uses an electric motor and lithium ion batteries, as well as solar panels to power telemetry and security systems. The Dakar Rally will take place from January 4 through 17 through Argentina, Chile and Bolivia. See Acciona's Dakar EV in the video and read more in the press release below.