Despite or, perhaps, because of the austerity budget in Italy, Turin-based Fiat (Fiat, Ferrari, Maserati and Chrysler) has seen big growth in natural gas and propane powered cars. Sales of these passenger vehicles grew 90 percent in August. The cost difference for the car owner is significant – a gasoline Fiat small car can go about 60 miles or so on $14 worth of conventional gasoline, but 110 miles on propane and even more, 170 miles, on compressed natural gas. That's enough of a difference to pay for the increased cost of the vehicle in a year.
Fiat's CEO, Sergio Marchionne, has announced that he plans to spread natural gas engines through the Chrysler brand beyond the pickup trucks it now sells. Marchionne is reported by Bloomberg to have said that natural gas is both cheaper and more viable for the US than plug-in hybrids or electric cars. The Italian example may support that. Natural gas and propane cars greatly outsold electrics and hybrids there. That kind of result may be in the offing for the US as well. Chrysler has said that orders for its pickups fueled by natural and regular gasoline (switchable) have far exceeded expectations. Perhaps relatedly, boating equipment stores apparently can't keep in stock newly introduced propane small outboard engines made by a company called Lehr.
There is a fly in the ointment. The US is far behind Italy on infra-structure for natural gas vehicles. Italy is about half the size of energy conscious California and has 900 natural gas refueling stations while California has just 135. The solution for any alternative fuel infra-structure is going to depend on either a national energy independence policy or $5.00 plus gasoline. Of course, California is suffering through gas prices over $5.00 and small car sales this year are the best they have been in decades.
Maybe reality – viable electric and hybrid vehicles for sale, high gasoline prices and consumer demand will start a real move in infra-structure investment for both electricity and natural gas without waiting for a decision from Washington.
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