The cited reason for the dramatic change in direction? Problems with battery storage. Well. Duh. That’s the name of the EV game and it leaves us to wonder how well Chrysler will do reaching a break-even point by 2011 (that’s the plan) and rolling out all those new models on Fiat platforms when the face of the automotive game is changing toward alternative means of propulsion. Short-term profitability but no long-term plan embracing new technology? Maybe not the wisest choice.

The competition apparently has no battery-related qualms as Toyota contemplates a whole family of hybrids based on the Prius, a name that in and of itself could well become a brand. General Motors is clear that it sees the Chevrolet Volt, which will debut in 2010, as the opening shot in a volley of vehicles combining rechargeable batteries and gas-powered generators. It’s a reasonable trade-off — 40 miles on a single electric charge, conventional engine for longer excursions — even if the initial price tag of $40,000 stops some short. (Figure in a $7,500 consumer tax credit and it’s a little more palatable.)

And the big boys are far from the only ones embracing (or abandoning) big electric vehicle plans. Fisker is buying an abandoned GM plant in Delaware for $18 million with the intent of retooling the facility as a construction site for plug-in hybrids. After a three-year conversion, and armed with $528.7 million in federal loans from the government’s Advanced Technology Vehicle Manufacturing program ($175 million of which will go directly to the Delaware plant), Fisker expects to be rolling out units by 2012. One of those products will be a mid-sized family sedan currently set at around $39,900.

Roll all this and countless other projects together and we are looking at a nascent electric vehicle revolution, one that will initially be expensive for the consumer but that has tremendous long-term potential for our global dependence on fossil fuels. A year ago I confess I didn’t think we’d be this far down the EV road. Now? I’m looking forward to seeing what 2010 holds in store for this exciting transportation genre.

The following two-minute video (while not a thrilling production), shows how the process would work. It’s oddly reminiscent of a really, really quiet trip through a robo-wash -like procedure.

Green Inc. the New York Times Energy & Environment blog runs down the planned proliferation of these stations in the piece, “Better Place Unveils Battery Swap Station” by Kate Galbraith on May 13. The idea is a new take on the tried and true filling station and would allow electrics to take trips of 100 miles or more while charging up at home when the longer distances are not required. While the fees in these scenario are still somewhat unclear, it’s hard not to feel that this is the right direction for EV “fueling.”

The government is putting its energy — and our money — behind what Energy Secretary Steven Chu called more immediate energy-saving solutions. Tom Welch, a spokesman for the Energy Department, diplomatically summed up the basic issue, “The probability of deploying hydrogen fuel-cell vehicles in the next 10 to 20 years is low.” Amen. With the problems we’re facing, we don’t have 10 to 20 years.

In all fairness, the fiscal 2010 budget does include $68.2 million for fuel-cell technologies and the Energy Department will pay for research into stationary fuel cells for use in non-automotive applications. The Bush administration poured more than $500 million into fuel cell research, but, as Philip Class, the president of the National Environmental Trust said back in 2003, “This was window-dressing pure and simple.”

Concentrating on developing better battery technology for plug-in hybrids and all-electrics and providing tax credits to both manufacturers and consumers is more on target and will deliver a faster, short-term return on taxpayer dollars. And if fuel cells come along in 10 to 20 years, great. In the meantime, however, we have to do something real and that’s electric.

For that matter, I’m just as attracted to three-wheel alternative electrics like the Aptera that sells for about $40,000. That’s still pricey, but the American Recovery and Reinvestment Act makes a tax credit of $7,500 available to consumers who buy a plug-in EV. Couple that with the money the legislation allocates for research in battery manufacturing (as well as tax credits for building the facilities to do the work) and I’m beginning to see a foundation laid for the infrastructure that will make widespread EV adoption viable.

Right now Americans are dropping a billion dollars a day gassing up their cars. Why? Because there’s a gas station on every corner. Americans who are completely wedded to their personal transportation balk at the limited range of an EV with no way to conveniently juice up their ride during a latte at Starbucks. But this is technology that could free us of our dependence on foreign oil while reducing the emissions that are destroying our environment.

The American Recovery and Reinvestment Act is funded for two years. A lot can happen in that time. All criticism of the Obama administration’s first hundred days aside, this support for EV transportation gives me hope.

Can the two be reconciled? According to Porsche sales chief Klaus Berning, the answer is yes. In discussing the company’s new hybrid Cayene SUV that will appear in the U.S. late in 2010 — to be followed by the gasoline-electric Panamera (a high-performance sedan recently unveiled in Shanghai), Berning had this to say.

“It is clear that the customer in this segment wants this technical solution, which will communicate that they are successful, that I have a sporty car and that I care about the environment. We are planning serious volume.”

Yeah, sounds a little bit more like, “I wanna have my cake and eat it to.” Sorry. Just a station break for cynicism. Here’s the vitals on the Cayenne hybrid:

- nickel-metal hydride batteries
- full-hybrid system allowing for an electric-only mode
- 3.0-liter supercharged V6
- 14 mpg highway, 14 city

Not that impressive? Hence the source of my cynicism. We’re seeing just a few too many hybrids that emphasize style over substance for my taste, but hey, I guess we’ll take progress where we can get it — even when it comes in teeny, tiny little baby steps. I’m still holding out for a Smart ForTwo.

Automotive News kinda called it a phone booth on wheels while likening it to a baby stroller. I think it looks more like the bastard love child of a golf cart and a wheelchair. The point is that it’s all electric, will run 35 miles on a charge, and has a top speed of 35 mph, while costing a quarter to a third the price of a conventional vehicle. Not to mention that parking something that small would be just a dream.

(Click here for story with photos.)

They’re testing it out in New York City right now with a complete prototype promised sometime in 2010. Of course working models are going to hit Europe first where public imagination and traffic laws are more receptive to alternative form factors in personal transportation. (Well, that and the fact that the combination of congestion and centuries old narrow streets is pretty common place in Europe.)

Right now, the PUMA looks to be an open cab vehicle with a transparent roof. I predict for the “authorities” to be happy, they’re going to have to enclose the cab a bit more. Of course, if that raises the need for some kind of AC, the price will go up. I really, really like the idea of urban transport, but the only way it will ever fly is for the units to be affordable enough to buy as a second “car.” Bottom line, however? I would LOVE to take this baby for a test drive.

One bright spot on the alternative fuel front is the fact that Mazda has commenced commercial leasing of its Premacy Hydrogen RE Hybrid. Local governments and energy-related companies will start getting the cars this year. The Premacy has a series-type hybrid drivetrain that works in concert with a hydrogen rotary engine with an electric motor. Total range? 200 kilometers. (Full story on Engadget.)

Also, look for the 2010 Ford Fusion hybrid sedan in showrooms this month at a price of $27,270. It’s expected to be the most fuel-efficient mid-size car in America, knocking off 39 mpg city and 37 on the highway. For a full report, from the Atlanta Journal Constitution (via the San Antonio Express News), click here.

Toyota has already come back on the heels of the Insight debut with promises of a hybrid Yaris — smaller and less expensive — and maybe on showroom floors by 2011. There’s also a rumor that they’ll keep the current Prius selling side-by-side with the new model. Maybe at a lower price? Right now word is the concurrent sales will only take place in Japan, but don’t be surprised if that’s not extended to the U.S.

Sure, Toyota kicked General Motors off their 77-year-old throne as world’s largest automaker, but they only did it by about 620,000 units. Their sales for March are going to be flat at best and potentially worse than the February numbers. Production will be kept low through June so they don’t get into a situation of inventory glut again.

Basically, if Toyota wants to stay on top, they need to work with what they have. The popularity of the Prius is undisputed and if they offer it in two flavors — kind of Prius and Prius-light — the public appeal would be undeniable coupled with the new Yaris offering.

That’s the one thing about getting to the top boys, there’s always someone nipping at your heels.

As an inducement, the Michigan Economic Development Corp. is recommending that the Michigan Economic Growth Authority board approve a 100 percent employment tax credit. That could result in $9.9 million in company investment over five years.

Currently the 2010 Mercedes-Benz S400 Hybrid is the forerunner of the company’s planned future hybrid line. Although its other specs are unimpressive as hybrids go, it is the first production hybrid in the world to use lithium ion cells. Equipped with both a 3.5-liter V6 and a 15 kW electric motor, the S400 has 275 horsepower combines. Although not yet priced for the U.S. market, this one could go for $88,000.

Hopefully one of the things they’ll be working on in Ann Arbor is the price tag.