Clark has been reading dispatches from the Tokyo Auto Show to get a sense for what ultra-efficient vehicles the Japanese have up their sleeves.

Here in the United States, we have GM coming out with the Volt in about a year. The Volt will be an electric car for the first 40 miles of travel each day and then switch over to a traditional gas engine.

We in the United States represent four percent of the world's population, yet we use 25 percent of its energy. That number is awful, but it's also great. It means that we can easily reduce the amount of energy we use. We've never focused on conservation previously because energy had been plentiful and cheap.

Yet now conservation is being encouraged through state tax credits and mandated through the new federal fuel economy standards. Incidentally, Clark doesn't like the federal standards; he'd prefer to see the vastly unpopular gas tax enacted!

Recently, the consumer champ saw a Forbes article that decried our country being more energy efficient and downplayed the effects of global warming.

Here's Clark's deal on global warming: He doesn't get it and he's not ashamed to say that he's not smart enough to be sure if it's real or not.

But he does care about national security, and he thinks that angle offers the most compelling reason of all to reduce our energy consumption. There's no reason why we should be at the mercy of OPEC and Hugo Chavez. If we want to retain our position of power in the world, we must dial back on energy so that our enemies can't use our petrol dollars to harm us.

The federal government has announced new rules for increased fuel economy. It's not Clark's first choice for getting the job done; that would be a sky-high gas tax to create a marketplace incentive for more efficient cars. Of course, no one seems to agree with him on that one! So that necessitates the government imposed fuel-efficiency requirements.

Over the next several years, vehicles will have to get an average of 34 miles per gallon (combined city/highway). Very few cars on our roads get this today.So how are we going to get there? Well, it won't be through the mass production of econoboxes -- even though Clark loves cheap, tiny rides!

Ultimately, auto makers will innovate with various new types of engines. At a recent European auto show, Renault-Nissan unveiled plans for no less than four different electric cars. Volkswagen will also have an electric car called the E-Up (pictured to the left) available in 2013. And the Ford Grand C-MAX will be available in the next 18 months with a small turbo-charged engine at the heart of a scaled-down minivan-like vehicle.

We've already got clean diesels in the market. We might even see diesel hybrids. And of course gas-electric hybrids will continue to grow in popularity.

All these efforts will reduce foreign oil dependency and that's great from a national security perspective -- even if it's not being done through Clark's favored gas tax approach.

People often wonder what the payback on fuel-efficient vehicles is like. A few years ago, it would have been hard to find a true payback. But that math has changed significantly. More often than not, a hybrid or diesel will save you -- even though you spend more upfront.

A new IntelliChoice report finds that the most economically efficient vehicle is a clean diesel -- the VW Jetta TDI. Over a 5-year cycle, it's more than $6,000 cheaper to own this than a gas engine -- even though the diesel costs $2,000 more upfront.

Other top vehicles include the GMC Sierra 1500 crew cab hybrid 2WD, the Prius and other vehicles like Chevy Silverado 1500 crew cab hybrid 2WD.

One that is an absolute bomb as a diesel and should be avoided is the Lexus LS 600 H. Over the first five years, you lose almost $25,000 vs. the gas engine version.

Remember the first Back to the Future movie? At the end of the film, Doc Brown returns from the future and his DeLorean is outfitted with a device called "Mr. Fusion" that transforms household waste into fuel for his car.

Another '80s movie guy, Arnold Schwarzenegger, is featured in a promotional video for a California startup called MicroFueler that might make the "Mr. Fusion" idea a reality.

MicroFueler is essentially a home-fueling station that lets you make E85 fuel (for use in compatible vehicles) out of garbage or leftover beer or wine. Shaquille O'Neal has been among the startup's early investors.

So will this be the one that will be a game-changer? Who knows! But the idea of powering up at your own home has long been a staple of science fiction. Just think about the original Star Wars with the home-power plants that allowed Luke Skywalker's family to live off the grid.

Back in the real world, the MicroFueler qualifies for a federal tax credit that means it pays for itself in 24 months. This is one option that could be green both environmentally and for your wallet!

Hyundai is on a roll. Just recently, Clark told you how the Korean automaker was praised by JD Power. Now the August issue of Consumer Reports says the Hyundai Elantra is one of the best and most affordable small wagons/hatchbacks.

Earlier this year, Hyundai started offering buyer's assurance as an incentive. Now their marketing wizs are on to gas. If you buy a new car, they will fill up you at $1.49/gallon for 12 months.

Mind you, the cost of gas is likely headed down, barring unexpected world events or weather patterns…but Clark doesn't think it's going down to $1.49! So Hyundai's offer is very generous.

Meanwhile, Consumer Reports trashes the new hybrid Honda Insight. The vehicle received an overall score of 54, which is the second lowest for any small vehicle. This is perhaps the first time ever that a Honda has gotten a low F from Consumer Reports.

Yet the lowest score of all goes to the Dodge Caliber with a 49.

On the other end of the spectrum, the No. 1 hatchback/station wagon is the Mazda 5, which earned a score of 86. That's right up there with some very expensive luxury vehicles. The Mazda 5 has a street price of around $17,000 with power gizmos included.

But what a stunner for the Insight, which Honda was marketing as an affordable hybrid at around $18,500. The people at Honda must be licking their wounds after having put so much research and resources into the Insight.

Other top picks from Consumer Reports in the small car category include the Volkswagen Rabbit, the Volkswagen Jetta-SE and the 2009 Toyota Prius.

Several years ago, Clark got extremely excited about a flying car called the Terrafugia (Latin for "escape from land").

Now a test model of the Terrafugia has had a successful maiden voyage. This 19-foot vehicle is part of a new category of airplanes called light sport aircrafts (LSA). Operators only need a minimum of 20 hours of training to operate LSAs. Maximum air speed is just a little over 100 mph.

The Terrafugia is not ready for prime-time quite yet. But it is expected to cost $194,000 when it rolls off the production line, according to what the company's CEO said in a TV interview.

Pocket change, right?

So move over, George Jetson. The day of the flying automobile is coming and will have some serious implications for "supercommuters" who travel more than 90 minutes one-way to work.

Speaking of traffic, one positive effect of the sour economy is that as people get laid off, they aren't on the roads like they once were. The question is, when the economy comes back, will traffic go right back to the level where it was? That remains to be seen.

New rules about credit cards passed today in the Senate by a vote of 90-to-5. No longer will this industry be able to completely control your life if you can't pay your balance in full!

Lenders are expected to be required to give 45 days notice before any changes in their terms and conditions. In addition, you'll now have to be late for more than 60 days before they put you into a penalty rate. And they won't be allowed to raise rates on existing balances that you're currently paying.

There are so many positives here. Of course, the Senate bill still has to be reconciled with the House bill and made into a law that President Obama is expected to sign within a week or so.

One provision that Clark hopes survives would be to allow retailers to offer a discount for paying in cash vs. paying with a credit card.

Right now, there's no financial benefit for consumers who want to pay cash upfront -- even though it's cheaper for retailers because they don't have to pay credit-processing fees. So the consumer champ's fingers are crossed on this one! We spent too long encouraging people to spend themselves into oblivion and this would be a refreshing change.

Meanwhile, President Obama today announced new standards for vehicle emissions. In essence, he's adopted California's standards, which has been regulating emissions for years before the feds ever decided to do so.

The new fuel standards call for the average vehicle to get 35 mpg by 2016. Right now, only 7 cars meet that standard…and they're mostly hybrids. The sole gas engine vehicle that makes the cut is the Smartcar, according to The Washington Post.

Will we be able to meet the 2016 deadline? Clark likens Obama's announcement to what JFK did when he told a dispirited nation that we'd be the first to put a man on the moon.

Finally, the penny-pincher believes the new fuel standards represent smart federal policy from a national defense angle. He's in support of anything we can do to reduce our dependence on foreign oil. Why be held over a barrel by nations that want to harm us?

The question of energy independence is being addressed with a vengeance in the great state of Texas. Barron's reports the Lone Star State is set to launch the largest solar energy initiative in the history of our nation. Already the state is one of the largest users of wind power in the United States.

This news is especially odd when you consider that Texas is the heart of Big Oil in our country; they're not exactly a green state, right? But they're all about the green, as in money.

Texas is also in the unique position of having its own power grid, muck like a separate nation!

Meanwhile, Clark was recently reading a state utility regulator's op-ed piece in a newspaper. The regulator was writing about how silly it is to use alternative energies when we have large amounts of coal.

But many people don't like coal because it's dirty and aggravates asthma. Nobody has yet come up with a sequestration technology to make it clean.

Natural gas has been used as a kind of alternative to coal. Yet natural gas should be used to run cars, not power plants. Just ask T. Boone Pickens. Running our cars with natural gas would allow us to stop relying on OPEC and all the foreign nations that would like to cause us harm.

For those who don't already know, Clark sees energy as a question of national security. Texas, however, is working toward energy independence because it's just plain smart for them.

Now the rest of the nation just needs to get in gear!

New fuel economy standards are coming for all 2011 vehicles. The average passenger car will have to get 30 miles per gallon and the average truck 24 miles per gallon.

Yet while that is happening, smaller fuel-efficient cars and hybrids are piling up unloved on dealer lots. Many people are making a lifestyle choice to buy big trucks again now that gas is no longer $4/gallon.

Oh, we have such short memories!

Meanwhile, the new version of the Segway that's coming out is a total "Clarkmobile" if there ever was one! This two-wheeled two-seater, being produced in conjunction with GM, is slated to hit the roads in 2012.

So Clark is now considering ditching his scooter and getting a new Segway instead. At least, that's what his wife wants him to do! The original Segway, introduced about 8 years ago, was supposed to change our lives, but only found very limited market appeal.

The whole discussion really reminds Clark of his three-wheeled Freeway, which got 100 miles per gallon and seated three people. Now that was a car!

During last year's hysteria about gas prices, Clark said it was a bad idea to buy a hybrid. Even at $4.11/gallon, the payback on hybrids simply did not make sense. In addition, dealers were doing what the marketplace allowed at the time and charging far above sticker price.

Now that the price of gas is back down, sales of hybrids have fallen by two-thirds. The Chicago Tribune found that the average supply of Priuses was at 2 days last year. Now it's sitting at 80 days! Keep in mind that a 55-day supply of vehicles on dealer lots is typically where supply and demand are at equilibrium.

The Chicago Tribune is also reporting some people have bought Priuses for $5,000 below MSRP, even though dealers are still pricing them high.

In another example of the declining demand, Chevy Malibu has a hybrid version that's priced above the gas engine model. But they sell less than 100 per month!

Meanwhile, Honda's new Insight hybrid is the first hybrid to be priced in the teens with a $19,800 list price.

The real opportunity, however, is not buying a hybrid new; it's buying one used. A lot of people who got caught up in the hybrid craze last year have discovered they don't exactly love driving around in a "putt-putt mobile."

So now may be the time to strike. Gas won't always be this cheap…

After endless delays, the long-awaited $2,000 car is finally set to make its debut in India. The Tata Nano (pictured to the left) is actually a product of the company that owns Jaguar. Talk about two opposite extremes in pricing!

Several years ago, Clark told you about a vehicle called the Logan by Renault. This 4-door sedan is available in Europe fully equipped for $6,000-8,000.

These affordable car makers use slightly older -- albeit proven -- technologies to make vehicles that are reliable but not necessarily cutting edge. Unfortunately, this affordable car movement hasn't hit the United States yet.

Estimates suggest if the Nano were to make it stateside, it would probably sell for around $5,000. That includes factoring in the cost of making the required safety and emissions tweaks required by our government.

There is a huge market for affordable transportation here stateside. So why can't the American automakers figure out how to do something similar??

Car manufacturers have been rolling out just about the best deals ever in the last week and a half leading up to the Presidents' Day holiday weekend.

The somewhat tired offers of zero perfect financing have been coupled with other incentives to bring in the customers. So what, exactly, is going on here? Well, automakers have the ability to make 18 million cars per year. But they only sell in the 9 million range. You do the math. Something's got to give…and in this case it's on the dealers' end.

The shocker here is that you can steal a deal on a fuel-efficient vehicle right now because they're unloved. Now that gas prices aren't exactly soaring, people have returned to buying larger vehicles.

Clark and his wife were able to snag a Prius for around $21,000 -- that's a solid $9,000 below what they were selling for last summer during the peak of the high gas prices. The penny-pincher calculates they'll have a 4.5 year payback on the car. Likewise, there were tons of Yarises and Corollas also sitting unloved on the dealer's lot.

Finally, there's a real sweet spot in the market with used year-old fuel-efficient vehicles that people bought last summer and decided they didn't like.

Honda is preparing to roll out a new version of its Insight hybrid in April 2009 that promises to be a good investment from day one of ownership. No official word yet on the price tag, but the new Insight is expected to sell for somewhere in the range of $17,000-$19,000.

Compare that the average price tag of a new car at $27,000!

Unlike the original Insight, the redesigned model will have 4 doors and plenty of room. Some people are comparing its look to that of a second-generation Toyota Prius. Expect the new Insight to get around 41 mpg.

Will the new Insight help Honda wrestle the hybrid market back from Toyota? We'll keep you posted…

Back in 1980, Clark bought a 3-wheeled car called the Freeway. It got 100 mpg on a Tecumseh farm engine and had no reverse gear. Once he accelerated too quickly on a highway and the front lifted straight off the ground!

The New York Times now reports that a number of companies are introducing 3-wheel vehicles, including the Piaggio and the Aptera. Obviously, the biggest draw for consumers is fuel economy.

The all-electric Aptera will be available next year in California. Some of the vehicle's features include a top speed of 85 mph; going 0 to 60 in 10 seconds; and getting 120 miles on a single charge. But the price tag is very steep at $30,000. That kind of money ensures that you'll almost never make payback.

If you have an emergency and call 911, it feels like forever until the ambulance arrives, right? That's the mindset of the American people today as we instantly want automakers to put more fuel-efficient cars on the road.

Business Week recently reported on the Ford ECOnetic, a vehicle that gets 65 mpg, runs on diesel and is available in Europe only. Huh?! One of our automakers making a great vehicle like this and not selling it in the United States? It turns out Ford can't figure out how to manufacture the ECOnetic over here without losing money on each car!

As a nation, we went from wanting the biggest Terminator-style gas-guzzling SUVs to wanting total gas sippers almost overnight. But there's been major lag time on the manufacturing side.

Yet all hope is not lost. Clark promises we'll have a lot of choices over the next 24 months. By 2010, we'll have the GM Volt and other fuel-efficient cars. In the next few months, Honda will have an affordable hybrid available with a price tag in the upper teens.

It just takes a while to make a long-term change. We will get there as long as we don't lose focus when gas becomes cheaper.

The Norwegians have a new electric car coming to the United States in 2009 that's got Clark very excited. It's called the TH!NK City and it gets 110 miles on a single charge and goes up to 65 mph. The cost? About 2 cents a mile! And it doesn't eat up foreign imported oil like a gas-engine vehicle.

In other news, a group of researchers in the lab have developed an easy way to take sugar and turn it into a power plant for a hydrogen-powered vehicle. This development is not ready for the mainstream yet, but it's in the works. There are a lot of promising advances that are going to take a while to materialize in the marketplace.

In the meantime, Clark wants to encourage you to look at offbeat transportation alternatives. Washington D.C. has launched a Smartbike program. You pay $40/year for access to bicycles that are strategically placed around town. Users have a code to unlock the bikes and lock them up again at the other end of their commute. It's almost like a Zipcar program for bikes!

Worried about getting too sweaty during your ride? Buy an electric bike for around $600 and it will be no sweat getting around. Clark knows this all sounds kooky, but we need to expand our minds and realize we're not sitting ducks for foreign-oil interests. Christa has long had a fascination with a bicycle that runs on a weed whacker motor. If you Google "weed whacker bicycle," you'll even find videos that detail how to convert your bike.

Many Americans are tired of waiting for automakers to develop mass-market solutions to our oil-dependent cars. They're converting cars to run on electricity on their own, according to a Smart Money article Clark read.

The conversion kits cost a few thousand dollars, but the benefit is that you can use zero imported oil to run your car. Now, if people in their own garages can make any car run on electricity, just think what the collective wisdom of our nation could do toward creating independence from foreign oil. Our national security depends on it.

Or we could just continue to fund oil-rich nations like Russia. Putin is taking zillions of our petrol dollars and creating mischief in Soviet Georgia. Western democracies have been long-time supporters of Soviet Georgia. But Russia isn't going to allow them to go democratic. If you're in doubt, just look at Putin's eyes -- which Clark's wife calls "shark eyes" with their cold, lifeless look. Boy, did Bush have it wrong early in his administration when he thought he found a soulmate in Putin.

Big Oil, meanwhile, thinks we'll need petrol forever. But we're getting so close to energy independence, especially with solar and wind. What we need is a coherent national energy policy to make it happen.

Right now, a focus on the overriding national interest is what's missing in the oil/alternative energy debate. Government is stuck. It's individuals who are instead making it happen. And for that, Clark salutes you.

Clark is often way ahead of the curve when it comes to money-saving vehicles.

Decades ago, he got a 3-wheeled car called the Freeway that got 100 mpg. Recently he read that an automaker named ZAP has teamed with the state of Kentucky to make an electric 3-wheeled car. The ZAP will go 40 mph and cost about 2 cents/mile to operate.

About 8 years ago, Clark bought his first hybrid -- a Honda Insight. Today, another hybrid called the Prius is in such demand that even 2-year-old models with 30,000 miles are selling for the manufacturer's suggested retail price.

Last year, Clark got the Honda Civic GX -- a natural-gas vehicle. Now comes word that his new ride is the hardest car to get in the United States!

That puts Clark in a dilemma: Should he capitalize on the situation and sell his Honda Civic for more than he paid for it? Or should he keep it and continue to enjoy the tremendous fuel savings? What would a capitalist do? He'll have to run the numbers and get back to you!

It used to be that weather was the topic of choice for small talk. But these days it's gas and the high prices at the pump. Callers are telling Clark that some gas stations won't let you fill up your tank completely; they cap you at a certain dollar limit. This helps protect them from drive-offs and bum credit card numbers in the age of inflated gas prices. If you go back 3 years ago, the cost to fill up was 40% what it is today. That's an enormous change in a short time.

Since we can't control what we pay at the pump, we'd better start controlling other factors. In Denver, 400 cars have been equipped with technology to monitor how you're driving and let you know how to maximize fuel economy on the road. So far this experiment has yielded a 20% increase in fuel economy. Clark himself has become obsessive about using cruise control, even on suburban drives.

Years before computers were routinely in cars, Volkswagen helped increase fuel economy by 30% in its stick shift vehicles. They had a light that would flash and beep to alert you when to shift gears. Most drivers tend to shift too early and waste fuel.

Many more automated solutions will be coming in the next few years. But for now, it's all about controlling our behavior as drivers. That means no jackrabbit starts. When Clark got his first hybrid, a Honda Insight, he averaged about 58 miles/gallon. On the highway, he was getting 70-77 miles/gallon. It's all a matter of what you're willing to do -- be it drive a smaller car, drive smarter or drive less.

Over the last few weeks, we've received hundreds of calls from people who wonder whether they should ditch their old gas-guzzling SUV/truck and buy a newer fuel-efficient vehicle to save money.

Clark usually says that it doesn't make sense to do so. But that's just general advice without looking at the numbers.

If you want to get really granular, Smart Money has a new interactive tool that features 11 variable fields where you can enter your trade-in value, gas mileage, daily driving distance, etc. The tool calculates how long it takes to start getting payback.

You may not like the answer you get. Sometimes the only way to make it work is to buy a used gas-sipper. In this respect, cars from Hyundai and Kia tend to depreciate much quicker than those from Honda and Toyota.

And if you're stumped on your trade-in value, know that Edmunds, Kelley Blue Book and others haven't stayed current with SUV/truck values. So deduct about 25% from whatever they say.

Brazil has long won praise from Clark for their energy independence thanks to native sugar. Virtually all their cars can run on sugar or gas or a combination of both. They also have had huge discoveries of oil as of late. In an ironic twist, Brazil may even join OPEC in the future because of their vast quantities!

The neighboring country of Colombia, meanwhile, also gets its gas from sugar. But where they're really leading the charge is with bio-diesel. Colombia uses palm oil, yucca, sugar beets and rapeseed oil to efficiently create diesel.

McCain and Obama have both been clear about the need for a new national energy policy with alternatives. This is not pie in the sky stuff, folks. Just look at our Southern hemisphere neighbors.

That being said, it's a kick in the teeth to our allies in Brazil that our Congress charges a 54-cent/gallon tariff for Brazilian-made energy. Meanwhile, American consumers are being held over a barrel of oil at the pump. Moreover, OPEC doesn't face any tariff whatsoever to send us oil. What is Congress thinking?

Other countries are getting it together on energy. Why not us?

Getting our country on a better footing with energy has been a longtime personal mission for Clark. Some of you may have heard about his 3-wheel car called the Freeway. This vehicle ran on a 12-horsepower Tecumseh engine and had no reverse gear!

Following the demise of the Freeway, Clark has had a Honda Insight and, more recently, a Honda Civic that runs on compressed natural gas. He "fills" up the Civic for the equivalent of $2.80 gallon. In addition, he also has a scooter that gets 90 mpg.

A legendary oilman named T. Boone Pickens is among the latest personalities advocating switching all automobiles over to natural gas. He's currently on a media tour to promote his energy agenda. While some say he has cynical motivations, Clark says we should cut him some slack.

Other elements of Pickens' agenda include a heavy emphasis on wind power, solar energy, nuclear power and the experimental clean coal technology. Clark believes all of these alternative energies are in their infancy.

We can't afford to be deterred from further exploration of any of them by a "Three Mile Island" mentality.

Motorcycles have gotten extra cheap these days. We went through a time when people only wanted high-end motorcycles, but now there's a new marketplace for those who feel the need for speed -- on a budget.

Some freeway-legal 150 cc scooters and motorcycles made in communist China start at $1,000. So it is possible to get 55-70 mpg on the cheap and ride in the carpool lane in heavily congested urban areas.

One special caveat: Motorcycles are not without risk. Weekend joy-riders can be a danger to themselves and others. Clark advises taking a motorcycle safety course before riding -- even if it seems un-macho. Visit the Motorcycle Safety Foundation at MSF-USA.org to find a course near you.

Clark loves the idea of you saving money, but he wants you to be safe and careful out there. Car drivers are nearly incapable of seeing riders in traffic, as he's discovered while riding his scooter.

Several states are doing some things that Clark sees as a sign of the times.

Hawaii is banning traditional water heaters in all new construction. The Aloha State is now requiring solar water heaters. While solar water heaters cost about 7 times what a traditional heater does, you can make your money back in a couple of years. This move should save homeowners $50/month on average.

But there's so much more we can do. Clark read a very disturbing story in Business Week that detailed how the coal industry is trying to use political influence to virtually outlaw windmills in the Great Plains states.

We as a nation should not allow dirty money to prevent us from having clean sources of energy.

The Business Week story focused on a Kansas rancher who overcame dirty money to get a windmill operation up and running. Clark salutes this determination to make a change.

Meanwhile, California is putting stickers on cars that provide a smog rating and a global warming rating. Whether you believe in global warming or not, no one can deny that smog exists.

Under the current system, a score of 10 represents the lowest levels of pollution and a score of 1 the highest.

Car manufacturers are obviously not happy about this -- unless they make what are called "super ultra low-emission vehicles." For example, the Honda Civic Hybrid has a smog rating of 9 and a global warming rating of 10.

These stickers are voluntary for now until next January when a law mandating them throughout the Golden State goes into effect.

Our senior producer Kim bought her first scooter 8 years ago. Despite her reputation as a bad driver, she's never had a wreck on it. Executive producer Christa, on the other hand, tried to ride Kim's scooter once and crashed it into a bigwig's car at the studio!

Clark's current scooter, a Korean model, ran him $1,499 -- though you can find some for as little as $800. Clark's getting 90 mpg, so even at $4/gallon, the price of gas doesn't matter. Even the most uneconomical of scooters usually gets around 70 mpg.

With speeds of 30-45 mph, scooters are great for running around town. Is it any wonder that sales are up? Just beware of the added safety concerns that go along with riding a scooter.

Meanwhile, ridership on commuter rail and bus lines is also up. Clark recently saw a suburban commuter bus that was standing room only. Typically, those buses are empty in his town. In most metro areas, you can also carpool or vanpool with your fellow commuters to save money.

On the radical side of things, Clark read a Wired report about packs of bicyclists that take to the interstates in California when they hear about a traffic jam. Their aim is to both raise consciousness about commute alternatives and thumb their noses at those stuck in traffic.

What change could you make in your life so that you're not a sitting duck for high gas prices? That's Clark's challenge for you.

CLARKONOMICS: Your favorite penny-pincher walked to the studio today. It’s something he likes to do several times a year when the weather is nice. Clark lives only 5.6 miles from the studio and the cost to walk is free. In fact, Clark saved about $6 today by not operating his car…and he got exercise. It’s like his own Declaration of Independence from high gas prices.

The futures market is showing oil at $140/barrel. Less a year ago, we forget that oil was under $50/ barrel. There has been a massive run-up in price, especially for airlines and other transportation-based businesses.

Most people aren’t fortunate enough to be able to walk to work like Clark. But there’s always something you can do to fight back against the high prices at the pump. For example, Honda will be rolling out a huge new fleet of affordable hybrids in 2009. The payback should be very quick for buyers; the hybrid version of a car will only be about $1,900 more than the traditional gas engine version.

Nissan, meanwhile, is launching a battery-powered car in the next 2 years. They’ve partnered with NEC to make a new battery for plug-in hybrids and electric cars. It will be beta tested in forklifts, so beware if you’re an operator!

The point is there are real solutions coming. Oil was previously so cheap that we could almost be forgiven for not being more energy smart. But to paraphrase Winston Churchill, “The American people are finally getting around to doing the right thing after trying nearly everything else.”

It used to be that weather was the safest casual conversation starter. Today it's the price of gas. Clark was stunned when he was filling up his wife's car and the bill came to $57; he knows that many folks can top that easily, but it was shocking to him! Recently while filling up a rental car, the pump didn't shut off properly and spewed out additional gasoline. Every last drop is precious these days. We are in a time when the high prices have us more focused on alternative solutions than ever before.

Clark loves his natural-gas vehicle, but that type of car hasn't been embraced by the masses. It can be difficult to find a filling station. Still, he firmly believes that American ingenuity will come up with answers to end our foreign oil dependence.

Here's an example: A man named Floyd Butterfield started the E-Fuel Corporation and is selling a home-fueling station that's the size of washer/dryer stack unit. It allows you to take sugar and make it into fuel to power your car. The price of the device is $10K, so the payback is nowhere near immediate. The New York Times reports that the sugar it would take to create a gallon of fuel would cost around 30 cents.

Will this catch on? Is it vaporware? We don't know yet. But the point is bright people are working on alternatives to power our vehicles. GM is preparing an electric car called the Volt, and Toyota is working on its plug-in hybrids. Meanwhile, there are experiments to turn tree waste into fuel, and Pres. Bush is a fan of switch grass as a fuel.

Many of these experiments won't prove viable. But we're at a new time when we're willing to listen and learn from people we might have dismissed as kooks in the past. For example, Clark is a fan of electric bikes for city commuting. They cost a third of a cent per mile to run and emit nearly zero pollution. Just be prepared to get wet on rainy days!

The Norwegians have a new electric car coming to the United States in 2009 that's got Clark very excited. It's called the TH!NK City and it gets 110 miles on a single charge and goes up to 65 mph. The cost? About 2 cents a mile! And it doesn't eat up foreign imported oil like a gas-engine vehicle.

In other news, a group of researchers in the lab have developed an easy way to take sugar and turn it into a power plant for a hydrogen-powered vehicle. This development is not ready for the mainstream yet, but it's in the works. There are a lot of promising advances that are going to take a while to materialize in the marketplace.

In the meantime, Clark wants to encourage you to look at offbeat transportation alternatives. Washington D.C. has launched a Smartbike program. You pay $40/year for access to bicycles that are strategically placed around town. Users have a code to unlock the bikes and lock them up again at the other end of their commute. It's almost like a Zipcar program for bikes!

Worried about getting too sweaty during your ride? Buy an electric bike for around $600 and it will be no sweat getting around. Clark knows this all sounds kooky, but we need to expand our minds and realize we're not sitting ducks for foreign-oil interests. Christa has long had a fascination with a bicycle that runs on a weed whacker motor. If you Google "weed whacker bicycle," you'll even find videos that detail how to convert your bike.

Are you willing to pay more for a car rental just to get a "green" automobile that's fuel efficient? Enterprise Rent-A-Car -- the nation's largest car rental company -- is experimenting with 4 new offices in the Atlanta area offering fuel-efficient or hybrid vehicles at a premium price. Will people pay more for this at a time when we're experiencing record-high fuel prices?

Clark recalls that Budget mounted a similar experiment several years ago in Los Angeles when the Prius was very popular. That experiment was ultimately a failure. But gas was much cheaper at that point. Today, it could be a different story. Enterprise could potentially make a lot of green by going green. Would you pay more? Share your comments and tell us!

For those of you who have been giving Clark some heat over his support of nuclear power, this note's for you: There are now plants generating solar energy by using rotating mirrors to follow the sun's path. These plants are popular in the Mountain West where there's fantastic sunlight. In fact, the sun gets so intense that Clark's brother -- who lives south of Phoenix -- has to flee to San Diego for about a month every year! The New York Times reports there are 2 of these mirror-equipped facilities already on the grid, while 8 more are in the planning or construction stages. It's good to know that there are new solutions on the supply side. On the demand side, meanwhile, Americans now are using less fuel thanks to fuel-efficient vehicles. Clark recently got a question about whether it was smart to ditch a 4-year-old SUV and buy a new fuel-efficient vehicle. The answer is no, you must instead buy a 4-year-old used fuel-efficient vehicle. Remember, let somebody else take the hit on depreciation.

CLARKONOMICS: The story on energy has been ugly for a while now. Every extra dollar you spend at the pump is a dollar that you don't have for your own life, plus it goes to foreign enemies who may want to harm our country. But here's some good news: Natural gas, which is 97 percent domestically produced, is in oversupply. Just under 6 in 10 people heat their homes with it, including Clark. He also runs his car on the stuff, which emits minimal pollution compared to electricity, oil and other types of power.

Clark regularly tracks the price trends in oil and natural gas -- and the latter picture looks great. We had an affordable winter for heating with gas while people who heat their homes with oil have been hurting.

Don't expect n.g. prices to completely collapse; demand will continue because so many power providers can switch to burning gas to produce electricity. You will, however, see a lot of spin-off benefits for your wallet. Clark's home energy bills have been very reasonable. When he fills his car with n.g., it's so much cheaper than gasoline because the former doesn't have to be refined like oil. With oil, there are so many markups along the way from the ground to the pump. The "crack spread" refers to the markup that refineries puts on their finished product. That's before they ship it to gas stations for another markup! With natural gas, it's like a direct sale from the ground into your tank.

Clark has been big on the electric car deal since the 1970s. While he doesn't know much about the science behind it, he does know that energy alternatives will help rescue us from the dangers of buying imported oil. Clark gets all excited when he hears about new breakthroughs, but then he gets crestfallen when they don't prove commercially viable. Yet his hope always triumphs over his experiences. Toshiba has now announced they have a lithium-ion battery with a 10-year lifespan that can be recharged in 5 minutes. It will ship in 90 days for use in electric bikes, forklifts and construction machinery. If it's successful, it will be available for cars in 3 years.

Speaking of cars, Clark is still hot on his natural-gas vehicle. The only problem is that he has to fuel up in a rough neighborhood. Why does Clark put himself through all these crazy hoops? Because we need to know that we're not stuck over the OPEC barrel. We can break our dependence on foreign oil. If we do this individually, then national policy will follow. Clark's natural-gas vehicle is just one idea in a mosaic of possibilities. His car emits zero pollution and the natural gas is domestically produced in the U.S. and Canada. Honda can make over 400,000 of these cars annually right now. They already have a factory in Ohio. But last year only 1,500 were ordered -- probably because they're so difficult to fuel up!

Have you heard that Congress has reached an accord with automakers and environmentalists to have a 50 percent increase in fuel economy over the next 12 years? It's not yet clear if such a bill will make it to the President's desk. But we've got to get our act together for long-term economic strength. Otherwise, our dependence on foreign oil will make us a 98-pound weakling in the international arena. It's difficult to picture exactly how increased fuel economy will look. With that in mind, Clark wants to tell you about the Suzuki Wagon R (pictured here), which has been the No. 1 selling car in Japan for nine months in a row. Clark first saw this vehicle during a staff trip to Japan. The closest thing Clark can compare the Wagon R to is the old Scion XB, but even that's larger than this toaster on wheels that gets 60 mpg with a traditional engine. Unfortunately, Suzuki has no plans to sell the vehicle over here.

People are also bonkers about buying the SmartCar when it arrives next year on our shores, but that only gets 42 mpg in comparison! Other ways we'll be seeing increased fuel economy at play include clean diesel vehicles, turbo boosters on engines, hybrid designs and more. There are also some things coming that you might not be able to imagine easily, such as SUVs that are not truck based. Manufacturers will simply take a regular car platform and slap on a different top. The result will be an SUV that's easier to drive and offers better fuel economy, among other benefits. Clark gets a kick out of seeing tiny women driving huge SUVs when he drops his daughter off at school. Some moms just won't be caught dead in a minivan, which is considered the height of un-cool!

Several automakers announced new plans for alternative energy cars at the recent Los Angeles Auto Show. Honda unveiled its Clarity, a hydrogen powered fuel-cell vehicle. The Clarity will emit zero pollution. A 3-year lease would run you about $600/month, so it's not exactly cheap. Honda will be marketing its vehicle in Southern California, where there are several dozen hydrogen-filling stations. Chevrolet/GM has plans to put around 100 of its hydrogen vehicles on the road in SoCal under the Equinox nameplate. Meanwhile, Ford is working to launch its plug-in hybrids. Those kinds of cars usually run on electricity for the first 40 miles before they kick over to a gas-powered engine. Clark salutes the entrepreneurial spirit of these automakers who are experimenting with new kinds of cars. Some of you may remember when Clark previously spoke about a car company called Tesla that's building a $100,000 electric sports car. Their goal is to use proceeds from initial sales to fund further research into developing alt-fuel vehicles that will be much more affordable for everybody. This is exactly the kind of entrepreneurial spirit that will help us move away from the environmental and national security dangers that go along with gas engines.

There's one call that Clark has taken on the air about 60 times over the years, and he's never been able to answer it convincingly: Is it worth it to pay the extra bucks to buy a hybrid just to pay less in gas every week? Now Edmunds.com has done a cost analysis of some of the top hybrid models. Their research indicates how much longer it takes to get a return on investment if you buy the hybrid versions of any cars in the study. It's the Ford Escape that gives you the quickest payback -- owners will break even at around 3 years. The Honda Civic and the Mercury Mariner tie at No. 2. The Saturn Vue checks in at No. 3, allowing owners to break even in 4.8 years. Keep in mind that any hybrid offering return on investment in under five years is a smart buy. On the other end of the spectrum, the Toyota Highlander takes 11 years before you break even and the Camry will take you 12 years. And what about the Prius? Because there's no exact gas-engine equivalent, Edmunds looked at the Prius vs. Corolla. Turns out it will take you a whopping 13.6 years to get payback if you only drive your Prius 15,000 miles/year! So Toyota -- the greenest of all the automakers -- actually does not give you good payback on your hybrid-purchasing dollar. Clark advises people to only buy a Toyota hybrid if they're doing it because of deeply held environmental beliefs.

Clark continues to receive many questions about the used Honda Civic GX he just purchased. Typically, a new GX runs about $25,000 versus $17,500 for a standard Civic. But some folks have been wondering if the extra investment is worth it. One boon to buyers is that you receive a $4,000 federal tax credit when you purchase this no-pollution natural-gas vehicle. Meanwhile, operating costs are about $1.20 per "gallon," though you don't fill up with traditional liquid gas. Clark instead uses compressed natural gas, which is largely produced here in the United States. He'll report back and let you all know if his GX purchase proves to be crazy or not. Meanwhile, the government has issued new fuel economy numbers for automobiles at FuelEconomy.gov. The push to get new numbers really gained momentum when people bought the Toyota Prius and found their sticker numbers could be inflated by 30 percent. But all 2008 vehicles going forward will feature the true miles per gallon figures. Note that you get greater value for your buck when you go from a vehicle that has 15 mpg to one that has 25 mpg -- rather than going from 25 mpg to 35 mpg. It's all about ratios. So it may make sense to buy a car with good mpg versus great mpg. It's that initial leap in fuel economy that gets you the biggest bang for your buck.

Last winter, Clark first started talking about natural-gas vehicles (NGV). He loves them because they don't pollute the air and they use domestically produced fuel. His wife encouraged him to get one, so he searched on the Internet and a found used 2007 Honda Civic GX. Clark admits that this could either be a really dumb purchase or a really smart one. Honda is making about 400,000 of these cars per year, but they're only for sale in California and New York. The cost is about $25,000 for an NGV versus about $17,500 for a standard Civic. One of Clark's challenges in having an NGV is finding a place to fill it up with specially compressed natural gas. There are a lot of filling stations on the West Coast and on the Eastern seaboard down through Richmond, Virginia. But in the Atlanta area there's only one single station in a more than 200 mile radius! Luckily that station is about seven miles from Clark's home. Clark believes that as a nation we need to start thinking outside of the box about our energy needs. Relying on foreign energy suppliers who want to harm us can only weaken our nation. Clark's Honda GX is his answer to this dilemma. What's yours?

In the latest installment of Clarkonomics, Clark discussed some predictions about the price of oil. The current price is about $83/barrel, while a gallon at wholesale costs an average of $2.08. Now Clark is hearing some predictions of prices hitting $100/barrel. Meanwhile, Forbes recently ran an article suggesting that oil will go down to $45/barrel -- rather than up to $100/barrel. The reason is that there's new supply coming out of the ground that will drive prices down. Another story Clark saw predicted $50/barrel. All this could, of course, change if we have another episode of world turmoil or terrorism. But the fact remains that we in America use way too much gasoline for our population numbers.

There are three ways to deal with our over-consumption: drive less, buy a more fuel efficient vehicle or develop more technology that will allow vehicles to transport us more efficiently. GM is hot on the heels of a plug-in hybrid, which uses practically no gasoline. You plug the car in overnight and then your first 40 miles of the day are generated from electricity. When you go over 40 miles, the vehicle automatically kicks over to gas. This system would work well because most people drive less than 40 miles a day. On a related note, Clark is upset that special interests have gotten tariffs on sugar. The sweet stuff can be used to produce the most efficient gas alternative known right now -- much more so than the corn ethanol some people are pursuing here. The injustice of the situation is that sugar is not a viable solution for U.S. fuel needs because of the ridiculous tariffs in place that protect special domestic business interests. Our energy needs go hand-in-hand with our national security. Isn't it time to start making smarter choices?

Clark is always investigating the push to go green in the auto industry. Not long ago he spoke about the Air Car, a vehicle that runs on compressed air instead of gasoline. Now he recently heard that McDonald's franchises in England are planning to run all their delivery trucks on recycled fryer grease. Previously McDonald's had to pay to dispose of the grease, but now with some processing equipment they'll be able to save that money and leave the world of diesel fuel behind forever.

Closer to home, Clark is still weighing the idea of purchasing a Honda Civic that runs entirely on compressed natural gas. The benefits include that he won't have to give one more penny to foreign oil-producing nations who want to destroy us, and the vehicle won't cause any pollution. Honda could roll out 40,000 of these natural-gas cars a year right now. But the demand for them isn't really there yet. Partly that's because owners would have to install what are called "Phill" refueling stations at home. While such a move might seem a little cumbersome for the average homeowner, the price of the investment is certainly sweet. How does paying $1.20/gallon sound in an age when people regularly pay upwards of $3/gallon?

Clark's daughter has his Honda Civic hybrid at school and she's happy to be getting about 45 miles/gallon. It seems that hybrids with good fuel economy are now selling like gangbusters. Remember back just a few years ago when this wasn't the case? Ford had to offer incentives just to move their Escape hybrids. Now The Washington Post reports the Escape is so hot that dealers can't keep up with the demand. In fact, the vehicles are selling for thousands of dollars above the list price because people want to save money on gas. Psychologically it may feel OK to pay a little more now with the promise of bigger savings down the road, but Clark thinks you should really crunch the numbers before you make this kind of purchase. Buying with your emotions isn't advisable, nor is overpaying for new technology. Take the rational approach by doing some smart comparative auto shopping on a website like Edmunds.com. The same thinking applies when deciding whether to dump your current gas-guzzling ride for a new and more fuel-efficient vehicle. Look for a similarly depreciated vehicle and try to do a trade where you get an older set of wheels that's more fuel-efficient than your current car.

Battery powered bikes are all the rage and they're great for commuters who want to save money. As some of you listeners may know, Clark often rides a scooter to the studio. He gets more than 70 miles to the gallon and goes around 45 miles per hour. But the scooter still runs on regular gas, which can be expensive. By comparison, electric bikes go 20 miles per hour and they retail for around $700-$800 and up. They're very silent, except for the whirring of the electric motor, and go 30-40 miles between charges. They're nearly pollution free, but you are exposed to the elements. Still, they save a ton of money and are a viable option if you have a commute that's less than 10 miles. Clark admits that the electric bike trumps his scooter for savings. On a related note, Clark wants to warn his listeners that gas-additive scams are back full force. These scams involve people trying to sell you pills and potions for your fuel tank that promise to stretch your gas by 30 percent. The claims are bogus. It is only natural that as we pay more for gas we want to believe there's a way to recoup the extra expenditure. But don't make the bad situation of paying for more expensive gas worse by losing money on these gas-additive ploys.

The Chinese have come into almost every American market except for cars—until now! Starting in 2008, Chinese cars will be sold under the Chrysler name in the U.S. Mainland China has a goal to account for 10% of cars sold in the world. But quality is a huge issue with Chinese manufacturing. Hyundai started off with terrible products at first; China might too! China makes terrible toys, dog food, tires, and much more, because there aren't sufficient checks and balances in the manufacturing system. So it will be a challenge for them to get the quality right. But they'd better, because the quality of cars these days is top drawer. Cars are better, safer and more reliable than they have ever been, so it's a great time to buy.

Ford is working with the power companies in California for plug-in hybrids, which are electric-powered for the first 40 miles, after which the car switches to gas. These are awesome! They cost only 2 cents per mile, only a fraction of what you pay per mile for gas! And it's a great way to reduce our dependence on foreign oil.

While the big oil companies are the ones ripping us off, it's your local gas station that gets the heat from consumers. But did you know that gas stations actually like it when the price of gas is lower? When prices get too high, people tend to buy less of the expensive convenience store goods like beer, cigarettes and lottery tickets that are profit boosters for gas stations.

No matter how you look at it, fuel is just one cost associated with a car. If you were paying to ride in your car the same way you pay to ride in a taxi, you'd be spending some 50 cents a mile. But what if you could drive for as little as two cents a mile? There are a number of smaller companies such as Kurrent making electric cars offering that kind of fuel economy. Kurrent -- which was bankrolled by ad-agency people using their retirement funds -- makes an electric vehicle that will go up to 35 miles an hour with a 100-mile range on flat ground. You can charge the vehicle in an ordinary household outlet. And though it is very small, it's built strong enough to be substantial in a crash. They're making up to 10 of these cars a day. The primary market is in large retirement communities in Florida, California and the mountain states. But if you think you're too cool for a grandpa-mobile, just ponder these economics: In addition to running for just two pennies a mile, a Kurrent costs as little as $10,000 to buy. Now that's a Clark Car if ever there was one! Clark has been fixated on great fuel economy since the oil shortages of the '70s. As he says, we are the strongest nation on Earth, but we won't always be if continue to give our money to oil-producing nations that want to destroy us. We must be innovative as Americans, and going electric with your car is one way to do it.

A few years ago a French inventor came up with the technology for an automobile that runs on compressed air! It generates no pollution at all, costs about $2 per fill up, runs 125 miles on a tank, and can go up to 70 mph. It looks like a micro-mini van, with a sliding door. Clark loves the idea. But so far, even though they're bringing 6000 of them to India, no one wants to bring them to the U.S. So until they're available here, Clark is considering getting a "GX", a car from Honda that runs on natural gas, the kind of gas that heats your home. It creates almost no pollution, costs about $1.20 a gallon, and about 97% of the gas supply would be from domestic sources. Honda is only bringing about 1200 in per year (to New York and California only) to see if there's a market for them. To fill up, you install your own gas station at your house and plug into it overnight. On road trips you'd have to do your homework to find out where natural gas filling stations would be. But Clark is really excited about these cars, and would even consider breaking his own rule of avoiding costly "new" technology in order to be an early adopter.

When you buy a car, you’ve probably seen a sticker in the window showing the fuel economy that car will get. But did you know that number is not accurate. In order to benefit Detroit automakers, the federal government has inflated the numbers to make cars seem more efficient than they actually are. The numbers were inflated by about 20 percent. The good news is that things have been corrected in the system. If you buy a 2008 car, you’ll get the correct fuel economy. If you’re buying a 2007 model or earlier, you’ll get the inaccurate rating. To get the correct rating on your own, visit fueleconomy.gov. Gasoline prices are still fairly reasonable in the U.S., especially when you consider what people pay in Europe and Asia. Chrysler may not make it. It was out of necessity for those countries to make more fuel efficient cars. But the problem for American automakers is that people now want more fuel efficient cars. Chrysler is in big trouble, and Ford and GM are teetering on the brink. At any point, the Detroit automakers could go bankrupt. So, we need to do something different to turn our auto industry around.

Clark has received some phone calls lately from Prius owners who aren’t getting the gas mileage they were promised when they bought the cars. That is due in part to the fact that the Monroney labels on cars have had inflated fuel economy numbers. The Detroit automakers wanted an advantage in the market and they have gotten away with it to the detriment of car buyers. The inflated numbers have been on all cars, but hybrid buyers have been the most outspoken about the discrepancy because they were counting on getting a certain number of miles per gallon. Well, the EPA has gotten involved and has established rules requiring the correct MPG figure on the Monroney label from now on. So, when you check the sticker, you can be sure that is the fuel economy you’ll get.

Years ago, GM introduced the EV (electric vehicle) car. Clark got to test it out in the mid-90s and it was very forward thinking at the time. Unfortunately, the electric cars didn’t catch on and GM closed the books soon after. The company hasn’t given up completely, though. According to the L.A. Times, GM just launched another prototype that is an electric car and a gas car all in one. Basically, it works like an electric car for most of the day. Then, at night it switches to gas. Clark loves the fact that an American car company is working on this kind of technology. In recent years, Japanese companies have been responsible for all of the forward-thinking models. Let’s hope it doesn’t end up in Clark’s Graveyard.

We are in a tough time economically right now because gas is high again and we’re dependent on foreign sources for oil. Clark thinks our efforts need to focus more on technology if we’re going to help the situation. One of the products out there is called the “Tesla.” It’s an electric car that will go 250 miles on one charge and is about the fastest performance car ever made. It will go from 0 to 60 in four seconds, which is amazing. And it’s on the market now for those who can afford it. The cars cost $100,000, which is obviously not feasible for most people. But the cost will go down. Toyota announced just in the last week that it is adopting the plug-in hybrid. The company was reticent for years, but now the cars will be everywhere. Also, Wal-Mart, FedEx and UPS are working on ways to make their trucking and shipping outfits more efficient. They spend a fortune on gas and average about six miles per gallon. There are also a bunch of new cars on the market that get above 30 miles per gallon. These include the Honda Fit, Toyota Yaris, the Toyota Camry hybrid and the VW Lupo.

Mercedes is going to bring the Smart Car to the States! Clark has been waiting for this day for years and it’s finally happening. He’s had a longtime fascination with the Smart Car because of its size and efficiency. It’s half the size of a normal compact car but it averages 60 miles per gallon. Also, you might think because of its size the Smart Car would be a death trap on wheels. But they are built on a steel cage and made as safe as possible. As a country, we have a challenge in terms of what we drive and how much fuel we use. Americans make up about 4 percent of the world’s population, but we use a quarter of the world’s energy. We need to start driving smarter cars to reduce that energy use and, in turn, our dependence on fuel from countries that want to harm us. People can get Smart Cars right now from Zap Cars. But they’ll probably be available at dealerships in late 2006. Look for them then.

New, clean burning diesel cars are coming our way. That probably seems impossible to people who owned or rode in diesels back in the 70s or 80s. But the new “clean diesel” is coming to the States very soon. They’ve been around Europe for years, and they get about 30 to 40 percent better fuel efficiency than gas cars. Volkswagen already sells diesels in the States, but more companies are getting in the business. It’s imperative that Americans drive more fuel efficient cars. It helps our wallets and ensures our national security because we’re not as dependent on foreign energy and oil. To remain the world power that we are, we need to stop doing business with countries that want to harm us.

Asian cars are selling like hotcakes these days. In fact, Asian automakers are now selling 40 percent of the cars sold in the U.S. Meanwhile, Detroit and the American automakers can’t give their products away. The Honda Fit is selling so well that people follow the trucks carrying these cars into the dealerships so they can get one. There’s no mystery as to why. The huge gas guzzlers out there are draining people in the wallet. It costs an average of $40 to $60 to fill up cars these days. Clark’s scooter, on the other hand, costs $2.94 to fill up. Now, you don’t want to dump the car you have just because it guzzles so much gas. You want to wait until the car you own has run its course. Although its seems like buying a new, more fuel efficient car would be the smart choice, it would actually be more costly because of all the extras and overhead.

Toyota continues to do well as an automobile company, in part because the company is innovative and invests in research and development. The company is now investing in plug-in hybrids, for example. These cars run on electricity for about 40 miles and they emit much less pollution. Most commutes are less than 40 miles, so you’d charge the car overnight and be good to go. If you’re going longer distances, the gas engine takes over. Clark thinks this idea has enormous promise. Toyota will have about 20 different plug-in models on the market in the future.

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In other car news, sale of mid-size SUVs are down drastically, according to the Dallas Morning News. Dodge Durango sales are down 40 percent; Ford Explorer sales are down 30 percent; GMC Envoy is down 23 percent and Jeep Grand Cherokee is down 18 percent. More people are buying “car-based” SUVs because they get much better fuel economy. Maybe we’re finally getting it.

Clark has been talking about the “Smart Car” for several years. It’s a tiny, fuel efficient car that is a joint venture between Mercedes and the Swatch Watch folks. It fits in half a parking space and people love the fashion statement it makes. But neither company has been able to make money off of it. Mercedes has lost millions of dollars on the deal, in fact. They are great for use as a commuter car, but people don’t seem to be buying them in Europe. Jump across the pond to America where a company known as zap.com is now selling the cars. It took a bit of work to get the cars here and to fight off European manufacturers who were fighting it, but the California company was able to do it. The shocker is that it’s an economy car in Europe, where it costs about $11,000. In the U.S., people are fighting over these cars and have bid up to $40,000 for them. Clark doesn’t get why they’re so big here and not any big deal in Europe. It could be that people want more fuel efficient alternatives. For that reason, Clark is putting his money on the three similar cars coming to the country this year. They are the Fit, from Honda, the “Versa” from Nissan, and the “Yaris” from Toyota. They’re all going to be about $12,000 and they’re going to be a bit hit. But Clark wants to congratulate Zap for sticking to its knitting and getting rewarded for it.

Diesel cars get great fuel economy, which you probably know if you’ve rented a car in Europe recently. Most of the cars rented there are diesels. The problem with diesel has always been pollution – until now. Mercedes has come up with a technology that makes the fuel burn cleaner than a gas engine would. The new fuel and new engine allow these diesels to get 40 percent better fuel economy. They get 20 mpg as a gas car and 28 mpg as a diesel car. The smaller the car gets, the better the fuel economy. Clark thinks this effort will be successful and other companies will follow suit.

About six months ago, Clark talked about the bogus EPA ratings that appear on cars that are for sale. For example, the Toyota Prius is touted as getting 60 miles to the gallon. In actuality, it gets about 40 miles per gallon. This issue has angered a lot of drivers, especially with rising gas prices. The overestimations happened because the Feds were using a 30-year-old test. It would be so much more efficient and helpful to people if the true figure were published. People have a right to know the truth. Well, the Feds are taking a step in that direction. The Feds are going to use updated technology to test cars correctly starting next year, so keep an eye out for it.

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In other fuel and hybrid news, Toyota is going to install a button in its Lexus models that will allow people to use either less fuel or go faster. The company caught flack recently because the new Lexus models were going extra fast but getting horrible mileage, and owners got upset.

Clark has talked with great enthusiasm about the “Smart Car” coming to the U.S. The Smart Car is a Mercedes-Swatch idea that is from Europe and is being sold in Canada. The cars average 60 miles for gallon and many have wanted them to come to the U.S. It’s not going to happen, but all is not lost. Zap, the company that was going to sell the Smart Car in the U.S., is now bringing another car into the States. It’s from Brazil and it can run on various types of fuel, including corn, sugar, gasoline and other sources. It’s called the Obvio 828. It’s one of the oddest looking cars you’ve ever seen and it goes 0 to 60 in about five seconds. The Obvio takes up as much space as a motorcycle, but it can seat three people. Prices on these will ultimately be decided, but we’ll keep you posted. In other car news, Mazda is bringing a micro mini-van into the States that seats six people. It gets about 50 percent more fuel economy than a regular mini-van. Clark is psyched about the options coming our way because they get such better fuel economy and reduce our dependence on foreign sources of oil.

Honda has had a reputation as the best engine maker in the world. But Toyota has now one-upped everyone with its hybrid engines. As a result, Honda has been working overtime to recapture its innovative lead. The company has secretly been working on a gas engine that gets 65 miles per gallon of gasoline. It’s a regular car with an HCCI engine. That translates into “Homogeneous Charge Compression Ignition” but what it means is that it allows a gas engine car to run as efficiently as a diesel engine. These cars won’t be out next year, but it will be in the next five years. Companies have the ability to cut fuel consumption in half. Many just haven’t tried. So, there are good things happening, including in the United States. But we need to continue on this path and continue separating ourselves from foreign oil sources. If you read the quotes of the Iranian president in recent weeks, you’ll realize how important it is that we assert our independence in the oil world.

Clark is going to step out on a limb and predict that gas prices are going to drop like a rock. Gas prices have been incredibly high at wholesale and retail. The price at wholesale has been as high as $2.80 a gallon, but that has dropped to $1.80. That dollar drop means that the retail price will go down, stubbornly but surely. Katrina and then Rita definitely had an effect on the price of gas. But, barring some other unforeseen disaster, you’re going to see much lower prices at the pumps. Prices take a while to work through the system. But it will cost significantly less to fill up your vehicle by next spring.

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In other fuel news, a super car is coming on the market that will get up to 180 miles per gallon. Yes, 180 mpg. A company called “Electric Control Systems Engineering” recently modified the Toyota Prius, which has both a gas and an electric engine. The company made it possible to charge the electric engine overnight, so the car runs mostly on electricity. When the battery power runs out, the gas engine kicks in. So, the fuel economy goes from a normal 50 mpg to between 150 and 180 mpg. When Clark talked about this last year, Honda was very skeptical about doing this. But now the company is considering following the other company’s lead.

Gas prices shot up to $10 a gallon today in England. If you had a 40 gallon tank it would cost you $400. Well, some companies are combating rising gas prices. Toyota has decided to convert 100 percent of its vehicles to hybrids. The company did not announce a year for its goal, but Clark is sure it will happen. Porsche, Volkswagen and Audi are all working on hybrids as well. In the developed world, we’ve got to face facts that it’s a new era in terms of energy. American automakers are going to have to wake up or we are going to fall way behind. Two people on Clark’s staff now own scooters to combat rising gas prices. What are you doing?

Who is going to do more to quell America’s weakening position in the world? Does the federal government have a plan, or is there a company out there with a plan? Nope. Companies in other countries are more attuned to the problem, however, and are doing what they can to reduce their dependence on foreign oil sources. Toyota, for instance, plans on one-quarter of its vehicles being built with hybrid engines over the next four years. The company is making money selling hybrids and it wants to do something about the energy crisis. What are we doing here in the States? Nothing. In fact, automakers are giving each other high fives because they have convinced Congress to avoid establishing any kinds of regulations on American cars. Honda is also doing what it can to make cars more fuel efficient. Clark thinks GM, Ford and Chrysler need to wake up and come up with ways creative ways to keep our resources here in the States. We have no choice. We have to become more energy efficient if we want to stay alive in the marketplace.

Gas prices are moving up and it doesn’t seem to be stopping anytime soon. Do you feel like a sitting duck? There are things you can do, but you have to be a bit of a free thinker. If you have a diesel car, or can convert your car to a diesel, it will run on restaurant grease, for example. Another man, who recently sent pictures to Clark, runs his diesel Volkswagen Beetle on vegetable oil. Cars in Brazil are “multi-fuel” vehicles, meaning they can run on sugar cane and other types of fuel. The country made it a national policy to break away from foreign oil sources, and it’s working. The powers-that-be in the U.S. are trying to block the use of sugar as a fuel source and luckily it hasn’t happened yet. But they’ll continue to try. Our country should be in favor of any initiatives that reduce our dependence on foreign oil. So Clark doesn’t get it. In the meantime, consider converting your car if you really want to save money.

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In other car news, have you heard of “plug-in hybrids?” These cars can get up to 250 miles per gallon. So, some people are converting their regular hybrids to be plug-in hybrids, which allows them to run solely on electricity for quite a long time. All this news may frustrate you, but it’s becoming a reality. The answer is not to dig for more oil, but to come up with new ways to run our vehicles.

Clark talked recently about tow truck drivers who were camping out on private property, waiting for illegally parked cars to tow away. A number of court rulings had also given tow truck drivers free reign to do that. But the U.S. Congress is now reauthorizing states to set up rules that would allow private property owners to decide who can come on their property. Granted, most tow truck drivers are decent people who work within the law. But there is a rogue element out there. Let’s hope that’s history with the new law.

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In other car news, the state of Virginia allows hybrid car owners to ride in carpool lanes even if there is only one person in the car. California is about to pass a similar law. And the same law that Congress is working on regarding tow truck practices will also make it legal for single hybrid drivers to ride in the HOV lane everywhere in the country. People sitting in regular traffic lanes get furious about it, but it is a great incentive to get people to buy hybrid cars.

These days, more people want small cars or “mini” cars because gas is costing them so much money these days. Clark has a Scion XB that gets great fuel mileage and has tremendous room on the inside. He admits the car is very ugly, but he spends the majority of his time inside and does not really care about the outside appearance. You are going to see a lot uglier, mini cars in the next 18 months. Car companies believe there will be a lasting market of people looking for fuel efficient vehicles, meaning the car gets over 30 miles a gallon.

The price of oil is now $60 a barrel at wholesale and it seems to keep rising. As a country, we need to become stronger in this arena instead of depending on foreign sources of oil. And while Clark shakes his head at our current situation, Honda is already coming up with ways to combat high gas and oil prices. The company has developed a new engine called the IV-TEC (Intelligent Variable Valve Timing and Electronic Control System), which improves the fuel economy of any vehicle. It should get about 30 miles to the gallon. The company is also coming up with a hybrid engine that gets more than 60 miles per gallon. So, while we’re twiddling our thumbs in the States, Toyota and Honda continue to make history in the automotive industry. We need to improve the fuel economy of our vehicles if we want to continue as the world’s most powerful country.

The number of automobile deaths involving SUVs and no other cars is growing at an alarming rate. These accidents occur because SUVs have an unstable center of gravity and flip easily. The National Highway Traffic Safety Administration has internal documents from the Ford Motor Company stating that certain Ford employees know that Ford’s SUVs roof pillars are not safe. There are innumerable cases where people could have lived if they had safer roof pillars. Now Ford’s secrets are revealed. A Ford spokesman said Ford and Volvo are both safety pioneers and that there is no direct link between roof strength and automobile injury. Clark says this is simply not true. If a roof is not strong enough, then it will collapse when a car flips. Big doesn’t necessarily mean safe. Check crash test ratings for cars you’re considering buying.

Exciting things are going on right now with hybrid technology. Most of these cars have one engine doing multiple jobs or more than one engine doing one job – all in an effort to give the car better fuel economy. And, although there are a lot of naysayers, they are selling like hotcakes. As a result, there will be more hybrid products on the road in the future. Right now, researchers at U.C. Davis are making plans for a “The Plug-in Hybrid.” This is a car that is plugged into an electrical outlet at night to charge it for the next day. It can travel about 60 miles on a single charge. After that, you can fill up on gas and drive further if you need to. The average driver travels 38 miles a day, so most of the driving would be free! Researchers have been working on this model for 25 years and they estimate that drivers will only have to fill up about five times a year. A German company is also working on a similar vehicle overseas, according to the San Francisco Chronicle. It will come to the States this summer for testing, and it will conceivably run on any type of power that can generate electricity. That covers our cars, but what about our homes? Honda is introducing a new power system for the home that will allow people to convert gas energy into electricity. When you use natural gas, a lot of that energy is wasted. But with the new system that wasted energy will be converted into electricity. It will cost more than twice a regular unit, but you get the payback in about five years. The other great thing out of all of this is that it will decrease our dependence on foreign oil sources because we’re coming up with alternative ones.

Clark had a call recently from a man who was concerned about how much money it took to fill up his SUV. The man was wondering if he should replace his SUV with something more fuel efficient to save on gas. Clark told the caller not to dump the SUV because in the end it wouldn’t be worth it. But afterward he thought about how much of a burden it is to fill up SUVs and other gas guzzlers these days. The advice still holds true in terms of replacing a vehicle, however. Forbes confirmed in a recent article that it doesn’t make sense to get rid of a car you still owe money on because of the price of gas. That’s because most of the cost of a car is not in the price of fuel. The majority of the cost is in the depreciation of the vehicle, the interest on the loan and the maintenance on it. Now, if you’re at a time when you would normally sell a car, it makes sense. But don’t just dump a car because gas prices are high. That’s an emotional reaction and it’s not a good idea.

Clark saw a report recently that the average fill up for an SUV is $50. That’s unbelievable to Clark, who fills up his hybrid vehicle about every 500 miles. It takes about 12 gallons, and he loves the gas mileage he gets because gas is so expensive these days. The good news is that automakers are increasing the number of hybrids they’re building each year. Toyota, for example, is increasing the number of hybrids it ships to the U.S. to 100,000. That doesn’t come close to reaching today’s demand, but originally Toyota was planning to sell between 20,000 and 25,000 a year. The company is even thinking of converting plants in the U.S. into hybrid vehicle plants. The Kentucky and Indiana plants are the two most likely to be converted. In past years, experts predicted that hybrid vehicles would account for less than one percent of the cars in the United States. Today, they estimate that one out of five people in the U.S. will drive a hybrid car. However, as you look at vehicles that you’re interested in buying, know that a hybrid is still not a smart purchase for most. A gas car is several thousand dollars cheaper, and it would take more than a decade to make up the difference. So, make sure it’s a smart purchase for you.