Driving a motorcycle to work is a risky proposition around here, especially since Autovantage.com has hipped us to the fact that Baltimoreans are amongst the top 15 rudest drivers in the nation.

But that’s not stopping scores of new motorcycle riders from risking road rash or worse just to enjoy 50 miles per gallon or more. Some cruisers even get well over that. It must be nice when a full tank of gas is only 4.8 gallons and costs about $14.40.

But it really comes down to cost per mile. BMW motorcycles, for example, get outstanding fuel mileage, but have Sedan-like price tags. And the technology they carry easily rivals that found on their own 3-Series road cars. Look for 3-Series-like maintenance bills on occasion, too.

For most of us, motorcycles aren’t a viable option as daily transportation. And for areas where public transportation is almost equally unviable, we’re stuck with moving at least a ton-and-a-half of steel, plastic and rubber between two points as fast as possible twice a day.

AAA’s 2006 Driving Cost Guide says that it costs the average American driver $0.62 per mile to operate their car 10,000 miles a year. Now, there are a million ways to calculate that — you can include some expenses, eliminate others. But doing it the AAA way, we see a yearly expense that’s been increasing some years much more than inflation:

Here are the technologies most likely to keep driving costs at bay today and in the future:

Turbos — Power in a Small Package

Once the domain of sports cars, Mercedes diesels and 18-wheelers, the turbocharger is making a big comeback. It allows engineers to use a smaller engine to achieve what a much larger, non-turbocharged engine could. A smaller engine is lighter, more fuel efficient when the turbo is not in use, and often times cheaper to produce.

Engine Sizing on the Fly

General Motors introduced this concept back in the early 1980s and it was not a success. The idea was to have a large V-8 engine that could electronically activate and deactivate cylinders as needed. So, when there was no acceleration needed, the car could run on four cylinders, and could go up to six or eight as your right foot commanded. The problem was it drove horribly. However, nearly 30 years later, modern electronics make this cylinder deactivation idea viable. It’s one way to gain greater fuel efficiency and decrease emissions.

Gears and Gearlessness

Until recently, automatics were frequently three- or four-speeds. Fives have now become common, sixes are seen in more sporty and high-end luxury models, and now at least one manufacturer is boasting a seven-speed automatic transmission. Then there is the CVT (continuously variable transmission) that has virtually an infinite number of speeds. Big mileage gains are possible here.

But that’s only the beginning. Tires with lower coefficients of rolling friction could have a huge mileage and driving cost impact in years to come. And we could even see major steps that make running your car’s air condition systems cheaper as well.

On that final note about air conditioning efficiency, there is an interesting company in that field called Amerigon (ARGN: NASDAQ). Amerigon produces a climate control seat for truck and car occupants. On the surface, the shares look pretty pricey at the moment, but this is one that we’d take a closer look at a more attractive price.

Until Next Time,
Craig Walters
May 21, 2007

Craig Walters

Craig Walters spent years entrenched in the investment industry doing what he loves best: performing financial research on scores of small-cap companies. Craig was formerly an equity analyst and Systems Director for Ferris, Baker Watts.

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