There are seminal changes going on in the auto industry right now and all the manufacturers – even those in Europe that have been coping with high gasoline prices for decades – are scrambling to come to grips with the changes in consumer transportation preferences.

Where will it take us?

With the things going on in the oil market and the automobile business, I’m reminded of the60’s song by the Buffalo Springfield. We can see the changes happening all around us, but we’re not quite sure where we’ll be in ten years, let alone five.

Two things were on the BBC news this morning (in Tuscany, it’s one of the few stations broadcast in English). The price of oil crossed the $140 per barrel threshold, and Volkswagen introduced its first gas-electric hybrid. These are, perhaps, small footnotes in a larger story, but it’s clear that they are closely related and everyone – Americans, Italians and Germans – as well as anyone who drives an automobile, will experience changes in what they drive and the way they drive, not seen since the oil embargo of the 70’s.

What I’m driving today

Since I’ve been in Italy, I have been driving a Volkswagen Passat Wagon. Although the Passat is sold in the U.S., the version that I have is a 1.9 liter TDI equipped with a 5-speed manual transmission and a black cloth interior. U.S. Passats are available with manual transmissions, but the turbo diesel is sold only in Europe. Ditto the cloth interior.

U.S. customers, it is presumed, would much prefer either vinyl (V-Tex) or leather to cloth. I’m not sure why. Maybe it’s because European drivers would not use the air conditioner as much in hot weather, certainly making the vinyl unbearable. In any case, I find the cloth much more comfortable than either one.

Once you leave the Autostrade, the 5-speed manual is much more entertaining on the local roads as you twist and turn up and down the Tuscan Hills. Although the 1.9 TDI has plenty of low-end torque, it tends to run out of gas (no pun intended) just above 4,500 rpm, and an automatic would not do well around here.

Even Europe is adjusting

VW’s announcement this morning of the “Twin Power” Golf (gas-electric hybrid) underscores the fact that even over here, where gasoline and diesel fuel have been expensive for more than two decades, carmakers continue to grapple with high fuel costs and lower government-mandated CO2 emissions. It is a new world.

Tags: bbc, buffalo springfield, golf, italy, passat, tdi, turbo diesel, Volkswagen