Posts Tagged ‘Hybrid Car’

Hybrids. All about California?

What’s the problem with the king of hybrid cars?

Compared to last year, Toyota Prius sales are down more than 15 percent. Why?

Is it the depressed California auto market still reeling from massive losses in property values? Are buyers simply waiting for plug-in vehicles? Is it gas prices? The recall scandal? All of the above?

Not long ago I heard an auto analyst claim that California auto sales have improved from “horrible to bad”. Since a majority of hybrid cars are sold in the golden state, a drop in hybrid sales isn’t that surprising. Nonetheless, gas is still averaging .51 in the West – almost 75 cents higher than the national average. Coupled with some of the best hybrid deals ever, especially on the Prius, shouldn’t sales be rising, or at least holding their own in California?

Recently, some have argued on this blog that consumers are waiting for plug-in vehicles. Really? Last I heard there were only 10,000 people with 0 deposits on the Nissan Leaf. Likewise, GM has made it quite clear that Volt sales will be very limited by supply for at least the next few years. Can plug-in demand really be behind the lack of Prius interest – and hybrid car interest overall?

Then, of course, there’s the Toyota recall scandal; however, Prius sales haven’t tanked nearly as much as many other hybrid brands. So, a decline in Prius sales is certainly about more than just the recall scandal.

Ultimately, the decline in Prius sales is probably a mixture of all of the above, and even more variables.

The Future

So, what does the decline in Prius sales indicate for the future of hybrid cars and plug-in vehicles?

In recent months both Ford and Toyota have made very bullish forecasts for future hybrid sales, such as at least 20 percent hybrid by 2020. Likewise, Nissan has claimed as much as 10 percent EV by 2020, and the government has claimed 50 percent battery powered penetration by 2030.

What changes so dramatically in the next few years that we achieve such high levels of penetration when after a decade hybrids still can’t overcome even 3 percent penetration?

Certainly, it’s easy to claim that much cheaper battery prices are around the corner, and/or that much higher gas prices are inevitable since both assertions are probably true, at least to some extent.

Nevertheless, commodity prices will limit the downside cost potential of lithium technology at a price that will still be very hard to compete with gasoline and ever more efficient internal combustion engines, suggests a plethora of research. Higher gas prices, on the other hand, would mean consumers have less money to spend up front on transportation according to the studies. Thus, consumers would have to downsize into cheaper and cheaper vehicles rather than hybrids and plug-ins and their greater upfront costs.

In fact, to some extent, that is exactly what has happened since the recession and gas spike. Consumers have downsized into more efficient vehicles, but they have not converted into hybrid vehicles. And with the greater costs and limitations of plug-in vehicles, can a mass exodus from gas vehicles into plug-in vehicles really be expected?

The Toyota Prius has now been on the road for more than a decade. During that time, according to Consumer Reports, JD Power, etc., the Prius has been one of the most reliable and most repeat-buyer-coveted vehicles available. Additionally, many Prius hybrids with old battery packs – less technologically advanced – have survived not just 10 years, but hundreds of thousands of miles without a battery pack replacement. Therefore, newer NiMH-powered hybrids should have even longer life spans. Regardless, in terms of life span, the Prius has proven itself.

Ultimately, the Prius is an exceptionally efficient and likable vehicle, especially for urban commuters – a group of drivers that represents far more than just 2-3 percent of American commuters. And, today, the Prius deals are even better. More important, compared to the 2008 gas spike, for example, Prius buyers are today literally saving several thousand dollars up front on their purchase. (How much gas does several thousand dollars buy for a Prius driver, even at .00 per gallon?)

So, seriously, why are Toyota Prius sales down if the battery is on the brink of revolutionizing the auto industry? Where’s the disconnect?

Hybridcarblog

Hard to get off the lot

Stagnant hybrid inventory

There are few things auto dealerships hate more than inventory that sticks around forever, and in June a few hybrid cars were either on the list of Cars.com’s “Loser’s List”, or close to it.

The Mercury Milan hybrid made the stagnant inventory list at 90 days, meaning it takes 90 days on average to sell a Milan hybrid.

Likewise, while the Honda Insight hybrid didn’t make the ‘losers’ list, it was close at 80 days.

Thus, if you’re in the market to buy a hybrid car, it might be worth checking out these two hybrid cars. Often times, dealers would rather cut a deal to move these vehicles rather than keep them on their lots or send them off to another dealership.

Via Hybridcarblog

Used? Think Toyota Prius

Another best for the Prius

When it comes to hybrid cars, the Toyota Prius often tops the list of most categories. Most fuel efficient. Most sales, etc. Well, the Prius has added another ‘best’ to its list of bests.

According to Edmunds, the Toyota Prius is the best bet for a used hybrid car.

Based on safety, reliability, value and availability the Prius was chosen as the best hybrid made between the years 2003 – 2008, the ideal range for a used car. According to Edmunds the ideal time to buy a used car is when it is 2-3 years old, but never older than 7 years.

Of course, the Prius didn’t face a whole lot of competition during those years, so this ‘best’ really isn’t much of a surprise.

Via Hybridcarblog

Looking for their next victim

Deal? What stinking deal?

One of the great adventures of the American consumer is buying a car. Sadly, however, the dealership, the salesperson, and the finance department just never quite provide the impression they are on your side. Inevitably, too often the image portrayed by Robin Williams in Cadillac Man rings far too true.

Buying hybrid cars can be even worse, as there is often less selection, and numerous dealer add-ons, especially whenever gas prices increase – not to mention outright ignorance and even deception regarding the capabilities of hybrid technology.

And, now that dealerships are going to be exempt from any new oversight by a new consumer protection agency, I guess we can expect more of the same shenanigans.

Back in 2008, during the height of the gas spike, I wrote Robbed: Buying a hybrid car. Then, it wasn’t just dealer add-ons, such as dealer-installed leather that consumers had to accept, it was often dealer-fees as high as $5,000. In fact, in the Los Angeles area it was basically impossible to find a Toyota Prius that wasn’t marked up at least an extra $3,000 by the dealer “because of demand”.

Ultimately, car dealers proved quite clearly then that they will get as much out of the consumer as possible.

Now, perhaps a new government watchdog would have achieved little in protecting the US auto consumer. Despite my name on the telemarketer ‘no call’ list, for instance, I still receive quite a few telemarketing calls. Inevitably, making the law is the easy part, enforcing it is where things often get sticky. Anyway, whether a new watchdog would have helped is now almost assuredly irrelevant.

Thus, if you’re in the market to buy a hybrid, good luck. Do as much research as possible and always be ready to walk away. Believe it or not, there are always some fair deals to be had – even back in 2008 – but finding them often takes a lot of shopping around. Stay strong.

Via Hybridcarblog

The Hyundai Sonata hybrid coming soon

A dedicated approach to hybrids

Later this year Hyundai will begin rolling out its first hybrid vehicle, the Sonata hybrid, but that should be just the beginning of Hyundai’s hybrid story.

By 2012, Hyundai will also add a new dedicated hybrid to its portfolio, followed by a plug-in hybrid in 2013.

Following in the footsteps of the Toyota Prius, Hyundai’s new hybrid will only be available as a hybrid, or eventually a plug-in hybrid, reports InsideLine. Other than its dedicated hybrid status, however, Hyundai is confirming little, although the automaker has shown off a number of hybrid and plug-in hybrid concepts at various auto shows.

Regardless, both the Sonata hybrid and the new dedicated hybrid will utilize lithium-polymer battery packs to electrify their hybrid powertrains. Consequently, it should be interesting to follow the evolution of Hyundai’s hybrid pricing. Certainly, one wouldn’t expect overly aggressive pricing with the launch of the hybrid Sonata to start, as Hyundai will probably be happy to simply be price-competitive with both the Ford Fusion hybrid and the Toyota Camry hybrid, particularly since the Korean automaker will be utilizing lithium ahead of the pack.

However, with the launch of Hyundai’s dedicated hybrid, one would assume Prius-like sales have to be on Hyundai’s radar, and that makes Hyundai’s lithium-polymer battery technology noteworthy. According to some battery experts, lithium-polymer technologies might enable quicker gains in lithium cost-effectiveness thanks to cleaner manufacturing capabilities. While Toyota currently has a hybrid advantage, thanks to its NiMH supply chains, a move to lithium is expected, and since Hyundai might beat Toyota to lithium, it could provide some advantage.

Nevertheless, finally, it seems some real pricing competition is ramping up for the hybrid car segment, especially if Ford also follows its plans to offer a new, lithium-powered dedicated hybrid in 2012.

Via Hybridcarblog