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Hybrid hype only for a few
Hybrid car sales dropped 51.2 percent in December from a year ago and were down 12.7 percent for all of 2008, according to Autodata Corp. Sales of the Dodge Ram pickup alone (245,840) nearly matched demand for all hybrid cars combined (247,488) last year.
Even the iconic Toyota Prius saw sales slide 12.3 percent to 158,884 vehicles last year. The fuel-efficient Chevy Cobalt (188,045) and Ford Focus (195,823) outsold the Prius.
Overall, hybrids make up less than 2.5 percent of the market, a number not likely to increase significantly anytime soon. Gone, hopefully, are the days when the hybrid hype machine said the dual-powertrain vehicles would dominate the market and be standard offerings for most vehicles in every fleet.
Blame consumers
That's not to suggest that hybrids don't have a place in the market. They do, but it's a niche, where it belongs. Don't blame me for that. Blame consumers. There's a difference in what people say they want and what they buy. And when people put their money on the table, most high-tail it away from the $3,000 or more premium for a hybrid.
A number of factors are to blame. Gas prices have dropped and consumer credit has tightened. Hybrids made sense for some at four bucks a gallon, but it will take a decade to pay off the premium when gas costs $2 a gallon. Sure prices for petrol will rise again -- and fall -- as they always do, mostly in response to actual demand, but it's doubtful hybrids will have the market-moving or the Earth-saving impact they were once proffered to have.
Build what people buy
Don't buy into those facts?
Try this one. It makes no financial sense to put two drivetrains in one vehicle -- one for the hybrid system and one for the gas engine. Automakers can't afford to do that anymore, especially if the market continues its decline. Those resources are better placed elsewhere.
Unfortunately, in the end, legislators and activists have been better at grandstanding and casting aspersions at those who don't play their game, but if the car companies are smart and follow the market's lead, they'll keep building what people buy, not what others tell them to build.
Even the iconic Toyota Prius saw sales slide 12.3 percent to 158,884 vehicles last year. The fuel-efficient Chevy Cobalt (188,045) and Ford Focus (195,823) outsold the Prius.
Overall, hybrids make up less than 2.5 percent of the market, a number not likely to increase significantly anytime soon. Gone, hopefully, are the days when the hybrid hype machine said the dual-powertrain vehicles would dominate the market and be standard offerings for most vehicles in every fleet.
Blame consumers
That's not to suggest that hybrids don't have a place in the market. They do, but it's a niche, where it belongs. Don't blame me for that. Blame consumers. There's a difference in what people say they want and what they buy. And when people put their money on the table, most high-tail it away from the $3,000 or more premium for a hybrid.
A number of factors are to blame. Gas prices have dropped and consumer credit has tightened. Hybrids made sense for some at four bucks a gallon, but it will take a decade to pay off the premium when gas costs $2 a gallon. Sure prices for petrol will rise again -- and fall -- as they always do, mostly in response to actual demand, but it's doubtful hybrids will have the market-moving or the Earth-saving impact they were once proffered to have.
Build what people buy
Don't buy into those facts?
Try this one. It makes no financial sense to put two drivetrains in one vehicle -- one for the hybrid system and one for the gas engine. Automakers can't afford to do that anymore, especially if the market continues its decline. Those resources are better placed elsewhere.
Unfortunately, in the end, legislators and activists have been better at grandstanding and casting aspersions at those who don't play their game, but if the car companies are smart and follow the market's lead, they'll keep building what people buy, not what others tell them to build.
