HYBRID SALES DOWN

Who needs a hybrid?
David Welch, January 6, 2009 (BusinessWeek)

“…if you dig through the sales numbers over the past few months, it’s easy to see that more consumers are asking whether the extra cost of a hybrid-electric car is really worth it.

“In December, sales of Toyota’s Prius—the standard bearer of all hybrids—fell by a whopping 45%. In November, sales were off 48%. During those two months, gasoline prices plummeted below $2 a gallon. This proves that America hasn’t turned truly green. More likely, they turned red at the pump back in July when gasoline prices topped $4 a gallon. People fled their suvs and bought smaller cars and hybrids like there was a fuel shortage."

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“But once gasoline prices fell back to levels that Americans have normally paid, they pulled back on hybrid purchases…Ford’s Escape hybrid and the competing Saturn Vue hybrid both saw sales sink by more than 40% last month. And the hybrid Civic? Off almost 70%…

“…for the year, hybrid sales fell only 12%. That shows better staying power than a car market that fell 18%…in the long run, gasoline prices will rise and hybrids will be a better sell.

“But…when gas prices fall, consumers aren’t buying. This creates a huge dilemma for car companies and policy makers…Without a price spike—or a tax on gasoline—carmakers will once again be caught between a policy that demands fuel economy and an American consumer who remains indifferent.”