Hi All:

___It depends … When ABS first came out (Optical/electronic/hydraulic), there were $2,000 up-charges for it from the luxury brand automobiles offering it at the time. After a few years, GM figured out a way to make an electronic/hydraulic unit for < $100. With battery prices, MG-Sets, and the controllers as well as gasoline what they are today, the market and profit potential is somewhat limited imho.

___Now lets say the new GM/DCC duel mode hybrid transmission actually costs < $500 and a Prius or Escape HEV sized pack comes down to < $1,000 OEM. With a $1,500 up charge, they begin to make a lot more sense than the $3,000 - $10,000 up charges being seen today.

___Pure rumor but the RXh might be going out at $48,000 - $50,000. The regular RX330 can be had for < $40,000 with similar amenities added coming in around $42,000. Is a 27.5 mpg combined RXh worth $6,000 - $8,000 more then the 21 mpg combined RX330? What about the Escape HEV? The press likes to say the HEV is as powerful as the V6 when using the I4. In the real world, it is just a more powerful 4 and not anywhere near the V6. The up-charge is in the neighborhood of $5,000 - $7,000 IIRC for a combined 33 vs. 24 mpg combined. The Prius II probably has a $4,000 - $5,000 up charge or more. Considering the original Prius I vs. the Echo … Besides the amenities, the Echo w/ Auto runs around $11K. The Prius I was a $20K automobile and built off a very similar if not identical platform. Amenities do not add up to $9,000. The FE differential was even smaller.

___It all depends. If fuel prices stay in the $2.00 range over the next 5 years, a hybrid was a poor financial decision. If they rise to $3, $4, or $5.00 per, they look a lot better. If the up-charge can come down to reasonable levels ($2,000 or less), future Hybrid’s will look that much better as well.

___Good Luck

___Wayne R. Gerdes
___Hunt Club Farms Landscaping Ltd.
___Waynegerdes@earthlink.net