Sharp fall in hybrid vehicles sales as US tightens belt
#1
01-02-2009, 04:24 AM
Join Date: Nov 2007
Location: New Jersey
Posts: 2,051
Sharp fall in hybrid vehicles sales as US tightens belt
Sharp fall in hybrid vehicles sales as US tightens belt
By Bernard Simon in Toronto
Published: January 1 2009 23:31 | Last updated: January 1 2009 23:31
Americans’ appetite for hybrid cars is evaporating as tumbling fuel prices and tighter household budgets trump environmental concerns.
The sudden reversal in what was, until a few months ago, one of the hottest segments of the world’s biggest car market creates a new area of uncertainty for carmakers, such as Toyota, General Motors, Ford Motor and Honda, that are investing heavily in hybrids and other fuel-efficient technologies.
Industry executives, including Alan Mulally, Ford’s chief executive, have joined environmentalists in urging US politicians to consider the hitherto taboo idea of raising petrol taxes as a way of encouraging fuel conservation.
US hybrid petro-electric sales in November shrank 53 per cent from a year earlier, compared with a 37 per cent drop overall, according to Autodata, a market-research firm. December sales, to be announced on Monday, are to show a similar trend.
Sales of most hybrid models have dropped sharply. Demand for Toyota’s Prius hatchback, the top-selling hybrid, fell by almost half in November from a year earlier. The Camry sedan was down 57 per cent, and the Ford Escape crossover 35 per cent...
By Bernard Simon in Toronto
Published: January 1 2009 23:31 | Last updated: January 1 2009 23:31
Americans’ appetite for hybrid cars is evaporating as tumbling fuel prices and tighter household budgets trump environmental concerns.
The sudden reversal in what was, until a few months ago, one of the hottest segments of the world’s biggest car market creates a new area of uncertainty for carmakers, such as Toyota, General Motors, Ford Motor and Honda, that are investing heavily in hybrids and other fuel-efficient technologies.
Industry executives, including Alan Mulally, Ford’s chief executive, have joined environmentalists in urging US politicians to consider the hitherto taboo idea of raising petrol taxes as a way of encouraging fuel conservation.
US hybrid petro-electric sales in November shrank 53 per cent from a year earlier, compared with a 37 per cent drop overall, according to Autodata, a market-research firm. December sales, to be announced on Monday, are to show a similar trend.
Sales of most hybrid models have dropped sharply. Demand for Toyota’s Prius hatchback, the top-selling hybrid, fell by almost half in November from a year earlier. The Camry sedan was down 57 per cent, and the Ford Escape crossover 35 per cent...
Read more at FT.com
“The lower gas prices are, the tougher the proposition is to pay a premium for a hybrid engine.”
Slightly off topic, I think it's so much classier the way they call it petrol rather than just plain old gas. I imagine if they sold petrol in the states most of us yanks wouldn't mind paying an extra quid or two for the stuff (sorry, I saw an British movie yesterday)
Last edited by haroldo; 01-02-2009 at 05:06 AM.
#2
01-02-2009, 06:34 AM
Re: Sharp fall in hybrid vehicles sales as US tightens belt
I've noticed that in the past couple of weeks the cost of gasoline (or whatever they call it back east) has started to rise. Not sure if this is a national trend or due to our local inclement weather we have been having recently. At any rate if the trend is national and continues I am predicting it will re-spark interest in hybrid vehicles. The common public is notoriously fickle and has such a short memory. 
#3
01-02-2009, 07:13 AM
Join Date: Nov 2007
Location: New Jersey
Posts: 2,051
Re: Sharp fall in hybrid vehicles sales as US tightens belt
Over here (NJ) gas (yup, that's what we call it) is very cheap and may bounce around a penny or two, but for the most part it's reasonably inexpensive.
We haven't had any weather (or other) related supply disruptions.
We haven't had any weather (or other) related supply disruptions.
#4
01-02-2009, 07:53 AM
Re: Sharp fall in hybrid vehicles sales as US tightens belt
This is not really news. People are not buying cars.....not just hybrids! The price of gas dropping to record low levels probably has not helped either. The price of gas has dropped not due to no hurricanes or other factors. It dropped due in LARGE part due to the world-wide drop in usage. China has slowed tremendously as has the US and the rest of the world. Saudi Arabia has already cut production......a million barrels a day, roughly. People are keeping their cars longer........which is something they should NEVER have gotten away from. The rate of growth of consumerism in this country.....was as the housing market is........in one word......Unsustainable. It was going to crash and crash hard it has!!
#5
01-02-2009, 08:33 AM
Join Date: Nov 2007
Location: New Jersey
Posts: 2,051
Re: Sharp fall in hybrid vehicles sales as US tightens belt
Sales of most hybrid models have dropped sharply. Demand for Toyota’s Prius hatchback, the top-selling hybrid, fell by almost half in November from a year earlier. The Camry sedan was down 57 per cent, and the Ford Escape crossover 35 per cent.
...
Edmunds.com,...reports that searches for hybrids on its websites are running at less than a quarter of their peak in May.
...
Hybrid vehicles typically cost $3,000-5,000 more than their petrol equivalents...Edmunds.com estimates that a Prius owner must now wait more than eight years to recoup the extra cost of the vehicle in fuel savings, compared with three and a half years when the petrol price climbed above $4 a gallon last spring. The average price is now about $1.61.
...
Edmunds.com,...reports that searches for hybrids on its websites are running at less than a quarter of their peak in May.
...
Hybrid vehicles typically cost $3,000-5,000 more than their petrol equivalents...Edmunds.com estimates that a Prius owner must now wait more than eight years to recoup the extra cost of the vehicle in fuel savings, compared with three and a half years when the petrol price climbed above $4 a gallon last spring. The average price is now about $1.61.
Last edited by haroldo; 01-02-2009 at 08:37 AM.
#6
01-02-2009, 04:18 PM
Re: Sharp fall in hybrid vehicles sales as US tightens belt
When the excess gas supply drops and production is cut, gas will go back to $4-5 dollars a gallon because the OPEC nations aren't going to be willing to earn less money simply because they produce less oil. Then hybrids will be the glamour car to have once again.
Of course, that's just my opinion, I could be wrong.
#7
01-03-2009, 05:03 AM
Re: Sharp fall in hybrid vehicles sales as US tightens belt
Point taken and noted. I was not arguing that point. Hybrids are more expensive and that also has probably helped in their decline at the increased rate.
#8
01-03-2009, 05:23 PM
Re: Sharp fall in hybrid vehicles sales as US tightens belt
Does Toyota provide a breakdown by trim level? Wonder if the XLE and XLE V6 are as deeply in the tank as the TCH? A number of dealers around NE FL are offering LE Camry Automatics for $18K. The least expensive TCH is ~$25k; granted, there are equipment differences, but the 'street price difference' is more substantial than the sticker price difference.
#9
01-05-2009, 12:19 PM
Re: Sharp fall in hybrid vehicles sales as US tightens belt
Frodo raises an excellent point -- given the economy, one would assume that many buyers would move toward inexpensive models, which means models without "frivilous" options, such as power seats or fancy sound systems. You can get a stripped-down Camry four-cylinder, but there is no such thing as a stripped-down TCH. (Yes, you can skip the moonroof and the leather, but a lot of fancy options are standard.)
The good news is that it should be an excellent time to buy a TCH or a Prius. Assuming the world economy recovers in a year or two and demand for oil rises -- or some Middle East event causes disruptions in oil suppplies -- that could look like a really smart move!
The good news is that it should be an excellent time to buy a TCH or a Prius. Assuming the world economy recovers in a year or two and demand for oil rises -- or some Middle East event causes disruptions in oil suppplies -- that could look like a really smart move!
#10
01-05-2009, 12:47 PM
Join Date: Nov 2007
Location: New Jersey
Posts: 2,051
Re: Sharp fall in hybrid vehicles sales as US tightens belt
Yesterday, I saw a commercial for $1500 cash back on a (gas) Camry and this just appeared...
BRIEF-Toyota says to offer new cash-back incentives
DETROIT, Jan 5 (Reuters) - Toyota Motor Corp 7203.TK:
* Says to make new cash-back offers available to consumers in coming months
* Says no forecast for 2009 U.S. auto sales
* Says market will continue to be difficult, 'may get worse before it gets better'
* Says 'has every indication' market recovery will be slow
* Says hasn't seen any disruptions from its supply chain
* Says sees Q1 industry auto sales rate at around 10.5 million to 11 million unit range
DETROIT, Jan 5 (Reuters) - Toyota Motor Corp 7203.TK:
* Says to make new cash-back offers available to consumers in coming months
* Says no forecast for 2009 U.S. auto sales
* Says market will continue to be difficult, 'may get worse before it gets better'
* Says 'has every indication' market recovery will be slow
* Says hasn't seen any disruptions from its supply chain
* Says sees Q1 industry auto sales rate at around 10.5 million to 11 million unit range
Last edited by haroldo; 01-05-2009 at 12:52 PM.
