Rising gasoline costs spark growing interest in hybrids

Thu, Apr 24, 2008    to del.icio.us

It's a technology that only a decade ago seemed novel, but is now a more regular sight on American roadways: the hybrid car.

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The vehicles utilizing both gas and electric engines made a splash when the then-odd-looking Honda Insight and Toyota Prius were introduced to the United States in 1999 and 2000, respectively. Today, consumers' desire for environmental friendliness and fuel efficiency is driving automakers to convert many of their established car models into hybrid versions.

"I don't think (hybrid cars) are going away, that's for sure," said Harold LaBelle, sales manager for My Auto Imports Center in Muskegon. "This seems to be the best solution to a lot of things, by far."

A growing number of buyers are choosing to go green for their next vehicle. U.S. hybrid vehicle registrations rose 38 percent in 2007 to a record 350,289, according to data released this week by R.L. Polk & Co., a Southfield-based automotive marketing and research company.

Hybrids made up just 2.2 percent of the U.S. market share for the year, but they were growing steadily even as overall sales declined 3 percent.

The Prius remained the best-selling hybrid in 2007, commanding 51 percent of the hybrid market. Other popular hybrids include the Honda Civic Hybrid and the Nissan Altima Hybrid. Foreign auto makers have long been the leader in hybrid technology, and American car companies are just now starting to catch up with models like the Ford Escape Hybrid and the Chevrolet Tahoe Hybrid.

Toyota first designed its Prius to reduce emissions into the air — a benefit later copied by other foreign and American auto makers. Many of the first hybrids were purchased as an environmental statement.

But now, with the cost of gas soaring to more than $3.50 per gallon, local car dealers say that's not often the driving force behind hybrid purchases anymore.

"The biggest thing people ask about is gas mileage," said Jason Vink, a salesperson at Redeker Ford, which currently sells the Escape Hybrid sport utility vehicle. "We can't keep (the Escape) on the lot. If we get one, it's gone. It's also very hard to find them used."

As with traditional gas-powered vehicles, gas mileage varies depending on the size of the vehicle and how the engine is used. Vink said the Escape Hybrid averages 34 miles per gallon in the city, while revised 2008 Environmental Protection Agency statistics show the Prius with 48 MPG in the city.

Demand for hybrid vehicles has also fluctuated over the years. Just two years ago, buyers who wanted a Prius were put on month-long waiting lists as Toyota struggled to keep up with the demand. Today, LaBelle said Prius buyers usually only have to wait a week or two for their car.

And while Redeker Ford's hybrids sell as fast as the dealership can get them in, Gage Motor Mall salesman Campbell Stephenson said sales have been slower for them. Gage began carrying the hybrid Chevrolet Malibu and Tahoe models in January.

"Once they get out into the market more, I think the demand will be higher," said Stephenson. "I commend GM for putting out a full-size hybrid vehicle — there's a very limited market in terms of who can afford it, but I think it fills a need."

Stephenson said cost could be the only disadvantage for consumers considering purchasing a hybrid car. A 2008 Prius, for example, has a list price of $21,760, while a comparably equipped, gasoline-powered Toyota Corolla LE has a list price of $17,965.

However, resale values for hybrid vehicles are considerably higher than their gas-guzzling counterparts, and owners see savings year-round at the gas pump.

"Long-term, I think the overall gas savings evens out the initial cost," said Stephenson.

Although his dealership is just getting into the hybrid vehicle market, Stephenson said he thinks it's a concept worth pursuing.

"I think people need to become more educated on this — more aware of the alternative sources that are available for vehicles," the salesman said. "I really think this is the very beginning of a new movement in transportation."

The Associated Press contributed to this report.