Even in Uncertain Economic Times Hybrids Still in the Plans

Gas prices have been dropping like a rock recently and along with the poor economy hybrid car sales have been affected dramatically. Thankfully, the auto world clearly is still thinking green even in this environment. Whatever the future of the American auto industry, President-elect Barack Obama has said automakers should be "retooling for energy efficiency." And as you strolled the aisles of the New England International Auto Show earlier this month, green cars were to be found at every turn.

Each autmoaker sees going green differently though. A number are rolling out gas-electric hybrid cars like Toyota's powerhouse the Prius. Othersare promoting cleanburning fuels, flex-fuel engines, and hydrogen fuelcell concepts which are all fairly unfamiliar to us now, but coming fast. Others are investing in 100% electric vehicles , or cars that run on compressed natural gas just like some MBTA buses.

So it's nice to see that even in uncertain economic times with gas prices low that the automakers are not turning their back on hybrid technologies. They continue to be planning and rolling out new hybrid vehicles so be on the lookout!

Ford Looking at Two New Hybrids for Next Year

Ford plans to introduce two gasoline-electric hybrid early next year, based on the redesigned 2010 Ford Fusion and Mercury Milan sedans. Both hybrids were unveiled at the recent Los Angeles auto show, and will go on sale in the spring. The move comes just in time to show Washington lawmakers contemplating a bailout of the industry that it is working on rolling out alternative-fuel vehicles.


These are the first hybrid sedans from Ford and they will join two similar models from General Motors, the Chevrolet Malibu and Saturn Aura, and the Toyota Camry as the only hybrids offered in the mass-market midsize sedan class.

Nissan, makes a hybrid version of its midsize Altima sedan at its Smyrna plant. But the car is built in very limited numbers and sold only in California and a few Northeast states that have smog rules that are more restrictive than the rest of the nation's.

Toyota still has the best-selling hybrid on the market, the compact Prius hatchback, and is building a factory near Tupelo, Miss., so it can assemble those models in the United States rather than importing them from Japan.

Honda had a hybrid version of its popular midsize Accord sedan, but dropped it last year for lack of consumer interest. The car had a relatively thirsty V-6 gasoline engine, and a purchase price of well above $30,000.

Ford's only hybrids now are the Ford Escape and Mercury Mariner compact crossover utility vehicles, which entered their second generation this year. Ford said at the Los Angeles rollout that the Fusion and Milan hybrids would have best-in-class fuel economy, beating the Camry hybrid by at least 6 mpg in the city.

Unsold Hybrids Sitting at US Ports

It's not just the HUVs and pricey luxury sedans that aren't selling right now. Hybrid cars are tought to sell as well. Scores of automobiles made overseas are stacking up at ports and parking lots around the United States as supplies far outstrip demand amid the nation's worst auto market in more than 25 years.

At the Long Beach port near Los Angeles, Toyota vehicles including Prius hybrids, FJ Cruiser sport utility vehicles and Lexus IS 250 luxury sedans are being stored on a vast construction site that will one day be a new container terminal. The site became a gigantic parking lot when Toyota and Daimler AG's Mercedes-Benz asked the port for space to store thousands of vehicles that dealerships have not been able to take on due to sluggish sales.

The port has not counted how many additional cars were being stored, but Wong said Toyota has leased an additional 23 acres of space while Mercedes-Benz has leased about 20 more acres.

Big 3 CEOs Head to Washington in Hybrids to Look for Aid

Well I guess they learned from their last disaster trip in which the Big 3 CEOs were blasted for taking private jets while their companies were going bankrupt. If the Detroit Three automakers have learned anything since their last trip to Washington, it’s that the old way of doing business just will not fly.

So the decision by auto executives to travel in hybrid cars rather than corporate jets is just the start to overhauling their image as the industry pleads its case for $25 billion in federal loans.

Automakers “should not be afraid to acknowledge their mistakes,” said Adam Mendelsohn, a partner in Mercury Public Affairs and former communications director for California Governor Arnold Schwarzenegger. “It’s not necessarily a weakness. It’s actually a positive. It will send a very clear message that they intend to make changes.”

The CEOs of GM, Ford and Chrysler are making the 500 mile trip from Detroit to Washington in hopes of securing loans to help them through the recession and the worst sales downturn in 25 years. Hearings are scheduled for Thursday and Friday. Ford CEO Alan Mulally left for the capital Tuesday in a small Ford Escape sport utility vehicle, which runs on gas and electricity. Rick Wagoner of GM departs today in a hybrid Chevrolet Malibu. Chrysler LLC said its chief executive, Robert Nardelli, would leave Tuesday night, driving a hybrid Dodge Durango or Chrysler Aspen SUV.

The move to travel more like regular Americans comes after the CEOs’ last hearing visit for hearings in November turned into a public relations disaster. Lawmakers learned that all three had flown in separate corporate jets to ask for the bailout dollars, and critics harangued the CEOs. In an effort to curb bad publicity, Ford and GM said their CEOs would take the wheel for at least part of the nine hour trip.

Ford also announced Tuesday it will sell its five corporate jets, and GM said it will close its corporate jet operations on the new year and try to sell remaining lease time on its seven aircraft. Spokeswoman Lori McTavish said Chrysler rents but does not own any jets.