"Detroit didn't have to get left behind. Ford, General Motors and Chrysler started out virtually even with Toyota and Honda in researching hybrids. They took part in a $1.2 billion government project in the 1990s to find a breakthrough high-mileage car. Each built hybrids. Yet when it came time to produce them, the U.S. companies balked and left the Japanese to see the potential.
Detroit auto executives admit to mistakes. They underestimated demand, overpromised, didn't foresee the run-up in gas prices and refused to budge from reliance on high-profit SUVs in the face of a changing marketplace.
"They took their foot off the accelerator and decided to put their investment and emphasis into other areas of development," says George Peterson, president of consulting firm AutoPacific. "They didn't have solutions for the tricky problems that hybrids represent."
As a result, the Big 3 have largely missed out so far on a growing sales opportunity. Defying expectations that hybrids' appeal would be limited to the granola-and-sandals crowd, automakers sold 56,440 hybrids in the USA the first four months of the year, up 146% over the same period last year, J.D. Power and Associates reports. By contrast, overall auto sales were mostly flat.
Now Detroit is struggling to catch up. Besides the Escape and Mariner, Ford has three more hybrids in the works. GM and DaimlerChrysler, which have been marketing pickups with rudimentary hybrid engines, are working jointly to come up with a full-blown hybrid by 2007.
They need these hybrids not just to appeal to buyers, but for public relations value as well. In an age of $60-a-barrel oil and concern over global warming, hybrids offer virtually no emissions and enviable gas mileage - 55 miles per gallon average in combined city/highway for Prius - without major compromises in size or performance. "Hybrids are like a soufflé without the calories," says Jim Press, Toyota's U.S. marketing chief. "
Detroit Gung-Ho for hybrids.
Detroit's gung-ho for hybrids
Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Godiva, Jul 13, 2005.
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Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Godiva, Jul 13, 2005.
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