Five Issues for the Auto Industry in 2006

Five Issues for 2006

By Joseph B. White
The Wall Street Journal Online

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This year and next will offer a live-action test of whether American consumers are prepared to vote with their wallets in a big way in favor of more-efficient cars and trucks. Toyota plans to start ramping up production of gas-electric hybrid Camry sedans, aiming to sell 30,000 or so. Ford will be pushing ahead with plans to expand its hybrid lineup, and GM by late 2007 is expected to launch gas-electric versions of its large SUVs. In the interim, GM plans to offer a version of the Saturn Vue with a so-called "mild hybrid" system that improves fuel economy by 15% to 20%.

The big question for 2006: Will hybrids that look like ordinary cars start to sell? Or are hybrids a niche -- a status symbol for people who want the world to know that they are technology-forward Greens?

The Toyota Prius, which advertises itself as a high-tech marvel with its distinctive design, has been a sell-out smash. But certain other hybrids, notably the gas-electric Honda Accord, have been comparatively sluggish sellers.

"The next two years will be interesting," says GM's Mr. Wagoner. "More people will have more sizes and shapes of hybrids."

LINK: http://biz.yahoo.com/special/autoindustry05_article1.html

 

Also, note:

Third, North American marketing chief Mark LaNeve says he's ready to go on the offensive in the large-SUV market, with ads that will call out Toyota for selling a large SUV with worse gas mileage than the new Tahoe.....

Goooood strategy.