Hybrids Are Hot

Attention car shoppers. If you aren't satisfied with the gasoline-electric hybrid models now on sale, wait. There will be plenty more available, even a hybrid version of the Porsche Cayenne sport-utility vehicle and a Chevrolet Tahoe hybrid, in coming years.

In a flurry of announcements before, during and after the 2005 auto show in Frankfurt, Germany, automakers around the globe suddenly voiced new interest in hybrid vehicles that combine gasoline engines with onboard electric power. These vehicles have been garnering increasing attention from American consumers, primarily because many hybrids provide improved fuel economy over comparable gas-only models.

Even BMW, the maker of German performance vehicles, and Porsche, known for its race-inspired sports cars, now say they'll get into hybrid production by the end of the decade.

Photo Gallery: Hybrids Are Hot

Maybe the tipping point was the rising sales of Toyota and Honda hybrids, particularly in the big North American market. Toyota and Honda hybrids are on a record sales pace. Ford Motor Co. doubled its hybrid vehicle offerings to two at the start of the 2006 model year with the addition of the Mercury Mariner Hybrid, which is a twin of the Ford Escape Hybrid. And Ford quickly promised a lot more would be coming by 2010. In fact, the automaker said more than half of its Ford, Lincoln and Mercury lineup would be offered with hybrid power by 2010.

Perhaps the world's auto industry realized that grandiose plans for a shift to hydrogen-powered vehicles—at one time predicted by General Motors Corp. officials to start in 2010—are unrealistic. For one thing, little concrete work has been done in most countries on hydrogen infrastructures, such as "filling stations" that could handle large numbers of consumers.

And maybe it was just too much for automakers to stand by and watch as Toyota and Honda build reputations—true or not—as environmentally caring, high-tech automakers.

Research Points the Way
The outlook for hybrids took a major upward swing in the United States in August 2005 when gasoline prices spiked at $3-plus-a-gallon after gasoline supplies tightened with the approach of Hurricane Katrina and the resulting hurricane damage to oil refineries.

One automotive researcher, CNW Marketing Research of Bandon, Ore., found 29.4 percent of new-vehicle shoppers would "strongly" or "likely" consider a hybrid. This was up from only 2.5 percent at the start of calendar 2005.

Further, these consumers said they'd be willing to pay a $2,786 premium for a hybrid. This was the largest hybrid price premium since CNW began its consumer hybrid interest surveys in calendar 2001.

Hybrid vehicles thus far have carried a higher price than comparable traditional vehicles because hybrids have additional equipment and engineering to mate the electric power to the internal combustion. The Toyota Prius, for example, is currently the lowest-priced hybrid with a starting manufacturer's suggested retail price around $22,000. The highest-priced hybrid is the Lexus GS 450h luxury sedan, which starts around $55,000.

But after more than seven years of hybrids on sale—notably in Japan and the U.S.—many consumers no longer view hybrids as exotic, experimental technology.

In fact, they seem keenly aware of at least one, if not more, of the benefits of hybrids. Gas-electric hybrids qualify for tax breaks. They also have fewer smog-forming emissions than traditional vehicles and can be engineered for improved fuel economy and torque.

For example, the 2007 Honda Civic Hybrid is rated at 50 miles a gallon in both city and highway travel and is estimated to be able to travel 615 miles on a tank of fuel. This is up from the 30/40-mpg government fuel economy rating for a gas-only Civic sedan with a range estimated at 500 to 528 miles.

To be sure, there are drawbacks, too. The higher prices for hybrids mean many consumers have to wait years before recouping the extra cost in gasoline savings, even if gas were to remain priced above $3 a gallon.

There's also concern about the longevity of the hybrids' sizable, nickel-metal hydride battery packs that store the electric power onboard. The batteries typically are warranted for eight years/100,000 miles, but some people who keep their vehicles for longer periods fret that a replacement battery pack might cost $2,000 or more. Automakers have said they're working to bring down the price of many hybrid vehicle components.

In the meantime, some would-be buyers wonder if the hybrids will depreciate like regular cars in the coming years or depreciate more quickly because of the aging battery pack issue.

Many New Hybrids Are Joint Projects
Toyota and Honda largely developed their hybrids—the Toyota Prius, Toyota Highlander Hybrid, Lexus RX 400h, Lexus GS 450h, Honda Civic Hybrid and Honda Accord Hybrid—on their own.

Ford also developed its Escape Hybrid internally, though after a legal review that spotlighted the similarity of some hybrid technology with Toyota's hybrid system, the automaker chose to license parts of Toyota's technology, according to Mary Ann Wright who was Ford's director of Sustainable Mobility Technology and Hybrid Programs when Escape Hybrid was introduced. She added that Ford has some unique patents of its own on its Escape Hybrid.

But many of the newly announced hybrids are coming out of joint development agreements as other automakers join forces to share development costs and move quickly to get the new technology. For example, BMW signed on to work with General Motors Corp. and DaimlerChrysler, while Porsche will work with Volkswagen and Audi on hybrid technology.

At the 2005 Frankfurt show, Porsche officials mentioned the Cayenne hybrid and said it would be out by the end of the decade but didn't provide details. BMW reportedly still views hybrids as a niche and showed a concept hybrid version of its X3. Audi showed a gas-electric hybrid version of its upcoming SUV, the Q7, but didn't announce plans to sell it. DaimlerChrysler's Chrysler unit said in 2005 that it would have a Dodge Durango hybrid out in calendar 2008.

The Nissan Altima hybrid went on sale in spring 2007, and uses Toyota's hybrid technology. Ford adds a Tribute Hybrid for its Mazda brand later this year and a hybrid version of the Fusion and Mercury Milan are expected in calendar 2008.

What About Other Technologies?
The automakers continue to work on other technologies, too.

Diesel engines are becoming cleaner and could even be combined with electric power for diesel-electric hybrid technology. DaimlerChrysler's Mercedes-Benz unit has shown such a powertrain in an auto show concept vehicle.

And fuel-cell technology, powered by hydrogen, continues to be the industry's Holy Grail.

"Hydrogen fuel cells offer the best, long-term hope for zero-pollution—zero-CO₂ vehicles—and they will easily adapt to already efficient hybrid platforms, Toyota North America president Jim Press said. "But we've got a lot of work to do before they are ready for prime time."

Gasoline-Electric Hybrids

On sale now:
Chevrolet Silverado Hybrid
Chevrolet Tahoe Hybrid
Ford Escape Hybrid
GMC Sierra Hybrid
GMC Yukon Hybrid
Honda Accord Hybrid
Honda Civic Hybrid
Lexus GS 450h
Lexus LS 600h
Lexus RX 400h
Mercury Mariner Hybrid
Nissan Altima Hybrid
Saturn Aura Green Line
Saturn Vue Green Line
Toyota Camry Hybrid
Toyota Highlander Hybrid
Toyota Prius

Mazda Tribute Hybrid

Scheduled in calendar 2008:
Dodge Durango Hybrid
Ford Fusion Hybrid
Mercury Milan Hybrid

Due by calendar 2010:
Porsche Cayenne hybrid

Source: Automakers

Ann Job is a freelance automotive writer.

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