No big surprise here. As gas prices go down, so do sales of hybrids. The L.A. Times issued this report today, but our own Green Car Advisor has been watching this trend for months.
Makes for an interesting side note to some recent remarks by a couple titans of the auto industry. Alan Mulally, CEO of Ford, noted in a recent speech that low gas prices push American consumers to larger vehicles. Mike Jackson, CEO of AutoNation, was a little more straightforward, calling for a higher national gas tax to push consumers toward more fuel efficient cars.
Jackson is probably right, but no politician will ever vote for it. Any other suggestions?
L.A. Times: Hybird car sales go from 60 to 0 at breakneck speed
GCA: Incentive Helped Hybrids in February
firstwagon says:
09:13 AM, 03/18/09
Is this really an issue that needs addressing? When the economy recovers over the next 6 months, the price of gas will start back up and so will the sales of hybrids (and all cars).
Ride it out folks, downturns don't last forever.
greenpony says:
10:09 AM, 03/18/09
Are people really this fickle and shortsighted? It's just like when gas prices spiked above $4/gal, hybrid sales skyrocketed. Come on, folks. Plan several years ahead, give yourself a margin of error and/or a cushion, and do you own calculations. If I wanted to I could make a Prius work for me, same as I could make a Suburban work for me. You just have to know what your financial limits are.
As far as suggestions, I am adamantly opposed to a mileage tax. If there is no increase in gas tax, then maybe we let CAFE work its magic, since the "gas guzzler tax" and any CAFE penalties that the automakers want to pass on to consumers should make the grossest polluters prohibitively expensive for most.
beermagazine says:
10:28 AM, 03/18/09
First off, people aren't stupid (well they are but I'm defending stupid here). How about they learned that in order for a Hybrid to save them money they have to drive it for 7-11 years regardless of the price of gas.
So instead of paying more for mediocre technology maybe the just read all the counter points made by most media how really un-cost effective current hybrids are compared to the gas-engine counter part.
beermagazine says:
10:30 AM, 03/18/09
First off, people aren't stupid (well they are but I'm defending stupid here). How about they learned that in order for a Hybrid to save them money they have to drive it for 7-11 years regardless of the price of gas.
So instead of paying more for mediocre technology maybe the just read all the counter points made by most media how really un-cost effective current hybrids are compared to the gas-engine counter part.
I've got a great idea, in the middle of a recession less raise gas prices and force people that don't have money to spend more....great idea idiots.
billt9 says:
11:00 AM, 03/18/09
Let the people buy what the gas prices dictates.
Nothing wrong with that.
There's nothing wrong with returning to large SUVs once gas prices are abundant.
This environmentalist green bullcrap only came about because people had trouble affording the gas.
It never was about the environment. It's always been about how to get the consumers to pay the lowest price.
So gas is low again. so go back to large SUVs. Woo hoo low prices!
Environmentalist greenism is an argument to support the cause of lowering consumer's prices. Being green was never the actual cause.
cwc1 says:
06:39 PM, 03/18/09
Most politicians are all too eager to raise taxes and increase regulations on absolutely everything. And the bunch that's in charge now are going to try doing it anyway. So it's extremely dangerous to ever suggest that governments raise our taxes even more. People in power never give up control willingly, but they're all too willing to seize it when others are snoozing, as our country has been doing for years.
And corporations no matter how big, including automakers, don't pay taxes. People do. So, businesses are always going to pass their increased costs of doing business on to consumers. They are not in business to lose money. just like no one takes a job to lose money.
autoburetor says:
10:34 AM, 03/19/09
Environmentalism is not going to go away, and isn't just a response to previously higher gas prices. How would that explain people voluntarily purchasing personal carbon offsets?
Governmental regulation will only go so far, since American concepts of cars are so intwined with power and performance. Who wants to buy a car that can simply get you there without being comfortable, responsive, and at least somewhat fun to drive -- as long as you have an other option?
I wonder how much of a mess it would create to regulate the MPG sales at the dealer level? The government could set an MPG standard, perhaps even a graduated one to increase as the years go by -- much like the CAFE standards are planning to do. Once set, each vehicle sold (NEW OR USED) with below the standard MPG would be charged a graduated fee (much like the gas-guzzler tax) that increases the farther from the set standard the vehicle's rating is. And, conversely, vehicles with higher than the standard value would receive a rebate at the time of sale, also proportional to how much their MPG rating is above the standard.
I'm certain the cost/savings would be passed along to the consumer in those regards, would ease the transition to more efficient vehicles over the course of time, and, when coupled with emissions standards for the manufacturer, would make a positive impact for environmentalists. As demand for and design of vehicles with higher efficiency ratings came about, the standard could be raised to keep an overall balance of cost/payout -- much like the way postage rates are raised.
It would encourage folks to better maintain their current vehicles if they don't want to shell-out the extra for a new one that still doesn't meet the MPG standard, or would help to encourage and offset the technology cost of more efficient vehicles AT THE TIME OF SALE instead of with later potential tax credits.
So, if the standard were a 35 MPG combined rating, then you could buy a car that is rated at 30 combined and pay the slight extra premium, or, buy a car rated at 40 combined and get that same amount off the price -- assuming the dealer passed-along the extra cost or incentive.