Brenda Sprankle at Rodeo Realty in Simi Valley and Calabasas California asks;

"How Come it Has Taken so Long to Get Decent Hybrid Cars on the Market?"

There are a many reasons why hybrids have taken so long to come to market - one of the biggest reasons is that it costs a lot of money to re-tool factories and each time a carmaker starts making a lot of money that they might be able to re-invest the Auto Union threatens to walk-out if that money is not given to them in increased wages or benefits.

Another huge reason is class action lawsuits, in fact the Toyota Prius just had its 10-year anniversary and it was a victim of some very high-profile class-action lawsuits. Still another reason is due to the fact that a hybrid - is by its nature a dual system, that is to say gasoline and battery power and the batteries are charged thru regenerative breaking. That means it harnesses energy as the car slows or stops.

Solar prius

Great idea, but the car is more complicated and that means more things can go wrong; Murphy'ism and it also means it costs more money to make them. But, there is still a price point that the consumer will pay for and where they will not. Once it approaches that price, it means less demand and fewer sales, this means automakers are not getting the benefits of mass production "Henry Ford Theory" or economies of scale. Therefore, there is less profit in making them.

Even when the Bush Administration twice extended the hybrid tax credit as part of a set of initiatives to help slow the addiction to foreign oil, there were fewer cars produced as hybrids and there were waiting lines. Automakers did not wish to take the risks in sketchy political climate and a sea of shark-infested lawyers. The early Toyota Prius' did have a few problems and the company was sued big time. Something to contemplate in 2008.

 
Post is included in group: Alternative Fuel Autos

4 Comments on How Come it Has Taken so Long to Get Decent Hybrid Cars on the Market?

Everyone that I know who has purchased a hybrid car in the last year raves about how great they are! They always say that they have to call the dealer & always ask if the fuel gauge is brokern because it hasnt moved at all! What a great feeling that must be.

The incentives are so good..... fill your tank once a month, you get to use the carpool lane, tax incetives & my manager purchased one this year said even his monthly payments are lower!  What could be better then that? My car must stop at every gas station it passes on the street.

12/30/2007 01:41 PM by Brenda Sprankel, Calabasas - Simi Valley Realtor (Rodeo Realty, Calabasas Branch)

Brenda,

The Tax Credits on Hybrids are great! Yes, absolutely, and everyone I know who has one, loves it. You are correct in your assessment here. In 2006 they only produced 200,000 hybrids, in 2007 many more and in 2008 a huge number will be made. They got of too a slow start and Detroit kept building the SUVs, Mini-vans and large pickups. More profit in the larger pickups and SUVs. Still, we need Hybrids and millions more. In 2005-2007 we produced between 16 and 18 million cars each year, and it is a travesty only 200,000 hybrids were made in 2006 and only about double in 2007. But things are changing, as there have been stong initiatives and demands for incentives at the highest office of the land. This President and I suppose future Presidents will do the same following that lead. More people should buy hybrids, because they same money in fuel, help slow our dependence on foreign oil, make the air cleaner and because, well, because it is the right thing to do, I totally agree with you. - Lance

12/30/2007 05:25 PM by Lance Winslow

Gas prices should exceed $4.00 per gallon this year, that will help make up more peoples minds. Right now, the added price for a hybrid may not cover cost of gasoline.   I agree, more hybrids should be produced which will decrease the cost per vehicle.

12/30/2007 07:44 PM by Gary Smith, Realtor® (The Michigan Group - Livingston)

Gary,

Yes this is probably true now, but at $3.50 and $4.00 per gallon it really gets people thinking. I understand GM, Honda, Toyota, Ford, Chrysler are all coming into the market with 2008 and 2009 hybrids to compete, I am certain that this trend will continue into the future. Also I see E85 Ethanol happening + Hydrogren powered available by the millions by 2012 - 2015. - Lance

12/30/2007 11:44 PM by Lance Winslow (The Car Wash Guy)

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Property Manager: Lance Winslow (The Car Wash Guy)
Lance Winslow
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