Thursday, December 04, 2008

Hybrids

Before we take over the Big Three as Michael Moore advocates and force them to produce environmentally friendly hybrids -- which supposedly will create millions of jobs -- how about we take a closer look at what consumers think about such cars:
But at AutoNation [NYSE:AN], the nation's largest automotive retailer, while an estimated 70 percent of customers inquire about hybrids, just 2 percent end up buying them after weighing cost and other factors, spokesman Marc Cannon said. He argues the Prius, the first hybrid to be introduced in the U.S. in 2000, has been the most successful brand because it's only offered in a hybrid version and has a unique look.
Meanwhile, even the Prius is having problems:
Models such as Honda's Fit and Toyota's Prius succumbed to the slump after selling for months at or above list prices without incentives. Sales of the Fit subcompact fell 8.4 percent, and the hybrid Prius was off 48 percent.
Quite simply, after examining the costs and benefits, consumers don't really have a great deal of enthusiasm for such cars. And the solution to Detroit's woes is to build more of them? Really?

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