Gas Price Fluctuations Threaten hybrid Future

The rise and fall of gas prices over the last six months has made American car and truck buyers even more fickle than usual.

Though sales of small cars picked up for a while when gas topped $3, enthusiasm for compact vehicles evaporated swiftly as pump prices fell back into the low $2 range. To long time market observers, it's a familiar story; Americans will steer clear of small cars unless they absolutely have no choice. As soon as the fuel price pressure lets up -- and gas prices are now at their lowest point this year -- vehicle buyers will start eyeing larger cars and trucks. This scenario has happened before and it appears to be playing out again.

This time, however, the situation is more complex. As well as offering small cars, the auto industry has created a new breed of fuel efficient vehicles -- hybrids -- to entice people into showrooms. In fact, hybrids -- most notably Toyota's Prius -- were catching on with consumers well before gas peaked at over $3 earlier this year. Slowly and somewhat reluctantly, a few automakers other than Toyota have joined the hybrid party with a variety of models. Companies were slow to embrace hybrids because of their technical challenges and the major financial commitment involved.




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BMW530i - 10/18/2006 11:51:47 AM

+1 Boost

Are you kidding?

Hybrids are the future! I just bought a Prius myself. Sure, it's slow as hell and totally dull to drive, but it gets 121 mpg and is so reliable.

cynic - 10/18/2006 1:04:40 PM

-1 Boost

Congratulations on your new "purchase". Your have now helped finance the future development of even more technologically advanced and fuel efficient automobiles.

luvmybmr - 10/18/2006 11:59:27 AM

+2 Boost

121 mpg?! actually i dont know if this is the rule for the whole country, but in the washington metro area having a hybrid allows access to all HOV lanes. so that was a big reason for people around here to purchase one. gs450h is a good hybrid chioce :)

kart1 - 10/18/2006 1:38:42 PM

+1 Boost

ahh! The chance to bash Hybrids again. Go ahead take your shots - Fuel cell is the future.

dsch_iter - 10/18/2006 2:17:30 PM

+1 Boost

E85 is the future. It's sustainable.

NARunner - 10/18/2006 2:53:01 PM

+1 Boost

no its not...not until they figure out a cheaper way to produce it in higher quantities. As of now, a gallon of E85 would only be a better bargain over gas at just under $3.00/gal. My uncle owns a chevy dealership and he says that the flexfuel vehicles are useless until they can produce e85 in higher and cheaper quantities. We need more than farmers harvesting corn in the midwest to sustain 200 million automobiles on the US streets.

dsch_iter - 10/18/2006 4:44:33 PM

+1 Boost

No, Ethanol from algae fermentation process is more effiecient.

BMW530i - 10/18/2006 2:27:35 PM

+1 Boost

Guys, I am kidding! :p

Arguably, I was trying to bait Will. :p

nphas042 - 10/18/2006 2:35:22 PM

+3 Boost

I am the future, of porn.

NARunner - 10/18/2006 3:03:27 PM

+1 Boost

we're talking about fluctuations of $1 or $1.50 per gallon. In the big picture gas has steadily increased in price since cars were first built and it will continue to do so. We're arguing over a dollar change while in the next 10-20 years we could see gas prices in the states at $7-10/gallon. As long as we keep buying it, the price is gonna coninue to go up and up. I see hybrids as the future as well, as much as I hate them.

1970toyotamarc - 10/18/2006 3:54:22 PM

+2 Boost

I'm so glad this was posted. I hate reading a stupid article on Detroit News with no chance to refute its ridiculous claims.

Hybrids sales are still climbing, on an increasingly upward trend. The author of this article could only compare September sales to August in order to determine a downward trend. Newsflash, manufacturers dont sell as much in some months as others. He should know you need to compare sales to the previous year. Prius sales slowed down for a few months earlier in the year as Toyota ramped up production of the hybrid Camry (this is such old news!!!), and sales have been on the rise again for the past couple months.

Sales are rising, not falling. Toyota is selling about 20,000 hybrids a month. They were selling when gas was 2.00 a gallon, 3.00 a gallon, and still selling with gas around 2.50 a gallon.

Besides, everyone knows gas prices will shoot up again after the election.

nybimmer - 10/18/2006 6:59:21 PM

+1 Boost

I can't wait for this hybrid thing to run its course. In NYC, several govt agencies use Priuses (Priui?) - dept of sanitation, dept of parks, and I assume they rack up some mileage on them. You frequently see them on flatbeds heading back for repairs - as I assume, like your cell phone that has only so many charges, once these things get to a certain age in the charge-discharge cycle they will die, just like your year-old cell phone.

Wait until the first tree-hugger/gas-miser gets a $8,000 bill for new batteries - I'll be laughing in my 25MPG non-hybird sedan

1970toyotamarc - 10/19/2006 4:19:49 PM

+2 Boost

"You frequently see them on flatbeds heading back for repairs"

I call b.s. Everyone has a personal anecdote, I saw this, someone said this.
Show me the proof of how unreliable hybrids have been for public agencies.

A hybrid will save more money on gas in one year (when driven the number of miles that public vehicles get driven) than it would cost to buy a new battery each year (which it will NOT have to do)

2JZSoarer - 10/20/2006 1:32:33 AM

+2 Boost

I would stick to the Hybrids,because once a hurricane hits again,the gas prices will sky rocket once more!!

XYZZ - 10/20/2006 4:01:11 AM

+1 Boost

diesels have been around for what, half a century? and only RECENTLY have they become efficient AND relatively clean.

hybrids are still in their infancy. and toyota is ALREADY making regular advances in further improving their efficiency and reducing costs and weight.

i would not be surprised if within 10 years, more than 1/2 the cars on the road are hybrids. (including performance hybrids.)