That '70s auto show: Fuel economy is back
Vehicles that run on volts and gas go mainstream.
In an era of rising gas prices and, perhaps more particularly, war in the Middle East, words not heard in decades are peppering Detroit. Words like "efficiency" and "responsibility."
Automakers from across the globe are bragging about fuel economy, rolling out a raft of new gas-electric hybrid vehicles, and touting future autos that run on hydrogen, diesel fuel - even soy beans.
To be sure, carmakers are also buzzing about horsepower numbers and zero-to-60 times. But amid the usual flash and dash that is the annual North American International Auto Show in Detroit, the mood is unusually serious.
Eight years after Toyota launched the first hybrid car in Japan, it's traditional Detroit automakers who are trumpeting their hybrid plans and technology in nearly every presentation.
"The auto industry has a responsibility to improve emissions and fuel consumption of its cars," Rick Wagoner, CEO of General Motors Corp., told a gathering here. "We want to take the automobile out of the environmental equation. This will revolutionize the industry."
The trend, driven by high oil prices, environmental concerns, and improving car technology, doesn't mean everyone will soon buy a hybrid car. But consumer taste does appear to be shifting.
One result: The industry is starting to roll out hybrid versions of mainstream cars such as Honda's Civic and Accord, as well as the Ford Escape SUV.
"What's important to [hybrid buyers] is fuel economy and being politically correct, socially responsible," says Ron Pinelli, an industry analyst at Auto Data in Woodcliff Lake, N.J. Hybrids are here to stay, he says, though if fuel prices stay flat the growth of hybrids will moderate.
Hybrids reduce fuel consumption and pollution by about 30 percent compared with ordinary gasoline cars - and more than that if they use diesel power.
Hybrid sales are expected to double this year with the introduction of six new models - the Ford Escape, Toyota Highlander, Lexus 400h, Honda Accord, Mazda Tribute, and Mercury Mariner - during the 2005 model year from last September to next, says Anthony Pratt, director of analysis for advanced powertrain systems at J.D. Power Associates in Troy, Mich.
He expects hybrid sales to grow from 80,000 in 2004 to more than 400,000 by 2008.
But it remains to be seen whether Americans will continue to be willing to pay the price premium - roughly $3,000 per car - for hybrid technology long term.
Hybrid buyers tend to be the best educated and among the wealthiest buyers of any vehicle category: 40 percent have master's degrees. And 40 percent live in California. Car-buyers in middle America seldom buy hybrids, says Mr. Pratt. In part, that's because carmakers haven't marketed as much there. It's also largely because urban coastal communities provide the most conducive atmosphere for hybrids, often with higher gas prices, worse traffic, and wealthier buyers.
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