Will large hybrid SUVs give GM a boost?

Will hybrid technology re-popularize large SUVs

When GM begins to sell both the Chevy Tahoe hybrid and the GMC Yukon hybrid in December, will it boost GM sales? Will it give GM a 'halo effect', such as the Prius did for Toyota? Will it bring some buyers back to large SUVs.

Those are some of the questions Roland Jones ponders in Hefty GM hybrids could boost automaker.

Tom Appel, editor of Consumer Guide Automotive, told Jones, "[These new hybrid SUVs] might not be the one product that contributes to GM’s financial success, but I think they will contribute to GM’s overall renaissance,” he said. “The ability to take a very heavy vehicle and give it really good fuel economy speaks volumes about GM’s reinvestment in its products and future products."

"Really good fuel economy"? Please! For large SUVs, GM's dual mode hybrids made a real good improvement in fuel economy, but 21 mpg is not "really good fuel economy".

Still, such an improvement in fuel economy might pique the interest of potential SUV buyers, however, the price of such hybrid vehicles is going to be very important. While GM's dual mode hybrid SUVs will be the best SUVs available in this segment, will a significant price premium deter most buyers?

As for the 'halo effect', however, even if GM's hybrids are better than Toyota's, GM is several years late to market. Moreover, GM will offer neither a unique hybrid, nor a hybrid to a challenge the Prius in overall fuel economy. Therefore, outside of SUV buyers, I anticipate little 'halo effect'.