Wednesday, March 05, 2008

Without cheap hybrids are hybrids irrelevant?

Hybrids just not a solution?

A new consumer study by ACXIOM points out that most hybrid consumers have above average wealth and education and live predominantly in just a handful of states. Hybrid buyers are "upper rung" consumers, and according to ACXIOM, automakers should be focusing heavily on this consumer group to develop the sales of hybrid vehicles, at least until a cheaper hybrid is produced.

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6 Comments:

Blogger Dahcredyns said...

Full Story

GM has used plug-in hybrid concepts, such as the Chevy Volt, about as well as any automaker has ever used a concept. For fans of US automakers, the Volt proves that America is better than Japan at making fuel efficient vehicles, even though the Volt is years away from reality.

Perfect! So today I can buy a gas-guzzler because tomorrow I'll buy a Volt, which will kick Prius ass!

Of course, most GM fans probably won't be able to afford the Volt or any other plug-in hybrid for many, many years, let alone a more conventional hybrid.

A new consumer study by ACXIOM points out that most hybrid consumers have above average wealth and education and live predominantly in just a handful of states. Hybrid buyers are "upper rung" consumers, and according to ACXIOM, automakers should be focusing heavily on this consumer group to develop the sales of hybrid vehicles, at least until a cheaper hybrid is produced.

Is there any wonder that GM's dual mode hybrids are so expensive? That Toyota keeps popping out Lexus after Lexus hybrid model?

Yet, it is a cheap hybrid that offers the greatest economies of scale, the greatest impact on foreign oil dependency and global warming, especially in the short term. Cheap hybrids are also probably the quickest path to cost-effective plug-in hybrids as well.

Unfortunately, outside of Honda and maybe Toyota, cheap hybrid isn't even part of the conversation. Yet, without cheap hybrids, what is it exactly that hybrid vehicles are accomplishing?

8:23 AM  
Anonymous Anonymous said...

For good or bad it seems that new technology starts out expensive and only the rich can afford it. Twenty years ago computers were only affordable by the rich. So just getting the technology in cars and beginning the mass production of Lithium batteries will bring the cost down to affordable levels within five years. I think the lithium revolution has begun.

8:55 AM  
Blogger Nozferatu said...

New technology DOES NOT it has to be expensive.

There are MANY reasons for which things can be expensive. Sometimes new technology can be implemented very quickly and costs can be reduced very quickly too. Most of the time, that is the case. It's greed and control that force prices to go up most of the time.

We're at point now in technological development that the steps are small and progressive. Huge strides are not being made. So there is no excuse for hybrids to be as expensive as they are.

So why are they more expensive? Because automakers know full well they can milk it. They know it's still a novelty item for many and the wealthy are able and willing to pay for it. Why else do you think no one has made the obvious hybrid yet...which is a small car like a Honda Fit with a hybrid system getting 70-80 MPG??? Don't think it can be done?

Anonymous uses computers as an example...I'll use LCD and Plasma TVs.

Look how long it's taken for flat screens to drop in price. Why? They've been out long enough...production is full and well at high capacity levels. So why? Because they can still charge suckers $2500-5000 for one. They stick a new label on it like HD 1080i, etc etc...oh whoops...the prices stay high.

It's so easy to make money when you are on the other side of the fence and you see people as sheep...which they are for the most part.

I'm truly sorry for saying this but I seriously doubt the dumb rednecks in middle American even want hybrids. They'r set on being "partriotic" and being proud of going to Walmart in their suburbans and Denalis.

The philosophy of the rest of the world is different. The Japanese, the Europeans, etc...they far far far ahead of how people think here. Instant gratification isn't as much part of the equation as it is here.

That's why companies like Honda and Toyota will be the first to build cheap hybrids. I'm a little disappointed in their delays as they are also guilty of milking it. But at least they have some respect and experience with smaller sized vehicles.

The US auto industry has suffered from so much waste, corruption, and crappy products that it takes years, decades...to clean out that garbage. We are still seeing the remnants of the 70's and 80's...does anyone even remember the pitiful garbage Detroit was making back then? Didn't anyone on the assembly line think and stop for a second and say to him/herself "Wow man...this car I'm building is a real piece of shit!"?

10:03 AM  
Blogger Dahcredyns said...

there is no doubt that it takes time for economies of scale to catch up to technology. however, considering the mess that foreign oil dependency has us in right now, i'd say the methodical bean-counting way of doing business needs to be addressed, especially considering the last few decades of US automaking history.

besides, it would be an investment. the fact that america can't address this issue more quickly demonstrates just how irrelevant america has become - except for the glorious military (no offense to those in the military, just those leaders that risk your lives over ignorance).

testing proves it, our actions prove it, we're fat, dumb and lazy, keyword - DUMB.

11:02 AM  
Blogger Nozferatu said...

I'm not ask kind as you to people in the military. You need to have a certain mindset to want to go...for the most part....they are dumb as the top brass is.

11:05 AM  
Anonymous Anonymous said...

To quote "Yet, without cheap hybrids, what is it exactly that hybrid vehicles are accomplishing?"

Well from my personal perspective, saving a blooding wade of cash on my fuel bill. My new hybrid did this in spades by saving my cost by at least 60 to 75% as well as changing my driving habits. But, the real question is will having really cheap hybrids make a difference? We already have subcompacts achieving very good fuel economy for years yet sales of these vehicles pale compared to sales of SUVs and pickup trucks.
I guess its a cultural thing that Americans feel they need to drive big-ass vehicles and be obvious to the dwindling global fuel shortage. This is fueled by the cavalier attitude that a magical alternative fuel source will conveniently step in once oil has more or less gone. Unfortunately, the hard reality is that the cheap alternative simply do not exist and not exist in the forseeable short term future. Really if America did not have cold feet with six mile island some 30 years back and continued expanding their nuclear power program we would now be in an enviable positiion like France who supplies the large majority of their power requirements with these reactors. Problem about nuclear power as being a potential cheap power source is that that it only accounts for less than 10% America's power requirements. In order to shift from dirty coal sources to nuclear power America will need to expand its pitiful 150 reactors now to at least ten times this number. Of course this is not likely to ever happen and an energy crisis is only a matter of a few years down the road. Too bad we wasted hundreds of billions of dollars in Iraq when we could have used this towards investing in the building of this infrastructure but chez la vie.

2:21 PM  

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