Honda optimizes Civic hybrid for UK

Interest in hybrids gains in Europe

Honda has added a satellite navigation system to the Civic Hybrid for the UK market. The voice activated Sat Nav system will become standard equipment on all Civic hybrids sold in the UK.

"It's the first time a Hybrid has featured factory-fitted Sat Nav as standard equipment, meeting a growing demand in the sector, particularly from corporate customers wanting high-spec, low emission cars." (more)

A good time to buy a Civic hybrid?

Good selection, good deals?

Let's be honest. The first generation Civic hybrid wasn't the best looking vehicle. The second generation Civic hybrid, however, is a fine looking vehicle.

While many in the auto world are discussing the end of hybrid cars because of the death of the Accord hybrid, what they should be talking about are the deals available for the Civic hybrid.

Not only is Honda offering good leases, nice rates on financing, but they are ready to bargain - at least in Southern California. While the sticker price is around $23,000 for a standard hybrid Civic or $25,000 for a Civic hybrid with a navigation system, I've been told Honda dealers are ready to make deals below sticker price.

So, maybe now is the time to make a deal if you've been considering the Civic hybrid.

2 new Honda hybrid vehicles by mid 2009

What Honda's next hybrid won't look like?

By mid-2009 Honda plans to begin selling its new economy hybrid, which will cost less than the Civic hybrid. Earlier reports indicated the vehicle might be a hybrid version of the Honda Fit, but now it appears the vehicle might be more like Honda's Remix concept.

In addition, Honda is also planning a sports coupe, but it will not look like the one pictured above - previewed at the Geneva Auto show. Instead, the new hybrid coupe is also supposed to be influenced by the Remix.

Perhaps, much like Toyota's plans for the Prius, will Honda make multiple derivatives of the same basic hybrid - two derivatives of a new, unique hybrid? Regardless, Honda is planning to produce 200,000 of these new hybrid cars - a significant uptick in Honda's hybrid vehicle production.

(Source: AutoBlog)

Only 3 hybrids on 'pump-buster' list

The Honda Civic Natural Gas Vehicle is the top 'pump-buster'

Only 3 hybrid vehicles qualified as top 'pump-busters' by vehicle category according to Forbes Magazine - a point that Forbes appears to relish. Of course, there simply aren't any hybrids that fit into most of the vehicle categories chosen by Forbes, but who cares about those kinds of details?

Still, the Honda Civic hybrid, the Toyota Prius hybrid and the Ford Escape hybrid each qualified as the top 'pump-busters' in their respective categories.

The Honda Civic hybrid recalled

More than 45,000 Honda Civic hybrids are being recalled to fix a voltage converter defect. If the problem is not fixed, the voltage converter could cause a short circuit that might stop the engine and prevent the engine from being restarted. According to Honda, there have not been any reported accidents or injuries due to the defect. Civic hybrid owners will be contacted by mail regarding this problem so that their vehicles can be repaired.

Hybrid vehicles still offer excellent reliability - Consumer Reports

Hybrid vehicles are very reliable according to Consumer Reports survey research. The Honda Accord hybrid and the Toyota Prius hybrid are the number one and two most reliable family cars, and the Honda Civic hybrid took third place for most reliable small car. The Toyota Highlander hybrid and the Lexus RX400h took the first and fifth spots for most reliable midsized SUVs.

The only hybrid to suffer a bit this year compared to last year was the Ford Escape hybrid, which dropped from above average to just average.

(Source: CNNMoney)

Civic and Escape hybrid sales up big in October

Sales of the Honda Civic hybrid were up 890% in October compared to October 2005, reaching 2,288 units sold. The Ford Escape hybrid and the Mariner hybrid hit 1,602 units combined, up 30.6% compared to October 2005. The sales of all other hybrid vehicles were down in October 2006 compared to October 2005.

So what is the story? Why are sales of the Toyota Prius, for example, down while the Civic hybrid is up? Or why are sales of the Highlander hybrid down, while sales of the Escape hybrid are up?

Well, I'd bet it all comes down to tax incentives. October was the first month that tax incentives for Toyota hybrids were cut in half.

While Prius sales were down about 12%, Toyota still sold 8,733 of the hybrid vehicles - far more than Honda's Civic hybrid. Nonetheless, it will be interesting to see what happens over the next couple of months. If gas prices begin to again go up, I think Prius sales will be fine despite the lower tax incentive. If gas prices remain stable, this downward trend might continue.

(Source: Green Car Congress)

Prius and Civic hybrid most fuel efficient vehicles for 2007 according to government

The government has released its Top Ten Most Fuel Efficient Vehicles for 2007. According to the government's report, the Toyota Prius hybrid is the most fuel efficient vehicle for 2007, followed by the Honda Civic hybrid. The Toyota Camry hybrid was third.

A total of four hybrid vehicles were in the Top Ten. The two-wheel drive Ford Escape hybrid was the most fuel efficient SUV.

(EPA)

Hybrids only 9% more efficient than regular vehicles?

Are hybrid vehicles only 9% more fuel efficient than conventional vehicles? That's what J.D. Power claims, according to the Detroit News. While noting that interest in hybrids is growing, J.D. claims that hybrid buyers have unrealistic expectations in terms of performance.

While I agree that some buyers have unrealistic expectations, I have to question the 9% figure. Other studies have claimed the same, but those studies were done using track testing. For the majority of drivers, track testing is about as accurate for gauging real world fuel economy as are EPA estimates of hybrids.

Moreover, saying 'hybrids' are only 9% more efficient than conventional models is completely deceptive. For example, some hybrids were not produced to achieve the highest fuel efficiency possible. The Honda Accord hybrid, for example, is really a performance hybrid, though it achieves excellent fuel mileage for that performance. The same is largely true of both the Lexus RX400h and the Toyota Highlander hybrid, though these vehicles are - for their class - more fuel efficient than the Accord hybrid.

In terms of fuel efficiency, both the Ford Escape hybrid and the Toyota Prius hybrid, are the two hybrids most designed for fuel economy. While the Civic hybrid is a very fuel efficient vehicle as well, so to is the standard Civic. Additionally, the Civic hybrid doesn't offer as much electric assist as the hybrid Escape or Prius.

Consequently, comparing some hybrids is about as accurate as comparing apples to oranges. Thus, averaging their fuel economy is completely useless.

Even worse, if the Silverado hybrid was also included in the 'hybrid class' by J.D., then the results are completely skewed against hybrid fuel efficiency. The Silverado hybrid isn't even a mild hybrid in my book. In fact, its not even a hybrid in my book.

Consequently, the class of current hybrid vehicles are actually a very diverse group of vehicles. To average their fuel economy is misleading at best and, ultimately, deceptive. Studies by both Consumer Reports and Edmunds very much call into question the number, 9%.

Some hybrids are more fuel efficient than other hybrids. Some hybrids offer more power than other hybrids. Some hybrids perform better on highways compared to other hybrids, and some hybrids perform better in urban slow-and-go or stop-and-go traffic than other hybrids. Inevitably, hybrid fuel efficiency can ONLY be assessed vehicle by vehicle. Even then, two different drivers of the same hybrid can still achieve vastly different outcomes.

So, don't take this 9% very seriously. It might be true for some hybrids, but it certainly isn't true for all hybrids. If you want to read more about real world fuel economy from real world hybrid drivers, check out these hybrid testimonials.

Prius, Escape hybrid break even in 3 years

According to a study by Edmunds.com, many hybrid cars now pay for themselves over time. For example, both the Toyota Prius and the Ford Escape hybrid can pay for themselves in just 3 years when gas is $3.00 and you drive at least 15,000 miles per year. Additionally, the Saturn Vue, Camry hybrid and Civic hybrid will pay for themselves in 6 years.

Of course, good things never last. Because tax credits for hybrid cars are capped at 60,000 vehicles per manufacturer, the full tax credit for the Prius and other Toyota hybrids, will only be available until Sept. 30. After that time, Toyota hybrid buyers will only qualify for half the tax credit.

As for the other hybrid vehicles, you still have plenty of time.

The Best Hybrid Vehicle

So, you think the Toyota Prius is the best hybrid vehicle, or maybe you like the styling of the Honda Civic hybrid?

Maybe you only like SUVs and so you believe the Ford Escape hybrid is the best hybrid available?

Well, unfortunately, the best hybrid vehicle simply isn't being produced.

So, what would it take to create the best hybrid? In a word, a plug. (Finished in Comments)

London adding 117 new hybrids to police fleet

The London Metropolitan Police force will be adding 117 new Honda Civic hybrids to its fleet.

(Source: Just Auto)

The connection between the Prius and the Hummer

There is no connection between the Toyota Prius and the Hummer. Thus, when I saw the headline, Prius: As Obnoxious as a Hummer?, I almost ignored reading the article, but, inevitably, I couldn't resist, especially after I read the article, Prius Responsibility.

The author notes, "As a dyed-in-the-wool enthusiast, I find superficial excess repulsive in whatever form it takes. Yes, I think heavy-duty trucks and SUVs are a garish display of vehicular excess unless they're towing, hauling, or otherwise justifying their gluttonous existence. But it wasn't until the second-generation Toyota Prius became the darling of the Hollywood left and the Brie & Merlot quasi-literati crowd that similar feelings of disdain for this posterchild of parsimony began to well up inside me."

Wow! While I understand what the writer is saying, and while I also share some of his disdain, I also know many Prius drivers that vote Republican and drive a Prius because of National Security beliefs.

Sometimes generalizations and stereotypes are just that, generalizations and stereotypes.

Finally, the author concludes, "So at the end of the day, do I hate Priuses or their drivers? Not necessarily. Just drop the "Look at me! I'm saving the environment! Aren't I great?" attitude and that your car is superior when there are other models out there that are as fuel-efficient or better."

Here the author again makes an assumption that Prius buyers only buy the Prius because of 'looks'.

How ridiculous! First, Toyota designed the Prius in such a manner because of aerodynamics and that design leads to better fuel efficiency. It also leads to better cargo space. Second, when it comes to urban driving - stop-and-go driving - it is simply hard to compete with the Prius, even for the Honda Civic hybrid. So, what other vehicles out there do as well or better in urban driving conditions in terms of pollution and fuel efficiency - please? Third, the Prius has simply been road tested like no other hybrid and when buying an emerging technology, it isn't unusual for early adopters to stick with the most popular brand.

Sure there are some annoying Prius drivers out there, but there are a lot of cool Prius drivers out there as well. Let's not forget, critics constantly tell us that you can't save money buying hybrid cars, such as the Prius. Consequently, those Prius drivers have paid EXTRA money to try to make a better world, to try to fight pollution, to try to end foreign oil dependency.

That deserves at least a little respect.

Honda hybrid tax credits now official

The IRS has officially determined the tax credits for Honda hybrid cars. The 2006 Civic hybrid qualifies for a $2100.00 tax credit. The Accord hybrid actually qualifies for a better credit than originally estimated, if it offers updated control calibration. Thus, the new credit is $1300.00. For those without the calibration, the credit is $650.00. The Honda Insight qualifies for a $1,450 tax credit. More on tax credits for hybrid vehicles.

Newsweek's Green Gap: Hybrid Critics have become boring

I was just reading Newsweek's Green Gap which asks, "Hybrids might be hip, but are they saving consumers enough at the pump to compensate for their high sticker price?" Over and over auto writers have noted that the Honda Accord hybrid and the Toyota Highlander hybrid are not selling well because of their sticker price. So hybrid cars are dead, right? Well, not exactly, the Toyota Prius and the Toyota Camry hybrid are hot, the Honda Civic hybrid is also hot. Ultimately, hybrid sales keep going up, and the hybrid market is only just emerging, only just being understood. It seems today's media loves to talk about hybrids. Recently, I questioned whether there was a media bias against hybrids. When Toyota announced a recall that includes the Prius, but wasn't limited to hybrids, nor was it related to hybrid technology, yet most of the media focused only on the Prius, not the fact that the majority of the affected cars were NOT hybrids.

Surprise, surprise hybrids top city picks by Forbes

According to Forbes, the soon to be deceased Honda Insight hybrid and the Toyota Prius are the two top cars for city driving. The Honda Civic hybrid came in at number 6. Of course it isn't a surprise that hybrid cars would dominate the list of best city driving cars. If they didn't, that would have been a surprise.

More than a Honda Fit hybrid?

Sure the Honda Insight is dead, but it will result in a brighter future for hybrid vehicles. In the past, Honda has been unsure about the future of hybrids, but the announcement that Toyota is going to produce a new 4 door hybrid that is more fuel efficient than the Insight and cheaper than the Civic hybrid is great news for hybrid consumers. While the new car might be similar to the current Fit, I think that Honda has realized that they need more than a Fit hybrid to challenge the Toyota Prius. Thus, I expect Honda's new hybrid to be a unique vehicle - a move Ford and GM need to heed.

New Honda hybrid, bolder hybrid plans

Honda appears interested in challenging the success of the Toyota Prius hybrid car, and has announced a new, family hybrid that will be priced less than the Civic hybrid. Rumors have been running wild that the Fit will be converted into a hybrid utilizing the Insight hybrid powertrain, but Honda did not name the vehicle. Even more interesting, is the expectation that Honda believes the vehicle can achieve U.S. sales of more than 100,000. In the past Honda has been much more bearish regarding hybrid vehicles than Toyota, but such a move seems to indicate that Honda is afraid to give Toyota too big a lead in hybrid production.

Used hybrids fetching a premium

Used hybrid cars, particularly the Toyota Prius, are losing little value - even after a year or two - according to recent data. The Honda Civic hybrid is also doing well in used sales. Since some hybrids, especially the Prius, are so hard to find, buying a used one can offer a better selection of colors and other amenities which could be putting a premium on used hybrids. Thus, if you were hoping to find a bargain on a slightly used Prius, you probably won't have much luck until gas prices drop significantly.

GM and Ford Claim Hybrid Car Pool Lane Discrimination

Sometimes I think it is best just to keep quiet. This is one of those situations for Ford and GM. "Ford Motor Co. and General Motors Corp., seeking to boost sales, want the federal government to force New York and California to let solo drivers of their hybrid vehicles join those of Honda and Toyota cars in highway carpool lanes." (JSONLINE)

While I like the Ford Escape hybrid, it doesn't achieve the kind of mileage that the Honda Civic hybrid or the Toyota Prius hybrid achieves. More important, the Toyota Highlander hybrid also doesn't not qualify for HOV lane access in these states - so there is no discrimination. The point of New York and California HOV legislation was to promote the very best fuel efficiency.

Both of these American companies should be leading the fight against foreign oil dependency, instead they survive only by increasing America's dependency.

No Surprise: Hybrid Sales Surged in 2005

You've come a long way baby!

In 2005, sales of hybrid cars more than doubled, significantly led by the Toyota Prius (AP). Still, hybrids only account for around 1% of total U.S. auto sales. While gas prices make hybrid vehicles more appealing, the price of hybrids will still have to come down in order to make hybrids desirable to a significant percentage of American consumers. Inevitably, most potential hybrid buyers cannot help but notice the price of a standard Camry compared to a hybrid Camry or a standard Civic compared to a Civic hybrid. If it takes five years or more to recover this investment, you've already lost most Americans. Nonetheless, as the Prius clearly demonstrates, unique hybrids can be hot sellers.

Ford's Slow Hybrid Sales Surge 50% in April

Last week I read at least 4 articles talking about the slow sales of hybrid vehicles. MotorTrend, for example, carried the article Hybrid Sales Running On Empty.

Then, today, I read that Ford increased its sales of hybrid vehicles by 50% in April - some slump(Reuters).

While it is true that incentives played a role in the sales increase of the Ford Escape hybrid, I bet rising gas prices also didn't hurt. Still, the whole "hybrids losing momentum" sentiment was really annoying.

Sales of the Toyota Prius weren't slow, nor were the sales of the Honda Civic hybrid. These two vehicles account for the far majority of hybrid vehicle sales, yet because the Honda Accord hybrid isn't selling well - a performance hybrid - hybrid sales are slumping?

Hybrid cars are an emerging technology and not every hybrid is going to sell well - there will be winners and losers. Additionally, costs and the price of gas are extremely important. Still, with no end in sight for high gasoline prices, I expect a lot more slow sales from hybrid cars.

Nonetheless, I don't get it. Why does it seem so many want to see hybrids fail?

First small riceburners, then hybrid cars

Hybrids will prove America wrong, again

I remember my parents picking me up from grade school one afternoon in the late '70's. Across the street from school, my father noticed my teacher's new Honda Civic. He laughed and said, "Who would ever want to drive a small riceburner like that? Honda is a motorcycle company, not a car company."

Well, needless to say, the rest is history. Not only did Honda do well selling cars no one "would ever want to drive", but so too did Toyota and Nissan. Just a few decades later, these 'riceburners' have knocked the American auto industry against the ropes and a TKO is very possible.

My father was a Union machinist and back in the '70's buying such a vehicle, regardless of how reliable it was or much gas it saved, was simply un-American. And it wasn't just my father, but most of America that felt that way.

Many Americans still feel that way today, which is why I think so many Americans are SO against hybrid cars. If hybrids take over much the same way riceburners did, it might just spell doom for American automakers.

According a Detroit News poll, the majority of Detroit-area readers don't believe hybrid vehicles will be around long. (See the Poll)

I say, get your head out of the sand. Don't make the same mistake twice.

The days of cheap oil appear to be over, and there probably isn't a windfall tax that can do anything to change that. A windfall tax can't stop problems in Iran or Nigeria. A windfall tax can't stop a billion new drivers from China and India.

The world has changed. Fuel efficiency and pollution will be the key drivers of not just automotive technology, but of all technology. In fact, clean and green technology is not only possible, as the Toyota Prius hybrid car so beautifully demonstrates, but it is destined to improve greatly, while getting significantly cheaper.

$3.00 gas is only the beginning, the beginning of the hybrid car revolution. Flex fuel hybrids, diesel hybrids, gasoline hybrids, hydrogen hybrids, and fuel cell hybrids - hybrids are THE future.

Toyota Prius is one of the safest small cars

The Toyota Prius is one of the safest small cars, according to the Insurance Institute for Highway Safety, especially when it includes optional side airbags. The Honda Civic also is a top car, but the Civic hybrid wasn't specifically mentioned. (More From CNNMoney)

Reduced Accord hybrid sales are not the end of hybrid cars

One might think the end of hybrid cars is near. Carlos Ghosn, whose Nissan Company has no hybrid technology, and Honda make some bearish comments regarding hybrids, suddenly, hybrids are no longer hot.

"We've had to reevaluate our position [regarding the Accord hybrid]," Honda Executive Vice President Dick Colliver recently stated. "It's having a hard time in the market." (MSNBC)

Well, it isn't necessarily surprising that the Accord hybrid might see a production decrease. Nonetheless, Honda's other two hybrids, the Civic hybrid and the Insight are seeing very good sales. Moreover, Honda has never been as bullish regarding hybrids as Toyota and they are still not.

More important, the Toyota Prius is still attracting waiting lists and is blowing all the competition away. The Prius is a unique vehicle powered by excellent technology.

Let's face it, sticker shock is the most important factor in buying a vehicle. Even if all hybrids saved $2000 compared to their conventional cars after 5 years, but customers had to pay more upfront, the majority of buyers would still go for the most immediate savings.

As hybrid technology becomes cheaper and gas prices go higher, America's perception of hybrids will continue to improve. Today, however, if you want to sell a 100,000 hybrid vehicles, produce a unique hybrid.

Automakers misusing hybrid technology?

Many environmentalists are mad, mad that the word 'hybrid vehicle' is being misused by automakers, and they want the word hybrid vehicle to only describe fuel efficient vehicles. Therefore, only hybrid cars, such as the Toyota Prius or the Honda Civic hybrid, deserve the label 'hybrid car'.

"With the emergence of performance-oriented hybrids and ultra-mild hybrid systems, environmentalists now see the technology as one more example of how Big Auto has hoodwinked consumers into believing their products are as green as they can possibly get." (MSNBC)

While it's true that some hybrid technology, currently, offers very little improvement in fuel efficiency, where do you draw the line?

"We think that hybrid technology ought to be reserved for the environmental and consumer benefits [it] can deliver," says UCS's Jason Mark. "Every quasi-hybrid under the sun is being labeled as a hybrid for public relations benefits." Mark thinks that hybrid technology should be put to better uses than turning a 16-mpg vehicle into an 18-mpg vehicle. "The point is not to turn extreme gas-guzzlers into moderate gas guzzlers."

So, what should these 'hybrid' vehicles be called? Gas guzzling vehicles with hybrid technology?

Maybe.

Still, if more and more hybrid vehicles are produced, won't customers start to realize which hybrids offer the best fuel efficiency bang for the buck? More important, the government should offer better tax incentives for the most fuel efficient hybrids in each class.

The hybrid vehicle revolution is dead?

The Wall Street Journal reported that sales of some hybrid cars are slowing, according to Car and Driver. That magazine cited such evidence as interest free loans for the Ford Escape hybrid, as well as new financing deals for the Toyota Highlander hybrid, and cuts in production on both the Highlander hybrid and the Honda Accord hybrid.

Of course, the Toyota Prius hybrid car is burning off the lot, and the Honda Civic hybrid is also seeing strong sales.

So, what's the problem? Cost effectiveness.

Ultimately, I believe there two main types of hybrid consumers: those driven by the environment and foreign oil dependency and those driven by saving money on gas.

The Prius and the Civic hybrid fit the demands of both of these consumer segments. The rest of the hybrids don't fit the majority of consumers in either one of these segments very well.

Still, the best of hybrid technology is yet to come and even large hybrid SUVs will eventually see lower prices and higher fuel economy.

Hybrid vehicles are far from dead.

Accord hybrid versus the Camry hybrid

Hybrid Competition Heats Up, A little

Slowly, albeit very slowly, competition amongst hybrid cars is building.

Already we have the Toyota Highlander hybrid versus the Ford Escape hybrid versus the Lexus RX 400h, as well the Toyota Prius versus the Honda Civic hybrid, and soon we'll have the Toyota Camry hybrid versus the Honda Accord hybrid.

Both the Accord and the Camry are already top selling cars in America. So, how will the hybrid battle between these two champions play out?

Unfortunately, it probably won't be much of a battle.

The Accord hybrid is a performance hybrid, offering some of the best performance of any Accord. For the power offered, the Accord hybrid offers good fuel efficiency. Ultimately, however, the hybrid Accord was built to perform on the highway, not to set fuel efficiency records.

The Camry hybrid, on the other hand, will offer significant gains in both fuel economy and pollution reductions compared to a standard Camry. While the hybrid Camry will still perform well, it wasn't designed for 0 to 60 supremacy, however the hybrid Camry should offer exceptional fuel efficiency.

Ironically, the real competition in the hybrid vehicle wars will probably be between the Camry hybrid and the Prius.

The Beautiful Lexus RX 400h hybrid vehicle

For those who need luxury, but want a hybrid

I'm a take-the-subway-everywhere kind of guy, and when it comes to hybrid cars I'm more inclined to the Toyota Prius, Civic hybrid, or Insight.

For me a vehicle purchase is more about transportation not some sort of status symbol. I don't take public transportation, walk to the store, or drive a hybrid to make others feel guilty. I do it because I feel guilty if I don't.

So, when my friend told me he was interested in hybrids, I strongly urged him to buy the new Civic hybrid or the Prius - he needed seating for four, so the Insight wasn't an option. Thus, I was a little surprised when he stopped by last night in his new Lexus RX 400h hybrid.

He was in a rush, but he still took me for a quick trip around my neighborhood.

I hate to admit it, but I'm a bit jealous. The Lexus 400h is a gorgeous vehicle. While still not my cup of tea, I'm proud of my friend. Inevitably, he is causing significantly less pollution and he is investing in hybrid technology. Considering he was a devout gas-guzzler not long ago, this is a huge improvement.

Are automakers destroying hybrid technology?

Yesterday, Business Week printed the article, Are hybrid sales running out of gas, which argues that other than the Toyota Prius hybrid, the sales of most other hybrid cars are slowing.

Unfortunately, I basically agree with Business Week that the costs of hybrids are an issue that is slowing hybrid sales. Hybrid vehicles do save gas, but they do not always save enough gas to justify the higher costs, especially hybrid SUVs.

Thus, only those with the wallet and the passion to fight foreign oil dependency or for the environment, can afford these vehicles.

A much larger customer segment; however, can afford vehicles such as the Prius or the Honda Civic hybrid. Still, the conventional Civic isn't a gas-guzzler, so you inevitably start comparing the Civic hybrid to the conventional Civic. For most consumers, up-front costs will eventually dominate.

The Prius, on the other hand, is unique. It is the hybrid vehicle, not a conventional vehicle with hybrid technology.

If someone wants to buy a sports car, they wouldn't typically want to buy a souped-up Chevy Malibu, they would want to buy a Corvette. Simply putting a badge on a Chevy Malibu that states 'Corvette Powered' doesn't make the Malibu a Corvette, even if they both have the same engine and performance.

Vehicles, such as the Ford Escape hybrid or the Toyota Highlander hybrid, will always have an audience, but they will never meet the sales demand of the Prius. If there were a unique hybrid SUV; however, it would dominate hybrid SUV sales.

Nonetheless, in the next year gas prices are going to go up significantly as refineries go from MTBE to ethanol additives. Additionally, in the next couple of years we will probably see multiple, significant spikes in the price of gasoline. All of these events will renew interest in ALL hybrid vehicles.

Additionally, hybrid technology is and will continue to advance. These advancements, and the potential small business tax credit for hybrid vehicles, could make hybrids, such as the Escape and Highlander, very cost-effective - perhaps even long term bargains.

Still, the only way hybrid technology will ever take off is when a number of unique hybrid vehicles are competing against each other. If automakers don't take this approach, the potential of hybrids will never be reached.

Intellichoice Best Overall Values of 2006: A lot of hybrids

In the last 2 weeks, hybrid cars have picked up some great press.

Consumer Reports picked two hybrid vehicles, the Toyota Prius and the Toyota Highlander hybrid, for it's Top 10 Best Values in automobile's issue. The Prius hybrid was also found to be the most satisfying to owners, with 95% of those owners interested in buying another Prius.

Then Edmunds/CNN released a report that the Prius, Ford Escape hybrid and the Lexus RX400h hybrid were among the 10 hottest cars in America because these vehicles fly off the sale's lot.

Intellichoice also picked a number of hybrids as the Best Overall Values for 2006. The Toyota Prius, the Ford Escape hybrid, and the Toyota Highlander hybrid were included in the 8 Overall Best Values. The Honda Civic hybrid and the Honda Insight also picked up awards in Best Values in their Class. (more)

Consumer Reports and Hybrid Cars: What you need to know

What's the word on hybrids?

Consumer Report's Annual Auto Issue is one of the most important sources for unbiased ratings and reviews of automobiles. So, what can we learn from Consumer Reports when it comes to hybrid cars.?

First, we learned that the Toyota Highlander hybrid is the best SUV over $30,000 and that the Toyota Prius hybrid is the Best Green Vehicle.

Second, we learned that the Prius is the Most Satisfying vehicle according to owners. A whopping 95% of Prius owners would buy another Prius (more).

Third, we learned that hybrid vehicles have thus far proven to be extremely reliable. In fact, the Prius and the Honda Civic hybrid topped CR's rankings of Most reliable, with just 4% of owners reporting problems. In addition, the Highlander hybrid, Lexus RX400h hybrid and the Accord hybrid also did very well in reliability.

Of course, the long term reliability of hybrids is still a question, a question that can only be answered once enough hybrids have been on the road for more than a decade. Ultimately, the reliability of hybrids is extremely important as it is the factor in determining the overall value of hybrids, which brings us to our final point.

Fourth, are hybrid vehicles worth the cost?

According to Consumer Reports, only two hybrids can save you money after the first five years: the Prius and the Civic hybrid. Of course, once the capped tax credits for hybrids expire, these vehicles will then cost more than their conventional counterparts, well, maybe.

The article, Hybrids: Save gas, lose money, notes that "six hybrid gasoline/electric vehicles, will lose 2 percent to 3 percent more in value over five years of ownership than otherwise identical non-hybrid vehicles." While the Prius can save $406 after 5 years and the Civic hybrid saves $317, the rest of the hybrids lose money after five years: Ford Escape Hybrid ($1,883), Honda Accord Hybrid ($4,263), Lexus RX400h ($4,171) and Toyota Highlander Hybrid ($5,508).

Of course, as in life, few things are ever black and white.

To start, there is no "identical non-hybrid vehicle" to compare to the Prius. If the Prius were simply a hybrid Corolla, it would be called the Corolla hybrid. Quite simply, the Prius is a unique vehicle and when you consider performance, reliability and customer satisfaction, the Prius is a unique, awesome vehicle.

As for the rest of the hybrid vehicle segment, it is true that cost is an important concern. Still, for those that care, can you really put a cost on foreign oil dependency or a cleaner environment? Sometimes doing the right thing is neither the cheapest nor easiest thing to do.

Furthermore, the Consumer Reports study makes several important assumptions. For example, it assumes that your auto insurance will cost more. Overtime; however, this might not be true, especially when you consider that some insurance providers have already offered discounts to hybrid drivers.

CR also assumes extra financing costs for hybrids. Already, Ford has begun to offer incentives and better financing deals on its hybrid vehicles, so this 'cost' might not remain an extra cost.

The most important assumption affecting the costs of hybrids; however, is extra depreciation, which CR claims could range from $2,900 to 6,300 after 5 years. These are huge numbers that cannot, at this point in time, be backed by fact.

For example, if hybrid batteries generally last the life of these vehicles, which Toyota engineers claim is quite possible, then these numbers will be horribly wrong. Additionally, as more hybrids are built, hybrid battery costs will come down.

Moreover, it could turn out that replacing the battery packs of older hybrids could make hybrids twice as fuel efficient as before with new battery technology, such as lithium batteries. Not only would this reverse depreciation costs, but it would double fuel savings costs.

In 10 years, it could turn out that replacing the hybrid battery pack on an old hybrid actually results in a better hybrid than when new. Imagine the effect this would have on resale value.

Additionally, "Hybrid supporter and Prius owner James Bell, publisher of the automotive guide IntelliChoice, recently sold his two-year-old Prius for just $4,000 less than he originally paid for it -- a remarkably low rate of depreciation." (more)

So, hybrid depreciation is a complete wild card.

Furthermore, "We really like hybrids in terms of their overall performance" and environmental benefits, says Doug Love, a spokesman for Consumers Union.

In conclusion, the CR study does demonstrates that hybrid vehicles do pose some risk when it comes to long term value; however, the CR study largely assumes the worst case scenario. If hybrid batteries are very reliable and/or new battery technology could cost-effectively make old hybrids twice as fuel efficient, then hybrids could end up as long term bargains.

Consumer Reports and hybrid car costs

Civic and Prius hybrids DO save money

If you read the Consumer Reports Best and Worst Cars of 2006 issue, then you know that Consumer Reports reported that in the short term - 5 years - not one hybrid saves money compared to their conventional counterparts.

Well, CR has admitted that it made a mistake and that the Toyota Prius and the Honda Civic hybrid actually do save money, $406 and $317 (more).

So, some hybrid cars actually do save money!

Why gas-guzzling is great!

What's better than a gas-guzzling SUV that can go offroad?

A more powerful, even greater guzzling SUV that can't go offroad. It's pure guzzling pleasure, a message to the world that the price of gasoline means nothing, nor does common sense.

Now that's saying something!

As for global warming and foreign oil dependency, those are just treehugging conspiracies - every real American knows that.

That's why I can't wait for the new muscle cars from Ford and GM, so I can fly by those granola-eating Prius and Civic hybrid drivers. They act like they are saving the world. Give me a break, they aren't making a dent in foreign oil dependency. That's why I buy GM products, they understand America. Just look at Bob Lutz.

"There's enormous good will for the glory days of American cars, when they really were American and didn't try to be Japanese or German," says GM car czar Bob Lutz.

Gas guzzling is the essence of America. Since we're the best in the world, we can do whatever we want. Besides, if I wasn't using so much gas, those people in the Middle East wouldn't have any money and that would breed real terrorism. The truth is gas-guzzling helps fight terrorism. The richer we make those people the less they'll want to kill us.

I'm the real American. America is about choice, even if it is a stupid choice, such as buying a hybrid car.

Be a real American, buy the biggest gas-guzzler you can find! Together we can change the world!

Hybrid cars and reliability

Can you trust hybrid technology?

I regularly receive e-mails that ask, "Are hybrid cars reliable?"

Well, according to Consumer Reports, they are. In fact, both the Toyota Prius and the Honda Civic hybrid were found to be the most reliable vehicles by CR, with just 4% of owners reporting problems.

Additionally, the CR study also picked the Toyota Highlander hybrid as one of its Top 10 vehicles of 2006, a ranking which also includes reliability. Two other hybrids, the Lexus RX400h and the Honda Accord hybrid also received high marks.

Sure it is possible that the smaller production lines of these hybrid vehicles eases the ability to ensure their reliability. Moreover, the long term reliability of hybrids is still somewhat of question, since hybrids simply haven't been around long enough. Yet, first generation Prii and Honda Insight hybrids have proven to be reliable after several years.

While the long term reliability of the hybrid battery pack will remain a question for another decade, based upon current evidence hybrids appear extremely reliable. If the hybrid battery pack lasts the life of the vehicle, as many Toyota hybrid engineers believe, the long term value of hybrids has been significantly underestimated.

The Toyota Prius is one awesome vehicle

Don't believe me?

Just look at what Consumer Reports said about the Toyota Prius hybrid, "an unbeatable combination of economy, acceleration and interior room."

Moreover, the Prius is the Most Satisfying Vehicle according to CR. 95% of owners are interested in buying another Prius. The only vehicles that even compare to this kind of customer satisfaction are the Corvette at 93% or the Infiniti M35/M45 at 92%.

Still not enough?

While there have been many myths regarding the reliability of hybrid cars, it has been much ado about nothing. The facts demonstrate that the Toyota Prius is extremely reliable. According to CR the 2005 Toyota Prius was the most reliable vehicle, as only 4% of owners reported problems.

O.K., that isn't totally true. The Honda Civic hybrid actually tied the Prius as most reliable according to owners.

While long term reliability will not be proven for a few years, at this point in time the evidence indicates that hybrids are very reliable.

Are luxury hybrids worth it?

Soon Lexus will be offering two luxury hybrids

What's the point of hybrid cars? To many it's all about fuel efficiency as hybrids represent an answer to foreign oil dependency or less cost on fuel. To many others, however, hybrids are simply about the environment.

Hybrids, even luxury hybrids, significantly reduce automobile emissions and that is great for the environment.

Still, some owners of the Lexus RX400h hybrid have complained about fuel efficiency. In reality; however, the RX400h offers very fair fuel economy for the performance that it provides.

Does this fuel economy justify the extra cost? Probably not. Yet, if fuel economy is your primary concern, why are you buying a luxury, performance-orientated vehicle?

The truth is, the Lexus RX400h is an "excellent" vehicle according to Consumer Reports. For the level of performance, the RX400h provides very good fuel economy. More important, the Lexus RX400h protects the environment and invests in hybrid technology. Eventually, this hybrid investment will lead to greater fuel economy in luxury hybrid vehicles.

Performance hybrids such as the Lexus RX400h and the upcoming Lexus GS450h hybrid sedan were not designed to save money at the gas pump. If you want to save money at the gas pump, then you buy a Toyota Prius or a Honda Civic hybrid.

While I'm not a huge fan of performance hybrids because foreign oil dependency is an important concern for me, I still appreciate these hybrids. Inevitably, an investment in any hybrid will lead to better, more fuel efficient hybrid technology for all hybrids, including luxury hybrid vehicles.

For luxury vehicle buyers, I give Lexus hybrids two thumbs up, way up.

Interested in a hybrid vehicle? Now might be the best time

So, you're thinking about buying a hybrid vehicle, but you just aren't ready? Well, now might be your best opportunity.

In the last several weeks gas prices have dropped, yet last week's suicide attack on a Saudi oil refinery could have pushed the price of gasoline up far more than Katrina. Almost certainly, we are in the calm before the oil price storm and gas prices will eventually spike this year. When that happens, as it did after Katrina, interest in hybrid cars will also spike.

Even without a spike, tax credits for Toyota hybrids will expire before the end of the year. So, if you are interested in a Prius or Highlander hybrid you should act now, if the credit is important. Interest in the Prius is always high, but if gas prices skyrocket again, finding a Prius could prove almost impossible.

While tax credits for the Honda Civic hybrid or the Ford Escape hybrid, for example, will probably last through the year, finding one of these vehicles might also prove nearly impossible following another surge in energy prices.

So, if you want to buy a hybrid this year, now could be the best time. Of course, if you are waiting for the Camry hybrid, there isn't much you can do until at least May.

Hybrid cars and Gas costs: Still a huge misunderstanding

Fortune Magazine is publishing an article on the development of the Toyota Prius in its March 6th issue. As a preview, Alex Taylor III wrote the article, Toyota's recipe for success.

Taylor doesn't seem critical of hybrid cars and appears to try to be objective in touching on the major hybrid issues. He is, ultimately, laying down the foundation for how Toyota's hybrids might completely dominate the future of automobile sales after all.

Still, he notes, "Critics complain that hybrids are inherently uneconomical because the $3,000 or more the technology adds to the cost of the vehicle can't be recouped with greater gas mileage; that they didn't improve fuel efficiency that much; and that some American models were being built more for performance than to benefit the environment."

To which Taylor states, "The knocks against hybrids are all true. But what the critics didn't put a price on was the value of being seen as eco-sensitive without giving up performance."

"Does it save enough money to pay for itself?" asks Jim Press, president of Toyota Motor Sales in the U.S. "That's not the idea. What's the true cost of a gallon of gas, if you factor in foreign aid, Middle Eastern wars, and so on? The truth is on our side."

While I agree with Mr. Press about real cost of gasoline, I have a bigger issue. Are hybrid vehicles "inherently uneconomical"?

There is simply no way that you can argue that a Toyota Prius is "inherently uneconomical", even without the current hybrid tax credit, and I'd say that the Honda Civic hybrid is close to this category as well. These vehicles are cost effective and do recover their costs for many drivers, especially those that drive in urban areas.

But let's just run a few simple numbers. In Southern California, where I live, it isn't uncommon to spend $100.00 per week on gasoline. That would add up to $4800.00 per year. Let's say a hybrid saves 20% - even though many save more - on your fuel needs. That would be roughly a $1000.00 per year. In 5 years you've saved $5000.00? What's the problem?

O.K., let's cut that it in half. $50.00 per week, $2500.00 per year and after 5 years you've saved $2500.00. Still not bad, and on the Civic and Prius you've recouped your costs. That's at current gas prices, which could go up significantly in the next 5 years. So, what's wrong with this bet, especially if protecting the environment is an important concern? This isn't treehugger craziness, it's just common sense.

To describe hybrids as simply "inherently uneconomical", is simply "inherently ignorant." Hybrids like the Prius recover their costs, while significantly reducing emissions. You're not losing money to be green. In fact, for many drivers it is a cost benefit to own a Prius.

Yes, cost-effectiveness isn't true for all hybrids, but it will be true for most hybrids in the future based on emerging hybrid technology. Most hybrid buyers understand this investment in the future angle, in addition to the real cost of gasoline and oil dependence.

That's why we shouldn't have capped tax credits for hybrid vehicles. Instead, we simply should have ended the $25,000 + tax deductions for the Detroit's worse gas-guzzlers.

That's "inherently uneconomical" for the welfare of the United States.

Fit Honda adding another hybrid vehicle to lineup

Honda set to offer the first subcompact hybrid.

In 2007, according to unofficial reports, Honda will begin offering the Honda Fit Hybrid, a subcompact hybrid. With a starting price of just $11,790.00, the Fit hybrid should shake up the world of hybrid cars.

According to the report, the new Fit will achieve fuel efficiency in the range of the Toyota Prius hybrid or the Honda Insight hybrid.

Some analysts already speculate that this move is a sign that Honda now believes that hybrid vehicles will have a much more critical role in the future. In the past, Honda has indicated that it wasn't sure about the future of hybrids. In addition to the Insight and Fit hybrids, Honda also offers the Civic hybrid - now in its second generation - and the Accord hybrid.

Ironically, this will be Honda's fourth hybrid car. GM, on the other hand, has stated that it is mostly interested in putting hybrid technology only in its large vehicles. Thus, one cannot help but wonder if GM is not sealing its fate with its stubborn refusal to challenge Japan in small cars and the new battle for fuel efficiency supremacy.

Washington Post rips hybrid's HOV access

I try to not get too involved in politics. When push comes to shove, it takes a lot of money to be successfully elected to higher office, and almost as soon as a politician is elected, they are already thinking about their reelection. Thus, I think politics - on both sides of the aisle - are about money. As a result I have little faith in either party and am a registered Independent.

Nonetheless, I thought the Washington Post was a liberal paper, but I guess not when it comes to hybrid cars, the environment, or foreign oil dependency.

Since Sunday the paper has taken an agenda against hybrid cars and HOV lane access. On Sunday, the Post printed an editorial calling for the end of HOV lane access for hybrids because "As plenty of the region's commuters know, hybrid vehicles are the main culprit in the ever-worsening traffic in the region's carpool lanes."

The Post points out that 22% of vehicles in the HOV lane are hybrids, which tops the 15% of illegal users also using the HOV lanes. Yet, does the Post care about the illegal users? No, only the hybrid vehicles, which the post states " Hybrids' environmental advantages have diminished as stricter federal rules have required gas-powered cars to have cleaner engines, starting with 2004 models."

So now the Post believes that current gasoline automobiles solve all of America's problems? According to the Post there is now no reason to worry about pollution, global warming, or foreign oil dependency?

I can't help but wonder what the editors at the Post drive, but I bet its BMW, Mercedes, and Lexus. Gas-guzzling means nothing to this fine group of Americans because the cost of gasoline means nothing to people who make the kind of money editors for the Post make.

On a side note, I also wonder how many editors at the Post have children enlisted in the Military - I'd bet not many.

While I understand that hybrids might cause problems for HOV effectiveness and that is an issue worth addressing, to claim that hybrid's environmental impact is now insignificant because of new gasoline vehicles is a complete travesty - an absolute joke.

Yeah, all the gas-guzzlers idling in traffic everyday aren't really a problem anymore, at least not if they are 2004 or later models - as long as you aren't worried about the billions of barrels of oil they waste every year in traffic. And, oh yeah, in congestion even 2004 gasoline vehicles create significantly more pollution than hybrids, but who really ever drives in congestion? Don't we all drive 55 mph on the highway all the time?

So, hybrids are the problem, I mean they do make up almost 1% of all vehicle sales in America, isn't that already enough? Isn't that enough change for one lifetime? Haven't we almost solved global warming and foreign oil dependency already anyway?

I say if you care about the environment, if you care about foreign oil dependency, or if you care about obscene oil company profits, then you should toast the post. Cancel your subscription.

If everyone in America drove a hybrid, such as the Toyota Prius or the Honda Civic hybrid, foreign oil would not be needed. That's a goal worth striving for and it's far more important than HOV congestion - by far.

Yet, this isn't even an issue for the Post. How pathetic.

Maybe, just maybe, in the short term, the Post could focus on the 15% of illegal drivers in the HOV lane. How much money could be made by fining all of those drivers? Additionally, HOV traffic would be less than it was before hybrids if illegal users were punished and forced to stop using HOV lanes.

But that's not the point of the Post. Instead, let's not focus on people breaking the law, let's focus on hybrid cars - didn't you know, they are America's real problem.

Re: AutoWeek's Newest Diesel versus Hybrid Vehicle article

"Heavy-duty diesel pickups have proved popular here, but hybrid-powered vehicles dominate the market for fuel-efficient cars, in part because they generate better environmental buzz. Consumers are willing to pay a premium for the gasoline-electric Toyota Prius and Ford Escape Hybrid." AutoWeek

Sometimes it's very hard to take AutoWeek seriously, especially when they write things that don't make sense.

First, I'm willing to admit that clean diesel achieves 20 percent better fuel efficiency than conventional gasoline engines, but the technology does cost more.

Second, in Los Angeles, where I live, the price of diesel is almost a dollar more than standard unleaded. So, how exactly is a clean diesel going to save me any money, even if it is 20% more efficient?

Third, in Los Angeles, almost all of my driving is stop and go driving. In such conditions, a hybrid vehicle like the Toyota Prius will perform much better than a Jetta Diesel.

Fourth, the Big 3 are focusing almost exclusively on diesel trucks, not cars. So I have to wait a decade before I have a selection of diesel cars to compare to the Civic hybrid, Prius hybrid, Camry hybrid and Malibu hybrid, etc?

So in my case, in real world driving, selection and costs, how does a diesel compare to a hybrid vehicle? The facts demonstrate that it just doesn't. So, it isn't about environmental buzz, as AutoWeek states, it's just basic facts.

Granted if more petroleum were refined into diesel, the costs would go down, but that's a 'what if'.

If AutoWeek wants to play 'what if' games, let me counter with a 'what if' game.

What if new hybrid batteries become 100% more powerful at the same weight and cost as today's hybrid batteries? Such technology is completely possible within the next decade - which is the same period of time that AutoWeek speculates it would take diesels to really take off in the U.S. in a way that would drive diesel fuel prices lower.

If such hybrid technology were available, then diesels - even with cheaper diesel fuel prices - simply wouldn't compare with the capabilities of hybrid cars. The potential of hybrids has barely been tapped. In the coming decades, hybrids will become significantly more powerful, fuel efficient, and clean.

Diesel technology, on the other hand, has largely reached its potential. Yes, clean diesel technology is a good thing, which can compete with hybrids in the short term, but only in the short term. Inevitably, the best utilization of a diesel engine will be to put it in a hybrid vehicle.

Clean diesel hybrid vehicles are an excellent push into the future. To quit at clean diesel is just far too short-sighted, and a silly argument against hybrids.

Once again I just don't get AutoWeek. Why are they so afraid of hybrid cars?

What happens when the Prius loses its tax deduction?

Since the new Clean Vehicle Tax Credit was approved last year, I've complained that the credit was biased against Toyota. By capping the tax credits by manufacturer at just 60,000 hybrids, it's obvious that Toyota will quickly run out of deductions because of demand for the Toyota Prius.

In recent days Secretary Snow has essentially admitted that the credits were partially written to help out domestic automakers, and maybe - in hindsight - that wasn't such a bad idea.

Thus, the story of 2006, when it comes to hybrid cars, will continue to be the Toyota Prius hybrid. Because not every Toyota hybrid sold is going to qualify for a tax deduction, will this have an affect on the Prius and Toyota hybrid sales?

Will this simply even the playing field between Toyota and other automakers for the hybrid market? Will Toyota counter with some kind of discount? Will sales on the Honda Civic hybrid and Ford Escape hybrid explode? Will hybrid sales, overall, decline?

While the Clean Vehicle Tax Credit might offer a deduction of $3400.00 to buyers, how much will that affect most people's taxes? Sure, the tax credit could be worth several hundred dollars for the average buyer, but is that really the clinching factor for most Prius buyers?

I guess we'll see.

Of course, if gasoline prices continue to rise, the lack of tax credits for the Prius might not even matter. I think next year the U.S. will see sustained gasoline prices near $3.00, minimally. In California, $4.00 per gallon gasoline is going to be fairly common, and it won't just be a spike, such as after Katrina.

Speaking of hurricanes, if another Katrina hits next year, the predictions above will be blown away.

Anyway, that's hybrid story for 2006.

The myth of hybrid car fuel economy

"Indeed, hybrids have increasingly faced sobering publicity about the "myth" of real-life fuel economy. Many drivers have reported to be disillusioned about underperforming the advertised mileage on their hybrids, which are most effective in stop-and-go city driving but help little on highways." CNN

To date, I've not heard one owner of a Toyota Prius hybrid or Honda Civic hybrid complain about their fuel mileage. Yes, I have heard complaints from Lexus RX400h owners, but the Lexus is a performance hybrid.

Still, I've talked dozens and dozens of Prius owners and the average fuel economy, combining both city and highway, is between 45 and 55 mpg. I've also talked to drivers that have achieve more than 60 mpg in some driving conditions.

In real world driving, what other vehicles are even coming close to that kind of fuel economy?

All kinds of conventional vehicles are not coming close to their EPA estimates, but their owners don't care, they didn't buy their car for fuel economy.

Sure some owners of hybrid cars are unhappy, but consumer satisfaction surveys demonstrate that just under 100% of the owners of the Toyota Prius, by far the best selling hybrid vehicle, would buy another Prius.

So, who are all these "disillusioned" drivers? Or, have a handful of drivers created this "myth" of disillusionment?

Hybrid car testimonials: Read others and add your own

Do you own a hybrid vehicle?

Have you added your experiences to our hybrid cars testimonials? What kind of gas mileage are you achieving with your hybrid? What else would you tell others that are interested in buying a hybrid?

Click on one of the links below to add your hybrid experiences.

Ford Escape Hybrid Testimonials
Honda Accord Hybrid Testimonials
Honda Civic Hybrid Testimonials
Honda Insight Hybrid Testimonials
Lexus RX 400h Hybrid Testimonials
Toyota Prius Testimonials
Toyota Highlander Hybrid Testimonials

GM, Daimler and BMW to showcase hybrids at Detroit Show

GM, DaimlerChrysler and BMW will launch GM's dual mode hybrid technology in their respective gasoline-electric hybrid powertrains at this year's North American International Auto Show.

The three automakers formed an alliance in an attempt to catch up with Toyota, the leading seller of hybrid cars. The dual mode hybrids offered by these companies will offer very different performance compared to Toyota's hybrids.

GM's dual mode hybrid technology should be cheaper; however, it won't be as efficient at Toyota's technology, especially in urban driving. GM's technology, on the other hand, could offer advantages in certain areas of performance, such as towing.

Still, Toyota has some huge advantages regarding hybrids. Already Toyota believes that it can cut its hybrid costs in half when it releases its third generation hybrid drive in just a couple of years. If this is true, it will wipe out GM's cost advantage, while also offering significantly better fuel efficiency

Nonetheless, the competition that is developing in the hybrid segment will be good for all consumers. While Toyota and Ford hybrids utilize very similar technology, Honda has succeeded with its own technology, and now comes GM's hybrid technology. Additionally, both Volkswagen and Hyundai shouldn't be far behind with their hybrids.

This competition will increase hybrid supplies, which will make all hybrid vehicles cheaper. Moreover, the competition between hybrid technologies will, inevitably, lead to affordable, extremely fuel efficient vehicles.

Additionally, this competition is leading to other hybrid experiments. Ford isn't just going to offer gasoline electric hybrids, such as the Ford Escape hybrid. At Detroit's Auto Show, they will showcase the Reflex diesel hybrid vehicle, according to the DetroitNews.

While the Toyota Prius hybrid continues to dominate hybrid sales, the second generation Honda Civic hybrid has also been a hot seller, and with all this new development into technology, a true Prius topper could be just around the corner.

The Toyota Prius New Year's Rush; Deduction Bias?

Are you planning to buy a new Toyota Prius hybrid car in 2006?

If you have been waiting for the New Year because the hybrid tax deduction for the Prius is bigger than in 2005, then you are not alone. There have been numerous reports of Prius buyers telling dealers to wait until 2006.

So, will this make it hard to buy a Prius in 2006?

Sometimes the beginning of the year can be a slow time for car sales, and this might have an effect on hybrid cars as well. Nonetheless, demand for the Prius has been, and continues to be, far greater than supply. Since the tax deduction for the Prius is both bigger in 2006 and capped, some Prius buyers will not qualify for the hybrid car tax deduction.

All this makes me wonder whether some hybrid vehicle buyers will look at other hybrids such as the Civic hybrid or the Accord hybrid, instead of the Prius, after the Prius deductions meet their cap.

Additionally, since hybrid deductions are capped by manufacturer, the Toyota Highlander hybrid will also be affected by Prius demand. Consequently, the Ford Escape hybrid or the Mariner hybrid could become a better deal simply because they will continue to qualify for the tax deduction longer than the Highlander hybrid.

If you are in the market for a Toyota Prius and the new deduction is a primary concern, you better buy your new hybrid as soon as possible to ensure that you will qualify for the deduction. Unfortunately, many hybrid buyers will already have this in mind, which could make finding a Prius more difficult than ever.

If the hybrid tax deduction won't have a big effect on your return, it might not be a bad idea to shop for a hybrid in these last few days of the year.

It's kind of ironic that Toyota's hybrid success could be to Honda and Ford's gain. The caps for hybrid vehicles are both far too few and too biased. If the government wants to get hybrids on the road as quickly as possible, then the free market approach to caps would have been to cap the total number of hybrids eligible per year, not to cap them by manufacturer.

Now Toyota hybrids will probably meet their cap before GM even starts selling real hybrids. That's a shame.