Tuesday, August 28, 2007

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)

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Monday, June 11, 2007

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.

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Monday, May 14, 2007

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)

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Thursday, May 03, 2007

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.

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Friday, February 09, 2007

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.

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Friday, November 10, 2006

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)

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Friday, November 03, 2006

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)

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Tuesday, October 17, 2006

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)

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Friday, September 01, 2006

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.

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Tuesday, August 22, 2006

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.

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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)

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Monday, August 21, 2006

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)

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Thursday, August 17, 2006

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.

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Tuesday, June 06, 2006

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.

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Thursday, June 01, 2006

Newsweek's Green Gap: Hybrid Critics have become boring

Why don't the critics of hybrid cars have more vision?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.

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Wednesday, May 31, 2006

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.

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Tuesday, May 23, 2006

More than a Honda Fit hybrid?

The Honda Insight hybrid vehicle is dead, but the death will not be in vain, it will lead to a brighter hybrid future.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.

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Wednesday, May 17, 2006

New Honda hybrid, bolder hybrid plans

Honda is increasing its lineup of hybrid cars and getting more bearish on the hybrid car segment.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.

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Used hybrids fetching a premium

Hoping to save a little money on your hybrid vehicle purchase by buying used? Good luck!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.

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Wednesday, May 10, 2006

GM and Ford Claim Hybrid Car Pool Lane Discrimination

GM and Ford are claiming discrimination regarding HOV lane access for hybrid cars. I say shut up.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.

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Thursday, May 04, 2006

No Surprise: Hybrid Sales Surged in 2005

Sales of hybrid cars have jumped since the first Prius hit the road in 2000.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.

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Monday, May 01, 2006

Ford's Slow Hybrid Sales Surge 50% in April

Slow hybrid vehicle sales, Ford increased the sale of its Ford Escape hybrid by 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?

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Tuesday, April 18, 2006

First small riceburners, then hybrid cars

Just a few decades ago, most Americans didn't think small cars, or riceburners, had a chance in America. History has proven them wrong, and it will prove the naysayers wrong on hybrid cars as well.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.

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Monday, April 17, 2006

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)

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Friday, April 14, 2006

Reduced Accord hybrid sales are not the end of hybrid cars

Just because sales of the Honda Accord hybrid are slowing has very little to do with the future success 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.

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Wednesday, April 12, 2006

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.

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Monday, April 10, 2006

The hybrid vehicle revolution is dead?

The sales of some hybrid vehicles are slowing according to the Wall Street Journal, but the hybrid vehicle revolution is far from 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.

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Wednesday, March 29, 2006

Accord hybrid versus the Camry hybrid

While the competition among hybrid cars is heating up, especially since the Camry hybrid is set to go on sale. The real competition for the Camry hybrid isn't the Accord hybrid, but probably the Prius.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.

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Wednesday, March 22, 2006

The Beautiful Lexus RX 400h hybrid vehicle

The Lexus RX 400h is a gorgeous vehicle and a great choice for luxury vehicle buyers. If you demand luxury, but you also want to help the environment and help fight foreign oil dependency, then buy this Lexus hybrid.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.

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Tuesday, March 21, 2006

Are automakers destroying hybrid technology?

When it comes to hybrid cars, unique hybrids will dominate. That's why the Toyota Prius hybrid will dominate hybrid sales until another unique hybrid challenges it.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.

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