New hybrids to roll out at auto show

Will demand cool?
Despite their fast growth, hybrids still command just 1.1 percent of the U.S. market. Miller said growth could easily cool off if there aren’t enough options on the market, but he predicts hybrids will command 10 to 12 percent of the U.S. market in five years, or around 2 million vehicles.

Lindland predicts hybrids will only reach the 1 million mark by 2010. She said hybrids do well in stop-and-go city driving, because they can switch to electric mode when they need less power, but they tend to save less fuel on the highway, so drivers who want to save gas in all types of driving should be considering diesels.

If hybrid technology develops and the price goes down from the $3,500 premium, the business case for buying a hybrid will improve, Lindland said. But she doubts hybrid sales will double this year as they did last year.

Whatever customers eventually choose, automakers want to give them options. So visitors to the Detroit show will see hybrids out in force.

GM is introducing the 2007 Saturn Vue Green Line hybrid, the first GM vehicle with its new gas-electric system. The hybrid version of the mid-size SUV will go on sale this summer and will use as much as 20 percent less fuel than a traditional Saturn Vue, GM says.

GM, which has been criticized in the past by some environmental groups for not offering more hybrids, is promoting the Green Line as a less expensive alternative to hybrids already on the market from Toyota and Ford. The Green Line’s hybrid system adds around $2,000 to the cost of a Saturn Vue, compared to a $3,500 premium or more for other hybrids, and will allow the Green Line to sell for under $23,000. That compares to a starting price of $33,030 for the similarly sized Toyota Highlander hybrid.

The Green Line’s system is similar to other gas-electric hybrids in that it saves on gas consumption by shutting off the engine while idling, gives the vehicle a boost of electric power during acceleration and captures electrical energy when the vehicle is braking. GM brought down the price by making a simpler system that doesn’t run on electric power for as long as other hybrids, spokeswoman Susan Garavaglia said.

GM sacrificed some fuel economy with that change, but Garavaglia said GM wants consumers to have a choice in the type of hybrid system they buy. The Green Line will get an estimated 27 mpg in the city and 32 mpg on the highway, compared to 33 mpg in the city and 28 mpg on the highway for the Highlander.

GM also is introducing a Chevrolet Tahoe SUV with a more advanced system that GM says will improve fuel economy by 25 percent. The hybrid Tahoe is expected to go on sale in 2007.

Toyota, which has the best-selling hybrid on the market with the Toyota Prius, will attempt to expand its hybrid dominance with the hybrid Camry, its first hybrid sedan. Jim Press, president and chief operating officer of Toyota Motor Sales USA Inc., said Wednesday that Prius sales doubled this year thanks to heightened consumer interest in fuel costs and the environment this year, and he also expects the Camry to be a strong performer.

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