Tuesday, March 17, 2009

Hybrid car sales go from 60 to 0 at breakneck speed

Hybrid sales with $5 a gallon gasoline boomed, but now with $2 a gallon gasoline the higher priced vehicle sales are off big.

Last month, only 15,144 hybrids sold nationwide, down almost two-thirds from April, when the segment's sales peaked and gas averaged $3.57 a gallon. That's far larger than the drop in industry sales for the period and scarcely a better showing than January, when hybrid sales were at their lowest since early 2005.


Dealers are offering incentives and have huge supplies of vehicles. Where less than a year ago the dealers were charging premiums for hybrid vehicles.

Yet automakers believe they have little choice but to make more hybrids. Though car buyers are losing interest, politicians are pushing them as key to reducing U.S. dependence on foreign oil and limiting the global-warming gases that cars emit into the atmosphere.


Expensive hybrids are even harder to move.

A sales-tax deduction does little to move vehicles like the $74,085 Cadillac Escalade hybrid or the Lexus LS600h, which starts at $105,885. Neither gets better than 21 mpg, and buyers pay a premium over similar gasoline-only vehicles that would take decades for owners to equal in fuel savings even if gas hit $5 a gallon. So far this year, only 415 of the pair have sold nationwide.



Source : LA Times

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