It may have taken General Motors longer than others to go green, but since joining the hybrid revolution the automaker has gone all-out, helping to develop two separate hybrid systems and backing them with a substantial media campaign. However despite now offering a diverse lineup of gas-electric vehicles, so far buyers aren't showing as much interest in them as the General expected.
Even with advertisements in magazines such as The New Yorker, Runner's World, and those "Gas Friendly to Gas Free" Chevrolet TV spots, among others, in the first quarter of 2008 GM managed to sell a total of just 843 hybrids. 655 of those were Tahoe and Yukon two-mode models, while the so-called "mild hybrid" versions of the Vue, Aura, and Malibu sold just 158, 20, and 10 vehicles, respectively.
Some blame the slow start on the way GM is marketing and selling its hybrids -- one television ad for the two-mode Tahoe features a group of children and doesn't evoke the passion and excitement normally present in car commercials. In addition customers looking to buy the two-mode SUVs can try out a demonstration model at dealerships, but have to order a vehicle rather than take delivery from dealer stock.
Americans may generally prefer to drive their new cars home rather than wait for delivery, but given that the new Yukon and Tahoe actually led GM's hybrid sales, some see another reason for the slow start: cost. J.D. Power analyst Jason Rothkop speculates Americans are losing interest in gas-electric powertrains as it becomes clear that the fuel savings rarely make up for their higher MSRP. According to Rothkop "the gap between the actual fuel economy and claimed fuel economy" means going green rarely makes economic sense. Buying a normal, mpg-friendly car can net similar mileage to a hybrid, sometimes for thousands less.
GM also offers its "mild hybrid" cars, however, which have less of a premium in price. A Saturn Aura Green Line hybrid, for example, costs $24,290, $3595 over the starting cost of normal 4-cylinder version. However it also gets only an EPA estimated 24/32, compared with 22/30 for the standard Aura. This makes the hybrid system a hard sell (not counting the potential tax savings), and the problem is similar for GM's two-mode vehicles.
A high-end Chevy Tahoe LTZ with two-wheel drive starts at approximately $46,540, while the hybrid version checks in at $50,490 -- a $3950 difference. Gas mileage is considerably better, though, at 21/22 for a two-wheel drive hybrid versus 14/20 for the LTZ.
If consumers become unwilling to pay extra for eco-friendly transport, this would be a problem for GM. So far the automaker isn't concerned, and spokesman Brian Corbett is quick to point out that many hybrids like the Malibu and two-mode SUVs have just been introduced. In addition the company is coming out with a new, Green Line 2 version of its Vue later in the year, which will bring the two-mode system into a more affordable vehicle.
According to Corbett GM projects a model-year volume of 8000 - 12,000 vehicles for the Tahoe and Yukon hybrids alone, and is pushing ahead with new vehicles, including the Volt plug-in. Given GM's investment in the technology, hopefully the fickle public's desire to go green hasn't already started to wane.
Source: Automotive News (Registration Required)