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Hybrid offerings increase, few skeptical
Nissan Motor CEO Carlos Ghosn says that he doesn't expect hybrids to be profitable for at least five more years.
Automakers introduced several new hybrids at the North American International Auto Show, but several remain skeptical that the vehicles will make a profit anytime soon because of the high cost of development.
Nissan Motor Co CEO Carlos Ghosn said on Monday that he doesn't expect hybrids to be profitable for at least five more years. Nissan plans to release a gas-electric hybrid version of the Altima sometime this year, using technology it licensed from Toyota Motor Corp.
"I'm saying I'm not very enthusiastic about this, not because of the technology," Ghosn told reporters. "I think the technology is a good technology, but I hate selling cars at a loss, and I hate being in a situation where you're forced to sell cars at a loss." Rick Wagoner, General Motors Corp's chairman and chief executive officer, said it's always difficult to recoup investment in a new technology, and he doesn't think any automakers are making money on hybrid cars.
"I've actually been saying I don't think anybody makes any money on hybrids, but that's not an accurate statement," Wagoner said after GM discussed its hybrids on Sunday. "Our bus hybrids can make money sometimes."
GM introduced two new hybrids, including the 2007 Saturn Vue Green Line hybrid, which goes on sale this summer. Toyota Motor Corp announced plans to produce a hybrid Camry and a hybrid Lexus LS 460. Hyundai Motor Co's North American chief, Bob Cosmai, said his company plans to sell a hybrid in South Korea by early next year and in the US by the end of this decade. Jim Press, Toyota's North American president and chief operating officer, said hybrids are getting to the point where they're profitable. The Toyota Prius, which is the best-selling hybrid car, was first introduced in 1997.
"We do make money on them," Press said in an interview with The Associated Press. "Obviously the recovery of the initial cost is not fully taken care of, and also there are efforts through progress of technology and development to slash the cost." Press said he also believes the premium that customers now pay for hybrids, which can be $3,500 (euro2,898) or more, will come down as sales increase and technology improves.
Some automakers, like DaimlerChrysler AG, are making a bet that consumers will increasingly turn to diesels, although it is still investing in hybrid technology. But Press remains bullish on hybrids.
"I think everything will be a hybrid, eventually. It will either be a gas hybrid, a diesel hybrid or a fuel-cell hybrid," Press said.
Some consumers also have become disillusioned with hybrids because they may save less fuel than they expected. Hybrids are less efficient at highway driving than city driving, and some hybrids -- like the Lexus RX 330 -- use their electric engines more to boost power than for fuel efficiency.
Toyota is studying whether it could add a switch to its high performance hybrids, like the Lexus, that would allow drivers to decide whether they want more power or better fuel efficiency. Toyota spokesman Xavier Dominicis said such a switch, however, is seen as a difficult prospect.
