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Have you thought about the cost of replacing that battery?

THE HIDDEN COST OF HYBRID CARS (Austrian article, A$ = .77US$)

Hybrid cars are hitting our roads in ever increasing numbers as purchase prices come down and fuel prices go up. But the substantial hidden costs of owning a hybrid car could make it a financial time bomb.
By Glenn Butler

Owners of 'environmentally friendly' hybrid cars like the Toyota Prius and Honda Insight may be hit with a bill for up to $7000 when their car's battery dies less than eight years after purchase. The battery unit, which has a lifespan of 8-10 years -- shorter in hotter climates like Australia -- cannot be reconditioned. It must be thrown out and replaced with a new one, at considerable cost to the owner.

"A replacement battery on the Insight retails for $6840," said Honda spokesman Mark Higgins. Honda began selling the Insight hybrid in Japan car in 1997 and in Australia in 2000. It sold 44 Insights before withdrawing the futuristic-looking two-door coupe from the market earlier this year. Honda will re-enter the hybrid market with the Civic sedan in March, and aims to sell around 20 per month.

Toyota's Prius four-door sedan has fared considerably better since it launched in October 2001. Nearly 500 Australians had bought the hybrid sedan by September 2003, and Toyota hopes to move a lot more of the second generation model released in September. Toyota divisional general manager - marketing, Scott Grant believes there is a market for around 50 Prius a month. "This product is no longer a science experiment but a mainstream car," he said.

Toyota's manager of alternative fuels and specialized vehicles, Vic Johnstone, concedes the batteries, like the car itself, are built to last less than a decade. "The life of the car and the battery are supposed to be the same... around 8 to 10 years," he said. "We're not expecting to replace them [the batteries]. In fact we only hold one [replacement] battery in stock nationally."

A high percentage of hybrid vehicles brought to Australia so far have ended up in government hands. In fact Toyota believes government and business fleets will account for around 50 percent of all Prius purchases. Fleet managers turn over their vehicles after 2-3 years, meaning unsuspecting second hand buyers will be stuck with an unexpected and unwanted bill down the track.

The cost of batteries will come down as technology improves and more companies take up hybrid engines. Toyota announced a tie-up with Nissan in September, which will see the Renault-owned car company packaging Prius' Hybrid Synergy Drive system into future models.

Toyota lowered the price significantly on the Prius battery pack, from $4500 on the first model to around $3000 on the latest version, though unlike Honda, which offers an eight year warranty on the battery, Toyota only offers five years.

Despite the dramatic price drop, hybrid ownership remains a nod to better fuel economy, not financial savings. CarPoint's review of the Prius, published in October, compared the hybrid's fuel consumption to a similarly specified Toyota Corolla, and reached the conclusion it would take 15 years before the Prius' fuel economy paid off the extra purchase price.

Add battery replacement every eight years to this equation, and replacement parts costs as the vehicle exceeds its planned life of ten years and components wear out, and owners have no chance of ever seeing a dollar back.

To further add environmental insult to injury, a considerable cloud exists over just how recyclable NickelMetal Hydride batteries really are - some reports even suggest that those who buy green may be doing more environmental harm than good. Both Toyota and Honda were unable to tell CarPoint exactly how much of the battery could be recycled. Both have left the task of recycling in the hands of a third party recycler.

Internet site www.BatteryUniversity.com warns against the careless disposable of Ni-MH batteries, due to the toxicity of it main derivative, Nickel.

" The main derivative is nickel, which is considered semi-toxic. Nickel-metal-hydride also contains electrolyte that, in large amounts, is hazardous. If no disposal service is available in an area, individual nickel-metal-hydride batteries can be discarded with other household wastes. If ten or more batteries are accumulated, the user should consider disposing of these packs in a secure waste landfill."

Battery packs like that used by Toyota in the Prius, contain up to 28 groups of six Ni-MH battery cells. Correct disposal is therefore important.

"TMCA has a process in place where it comes back to the dealer," said Toyota's Vic Johnstone, "and we can recycle the battery. There's a supplier in Australia that can manage the recycling."

The global market for hybrid vehicles is booming: by 2010 Toyota expects to have sold two million worldwide, while Honda expects hybrid power trains to account for five percent of its worldwide sales in the foreseeable future. Both General Motors and Ford -- the world's two biggest car makers -- have yet to significantly flex their hybrid muscle in the market, and industry watcher JD Power expects hybrid sales to increase tenfold in the next five years.

Most agree that hybrid vehicles are a stepping stone to fuel cell technology, which requires a major infrastructure overhaul to be practical, but it's hard to see a single financial reason for consumers to buy petrol/electric hybrids.