Posted on 04/13/2006 4:00:22 AM PDT by saganite
Nissan CEO Carlos Ghosn Says He Feels Vindicated That Hybrids Could Be Seeing a Sales Slowdown
NEW YORK (AP) -- Nissan Motor Co. Chief Executive Carlos Ghosn said Wednesday he feels vindicated that hybrids could be seeing a sales slowdown, since he has repeatedly warned that it is too early to fully back the technology.
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Ford Motor Co. said last week it would offer zero-percent financing on the Ford Escape and Mercury Mariner hybrids nationwide. Ghosn said hybrids already are money-losers for automakers because of the expense of developing them, so to put incentives on top of that indicates hybrid sales are slow.
"At least admit I was the only guy saying, 'Watch out, the consumer decides, don't be excited about it,'" Ghosn said in an interview with reporters at the New York Auto Show. "I have some kind of satisfaction of being a little bit right on this one."
Ford Americas President Mark Fields said Wednesday that Ford decided to expand the incentives because they had proven popular in Washington and San Francisco, where they were first released. Ford doesn't break out its hybrid Escape sales from traditional Escape sales, but Fields said March was the hybrid Escape's best month since it was introduced last fall.
Ghosn said some consumers are finding hybrids don't save enough gas to justify their extra expense. Hybrids run alternately on gasoline or electricity. He said vehicles running on diesel or ethanol might hold more promise.
Still, Nissan is on track to release a hybrid version of the Nissan Altima sedan later this year. Ghosn said the product makes business sense because of California's air quality regulations.
"I didn't say I didn't believe in it. I said it's too early," he said.
J.D. Power and Associates predicts hybrids will make up 1.5 percent of sales this year, up only slightly from the same period last year even though there were more hybrid models on the market.
J.D. Power predicts hybrids will make up nearly 5 percent of the market by 2013. That's greater than current levels but far less than the 20 to 30 percent some analysts have predicted.
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Does that come with a red wig and big shoes?
There is never any mention of resale value. There is seldom any mention of battery coat.
My belief is that once battery problems and cost is learned and knowledge widespread, resale values will approach 0 and the hybrid era will be over.
The resale value may be near 0 even without battery problems because the motivating purchase reason is advocacy and there might be very few advocates in the used car buying market.
I read an article about this a few weeks ago. As I recall, the truck also uses a hydraulic drive system powered by a constant speed engine. This allows the engine to be engineered for maximum fuel economy at say, 1800 RPM, to run the hydraulic pump and charge the storage system. This is not unlike what they do with large ships and construction equipment. In the case of construction equipment, they generally use hydraulics, whereas ships use electric. In each case the system is powered by a constant speed engine tuned for optimal efficiency.
Unfortuantely, something like that would be too small for our needs. We do a lot of animal rescue/fostering activities so we need room for crates, etc. We went with a Mazda Tribute after deciding agains tthe Toyota Highlander. Functionality and comfort are a first priority for me. I would not want to buy a vehicle I would not want to be in a few months down the road since I keep my vehicles until the wheels fall off.
Hybrids are so 2005.
Cant wait to see someone take a fully stripped Yaris around the track here...that would be fun.
I don't want to burst your bubble but I saw a report the other day that says HOV lanes add to congestion plus normal HOV drivers (car poolers, taxis, busses etc.) really dislike the hybrids in the HOV lane because they drive so damn slow trying to get the mileage on the sticker. Not to mention they add to the smug layer.
I read that when it came out.
I remember back a few years Volkswagen made a little pickup truck that got 50 MPG with its diesel engine. It has since dissappeared. Why? If it orked for Volkswagen why cant Ford or Chevy put it in a Ranger or S-10
I understand about the owners who love the vehicles and the potential evolutionary improvements.
I question that there will be any real value when the vehicle is traded. What will a dealer do when the owner wanrs a new one in three years and insists on 75% trade in when there is no market for expensive hybrid vehiicles with big battery bills on the horizon.
It is easy for people like me to extrapolate negative thoughts. The questions will begin to be answered beginning in a year or two.
My experience with hybrids is being passed by a Prius on a long uphillgrade when I was doing 75. There is definitely some there there.
I drive a Prius, which I bought in November 04 (about $25K). I put a lot of miles on it (about 60K so far) and get around 49 mpg overall. My mileage was reduced a little when I got new tires, but I am still pretty satisfied. It is a fun, gadgety car, which I enjoy. I had a VW Passat turbo before this car, and although I give up a little performance (at 48 years old that isn't as important as it once was) there is plenty of room inside and getting up to highway speed and passing is not a problem at all.
My only concern is being incorrectly labelled as a liberal because I drive one, but I correct that error early in any conversation.
I would never buy one. A fellow I know has one as his company car. On a very cold day last winter, the battery died. Could not be jumped or resuscitated in any way. The car had to be put on a flat-bed and taken to a dealership for service. It happened not once, but several times. Not for me.
Wonder what a battery for one of those costs, and can a regular mechanic put it in without being electricuted.
I don't know the answers -- good questions, though!
Meanwhile, our friends the environazis, are busy trying to force these unnecessary and expensive regulations down the throats of consumers all over the country.
You never recover the costs of ownership....would be better to buy a Corolla S if you want to maximize your fuel dollar.
The new generation diesels will be available in the US when low sulphur standards go into effect for diesel. They're available in Europe now, and they are impressive.
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