Carmakers introduced several new hybrids at the North American international motor show this week, but several reportedly remain sceptical that the vehicles will make a profit any time soon because of the high cost of development.
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Nissan Motor CEO Carlos Ghosn told The Associated Press (AP) on Monday that he doesn’t expect hybrids to be profitable for at least five more years.
Nissan plans to release a petrol-electric hybrid version of the US-market Altima sedan sometime this year, using technology licensed from Toyota, AP noted.”
I’m saying I’m not very enthusiastic about this, not because of the technology,” Ghosn told reporters in an interview. “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 chairman and chief executive, reportedly 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.
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By GlobalData“I’ve actually been saying I don’t think anybody makes any money on hybrids, but that’s not an accurate statement,” Wagoner told The Associated Press after GM discussed its hybrids on Sunday (the first press day of the show).
“Our bus hybrids can make money sometimes.”
AP noted that GM introduced two new hybrids, including the 2007 Saturn Vue Green Line hybrid, which goes on sale this summer. Toyota announced plans to produce a hybrid version of the redesigned US-built Camry launched at the show, plus a hybrid Lexus LS460.
Hyundai Motor North American chief, Bob Cosmai, told The Associated Press 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, reportedly 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 reportedly said he also believes the premium that customers now pay for hybrids, which can be US$3,500 or more, will come down as sales increase and technology improves.
The Associated Press also noted that some carmakers, like DaimlerChrysler, are making a bet that consumers will increasingly turn to diesels, although it is still investing in hybrid technology. But Press reportedly 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 told AP.
According to the report, some consumers 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 reportedly 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 told The Associated Press that such a switch, however, is seen as a difficult prospect.
