Hybrids Unlikely to Ever Comprise More Than 10% of U.S. Market, GM Exec Says
By Scott Doggett February 12, 2010
General Motors Vice Chairman Bob Lutz said today GM will probably always lose money on hybrid vehicles, and he expects they will never comprise more than 10 percent of the U.S. auto market. They currently account for just under 3 percent.
Speaking at an industry event in Orlando, Florida, Lutz (pictured) said that money lost on hybrids, which stricter U.S. fuel-economy regulations virtually necessitate, will force GM to increase the cost of other vehicles.
GM's hybrid sales in January trailed all its rivals, and the company saw sales decline from a year ago while other automakers reported gains. GM's eight hybrid models amounted to less than 500 sales in January, less than 3 percent of overall U.S. hybrid sales, according to Edmunds.com.
Toyota sold more hybrids than all other automakers combined, with the Prius alone accounting for nearly half of industry sales.
Lutz for years has been skeptical of hybrids, arguing that while consumers say they want more fuel-efficient vehicles most are unwilling to pay for the costly technology.
Lutz has been a big supporter of the Chevrolet Volt extended-range electric car, which GM plans to launch this year. The Volt runs on a lithium-ion battery and has a small gasoline motor on board to keep the car running on longer trips.
From the start, GM has said the Volt will lose money for at least the first couple of generations, but the company hopes the vehicle will rival the Prius in terms of creating a green image.
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Bob Lutz is not a credible person.
GM claim they already sell 8 hybrid models? So installing an alternator/starter and a larger starter battery qualifies as a proper hybrid? Only in the USA!
Perhaps Lutz thinks the EV only version of the Volt will be a winner. It's eliminates the need to have 2 power systems in each vehicle i.e. less components = more profit.
He says "most are unwilling to pay for the costly technology" but he's big supporter of the Volt?
He can't really be that clueless, can he? The Volt is going to be far more expensive then the Prius and I don't see that it will be better unless you drive only short distances (in which case... why are you worried about mileage?)
The Prius is a proven product for close to a decade while the Volt is still vapourware. It had better be amazing or it will be a complete flop.
Hope he's not betting all his green cards on the Volt.
Tsport, in Europe too.
They've micro-hybrids all over the place.
firstwagon, perhaps he knows that the Volt is a showcase product and believes it's not something that's going to go widespeard anytime soon.
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