Hybrids: Incentives, Voids and Recalls
By Michelle Krebs February 9, 2007
Toyota announced this week incentives and an advertising campaign for its once-popular Prius hybrid. Sales flattened as Toyota geared up more production for the hybrid that had previously had potential buyers waiting in long lines. Toyota is offering no-interest financing and lease deals as low as $219 a month in some areas. Toyota also begins advertising Prius in local regions and going national with the campaign by April.
In contrast, Saturn Vue Green Line was just gaining momentum, and now General Motors is pulling the plug – temporarily. The 2007 version went on sale last fall as the least expensive hybrid on the market, costing only about $2,000 more than the gasoline model. Sales have been a steady 700 a month with little promotion and no incentives. The 2007 model goes out of production in March to make way for the redesigned 2008 model that starts assembly in September.
Meantime, Honda plans to recall 45,335 Civic Hybrid sedans worldwide to repair a voltage converter defect that could stop the car's engine, the company announced today. It plans to recall 7,219 of the vehicles sold in Japan and another 38,116 sold overseas, mostly in the U.S.
Despite the seeming turmoil in the hybrid segment at the moment, they are here to stay. When gas prices surely to rise again, interest in hybrids will be rekindled.
LEAVE A COMMENT
I wasn't surprised to see all of the HOV stickers go so quickly. Gas prices will need to rise for hybrids to be "hot" again. In the meantime, I'm hoping for more incentives at the manufacturer level to move more cars to Hybrid status as the standard and not the option. It would be a great day when all cars are hybrid and if you wanted a 100% gas-only that was the option. Alas, I doubt that day will ever come if big oil has their way.
ADD A COMMENT