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Compacts Are Rising While Hybrids Fall


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High Mileage Compacts Are Rising While Hybrids Fall

William Maley - Editor/Reporter - CheersandGears.com

June 21, 2011

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With the price of gas being on the high side for the past few months, you would think hybrids would be flying off dealer lots. In fact, its the opposite. In July 2009, hybrids reached a peak of 3.6% for total US sales. Since then, hybrid sales have been declining. Last month, hybrids made up 1.6% of total US sales. Part of the reason is due to earthquake in Japan back in March, but doesn't account for all of the drop.

Most of the drop can be accounted for people going towards compact cars with high gas mileage. Sales of the new Chevrolet Cruze, Ford Focus, and Hyundai Elantra have been going through the roof this year, while hybrids saw a drop.

"Even with the fuel savings, it doesn't make sense to buy a hybrid" for many buyers. This year, we had $4 gas (in many cities) but we saw the introduction of compacts that get 40 mpg. All of these cars are considerably cheaper than hybrids," says Power Senior Manager Mike Omotoso.

Source: USA Today

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Not surprised that even with gas prices easing up a bit that compact sales are taking off. Look at the players. What was once a pretty terrible segment is now filled with quality, intriguing entries like the Fiesta, Focus, Cruze, Sonic Elantra, Accent (which for people with lead feet makes 138 horsepower), and Rio.

Considering you can option these up to be as premium as bigger cars, and the best of them drive as well and as refined or better than many bigger cars, it is, again, not surprising.

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Hybrid sales are limited more by supply than demand. All the major automakers have incentives on their conventional models but not their hybrids. Expect to pay MSRP for an Escape Hybrid but get $4,000 off the regular Escape. Around here, there's a $2,000 rebate for gasoline Fusions but nothing for Fusion Hybrids. Same goes for the Camry, the Civic, and the Sonata.

Consumers love buying hybrids... but manufacturers would rather sell you a normal car, even if requires discounting. And at the end of the day, there still aren't many hybrids to choose from -- neither GM nor Chrysler, for instance, sell a single hybrid car (a Tahoe is a truck, ok?)

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HAHAHA to all you hybrid geeks. Simplicity rules the day!

A planetary eCVT is way simpler than any traditional torque-converter automatic transmission.

Two questions then: Why is Nissan the only one selling cars with a CVT? And why would anyone want a CVT of any kind in the first place?

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Hybrid sales are limited more by supply than demand. All the major automakers have incentives on their conventional models but not their hybrids. Expect to pay MSRP for an Escape Hybrid but get $4,000 off the regular Escape. Around here, there's a $2,000 rebate for gasoline Fusions but nothing for Fusion Hybrids. Same goes for the Camry, the Civic, and the Sonata.

Consumers love buying hybrids... but manufacturers would rather sell you a normal car, even if requires discounting. And at the end of the day, there still aren't many hybrids to choose from -- neither GM nor Chrysler, for instance, sell a single hybrid car (a Tahoe is a truck, ok?)

Yes, hybrids cost more, but they also cost a lot more to make and sell than its compact car equivalent. Toyota has NEVER discounted its Prius in the past decade, not even once. Why not save the $7500-$10000 and by a Corolla or Matrix? Limited supplies mean no discounts on the vehicle at all, especially on hybrids.

I personally am not a fan of compacts, but you still get a better return with a conventional compact than with a hybrid. Besides, hybrids have to go back to the dealer for repairs and maintenance. Conventional cars do not.

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This isn't surprising. Supply issues is one factor, tax credits running out on hybrid models contributes also. The biggest reason is the compacts are nearing 40 mpg now, and the hybrids don't offer much better at a higher price. Most people's salaries are flat, while everything else is going up in price, they aren't going to pay an extra $8,000 for a hybrid to get an extra 2-3 mpg.

I believe that compacts will continue to rise in the coming years.

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HAHAHA to all you hybrid geeks. Simplicity rules the day!

A planetary eCVT is way simpler than any traditional torque-converter automatic transmission.

Two questions then: Why is Nissan the only one selling cars with a CVT? And why would anyone want a CVT of any kind in the first place?

Planetary CVTs (power split devices) are a completely different animal than the chain-driven CVTs in normal cars. The Prius is actually an elegantly simple vehicle.

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Yes, hybrids cost more, but they also cost a lot more to make and sell than its compact car equivalent. Toyota has NEVER discounted its Prius in the past decade, not even once. Why not save the $7500-$10000 and by a Corolla or Matrix? Limited supplies mean no discounts on the vehicle at all, especially on hybrids.

But then the buyer would be stuck w/ an ordinary compact. The Prius gives one status and bragging rights....I've certainly gotten an earful over the years from Prius-owner friends and coworkers..a Corolla just says that one is a cheapskate or can't afford better, a Prius says one is smart and green..at least that is the perception in society at large.

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Yes, hybrids cost more, but they also cost a lot more to make and sell than its compact car equivalent. Toyota has NEVER discounted its Prius in the past decade, not even once. Why not save the $7500-$10000 and by a Corolla or Matrix? Limited supplies mean no discounts on the vehicle at all, especially on hybrids.

But then the buyer would be stuck w/ an ordinary compact. The Prius gives one status and bragging rights....I've certainly gotten an earful over the years from Prius-owner friends and coworkers..a Corolla just says that one is a cheapskate or can't afford better, a Prius says one is smart and green..at least that is the perception in society at large.

Yes, that perception exists. It also proves that a fool and his $$$ are soon and easily parted. Status and bragging rights do nothing for your personal bottom line.

HAHAHA to all you hybrid geeks. Simplicity rules the day!

A planetary eCVT is way simpler than any traditional torque-converter automatic transmission.

Please explain what a planetary eCVT is and a conventional chain-driven CVT is.

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Yes, hybrids cost more, but they also cost a lot more to make and sell than its compact car equivalent. Toyota has NEVER discounted its Prius in the past decade, not even once. Why not save the $7500-$10000 and by a Corolla or Matrix? Limited supplies mean no discounts on the vehicle at all, especially on hybrids.

But then the buyer would be stuck w/ an ordinary compact. The Prius gives one status and bragging rights....I've certainly gotten an earful over the years from Prius-owner friends and coworkers..a Corolla just says that one is a cheapskate or can't afford better, a Prius says one is smart and green..at least that is the perception in society at large.

Yes, that perception exists. It also proves that a fool and his $$$ are soon and easily parted. Status and bragging rights do nothing for your personal bottom line.

HAHAHA to all you hybrid geeks. Simplicity rules the day!

A planetary eCVT is way simpler than any traditional torque-converter automatic transmission.

Please explain what a planetary eCVT is and a conventional chain-driven CVT is.

Here you go... http://www.eahart.com/prius/psd/

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