Future Uncertain For Plug-In Hybrids
Plug-in hybrid vehicles are technologically possible, but may not be economically feasible according to Bill Reinhard, national manager of the Advanced Technology Group of the U.S. branch of Toyota. While speaking to a panel at the National Academy of Sciences, Mr. Reinert estimated that plug-in hybrid sales could account for 50,000 vehicle sales per year, but that number may also be as alow as 3,500. This puts plug-in sales well below the 159,000 Prius hybrids sold last year.
What’s the problem that will restrict plug-in hybrid sales? Money. One of the big things holding back regular hybrid sales is that they currently don’t offer significant economic savings versus a traditional gasoline-powered vehicle. Yes, a consumer’s fuel costs will go down, but the technology included in hybrid models costs enough to counteract these savings. And, if consumers are wary of spending the extra money for a hybrid vehicle, will they be willing to spend even more for a plug-in hybrid?
Plug-in hybrids, by their very nature, are much more expensive than regular hybrids. The extra cost is a result of all the extra batteries that must be installed in the vehicle, which may add an extra $5,000-$10,000 to the cost of a vehicle. The new Toyota Prius, which will cost about $24,000 nicely equipped would then cost as much as $34,000 as a plug-in variant, a price that many consumers would be unwilling to pay. Toyota recognizes this, and while they have a test fleet of plug-in Prius hybrids, they are currently not offering them for general sale.
The economic feasibility of plug-in hybrid in the auto market is dependent on two things: technological advances and gas prices. First, as battery technology advances, the production of the lithium-ion battery packs will become less expensive, making plug-in hybrid vehicles more appealing to consumers. However, if gas prices do not go up, whether by force of the market or as a result of higher taxes, consumers will not be compelled to spend extra money up front for a plug-in hybrid.A Few Good Men divx Collateral Damage the movie The 21 (Twenty One Movie) release
May 20th, 2009 at 1:45 pm
I own a 2006 Prius which I bought new. I don’t notice the cost of gas and there is no cost of repairs. When the cost of gas was high it was the only car we drove. I figured, when the cost of gas was high, that the original cost of my other car was only half of the cost of ownership.
That is significant!
Will gas stay cheap until the oil wells run dry?