Pepto Bismol time for hybrids?

Low gas prices a pain for pushing merits of hybrid-electric cars

By WorkCabin.ca Staff

Unfortunately, there's nothing like low gasoline prices and an economic recession to illustrate the plight of hybrid electric vehicles. When oil is soaring well above $100US a barrel and gas prices are high, hybrid-electrics are top of mind for many Toyota Prius people and it's full speed ahead for companies ramping up production. When prices are low, suddenly polluting gas-powered cars aren't so unaffordable -- or bad? -- afterall for many consumers who no longer see the sense in paying more for a hybrid vehicle.

Environmentalists have long touted high gas prices as a means to getting the public to adopt more earth-friendly transportation practices. But then along comes an economic recession and gas prices that have dipped to $2 a gallon in the U.S. and about 75 cents per litre in Canada. If you're saying "Oh oh" about hopes that hybrid will continue to gain steam as a preferred future choice for drivers, you're not alone.

The impact of the economic recession is already hitting major auto manufacturers' production plans. General Motors, teetering on the brink of bankruptcy, is delaying construction of a plant in Michigan that was to build engines for the company's highly anticipated electric Volt vehicle, considered by some to be GM's saviour vehicle.

Meanwhile, Toyota now says it will delay production at its new plant in Blue Springs, Miss., where assembly was to begin on the hugely successful Prius hybrid. The plant is 90 per cent complete. Construction will be finished, but production will not start. The company has cited the "uncertain market" as the reason for the decision.

In the United States, sales of the world's best selling hybrid, Prius, fell 48 per cent in November -- that's a steeper drop than overall car sales which dropped 36 per cent during the same month. On the bright side, in Canada, Prius sales have gone in the opposite direction. Sales through the first 11 months of 2008 reached 4,344. That's double the 2,122 sold in 2007.

Despite the better outlook in Canada for the Prius, it's worth noting that the financial meltdown hit the U.S. first, and thus, the reason for sales decline there. It has been a more gradual economic downturn in Canada, the full effects of which may not hit us fully until the next two or three months. Will Prius sales tumble here? We'll have to keep our eyes on the economic road and prices at the pumps.... it's these two factors which seem to be taking a toll on a more environmentally-friendly way to drive that only six months ago was capturing all the headlines and drivers' interest.

WorkCabin.ca.is Canada's green outpost.

This same thing also goes for the push behind alternative fuels. My boyfriend is a scientist in a biodiesel plant and the higher the price for gas the more pressure he receives from management to make things happen. As the price goes down he almost feels that his job may not last long.
Of course they are predicting that oil will go back up to $100 a barrel this year so times will be good again for the Prius and biofuel.

I have a car with a 1.4 engine, very cheap and easy to maintain. It is not a race car but I thank that I didn’t keep my former V6 car. Gasoline is killing many budgets nowadays.

And prices keep going up a lot!!

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Even with the prices dropping, the need to for hybrids is still there.