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Hybrid car sales in June were up 9 percent from a year ago and rose 2 percent compared to last month—outperforming the an overall new car market that was down 28 percent from June 2008 and 7 percent from May.
June hybrid sales suggest that hybrids are recovering more quickly than the overall car market—just as they defied the economic downturn several months after overall car sales started to decline in 2008. June marks the sixth consecutive month of higher hybrid sales.
Nationally, car dealers sold 26,205 hybrids in June, the highest one-month total in 13 months. Hybrid car sales numbers exceeded 3 percent of the new car market, and could reflect the beginning of an anticipated long-term trend in which hybrid market share grows by as much as 1 percent every year. Dozens of new hybrid models will be introduced in the next few years. The world’s largest carmakers are significantly investing in increased production capacity for hybrid cars and advanced auto batteries.
The overall market continues to suffer, but declining sales have begun to slow down for four of the six major carmakers. Ford reported the smallest drop of 10.7 percent. Jesse Toprak, executive director of industry analysis for Edmunds.com told Associated Press, “It is unlikely things will get any worse.”
The Toyota Prius led the hybrid pack with 12,998 sales, representing 49.6 percent of all hybrid sales in June. The vast majority of Prius sales—85 percent, according to Toyota— came from the new 2010 model. The introduction of the new Prius apparently affected sales of the 2010 Honda Insight and Honda Civic Hybrid, which declined by 25 percent and 42 percent respectively, compared to last month. Sales of the Ford Fusion Hybrid continued to gain momentum, jumping nearly 10 percent compared to May.
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 Is the Prius already old technology?
Over the years I’ve heard many say they won’t buy another car until it comes with a plug. Well, for most Americans, they’ll be waiting a long time for a new car, especially if they want a pure electric vehicle.
In a new article today, Ron Cogan asks, “Will buyers pay ,000 to ,000 more for a vehicle that runs solely on batteries compared to a similar gasoline or clean diesel model?”
Of course not, which is why conventional vehicles and hybrid cars, including plug-in hybrids, will be the dominant automotive technologies for the short-to-midterm, or even longer.
And analysis by Bosch Automotive Group suggests the same. “The electric car will come, but in small numbers at first. It will occupy a niche and will not make a noticeable mark on the roads until after 2020.” Ultimately, “dominance of the internal-combustion engine will remain unchallenged over the next twenty years.”
Is the government’s focus on plugging in too much too soon? Shouldn’t the focus be on getting batteries, especially next gen batteries, into as many cars as soon as possible, rather than just those with plugs? Can America really afford to give the cheap hybrid vehicle market away to the Asians the same way we gave away small cars just a few decades ago? Even worse, might this focus on the plug be counter-productive to developing an American battery manufacturing industry?
Henrick Fisker wants you to know that his car company is different from other start-ups.
It’s not surprising that Fisker Automotive and Tesla Motors—two California-based makers of high-end electric-drive sports cars—are viewed as similar companies. Fisker makes an ,000 plug-in hybrid and Tesla produces a 9,000 all-electric roadster. But Henrik Fisker, founder of the Southern California-based company that bears his name, was in Northern California where Tesla is based, to explain how and why the two companies are different.
To Fisker, it’s a matter of technology and market potential. “The full-electric car—like the Tesla Roadster—is a niche market. Plug-in hybrids have a much bigger market,” said Fisker, speaking at a meeting of the Western Automotive Journalists association. He added that the growth potential of the plug-in hybrid market is what has helped his company to secure venture capital financing for their project.
Three distinct markets of electric-drive vehicles are expected to gain momentum in the coming years: conventional gas-electric hybrids, plug-in hybrids, and all-electric cars. Many analysts believe that Prius-style hybrids will experience the most dramatic growth, followed by plug-in hybrids—with all-electric cars selling at lower numbers. The market for all-electric cars may be limited due to limited driving range.
Considering the larger market for plug-in hybrids compared to electric cars, Fisker believes that his company has a better business model than his competitor. His current goal is 15,000 annual sales of the Fisker Karma, a four-door sleek sports car. Fisker’s factory under contract in Finland—which also makes the Porsche Boxster and Cayman—can produce a maximum of 20,000 units annually. “We have a new business model. At 5,000 sales, we can make money,” which for now is fine with him. But Fisker is already looking several steps ahead.
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 Lithium powered in 2010?
By the second half of 2010 GM should begin rolling out a few new hybrids with its upgraded BAS mild hybrid system. And the lithium-ion batteries for these new hybrids will be powered by Hitachi.
Today, Hitachi announced that it is planning to significantly increase production of its lithium ion batteries in advance of an expected significant increase in demand. So far, GM alone has already ordered enough cells for 100,000 hybrid vehicles.
Customer demand for new products helped Ford Motor Company increase market share in June, even as Ford continued to de-escalate incentive spending. Ford, Lincoln and Mercury sales totaled 148,153, down 11 percent versus a year ago, which is believed to be the month’s lowest decline among major auto manufacturers.
The 2010 Honda Insight has as many critics as it does admirers. Photo via dsix.
What’s the biggest obstacle to mainstream adoption of greener cars? Cost. The new generation of super fuel-efficient high-tech vehicles—including hybrids, clean diesels and electric cars—carry a higher price tag compared to their conventional counterparts. That’s why Honda designed its latest hybrid, the 2010 Honda Insight, with affordability as the main goal. With a base MSRP of ,800, Honda achieved its objective. The Honda Insight’s marketing tag line is, “The Hybrid for Everyone.”
When the Insight was introduced in early 2009, the automotive press gushed with praise. Reviewers claimed that the Honda Insight is more compelling and fun to drive than the quintessential gas-electric car, the Toyota Prius, which is bigger, faster, and uses a more sophisticated third-generation of hybrid technology. The Los Angeles Times’s Dan Neil described the Insight as “impeccably constructed, well planned and honeyed with high-tech surfaces and materials. Nothing feels cheap or compromised.” Road Track’s Dennis Simanaitis wrote, “The Insight will make a significant contribution to sustainable mobility.” Edmunds.com reviewers said, “Given its impressive talents and attractive price, it’s hard to fault the 2010 Honda Insight.”
But in the past few weeks, a number of critics have found it quite easy to find faults with the Insight—harshly criticizing the car for the very traits that have allowed Honda to keep down the price.
1The Honda Insight doesn’t feel solid.
David Champion, senior director of the Consumer Reports auto test center, said, “The Insight is a noisy, stiff-riding car with clumsy handling that is nothing like the Fit on which it is based.”
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Michael Marks was interim CEO of Tesla from August 2007 to November 2007. Before that he was CEO of electronics manufacturing services company Flextronics. He sits on the board of directors at several public and private technology companies, and he has been managing partner of Riverwood Capital since March 2007. He took [...]
Dr. Rob Wilder is Manager of Encinitas, Calif.-based WilderHill Clean Energy Index (ECO), the first Index on Wall Street for renewable energy, better energy efficiency and zero-carbon solutions. He was previously on faculty at U.C. Santa Barbara, and University of Massachusetts; he has been AAAS/EPA Fellow in Environmental Science & [...]
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