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POSTED OCTOBER 20, 2005    Print this Story 

Hybrid Sales On The Rise

Kevin Bernard of Toyota of Boone, checks out a Toyota Prius hybrid.

By Scott Nicholson

Hybrid vehicles are heating up as the 2006 production lines begin to show up on local lots — though some models may not make it because they have already been sold.

Several local dealerships carry the gasoline-electric hybrids, which have seen surging popularity as gas prices nationwide hover around $3 per gallon. The vehicles use electric motors combined with traditional gasoline engines, storing power in banks of batteries.

Jeff Roberts, new car manager at Boone Honda, said the dealership is seeing brisk business in the hybrids and was the first local dealer to feature one of them. Honda’s Insight was first available in 2000, and since then, Roberts said any engineering bugs have been worked out and the company has expanded its warranty. The Insight topped the list of the country’s most fuel-efficient that was recently released by the U.S. Department of Energy.

The Insight gets 61 miles per gallon in the city and 66 on the highway, making it popular among those seeking to lower their gasoline bills. It has a base suggested retail price of a little over $19,000, according to the company. Roberts said while original purchasers of the hybrids were mostly concerned with environmental issues, newer customers are drawn to the car because of the high gas mileage.

The dealership also carries hybrid versions of the Accord and Civic. The Accord costs over $31,000 and gets 38 miles per gallon in the city, while the Civic has a base price of around $22,500 and gets 48 miles per gallon in the city. Roberts said the dealership primarily draws customers from an eight-county area and had sold 12 Accords and 25 Civics this year. However, those who want a new hybrid had better put their names on the waiting list, because national demand has suddenly created a shortage.

Roberts said the company is so confident in the engineering that the hybrids have an eight-year, 80,000-mile warranty, and the company recently extended its drive train warranty to five years or 60,000 miles. He said Honda is currently working on models featuring other alternative fuels, such as hydrogen and natural gas, but those aren’t yet available.

Michael Lyall, general sales manager at Toyota of Boone, said hybrids are in such demand that people are coming from all over the South to buy them in small towns. The dealership recently sold a Toyota Prius to a customer in Alabama, and Lyall said many dealers were marking up their prices because of the sudden craving for them.

Adding to the demand is an alternative fuels tax credit that takes effect next year. Those who have driven six types of hybrid vehicles will be eligible for a $2,000 tax deduction, and can even get the credit back as far as 2003 if they send in amended returns. Other vehicles may be added to the list as more companies roll out their own versions, like the Ford Escape, which ranked in the top 10 for fuel efficiency, and Mercury Mariner.

The Prius is rated as number two for fuel efficiency, getting 60 miles per gallon in city driving and 51 on the highway. Lyall said the company offers an eight-year, 100,000-mile warranty on the hybrid system. He said the dealership spent $40,000 for training and equipment in order to work on the cars and has two certified hybrid technicians on staff.

Hybrids have the risk of causing dangerous electrical shock, meaning home mechanics probably shouldn’t try a do-it-yourself repair. Lyall said engine repair can be dangerous, while Boone Honda worked with local fire fighters on how to handle the cars in the event of a crash rescue.

More hybrids are rolling off the assembly lines, and Lyall said “They are staying sold before they ever get here.” At one time, the waiting list was a year long for the Prius, and now it’s three months. He anticipates more orders to come in when people learn about the tax break, and predicts demand will surge and create a shortage and longer waiting lists.

The dealership does have some Highlanders in stock, the company’s hybrid sport utility vehicle. It gets 27 miles per gallon on the highway and 31 in the city, but its $37,000 price tag limits the number of buyers, even with the tax credit. The company is working on a Camry hybrid for future release, which will be produced in the United States and featured a restyled body. It will have a larger engine and lower gas mileage than the Prius.

Hybrids utilize several advanced technologies to boost their efficiency, such as regenerative braking, it which the electric motor applies resistance to the drive train and slows the wheels. The electric motor also provides a boost when accelerating or driving uphill, and sometimes the electric motor takes over at low speeds when gasoline combustion engines are least efficient, which is why some hybrids get better gas mileage in the city than on the highway. Most hybrids also automatically shut off their engines when stopped, and restart when the accelerator is pressed, saving gas used during idling.

Even with the expansion of hybrids, car manufacturers are sticking with their old standbys. Volkswagen has four of the slots on the top-10 list of most efficient vehicles, all with diesel engines. The Toyota Corolla was the only gas-powered vehicle in the top 10, getting 32 miles per gallon in the city and 41 on the highway. Honda Odyssey was the most efficient minivan, with the Ford Ranger and Mazda B2300 tied for best efficiency among pick-ups.

The Dodge Ram 1500 was at the bottom of the list, getting nine miles per gallon in city driving. Sport-utility vehicles have experienced big drops in sales as gas prices rose in the wake of Hurricane Katrina. The nation’s best-selling SUV, the Ford Explorer, dropped 58 percent in September. Chevy Tahoe sales dropped 56 percent and Chevy Trailblazer sales dropped 24 percent nationwide last month.

Overall vehicle sales at GM dropped 24 percent and Ford’s sales dropped 19 percent, though some executives said “employee pricing” specials over the summer had depleted inventories, suggesting more people had already bought cars if they had so planned.

The U.S. Department of Energy offers fuel economy tips and gas-mileage comparisons at www.fueleconomy.gov.




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