Gas prices may be down but the shift to small hybrid cars continues.
The 2008 cars, on average (including of course hybrids and big trucks), reached a record 26.8 miles per gallon, according to Edmunds.com. That figure tells us two important trends: one, that Detroit and other manufacturers are finally getting the message that less is better, and two, that American consumers are decidedly moving in greater numbers to smaller, more efficient cars and trucks as their desire to save money on gas remains a strong priority. All this, despite the fact that gas prices have plummeted to almost half of their peak levels.
Small cars lead to smaller costs.
So the price of gasoline has since fallen considerably — less than $2.50 in my neck of the woods in south Texas — igniting fears that some people will reverse course and buy the big guzzlers which have also collapsed in price. I, for one, cannot imagine that American consumers would go back to the wasteful days, knowing full well that the drop is temporary. Ten years ago, $2.50 a gallon would have seemed criminal to the average driver, while today it looks downright like a great bargain; oh how times and perspectives change!
Get ready for cheaper hybrids!
A recent study, again on Edmunds.com, indicates that hybrids will tumble in price as demand grows, following the rules of increased volumes which translate into lower production costs. The same study says the following: Honda Motor Co. has said that it has managed to engineer a less-costly version of its Integrated Motor Assist hybrid system that will enable it to price a new 5-passenger hybrid, the 2009 Insight hybrid due out next year, at about $19,700, almost $3,250 less than Toyota’s Prius, the top-selling hybrid in the world.
Well this is very good news for us consumers who are waiting for hybrids to drop below $20,000. It is of course bad news for Saudi Arabia and Venezuela among other unfriendly oil producers, who will see their income from oil drop precipitously over the next 10 years (too bad, Hugo Chavez).
A quick check shows that the cheapest hybrids as of this month are:
- Toyota Prius, starting at $21,100
- Honda Civic Hybrid, starting at $22,600
- Saturn Aura Green Line, starting at $22,790
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