Green Car Advisor

Mercury

November 6, 2009

Green Cars Get Green Light, Hybrid Sales Outperform Overall October Market

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By John O'Dell, Senior Editor

Spurred by factory incentives, replenished stocks and the relative freshness of several models, sales of hybrid-electric cars and SUVs soared in October, easily outperforming the market as a whole.

Compared to October '08 - a month with six fewer hybrid models available - sales of Ford, General Motors, Honda, Nissan and Toyota hybrids were up 12.1 percent, while sales of conventionally powered cars and trucks were flat.

The one-month picture was even rosier, as October hybrid sales jumped 22.5 percent from September's, versus a 12.1 percent hike in sales of conventional models.

Nissan, which has only one model - the Altima hybrid, - and sells it in just the nine states with the toughest emissions standards, was the only hybrid maker to record a sales decline for both periods, dropping 46 percent from a year earlier and 13 percent from September.

As with most hybrids - Toyota's Prius excepted - Nissan's actual numbers are quite small because of low sales volumes. October's sales drop represented just 46 fewer Altima hybrid sales than in September.

Toyota's redesigned 2010 Prius, sweetened by a small factory incentive, remained by far the segment leader, accounting for 55 percent of all hybrid sales for the month.

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October 27, 2009

Hybrid Models Dominate Consumer Reports Annual Reliability List for Family Cars


2010PriusExt.jpgConsumer Reports readers have spoken - as the do this time every year -and come down hard in favor of hybrids as family cars.

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Toyota Prius rates tops among family cars for reliability in annual consumer survey.
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In the widely read magazine's annual rating of auto reliability, five of the eight most reliable 2009 model year family cars in the CR report use gas-electric powertrains.

In the order CR lists them, they are:

Toyota Prius, Ford Fusion hybrid, Mercury Milan hybrid, Nissan Altima hybrid, and Toyota Camry hybrid.

All five also are rated as CR recommended, meaning they scored well in the magazine's internal testing and driveability ratings as well as in the consumer-driven reliability survey.

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October 14, 2009

Ford Hybrids Soared in First 9 Months, Helped Company Weather Sales Drought

But Sales Swollen by Cash for Clunkers Program Have Dropped Since it Ended

Ford Motor Co. says that despite the overall weak new-car market, sales of its gas-electric hybrid models for the first nine months of the year jumped 73% from a year earlier.

The automaker cited this year's introduction of the Ford Fusion (left) and Mercury Milan hybrid sedans as well as increased demand from the fedral government for fuel-efficient hybrids for its various fleets.

The company didn't mention the big bump the recent federal Cash for Clunkers program gave to Ford's newest hybrids. Dealers sold 2,353 Fusion hybrids in August, the last month of the program, but only managed to move 1,116 in September.

Ford, the only of the three major U.S. carmakers not to declare bankruptcy this year, sold about 26,000 hybrid vehicles through September, the company said in a statement today. The U.S. government has acquired about 3,000 hybrid vehicles from Ford so far this year, while the Fusion hybrid has attracted many non-Ford owners to the brand, the company said.

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October 7, 2009

It's Diesel Vs. Hybrid in Annual Green Car of the Year Nominations

2010audia3TDIb.jpg 2010mercurymilanhybrid.jpg 

Audi's A3 TDI diesel and Mercury's Milan Hybrid are two of the contenders in LA Auto Show's green car face-off.

It will be diesel vs. hybrid and luxe models vs.standards in Green Car of the Year judging for December's 2009 Los Angeles International Auto Show. 2010prius208x120.jpgThe five finalists in the annual competition, announced today, are the Toyota Prius (left), Honda Insight (below, right) and Mercury Milan  hybrids on the gas-electric side and the Audi A3 TDI and Volkswagen Golf TDI (below, left) on the diesel side.

2010insight208x120.jpgJudges picked the VW Jetta TDI last year, so if either the Golf or A3 win it will be two-in a-row for the fuel that most Americans still equate with big-rigs and giant bulldozers. There could be sentiment of the small luxury-performance car, which would help the Audi, but the engine in both the A3 and the Golf is the same that won it for the Jetta TDI in 2008.

2010GolfTDI208x120.jpgOur handicapper at Inside Line's Straightline blog seems to be betting on the redesigned 2010 Prius, reasoning that the Milan Hybrid doesn't stand much of a chance because its twin, the Ford Fusion Hybrid, was nominated but didn't win last year, and that the judges will be loathe to salute diesel for a second consecutive year.

That leaves the Honda Insight and Toyota Prius, and the Pruis is the greener of the two by dint of its greater fuel economy.

How would you handicap the contest?

 
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October 2, 2009

Hybrids Down, But Not Out In September as Clunker Cash Flees Market.

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By John O'Dell, Senior Editor

The cash for clunkers frenzy that pulled many hybrid shoppers into the market earlier than they'd intended in July and August caused a big letdown in September as sales of gas-electric cars and trucks, which had been rising steadily all year, plunged 48.4 percent.

Only 19,977 hybrids were sold in September, down from 38,701 in August. The sales slide was the first in several months and was worse that that of the far larger conventional vehicle segment, which dropped by 40.9 percent from August.

Falling sales of the Toyota Prius - they were down 42 percent for the month - contributed heavily to the numeric decline although almost every hybrid model lost ground.

On a month over month basis there were no corporate winners in the hybrid segment as even Toyota - the industry leader with three out of every four hybrid sales - saw a 39.7 percent decline in its Toyota and Lexus hybrids.

And that was the segment's best performance.

Lots of Losers

Nissan, which has been on a tear with its single offering, the Altima hybrid sedan (helped by generous incentives in recent moths), saw its hybrid sales plunge 89.1 percent in September; Honda, the number two hybrid company, saw sales fall 61.6 percent; Ford, which had been rising since the March introduction of its Fusion hybrid sedan, was off 54.5 percent, and GM's hybrid sales fell by 40.8 percent.

Compared to sales at the end of the third-quarter last year- when the financial industry collapse began and the bottom fell out of the auto market, the picture was a little better as hybrid sales last month were down just 4.1 percent from September '08.

In contrast, conventional car sales fell 22.5 percent in the September-September comparison.

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September 22, 2009

Latest 2010 Cars in U.S. 6.6% Greener Than 2009 Models, Website Reports

Top-10-improvement-by-maker.jpgEnvironmental car data released by a new automotive Website today shows that the latest 2010 range of new cars available in the U.S. is 6.6 percent greener than the 2009 model-year range.

The data supplied by WhatGreenCar also demonstrate that the shift to green is gaining pace. To date, this year's 6.6 percent reduction is more than three times last year's improvement of 2.1 percent.

Comparing model year 2009 cars with the latest model year 2010 line-up, 10 volume automakers are now offering a new model range above the average improvement of 6.6 percent.

The top 10 manufacturers achieving this are: Chevrolet (20.3 percent improvement), General Motors (15.3 percent), Mercedes-Benz (13.6 percent), Lexus (13.2 percent), Mercury (11.6 percent), Kia (11.0 percent), Ford (10.4 percent), Acura (8.0 percent), Volkswagen (8.0 percent) and Suzuki (7.7 percent).

The tables below are self-explanatory, and can be enlarged by clicking on them.
Top-10-most-polluting-car-range.jpg Top-10-greenest-car-range.jpg

 
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September 2, 2009

Hybrid Sales Up Again in August, Carried By Clunker Cash and Slow-Growing Acceptance

nissan-altima.jpgNissan Altima hybrid was one of the stars of August, more than tripling sales for the month despite limited availability.

By John O'Dell, Senior Editor

The federal Cash for Clunkers program may have been good for conventional cars in August, but monthly sales performance was a letdown for hybrids after an explosive July.

Oh, sales of gas-electric cars and SUVs were up last month - a 9.2 percent gain from July, but that pales by comparison to the 35 percent gain the segment recorded in July over June and doesn't stand up well, either, against the 26.6% August increase posted by conventionally powered vehicles (cars and trucks except hybrids).

Overall, however, August 2009 hybrid sales of 38,701 gas-electric cars, SUVS and pickups were up 48.6 percent from 26,044 in August '08 - a significant gain explained in large part by the addition of half a dozen new hybrid models, including the Honda Insight, Ford Fusion and Lexus HS250, that weren't available a year earlier.

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August 4, 2009

July Hybrid Sales Explode With Clunker Cash and New Prius Excitement

Toyota's Perennial Best-Seller Records 48% Sales Jump For Month; Honda Hybrids Flat

By John O'Dell, Senior Editor

If Cash for Clunkers lit a fire under July's auto dales in the general market, it apparently set off a rocket booster under the hybrid market.

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It was blue skies for Toyota as its 2010 Prius rebounded in July.
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Sales of gas-electric cars, SUVs and trucks were up an impressive 35 percent in July - for the month and from a year earlier. Almost all hybrid cars best the 22 mph minimum combined EPA mileage that qualifies a vehicle to be purchased using a cash for clunkers voucher. By comparison, sales of conventional new vehicles rose 15.4 percent for the month and were down 13 percent from July '08.

The explosive performance was led almost single-handedly by Toyota's 2010 Prius, which saw its first full month of sales with an adequate supply on hand at dealerships.

"I think hybrids are benefiting from the buzz of new models such as the 2010 Prius and Honda Insight and fresh models in segments other than compact car, as well as from Cash for Clunkers," said Edmunds.com industry analyst Jessica Caldwell.

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July 31, 2009

Still Shopping? With Big Rebates, Hybrids and Diesels Can Be Attractive

If C4C Comes Back, Tech Premium For Many Could Be Offset; Manufacturer Rebates Would Do Same

By John O'Dell, Senior Editor

Got a gas guzzler that would qualify under the cash for clunkers program for a federal credit toward a new, more efficient car or truck? (That's if we still have a cash for clunkers program when the dust settles from Thursday's reveation that the programs's initial funding apparently has run dry.)

The situation's up in the air right now, but if you are in the mood to keep doing research, or perhaps have had the car-buying impulse jump-started and have decided to take the plunge - clunker incentive or no - this is a good time to look at hybrids and diesels.

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2009 Camry Hybrid has lowest technology premium, $239.

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If Congress keeps cash for clunkers going, or automakers step up with bigger incentives of their own to keep the market moving, the credits - ranging in the C4C program from $3,500 to $4,500 depending on the fuel economy of the new car or truck - could help make a previously unaffordable hybrid or clean diesel a lot more compatible with your budget.

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June 3, 2009

Incentives, Concern Over Rising Fuel Prices Help Hybrids Outpace Market in May

Thumbnail image for 2009prius.jpg Sales of hybrid cars and trucks outperformed the market in May, giving lie to the belief, popular among mainstream industry analysts and pundits, that Americans are only interested in the gas-electric vehicles when fuel prices are stratospheric.

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2009 Prius was top hybrid with best sales in 7 months.
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In a month when sales of non-hybrid vehicles rose 12.9 percent from the prior month, hybrid sales were up 18.2 percent. Incentives were applied liberally to hybrids and conventional vehicles alike during May, reducing the likelihood that cash-back offers or cheap interest rates unfairly boosted hybrid sales.

And while sales of both hybrids and conventional vehicles fell far short of  matching year-earlier tallies, hybrid sales were off only 26.7 percent from May, 20008, compared to a 33.5 percent decline for non-hybrids.

At the same time, conventional small car sales fell short of overall market performance, indicating that shoppers had more than just fuel economy on their minds. The hybrid market may be benefiting from increased concern that fuel prices, which have been below $3 a gallon for nearly a year after approaching the $4-per-gallon mark last summer, are on the rise again and may be heading for new highs.

In all, dealers sold 25,693 hybrids last month, up from 21,735 in April but down from 35,042 in May 2008.

With the exception of Toyota's Camry hybrid, the top-selling Prius - which continues to dominate the U.S. hybrid market - and Honda's Civic hybrid, sales of individual models are low enough that it doesn't take much to cause a large jump in percent of increase or decline.  

That said, Ford's new Fusion sedan hybrid scored an impressive 75 percent gain from April while sales of the Ford Escape SUV hybrid were up 62.2 percent for the same period.

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May 4, 2009

Honda, Ford Lead Hybrid Sales to Slight April Gain in Otherwise Dreary Market

By John O'Dell, Senior Editor

Thumbnail image for 2009-Honda_Insight.jpg Hybrid sales in the U.S. rose in April for the fourth consecutive month and posted the highest monthly volume since October 2008.

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Honda's 2010 Insight was one of the bright spots in the U.S. hybrid market in April.
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The bump illustrates the influence that novelty and price still have on the market: Honda's new Insight, Ford's new Fusion and a heavily incentivized Honda Civic hybrid overcame slumping sales of many other gas-electric models to account for the gain.

But in a month when car and light truck sales overall still fell well below the one-million mark, the performance of the hybrid segment wasn't much to get excited about.

The month-over-month increase wasn't strong enough, for example, to put April's hybrid sales in contention with April 2008, when gasoline prices averaged above $3.50 a gallon, car buyers were scouring the market for fuel-efficient models and recession hadn't begun wreaking havoc with the economy.

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April 6, 2009

Eco-Driving Systems: Now Your Car Can Gently Nag You Into Being More Fuel-Wise

FusionSmart630.jpg

Ford's SmartGauge features a multitude of displays to help people become more fuel-efficient drivers.

By Robert E. Calem, Contributor

Regardless of the kind of car you drive, one of the keys to improving fuel economy and reducing greenhouse gas emissions is to drive smarter - don't hammer the accelerator pedal, don't brake harshly and do steadily maintain just enough speed to keep up with the flow of traffic without passing everyone in sight.

These often are not easy tasks.

To help, automakers have begun rolling out new features and technologies that call attention to uneconomical driving behavior and offer "rewards" for fuel-efficient driving.

Some of these features are passive, like instrument panels that change color as fuel economy improves.

Others more actively engage with the driver, such as an accelerator pedal that pushes back when pressed too aggressively.

Some automakers are even working on technologies that will be able to take the driver out of the fuel economy equation by allowing the car to practically drive itself with best mileage in mind.

Read on to learn more about the driver training features and technologies in cars you can buy today, and be able to buy tomorrow.

Smart Gauges Make Smarter Drivers

"The whole idea is coaching the driver, but as a good coach you don't want to preach," says Sonya Nematollahi, driver information engineering supervisor at Ford Motor Co. in Dearborn, Mich., while describing the "SmartGauge with EcoGuide" instrument cluster in the 2010 Ford Fusion and Mercury Milan hybrids.

Conceived by Ford in collaboration with IDEO, the design and innovation consultancy that also devised the Swivel 'n Go seating in Chrysler minivans, SmartGauge consists of two 4.3-inch, high-resolution color LCD screens - one on either side of the analog speedometer - that display a collection of digitally rendered gauges accessed through multi-layered menus.

SmartGauge with EcoGuide, fashioned by Ford Design Studio with features input from the industrial design firm Smart Design, uses the menus and gauges to offer increasingly detailed information in four modes: Inform, Enlighten, Engage and Empower.

FusionLeafs.jpg

"Like a good coach, we designed modes into SmartGauge to engage drivers at their experience levels and then guide them to new energy-efficient behavior," says Steve Bishop, global lead for sustainability at IDEO in Palo Alto, Calif.

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Green leaves 'grow' on fusion instrument panel as visual reward when fuel economy improves.

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"Video games engage their users in a similar fashion with levels. In fact, when we observed hybrid drivers, we found they were going for high scores, a gaming behavior that has never existed in cars before. We designed to accommodate it."

Steering-wheel mounted directional buttons are used to navigate through the modes, and the driver can customize the displays in each mode by adding or removing gauges.

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April 2, 2009

Hybrid Sales Sputtered in 1st Quarter, But Segment's Not Out of Gas

By John O'Dell, Senior Editor

It's no secret, hybrids haven't been doing well lately, on dealers' lots, in the media, or in a lot of political arguments. Sales data that comes in on a monthly basis shows hybrid sales sinking faster than auto sales as a whole. And there's nothing pretty about auto sales as a whole.

Indeed, looking at March's tally shows that the 21,433 hybrid cars and trucks sold in the U.S. last month represents a 43.9 percent drop from hybrid sales in March of 2008, while sales of all other types of new passenger vehicles, on a March-vs-March basis, were off "just" 36.5 percent.

09altimahybrid.jpg So, the argument goes, hybrids can't hold their own, they cost too much and people don't really want them.

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Nissan Altima hybrid was one of only two models posting a first quarter gain.
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But we've never been big on the idea that a trend can be made, or broken, in a single month.  

One could also argue, for instance, that March hybrid sales were up substantially from February and recovered more than did all other segments combined.

On a sales-per-day basis, to account for the shorter February selling period, March hybrid sales were up 20.9 percent, versus an 11.6 percent increase from February in sales of other types of new cars and trucks.

Does that mean that March sales show that people have changed their minds and are flocking to hybrids in droves?

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March 10, 2009

Ford Marks Assembly of Its 100,000th Hybrid SUV

EscapeHybridFord.jpg Ford  Motor Co. said today that the 100,000th hybrid SUV has rolled off of the line at its Kansas City assembly plant. The milestone was reached five years after the Ford Escape (right) and Mercury Mariner hybrids were introduced.

"As we celebrate our 100,000th hybrid, America's interest in hybrid vehicles keeps growing, as does Ford's commitment to advanced powertrain technologies that deliver greater fuel economy, lower emissions and help enhance our country's energy security," Ford Executive Chairman Bill Ford said in a statement.

As we recently reported, the Escape hybrid posted 1,172 sales during February, a 55.6 percent increase from January. Sales were down 22 percent from February '08, but in this market, with new vehicle sales as a whole down 41 percent, even that is something to brag about.

The next zero-to-100,000 celebration in Ford's green car future will be for the new 2010 Ford Fusion and Mercury Milan hybrid sedans, which Ford is aggressively advertising as "America's most fuel-efficient midsize sedans at 41 mpg city driving."

As our sister blog, Edmunds AutoObserver, reports, Ford has sold more hybrids than any of its domestic rivals, but still trails Honda and Toyota.  

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March 5, 2009

Incentives Helped Hybrids in February; Sales Down Less than Industry Overall

2008camryHybrid.jpg By John O'Dell, Senior Editor

Sales of hybrid cars and SUVs continued falling in February but their plunge was slowed somewhat by a strong updraft of incentives.

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Camry hybrid sales were down 50 percent from February '08 but with incentive spending rose 82 percent from January
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While new car sales overall were down 41 percent from a year earlier, hybrid sales were off just 28.5 percent with 16,020 vehicles sold, down from 22,411 in February 2008.
 
The gas-electric cars cost more than their conventional counterparts and haven't been doing well as the economy tanks and gas prices remain relatively low.

Sales also have been slowed as interested consumers hold off in anticipation of the new Honda insight compact 5-passenger hybrid and the redesigned 2010 Toyota Prius, both due to hit showroom floors soon.

One Gainer

February saw only one gain - the Lexus RX400 hybrid crossover SUV was up 31 percent from a year earlier - but several models posted smaller declines than the segment as a whole.

The Lexus RX400 hybrid was helped by significant incentive spending, as Toyota's luxury division poured an average of $6,338 into each vehicle, according to Edmunds.com's True Cost of Incentives data. That was up from just $503 per vehicle incentive spending on the RX400 hybrid a year earlier and was $1,300 more than Lexus was spending on RX400 incentives in January.

Both the Ford Escape hybrid and the Toyota Camry posted big gains for the month. The Escape, with 1,172 sales, climbed 55.6 percent from January and the Camry, with 2,080 sales, was up 82.3 percent.

Camry sales really show the power of incentives: the car was among the worst performers in comparing February '08 and '09 sales, down almost 50 percent.To get the big January to February improvement, Toyota pumped up incentive spending on the model to $1,495 per vehicle from "virtually nothing in January," said Edmunds.com industry analyst Jessica Caldwell.

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February 5, 2009

Hybrid Sales Swirled Down Same Drain as Conventional Cars and Trucks in January


09RX400h.jpg By John O'Dell, Senior Edito r

No surprise, hybrid sales in January went down the drain along with the rest of the industry.

The gas-electric cars, pricier than their conventional counterparts, typically don't do well when gas prices are cheapish, as they are these days.

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Lexus RX 400h was one of only two hybrids to post a gain over January '08 sales.
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Add in a recession teetering on the edge of depression and the picture is grimmer.

Piling on, Toyota and Honda -- the industry's hybrid sales leaders -- have new models coming out in a few months, a situation that doesn't do much to promote sales of models that are soon to be outdated.

The only good news is that, as a percentage of an overall abysmal market, hybrids gained in January, rising to a 2.33 percent market share from 1.97 percent in December and 2.14 percent a year earlier.

In terms of market share, January was the seventh-best month for hybrids since the first model went on sale in the U.S. in 1999.

Good market share in a bad market isn't much to cheer about, though. In terms of sales volume, January was the worst month for hybrids in almost three years.

Total sales of 15,393 hybrid cars and SUVs were down 12.8 percent from December and plunged 31.2 percent from a year earlier.

The last time sales were lower was February 2006, when only 14,957 hybrids were sold.

Gains

As usual, Toyota's Prius was the month's volume leader with 8,121 sales -- almost 53 percent of the total.

The Prius also was one of only five hybrid models of the 16 tracked by Edmunds.com to post a gain from December, up 3.3 percent. Prius sales were down 28.6 percent from a year earlier, though.

The other January gainers were:

  • The Lexus 400h crossover hybrid, up 6.3 percent with 1,556 sales;
  • Toyota's Highlander hybrid SUV, up 10.6 percent with 984 sales;
  • Honda's Civic Hybrid, up 3.8 percent with 1,076 sales; and
  • The Mercury Mariner Hybrid SUV from Ford Motor Co., up 19.8 percent with 127 sales.
Despite the one-month gains, the Civic Hybrid was down 38.3 percent from January '07, the Mariner was off 28.7 percent from a year earlier, and the Highlander was down 54.1 percent.

Potential buyers holding back in anticipation of the improved 2010 Prius and Honda's new 2010 Insight Hybrid, both due later this year, didn't help any of the January-over-January sales comparisons, said Jessica Caldwell, Edmunds.com's manager of industry analysis.

"Hefty price tags combined with the promise of newer, more-efficient models to come within the next few months have really hindered hybrid sales in January," she said.

09altimahybrid.jpg Two hybrid models did post gains from their year-ago, marks, though.

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Nissan Altima Hybrid joined Lexus in winner's circle with an increase from January '08 sales.
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The Lexus 400h was up 28.3 percent from 1,211 sales a year earlier -- the only model to gain for the month and the year -- while Nissan's Altima Hybrid, with 644 sales last month, was up 36.1 percent from 473 sales in January '07.

Big Losses

The rest of the pack lost ground, although most are such low-volume sellers that the losses didn't make much impression on January's total sales picture.

General Motors Corp.'s hybrid cars and crossovers were the biggest losers, percentagewise, all but one falling more than 50 percent from December (none were in the market a year ago, so there are no January '07 numbers to compare to).

The Chevrolet Tahoe Hybrid SUV was hit hardest, down 69.5 percent with 299 sold versus 981 in December.

The Chevy Malibu Hybrid sedan was a close second in the loser column, its 145 sales a 68.1 percent decline from 454 sales a month earlier.

The GMC Yukon Hybrid SUV (a twin to the Tahoe) was down 62 percent to 168 sales from 442 in December; Cadillac Escalade Hybrid SUV sales fell 56.8 percent to 132 from 306; the Saturn Vue Greenline Hybrid crossover was off 54.7 percent with 153 sales, down from 338; and the Saturn Aura Hybrid sedan was down 44.1 percent to 19 sales from 34 in December.

Sales of Ford's Escape Hybrid SUV fell 27.9 percent from December, to 753, and were off 41.9 percent from January '07, and Toyota's Camry Hybrid sedan dropped 39.6 percent from December, to 1,141 sales, and was down 49.7 percent from a year earlier.

In Toyota's luxury stable, the Lexus LS 600h L hybrid sedan posted 33 sales, down 34 percent from December and 68.6 percent below January '07 sales, and the Lexus GS 450h crossover hybrid dropped 19.6 percent from December, to 41 sales, and was off 35.9 percent from a year earlier.

Although the new models from Toyota and Honda could pump a little excitement into the hybrid market later this year, Caldwell and other analysts don't expect much improvement before the latter part of the year.  

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January 6, 2009

Hybrids Finish 2008 in the Dumps, With Prices Weakened and Sales Down

By John O'Dell, Senior Editor

December's gas-electric car and SUV sales plunged almost 43 percent from the final month of 2007 as the year wound up on a discouraging note for the only alternative technology vehicles to so far make a dent in the auto market.

It was a near repeat of a stupendously disastrous November, when sales of fuel-efficient hybrid vehicles fell 50 percent from a year earlier.

falling.jpg

For all of 2008, hybrid sales tumbled 10.3 percent with 310,724 models sold. While nothing to boast about, the hybrid segment bested the overall market's performance of an 18.2 percent drop for the year, according to Edmunds.com statistics.

The only bright spots were that hybrid sales in December actually rose a bit from November, and that 2008 hybrid sales were the second-best on record in the decade since 1999, when Honda introduced the first model, the now-discontinued two-seat Insight. The year's sales trailed only 2007, when 346,431 hybrids were sold.

Incentives Made the Difference

The 6.8 percent rise in sales volume from November to December was due to hefty incentives and discounting by most automakers and to an especially effective financing program that General Motors' financing arm provided for almost all of the company's lineup.

Industrywide, the same pricing and financing incentives led to a one-month sales gain of 20 percent.

In the hybrid segment, December's total of 17,652 sales was the second lowest of the year, trailing only November's dismal 16,536.

After that, you'd have to go back to January 2007, when only 17,591 gas-electric cars and sport-utes were sold, to find a worse month for hybrids.

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December 3, 2008

November Hybrid Sales Plunge As Gas Prices Fall, Credit Tightens

2008-Prius-Hybrid-750x460.jpg By John O'Dell, Senior Editor

Sales of hybrid cars and SUVs took a worse beating than the industry as a whole in November, plummeting 50 percent from a year earlier and off 24.8 percent from October.

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Industry leading Prius hybrid sales in November were off 50 percent from a year earlier.
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Industrywide sales of all new cars and light trucks were down 37 percent from a year ago.

The hbrid segment was hit with the triple whammy of falling gasoline prices, high sticker prices in a recessionary economy and tight credit that cut many potential buyers out of the market.

"The environment is taking a back seat to the macroeconomic situation," said Edmunds.com market analyst Jessica Caldwell.

With gasoline falling below $2 a gallon, many hybrid models just didn't pencil out for consumers when their premium prices were compared with prices for other fuel efficient vehicles with conventional powertrains, she said.

Altogether, automakers sold 16,536 gas-electric hybrids last month, down from 21,979 in October.

To make matter worse, consumers purchased twice as many hybrids - 33,063 of them - in November 2007, when there were several fewer models available.

Hybrids' market share dropped to 2.21 percent in November, down from 2.62 percent in October and 2.82 percent in November 2007.

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November 26, 2008

Honda Provides Photos and Details of Its Eco-Driving System for the Insight Hybrid

Insight-Instrument-Panel.jpg Above, the instrument panel of the Honda Insight contains lots of tools to help the motorist drive more fuel efficiently.

By Scott Doggett, Contributor

Honda has released images and details of the Ecological Drive Assist System as it appears in the Japanese version of the soon-to-launch Insight hybrid.

The system is similar to Ford's new SmartGauge with EcoGuide instrument cluster for the 2010 Ford Fusion and Mercury Milan hybrids, as well as devices appearing in various Nissan and Toyota models, in that all are intended to help drivers use gasoline as efficiently as possible.

Japan's version of the Insight will also be able to integrate with the optional Honda HDD InterNavi System. When combined with this system, the EDAS can give more advice on how to enhance fuel economy while driving, specifically by looking through a driver's history and suggesting driver-specific changes.

A scoring function provides cumulative, long-term feedback through graphic "leaves" that grow over time as drivers become more fuel-efficient. "The joy of growing these leaves over a long time will encourage drivers to learn how to drive more fuel-efficiently," the company said in a press release.

Econ-Button.jpg Among the key features of the EDAS is an ECON Mode, which Honda first implemented on the all-new Odyssey. Since then, the mode has been advanced with added functions to control the idle stop and regenerative braking capabilities of the hybrid.

As soon as the driver presses the ECON Mode button, the system will "harmonize" the continuously variable transmission and engine, flip the air-conditioner to energy-saving mode, extend the idle stop time and increase regenerative recharging during deceleration--all of which will increase the vehicle's fuel economy.

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November 21, 2008

Ford Prices Fusion Hybrid Above Toyota's Gas-Electric Camry

LAShowFordFusionHybrid.jpg The timing of these things is always puzzling. Ford had several hundred automotive writers as a captive audience of sorts during the Los Angeles Auto Show's press preview on Wednesday and Thursday of this week, used the event to debut the 2010 Fusion and Mercury Milan hybrids , and then refused to give us any pricing information.

The company rectified that by posting the Ford Fusion Hybrid's price a day later, on a microsite within the regular Ford Motor Co. consumer site.

It's been buried deep inside, though  - you have to go through about 10 pages of animated info about the Fusion Hybrid to find out that it will be priced at ...

...$27,290.

That's $1,140 more than the competition - Toyota's Camry Hybrid - but the Fusion price includes  a better  audio system, bigger  tires and wheels, and the much-hyped SmartGauge and EcoGuide systems that actually can coach the willing into becoming more environmentally friendly and fuel efficient drivers .

The Fusion also comes with better fuel economy than the Camry Hybrid, at least in the city, where Ford claims 39 miles per gallon for its new gas-electric sedan, versus Camry's EPA-rated 33 mpg.

Ford dealers probably would be thrilled to take your money now, but the new hybrid won't go on sale until early next year.

Mercury dealers would probably like your money, too, the few of them that remain. But while it insists that the Mercury brand is here to stay, Ford ignores it a lot and hasn't bothered to post the Milan Hybrid's price yet.

"We're going to do it closer to the launch date," said a company spokeswoman, who had no explanation for why the sibling hybrid sedans aren't being treated equally.

John O'Dell, Senior Editor  

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November 20, 2008

2008 LA Auto Show: Ford Introduces Fusion and Milan Hybrid Sedans

Fuel savers exult!  Two new gas-sippers are being added to the catalog as Ford prepares to introduce the 2010 Fusion hybrid sedan and its Mercury Milan sibling.

The gas-electric cars, with 700 miles of range on a tank of gas and Ford-estimated fuel economy of 39 miles per gallon in the city, should make Ford a real contender in a market now dominated by Toyota's Camry Hybrid.

LAShowFordFusionHybrid.jpg The Fusion and Milan hybrids, unveiled at the Los Angeles Auto Show, have different ornamentation and trim but under the skin are twins, sharing a new, lighter version of the hybrid system used in the company's Ford Escape and Mercury Mariner hybrid SUVs.

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Fuel-efficient 2010 Ford Fusion (left) and Mercury Milan (below) hybrids hit the market next year.

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They use the same 2.5-liter, four-cylinder, Atkinson-cycle engine as the SUVs,  making the same 155 horsepower and 136 pound-feet of torque and bolted to a continuously variable transmission, just as in the hybrid 'utes.

But the sedan system's nickel-metal hydride battery is almost 20 percent more powerful despite being 17 percent smaller - with 208 cells instead of 250 - and, at 145 pounds, 23 percent lighter than the SUV hybrids' battery packs.

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November 18, 2008

Ford Offers Employee Pricing, Rebates on Many Models, Plus 0% on Gas Sippers

2009-Ford-Flex-1200x800.jpg Ford Motor Co. announced today that it is offering a new round of incentives to prospective buyers that consists of cash rebates and pricing usually reserved for Ford, Lincoln and Mercury employees, as well as zero-interest financing on the brands' most fuel-efficient models.

Employee Pricing Plus, as the incentive program is called, will be in effect tomorrow through January 5. The employee pricing is offered to buyers of most 2008 and 2009 Ford, Lincoln and Mercury vehicles, plus a per-purchase cash rebate of up to $6,000.

Customers who select one of the eight most fuel-efficient models made by the three brands--the Ford Focus, Fusion, Escape and Flex (pictured); the Mercury Milan and Mariner; and the Lincoln MKZ and MKS--can opt for zero-percent financing for 36 months on top of employee pricing.

Furthermore, Ford Credit will provide a $500 bonus on the purchase of most Ford, Lincoln and Mercury models.

The all-new 2009 Ford F-150 is not offered with employee pricing, but it is available with zero-percent financing. Also excluded from the employee pricing are 2008 and 2009 Ford Escape Hybrids and Mercury Mariner Hybrids, 2008 and 2009 Ford Shelby GT500, Ford F-Series chassis cabs models, and Ford E-Series cutaways models.  

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November 17, 2008

2009 Honda Civic GX Joins List of Alt-Fuel Cars Eligible for $3,000 California Rebate

2009-Civic-GX-635x204.jpg Fueling Alternatives, California's alternative fuel vehicle rebate program, has added the 2009 Honda Civic GX compressed natural gas car to its list of vehicles that are eligible for a $3,000 rebate under the state-funded program.

The 2009 model joins the 2007 and 2008 Civic GX, as well as the BAF conversions for the 2007 Ford Crown Victoria, Lincoln Town Car and Mercury Grand Marquis, as eligible for $3,000 rebates.

Eleven other models are eligible for smaller rebates and two models--the 2008 Honda FCX Clarity hydrogen-powered fuel-cell sedan and the all-electric 2008 Tesla Roadster--are eligible for $5,000 rebates. 

Additionally, the 2009 Civic GX might qualify for a $4,000 federal new-energy tax credit. The 2005-2008 Civic GX models meet the Internal Revenue Service criteria for that tax credit, but the IRS has not yet extended the tax credit to the 2009 model.

The Civic GX is fueled by compressed natural gas for nearly zero emissions. It is fuel-economy rated for 24 miles per gallon equivalent in the city and 36 mpg equivalent on the highway by the U.S. Environmental Protection Agency. The vehicle's suggested starting price is $25,090.

More information about the Civic GX can be found at Edmund's Inside Line Website, where Green Car Advisor Senior Editor John O'Dell has been reviewing a 2007 model on a regular basis for many months, and at Honda's Website for the U.S.

Fueling Alternatives is funded by the California Air Resources Board and administered by the California Center for Sustainable Energy. A total of $1.8 million was appropriated and directed toward vehicle incentive rebates to promote the use and production of alternative fuel vehicles.

Rebates of up to $5,000 are available for California residents who purchase or lease new eligible alternative-fuel vehicles between May 24, 2007, and March 31, 2009, or until funding runs out. For more information, go to Fueling Alternatives' Website.  

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November 7, 2008

Tax Credits for Leanest Hybrids Axed Despite Recognized Importance of the Cars

2008_Civic_Hybrid.jpg By Scott Doggett, Contributor

In Washington's infinite wisdom, the tax incentives that have bolstered U.S. sales of the most fuel-efficient hybrids are gone or soon will be at a time when experts agree the vehicles could play an important role in reducing America's addiction to foreign oil and in stopping global warming.

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Honda's 42-mpg 2008 Civic Hybrid; its tax break ends next month.
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Tax incentives tied to Toyota's 2005-2008 model-year Prius, which gets a phenomenal EPA-rated 48 miles per gallon in the city, 45 mpg on the highway and 46 combined, expired in October 2007.

That same month saw the tax credit for the 2007-2008 Toyota Camry Hybrid vanish, despite the fact that model gets an EPA-rated 34 mpg combined.

And soon we'll witness another mystery: In the final minutes of next month, as people around the world usher out the old year and celebrate the new, the U.S. tax incentive for the 2006-2008 Honda Civic Hybrid (42 mpg combined!) will dissolve at the stroke of midnight.

But the strangeness won't end there.

Beginning next spring, Honda will offer a hybrid achieving a claimed 60 mpg. What tax break will Uncle Sam provide buyers of this gas-sipper, the 2010 Honda Insight? None whatsoever.

None, as in the 2,200 fewer taxpayer dollars than he's offering buyers of the 2008 Chevrolet Tahoe Hybrid right now, despite the fact that big ol' honkin' SUV achieves only 21 mpg combined.

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November 4, 2008

Hybrids Losing Ground in Shopper Consideration as Gas Falls, Credit Tightens

2478029_691d317e9f.jpg By John O'Dell, Senior Editor

About the only thing sinking faster than new car sales these days is consumer interest in hybrids.

As the economy continues to tank and gas prices continue to fall, the number of consumers using the various Edmunds.com information channels to gather data on hybrid models has plummeted.

Hybrid consideration -- tallied by tracking the number of visitors to Edmunds' sites who spend time looking at model specifications and pricing data and cross-shopping hybrids with other hybrids and with conventional models -- is off 86 percent from its peak in mid-June.

By comparison, considerations of all new car and truck models are down 35 percent from the peak in May, according to data compiled for Green Car Advisor by Dr. David Tompkins, Edmunds.com's executive director of business solutions.

Consideration doesn't necessarily predict sales -- it could be that we're seeing the casual shoppers being knocked out of the box with only hard-core, determined buyers left looking.

Indeed, hybrid sales in October, while down 45 percent from their peak in April, were off only 9.4 percent from a year earlier. If seven models that weren't sold a year ago are omitted, the drop is sharper, at 16 percent. By comparison, total sales for the month were off 39 percent from the year's high in May and were down 32 percent from October 2007. Subtracting the 1,551 extra hybrids sold this year makes almost no difference in drop in total sales.

The sales figures show that hybrids continue to be popular among a significant slice of the public that's still buying cars -- they accounted for 2.6 percent of total October sales, their highest market share since July.

image001.png But Edmunds' hybrid consideration numbers may portend a bigger drop as the year progresses.

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Hydrid consideration (green) grew as gas prices rose but since summer has fallen faster than has consideration of all vehicles (red), according to Edmunds.com data. (Click on chart for expanded view.)
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With the nation in a recession that's been building since summer, you'd expect the numbers of people shopping for new cars, on-line and in dealerships, to decline, said Daniel Hall, vice president and data analyst at global auto industry consulting firm AutoPacific.

That the rate of decline for hybrid consideration is so much sharper, said Edmunds analyst Tompkins, shows that shoppers are being far more cautious about expenses than when gas prices were at their peak this summer and the line for hybrids at any price stretched around the block.

Back then, shoppers were enamored of the fuel economy a hybrid model could deliver in comparison to a conventionally powered model of the same vehicle.

Now, shoppers are looking not only at fuel economy -- which is less important to many as gas prices fall -- but at the so-called hybrid premium automakers charge to cover the extra cost of the battery packs and advanced powertrain components a hybrid requires.

Additionally, the nation's economic woes have made it more difficult for people to obtain loans, especially for big-ticket items such as homes and cars. When credit is already tight, a hybrid's premium price thins the herd, said Edmunds.com pricing and sales analyst Jessica Caldwell.

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October 31, 2008

More On Ford's New Hybrids: Advances Explained, Ford Technology Stressed

FordHybridTransaxle.jpg Fighting the long-held perception that much of the technology in their company's first "full"-hybrid system for the Escape hybrid SUV was bought or licensed from Toyota, executives and engineers at Ford were crystal-clear during this week's media preview of the all-new hybrid architecture for the company's upcoming Ford Fusion and Mercury Milan hybrid sedans: Everything, they said, was designed by Ford in North America.

The new hybrid system is "100 percent Ford technology; 100 percent Ford design, invented right here in North America," said Nancy Gioia, Ford Motor Co.'s director of sustainable mobility technologies and hybrids. She and other engineers say every major component was developed under Ford engineering.

In detailing the key components, engineers said they stressed an interdisciplinary approach that helped optimize all components for maximum system efficiency. The process developed several intriguing new components and advances, they said.

Perhaps most impressive is the nickel-metal hydride battery pack, put together by Delphi Corp. using individual cells supplied by Sanyo.

FordHybridBattery.jpg The latest NiMH chemistry enabled Ford to use 17 percent fewer cells (208) in the pack and to reduce total system voltage to 275 volts from the previous 330 volts because cell power has been increased by 20 percent.

The pack nonetheless is 30 percent smaller and 23 percent lighter that the nickel-metal hydride pack used in the automaker's Ford Escape and Mercury Mariner hybrid SUVs.

The new battery chemistry also means the batteries can deliver their utmost at higher temperatures. As a result, engineers were able to ditch the previous system's dedicated cooling system - the battery pack now will be cooled with cabin air.

Ford engineers tell Green Car Advisor that losing the dedicated cooling architecture delivered a weight savings on the order of 15 pounds. That's on top of the enormous 50 pounds. chopped from the battery pack itself.

The system's more-powerful 93-kilowatt drive motor, higher-capacity generator (73 kW vs. 45 kW) and "power-split device" (CVT for lack of a better term) all are housed in one monolithic transaxle casting (top illustration). There is no increase in size or weight, despite the higher-power components.

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October 29, 2008

Ford's 2010 Fusion, Mercury Milan Hybrids Get Electric Power and Gas Economy

10FusionSport_01.jpg

Ford's newest hybrids will be able to outpace the competition in a test of all-electric operation as they'll come with a battery-pack and power management system that will enable them to hit speeds of up to 47 miles an hour without cranking over their internal combustion engines, the company says.

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The 2010 Fusion hybrid will look a lot like this Ford image of a conventional 2010 Fusion Sport model, but with special badging and a world of difference under the hood.

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That's an 18 percent improvement over the 40 mph top electric speed of the company's present hybrids, the Ford Escape and Mercury Mariner gas-electric SUVs and beats Toyota's Prius by 12 percent, or 5 miles an hour.

The new hybrids, to be launched in the first quarter of 2009 as 2010 models, also are expected to deliver up to 700 miles of city driving on a single tank of gas, Ford said. The company didn't specify the size of the hybrids' fuel tanks, but it uses a 17.5-gallon tank in the conventionally powered models

The automaker unveiled details of the upcoming 2010 Fusion hybrid and 2010 Milan hybrid sedans in a press conference today at its headquarters in Dearborn, Mich.

In addition to the all-electric top speed (which beats Toyota's Prius by about 15 miles an hour), features include a 2.5-liter, 155-horsepower four-cylinder gas engine coupled to an electronically controlled continuously variable transmission (CVT).  (At least for year one, the new hybrids won't get the new turbocharged, direct-injection,1.6-liter Eco-Boost engine that Ford recently announced it will be building in Europe.)

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Ford Device Will Aid Drivers of 2010 Fusion, Mercury Milan Hybrids Maximize Mileage

Ford SmartGauge 900 x 600.jpg By Scott Doggett, Contributor

Building upon fuel-consumption displays found in the Toyota Prius and other vehicles, Ford announced today that its 2010 Ford Fusion and Mercury Milan hybrids will be equipped with an instrument cluster that will provide real-time information and verbal coaching to help drivers maximize fuel efficiency.

The SmartGauge with EcoGuide (pictured) will give drivers current fuel-economy data and, unique to the Ford and Mercury hybrid sedans, offer verbal encouragement to help them become mileage-maximizing motorists.

The interactive system provides four levels of information display, from a basic "Journey" mode to the content-rich "Empower" level that will present the most detail on engine performance as well as the most feedback on how to improve fuel efficiency.

The graduated levels of information are offered to appease motorists who just want the basics, others who can't get enough fuel-economy feedback, and everyone in between.

Jeff Greenberg, Ford's senior technical leader, said the main question hybrid drivers have is, "How do I know I'm getting the most out of my hybrid?" Ford's response is SmartGauge, which the automaker developed in collaboration with IDEO and Smart Design, he said.

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October 15, 2008

Smart ForTwo, VW Diesels Join EPA's Top-10 List of Most Fuel-Efficient Vehicles

FuelEconGuide.jpg The U.S. Environmental Protection Agency today issued its 2009 fuel economy guide , with Smart cars and Volkswagen diesels now appearing on the government's top-10 list of most fuel-efficient vehicles available in America.

The Toyota Prius once again retains its position atop the list, with fuel-economy ratings of 48 miles per gallon in the city and 45 on the highway.

The additions to the top 10 list this year are the Smart ForTwo convertible and coupe and the Volkswagen Jetta diesels.

The Smarts, which arrived in the U.S. in January, were too late to make the 2008 guide. This year the Smart models hold down the No. 5 spot with ratings of 33 mpg city and 41 mpg highway.

The Jetta diesels were too heavy on emissions to enter the U.S. market last year, but they are in this year with improved emissions controls.

The Jetta diesel sedan and wagon with manual transmissions are in seventh place with ratings of 30 mpg city and 41 mpg highway. The sedan and wagon with automatic transmissions are in eighth place with ratings of 29 city and 40 highway.

Without further ado, here is the top 10 list for 2009:

1. Toyota Prius (hybrid) -- 48/45

2. Honda Civic Hybrid -- 40/45

3. Nissan Altima Hybrid -- 35/33

4. Ford Escape Hybrid FWD; Mazda Tribute Hybrid 2WD; Mercury Mariner Hybrid FWD -- 34/31

5. Smart ForTwo convertible; Smart ForTwo coupe -- 33/41

6. Toyota Camry Hybrid -- 33/34

7. Volkswagen Jetta (manual, diesel); Volkswagen Jetta SportWagen (manual, diesel) -- 30/41

8. Volkswagen Jetta (automatic, diesel); Volkswagen Jetta SportWagen (automatic, diesel) -- 29/40

9. Toyota Yaris (manual) -- 29/36

10. Toyota Yaris (automatic) -- 29/35

And the least fuel-efficient of all 2009 models? That would be the Lamborghini Murcielago, rated at 8 mpg city and 13 mpg highway.  

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October 2, 2008

Hybrids Outpace Dismal September Market By Scant Margin

tahoehybrid.jpg By John O'Dell, Senior Editor

It's been pretty well established that there wasn't much of an auto market in the U.S. last month.

"Catastrophe" and "disaster" are applicable adjectives; "It sucked" is how some wags have described it.

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Sales of new GM hybrid SUVs like this Chevrolet Tahoe helped hybrid market.
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We've had Edmunds' crack number crunchers parsing the data for us, looking for any glimmer of hope that might be found in the "green" and fuel-efficiency parts of the market and, so, far, have to say that they haven't come up with much.

The first pass through Wednesday's raw sales data provides at look at how hybrids did in comparison to the market as a whole.

And depending on how you do the comparison - to the previous month or to the same month a year ago - we found a mixed message for September hybrid sales.

Hybrid Segment Outpaces Market

The market as a whole was down 26.5 percent from September 2007 and was off 22.5 percent from August '08.  It was the first month since the late 1990s that sales dropped below the 1-million mark.

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July 23, 2008

Report: Ford To Say Adios to Truck Era, Use Mercury as Small Car Sales Channel

FordFocusEuro750.jpg Right, the European Ford Focus Coupé-Cabriolet.

Ford Motor Co. reportedly is planning to turn its Michigan Truck Assembly Plant, one of the most profitable in the world at the height of the pickup truck boom in the late 1990s, into a small-car factory.

If the report in today's Wall Street Journal is accurate, the move would send a clear signal to those who still need one that the era of the big truck has come to the end of the road in a stagnant U.S. economy plagued by high fuel prices andgrowing concern over future oil supplies.

The newspaper report, which Ford declined to comment on, says the automaker will announce plans Thursday to switch the Detroit area plant and two other truck assembly plants over to production of U.S. versions of  Ford's more fuel-efficient (and generally better-looking) European small car models.

The report also says that Ford intends to begin using its ailing Mercury brand as the principal channel for those cars - an echo of the late 1980s when Lincoln-Mercury dealers tried - rather unsuccessfully as it turned out - to sell a pair of German-build European Fords under the "Merkur" brand name.

A report we posted earlier this week speculated on Ford's plans to switch from trucks to small cars but didn't mention specific plants or the idea of using Mercury as its new small-car sales outlet.

John O'Dell,Senior Editor  

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