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January 14, 2005  

GM "Missed Boat" on hybrid cars

Hybrid cars are just an emotional piece of marketing, according GM vice chairman for product development, Bob Lutz.

"We business-cased it, took a hard, analytical look and thought the engineering and investment were irresponsible vis-a-vis our shareholders," he said. "We failed to appreciate what Toyota has basically treated as an advertising expense."

Really. An advertising expense?

Yet, not only does Toyota maintain that it makes money off every Prius it sells, but that hybrids are the powertrain of the future for Toyota. Additionally, Toyota is also making money off leasing its hybrid technology to Ford, for use in the Escape hybrid, and Nissan will also be using the technology for its Altima hybrid.

Perhaps it might be nice if GM focused on customers, just once, rather than shareholders. GM vehicles are created for customers, not shareholders.

    Toyota Prius




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Prius hybrid home 
+
Escape hybrid home 
+
Accord hybrid home 
+
Head to head: Prius and the Escape hybrid match up 
+
Prius test drive
+
Escape hybrid test drive


 

 

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"From a strict business proposition, this is not where we would make an investment," said Lutz. "It's not clear that you'll ever be able to recapture the cost of a hybrid in the pricing. But what we forgot in the equation was the emotional aspect of it."

Hmmmm, Mr. Lutz. I guess the fact that Toyota credits the Prius as a main reason for overtaking more of GM's American market-share wasn't an important consideration in your decision making criteria?

Maximizing profit in the short term, at the expense of the long term doesn't sound like rationale investing.

In hindsight, "we should have said, 'We'll lose $100 million a year on hybrids, but we'll take our advertising budget of $3 billion, make it $2.9 billion and treat it as an advertising expense,' " he said.

"Toyota very cleverly has used hybrids to gain an improved perception of the brand."

Improved perception, Mr. Lutz? Two words for you, sir, Resale Value. Toyota has it, you don't.

"Since we've made a major commitment, I don't want the market to go away."

Why not if hybrids are only a marketing ploy? Why keep wasting 100 million per year on marketing your weaknesses?

It's really pathetic that GM and Mr. Lutz just can't admit mistakes. It took Toyota 9 years to really make the Prius a winner. That kind of innovation and development is certainly not some marketing ploy, it's responsible R&D.

American automakers, such as GM, didn't miss the boat on marketing the perception of a better product, they missed the boat on creating the best automotive products.

That's not what you expect from the world's largest automaker. Of course with that kind of leadership, or lack thereof, GM won't maintain that title for long.

More
2005 Hybrid cars.

  > Nissan wants to sell 50,000 Altima hybrids 

  > Hybrid car cost controversy: You can save money

  > Feds to investigate Prius for alleged stalling problem

  > Schwarzenegger paves way to hybrid cars?

  > No Cheap Way Around Buying a Hybrid Car

  > The state of hybrid vehicle demand

  > Foreign-oil dependency rising: Buy a hybrid or other fuel efficient vehicle

  > Hybrid cars: The costs of being an early adopter

 


From the Blog More Hybrid Car Stories

GM "Missed Boat" on hybrid cars

Accord Hybrid and Toyota Prius Competition 3 years Away

Toyota plans to sell 40,000 hybrid SUVs in 2005

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Auto Show Media Hype: Hybrids raised the ante

Hybrid Cars: 3 percent or 50 percent?

Don't plug in your hybrid car!

Nissan will also make hybrid cars in U.S.

A Porsche hybrid is still in limbo

"Hybrids represent a bridge to the long-term solution of hydrogen fuel cells"

Ford Escape Hybrid "Truck of Year"

2006 Nissan Gas-Electric Hybrid Car

Toyota, hybrid car king?

Hybrid Cars help stir U.S. / Japan Trade War Discussions

Zap to sell first Hybrid Fuel Cell Vehicle this year

2006 Lexus GS hybrid debuts at LA Auto Show, sort of

Volkswagen chooses diesel over hybrid cars

American hybrid cars

2005 Year of the hybrid vehicle

I want every car in the world to be a hybrid

10,000 orders for Lexus RX400h Hybrid and counting

Detroit's best bet, hybrid vehicles.

Head to Head to Head: Prius, Accord and Escape Hybrids, Part 1

Diesels versus hybrids. Let's get it on.

Hybrid version of the Mariner

Hybrid vehicles less powerful?

Despite Hybrid Escape, Ford Hammered by Environmentalists

Toyota hybrid cars, just a niche?

"Do gas-electric hybrids leave less green in your wallet?"

More hydrogen hype. Hybrid cars ARE the future

Ford's Other Hybrid Vehicle Idea

Bob and my Accord Hybrid Test Drive

Honda Accord Hybrid Test Drive: Initial thoughts

Toyota announces new hybrid car for 2006

Hybrid car inspiration: Test driving Nirvana

The hybrid vehicle niche?

Why should consumers pay extra for hybrid vehicles?

Hydrogen hype: Why hybrid vehicles are more important than ever

What's the Point of a Hybrid SUV?

Honda Accord hybrid an extra $3000.00 plus

Detroit's hybrid vehicle collaboration a sign of things to come?

Could Chevron end hybrid vehicle hold up?

Ford's biggest gas-guzzling SUV set for extinction

Calpers, America's largest pension fund challenges automakers on California clean air legislation lawsuit

GM, DaimlerChrysler hybrid vehicle partnership creates serious questions

Daimler Chrysler and GM team up on hybrid vehicles

Automaker spin on global warming responsibility

Americans must take a stand against the American auto industry

Bill Ford Jr. has nothing but excuses when it comes to his green vision

The California Clean Cars Campaign responds to automakers lawsuit

A challenge to residents of California, and to consumers everywhere

Auto lawsuit initiated against California global warming legislation

Hybrid car rip off? $60 billion in rebates for non-hybrids.

Zap ForTwo Smart Car Available on eBay

Automakers set to challenge landmark California emission's law

Hybrid cars are for do-gooders?

"Hybrids represent a bridge to the long-term solution of hydrogen fuel cells"
>
Strong words at this year's North American International Auto Show by Ford and GM?

Ford Escape Hybrid Wins Top Truck Award
>
Escape hybrid is the North American Truck of the Year

Toyota, King of Hybrid Cars?
>
The Prius hybrid car and the Lexus RX 400h are just the start. Heads up America.

Toyota will build hybrid vehicles in the U.S.
>
Plus a couple new Toyota hybrid cars announced 

2005 Year of the Hybrid Vehicle
>
2004 Might have been the year of the Prius, but the hybrid revolution is just beginning

Detroit's best bet, hybrid vehicles
>
Hybrids are now better cars than conventional vehicles, and Detroit must recover quickly 

Head to Head to Head: Prius, Accord and Escape Hybrids, Part 1
> Want to know how the Toyota Prius, Honda Accord Hybrid, and Ford Escape Hybrid really match up?

Comparing diesels and hybrid cars
> Diesels are almost as efficient as full hybrids, but they do pollute more

No Carpool Lane for California Hybrid drivers
> Hybrid car legislation might not go into effect for 6 months or more

Hybrid version of Mercury Mariner, wow.
> C'mon Ford. Can't you do better than another Escape Hybrid?

Hybrid vehicles less powerful?
> The newest hybrid cars are more faster and more powerful than conventional autos.

What's up with the hybrid haters?
> How can you dislike hybrid cars, or call people who like them shallow?

Accord Hybrid one of LA's Ten Great Cars of Year
> In the land of glamour and bling, bling, even common sense can rule. Hybrids are cool, and they represent the future.

Despite Escape Hybrid, Environmentalists Continue to Hammer Ford
>
The Ford Escape hybrid is a nice gesture by Ford, but only a gesture.

Toyota hybrid cars, just a niche?
> After Prius success, why isn't Toyota more optimistic about hybrid vehicle sales?

More hydrogen hype: The case for hybrid cars
> If the hydrogen economy is at least two decades away, interim technologies, such as hybrids, are the key

Bob and My Hybrid Accord Test Drive
> Bob loved the Accord hybrid, but said he wouldn't pay the extra cash

Honda Accord Hybrid Test Drive: Initial Thoughts
> The new Honda Accord hybrid has added a significant twist to the hybrid class

Hydrogen hype: Why hybrid vehicles are more important than ever 
>
Detroit's answer to pollution is at least decades away, and we can't wait that long. Hybrids are an essential interim technology

Do Hybrid SUVs make sense?
> Isn't the reason for hybrid vehicles efficiency? Plus, Accord hybrid tidbits.

Detroit's hybrid vehicle collaboration: They had no choice. 
> Not long ago Detroit laughed at Japanese hybrid cars, not anymore.

Could Chevron end hybrid vehicle hold up?
>
Current hybrid battery partnership and record profits could lead the way

GM, Daimler Chrysler team up on hybrid vehicles. Toyota Prius success forces automakers to complete with Japanese hybrids

Car makers just can't do the right thing. Automakers set to challenge landmark California emission's law

Disrespecting the hybrid car movement:  Faster and speedier than standards, hybrid cars are not just for do-gooders

Americans must take a stand against American auto corporations

Bill Ford Jr. Ready to Restart his Clean Revolution

Accord hybrid only available in select markets

The sad truth about the current state of hybrid vehicles

Honda Accord hybrid officially in showrooms today!

IMA versus HSD: The Honda Accord hybrid versus the Toyota Prius

Toyota Prius on NBC's West Wing

Hybrids, Fuel Cells and the Future

Porsche seeks Toyota hybrid technology

Hybrid Vehicles: Full or Mild?

A little Hybrid Rant: Cool v. Intelligence

Future hybrids "Mean & Green" according to Newsweek

Test driving the Ford Escape Hybrid SUV

Lexus RX 400h hybrid SUV release delayed

My Toyota Prius test drive

Prius Availability is increasing in many areas

For Even More Hybrid Vehicle Stories >> Click here.


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