Will
large hybrid SUVs give GM a boost?
Wednesday,
October 03, 2007
Will
hybrid technology re-popularize large SUVs
When GM begins to sell both the Chevy
Tahoe hybrid and the GMC
Yukon hybrid in December, will it boost GM sales? Will
it give GM a 'halo effect', such as the Prius
did for Toyota? Will it bring some buyers back to large
SUVs.
Those are some of the questions Roland Jones ponders in Hefty
GM hybrids could boost automaker.
Tom Appel, editor of Consumer Guide Automotive, told
Jones, "[These new hybrid
SUVs] might not be the one product that contributes to
GM’s financial success, but I think they will contribute
to GM’s overall renaissance,” he said. “The ability
to take a very heavy vehicle and give it really good fuel
economy speaks volumes about GM’s reinvestment in its
products and future products."
"Really good fuel economy"? Please! For large
SUVs, GM's dual mode hybrids made a real good improvement
in fuel economy, but 21 mpg is not "really good fuel
economy".
Still, such an improvement in fuel economy might pique the
interest of potential SUV buyers, however, the price of
such hybrid
vehicles is going to be very important. While GM's
dual mode hybrid SUVs will be the best SUVs available in
this segment, will a significant price premium deter most
buyers?
As for the 'halo effect', however, even if GM's hybrids
are better than Toyota's, GM is several years late to
market. Moreover, GM will offer neither a unique hybrid,
nor a hybrid to a challenge the Prius in overall fuel
economy. Therefore, outside of SUV buyers, I anticipate
little 'halo effect'.
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