Hybrid SUVs proving to be hard sell for U.S. carmakers

Posted Sun Jun 1 2008 2:37 AM by Ralph Hanson

The Detroit 3 have been berated from every direction for failing to anticipate the growth in sales of fuel-efficient vehicles, and now the trio are engaged in an uphill battle to reclaim market share largely lost to foreign rivals that offer a range of compact models and advanced hybrids. Catching up is proving to be arduous for the American automakers, and right now only Ford appears to be headed in the right direction.

GM and Chrysler are both focusing on offering hybrid SUV's as a compromise between utility and efficiency, but so far customers aren't biting. GM has only sold around 1,100 units of the Chevy Tahoe and GMC Yukon hybrids since January - well under their goal of 12,000 units per year. Toyota, meanwhile, has managed to sell 64,000 units of its hybrid Prius over the same period.

Chrysler is also looking to hybrids as the brand's savior, considering that sales of Chrysler's big SUVs have dropped by 22% this year. Going by GM's lack of success with similar products, Chrysler also faces a long road to gaining customer appeal for its hybrid SUV's, which are planned for release this fall.

While Chrysler and GM are betting on hybrid SUVs bringing consumers back to the large car market, Ford has stated that they are not considering such a model. Speaking with the New York Times, a Blue Oval spokesman explained that customers downgrading from fuel-hungry SUVs would likely prefer a crossover or premium compact vehicle as opposed to a hybrid utility.

Reader Comments

Sun Jun 1 2008 4:09 AM
slim says

yeah, that's why i've only seen one of the hybrid SUV's(yukon) on the road. those things start at 50 GRAND! and mercede's diesel GL gets better gas mileage for around the same price. plus a full leather interior, better packaging, more seating space, smoother ride, and 7-speed trans. GM and Chrysler are just hard headed on this subject. light duty diesel should've been in their lineup 10 years ago. Ford too. and someone tell me why these hybrid SUV's are hooked up to the largest V8's offered in these vehicles. shouldn't it be the other way around.
Sun Jun 1 2008 4:37 AM
Raptor says

People don't buy hybrid 2,5 tonne 6 liter V8 tanks that get 15 MPG to save money if you ask me...
Sun Jun 1 2008 11:26 AM
zamafir says

@slim: $50,000 doesn't seem unfair, I paid a hair over that for my fully loaded hybrid highlander... though that's managing to delight and average around 26 combined over the last three months, or, if you will, the same combined mileage as my GTI but with seating for 7 and awd.

Though, if the highlander averaged 15mpg as Raptor's hinting I doubt it would have replaced my ol' passat tdi.
Sun Jun 1 2008 12:17 PM
Raptor says

I don't know what real MPG is but with that kind of engine and weight it can't be very high :)
Sun Jun 1 2008 1:49 PM
Layne says

I believe Slim hit the nail on the head; cost. Other than a percentage of Prius drivers, the vast majority of buyers of hybrid and fuel efficient vehicles in general do so for reasons of saving money. For most people, buying a $50K+ SUV isn't going to lower their monthly costs. It's just not gonna help put food in their kids' mouths or help them pay their mortgage every month. That's what most car buyers are thinking about right now in this economy.
Sun Jun 1 2008 9:20 PM
Kyle says

Ummm, how about you talk about the Escape/Mariner hybrids and how well they've sold for years now? Nah, just bash the silly full-size ones GM came out with. Skip the Vue hybrid too.

MotorAuthority