The Hybrids are Coming The Hybrids are Coming

NEW YORK April 7, 2004; Michael Ellis writing for Reuters reported that automakers are promising to introduce more gas-electric hybrid vehicles but the pace is not fast enough for U.S. consumers who want better fuel economy as gas prices rise, or environmentalists who complain the industry could do more to conserve resources.

Ford Motor Co. on Wednesday said it will add a second hybrid, powered by both a gas engine and electric batteries, to its lineup in late 2006 or early 2007.

The 2007 model-year Mercury Mariner hybrid sport utility vehicle will build on the lessons learned from the Ford Escape hybrid SUV, which goes on sale later this summer, Ford officials said at the New York Auto Show. Ford is also planning a hybrid version of a midsize sedan beyond 2007.

Despite what Ford described as "stepping up its commitment" to hybrids, a coalition of environmental and human rights groups singled out the second-largest U.S. automaker for not offering the fuel-saving technology across its vehicle lineup.

The coalition, including the Sierra Club , said it planned to demonstrate outside the New York Auto Show on Saturday, where the industry is displaying many of its new models, to inform the public that Ford and the industry could do more to cut emissions and the U.S. dependence on oil imports.

"Ford has shown that they can make a 35 mpg SUV -- now they need to use this technology throughout their fleet to clean up the environment and cut our oil dependence," Dan Becker, director of the Sierra Club's global warming and energy program, said in a statement.

Although U.S. gas prices have recently hit record highs, unadjusted for inflation, SUVs and large pickup trucks have been the fastest-growing segments of the market this year.

But demand for more fuel-efficient vehicles such as hybrids could grow if gas prices continue to steadily climb, J.D. Power and Associates, a California-based research group, said following a study of 7,126 consumers released this week.

Already, consumers in some parts of the country are on waiting lists for hybrid vehicles.

GUILT-FREE SUVS?

Environmental groups have focused on Ford, in particular Chief Executive Bill Ford Jr., who was an outspoken advocate for the environment before he took over as CEO in 2001. Since then, the automaker has backed down on one of Bill Ford's most noted environmental initiatives -- to boost the fuel economy of Ford SUVs by 25 percent by next year.

The Escape hybrid, Ford's first gas-electric vehicle, will be the most fuel-efficient SUV when it goes on sale this summer, Ford said, getting better fuel economy than most cars on the market. But the Escape has been delayed because Ford said it needed more time for testing.

Meanwhile, Toyota Motor Co. (Tokyo:7203.T - News) will roll out two hybrid SUVs within the next year, in addition to its Prius sedan, which has been on sale in the United States for about four years. Honda Motor Co. (Tokyo:7267.T - News) will offer its third hybrid late this year when it offers the technology on a version of its popular Accord sedan.

Both Toyota and Honda, currently the only automakers to offer hybrids, have reported strong demand for the vehicles. Last week, Toyota said it would raise the price of its Prius hybrid sedan by $300 or 1.5 percent, after increasing its targeted annual U.S. sales volume to 47,000 last December from its previous target of 36,000.

Hybrids, however, remain only a small fraction of overall U.S. sales, which are expected to total 16.7 million vehicles this year.

One of the Toyota hybrid SUVs, the Lexus RX 400h, will usher in a new era of hybrids that offer a racy ride without the guilt. The RX400h, which goes on sale this fall, will accelerate from zero to 60 miles per hour in 7.5 seconds, about half a second faster than the RX 330 SUV, but will get more than six miles per gallon better fuel economy.

"When you talk to SUV buyers, the number one dissatisfaction is fuel economy," Dennis Clements, the group vice president and general manager of Lexus, told Reuters in an interview. "So I think that (RX 400h) will resonate. The luxury SUV business continues to grow, quite dramatically."