In what may be very bad news for GM and their SUV hybrids, Chrysler has announced they are setting the price for their oversized SUV hybrids at $5,000 less than what GM set it at.
GM hybrid SUV sales have not been great so far, with high gas prices and high sticker prices keeping many customers away. But GM set a sales goal of 10,000 units for the first year and they have said they still think they can make it.
But the 2009 Dodge Durango Hybrid and Chrysler Aspen Hybrid, due out in August, wills tart at $45,340 and $45,570, respectively. That's $5,000 less than the GMC Yukon and Chevy Tahoe. Since GM, Chrysler (DaimlerChrysler before the breakup) and BMW collaborated to build the two-mode hybrid system in the vehicles, you would have to wonder if this sort of competition will be good for either company.
Given the sales pace so far, this many models will saturate the field quickly, if it already isn't.
Tuesday, June 17, 2008
Chrysler Sets New Hybrid SUV Prices at Five Thousand Less Than GM is Charging
Hybrid Research and Pricing at Edmunds.com
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4 comments:
At Autobloggreen, it was pointed out that both the Toyota Highlander and Lexus RX400h cost less than the US SUVS, and get better gas mileage than the US SUVs. While there's a size difference, there's a 10,000 difference between the Durango and Highlander, and about a 7-10 mpg difference as well.
I don't understand what Chrysler, GM or BMW were thinking with this. The people who are going to buy hybrids are looking to buy smaller and more fuel efficient cars. Look at what happened to the Honda Accord. Built for performance, and it failed.
Now we have large SUVs (not really a fair comparison to the Highlander, Escape or RX400h, since they are a lot bigger) that are more fuel efficient. But are there really going to be a lot of people lining up to buy them? I'm sure there will be some, but I'm also sure there won't be many.
What is the point? It still drinks gas and handles like a whale
I think you can make the argument that going from 15 to 20 mpg is just as important as going from 40 to 60 mpg.
If you drive 15,000 miles a year, it will require 1,000 gallons of gas when you get 15 mpg. Up that to 20 mpg and you save 250 gallons.
Going from 40 to 60 mpg saves you 125 gallons.
Now it would be nice if everyone drove smaller cars, but I know that some people, believe it or not, do need larger cars. Even eight seaters. Improving those large cars is just as important as improving the small cars.
But, I also know that sales of the large hybrid SUVs that are just coming out will be limited. The extra cost of a hybrid system may not be attractive to buyers interested in towing capacity. People who are buying smaller cars are more likely to be interested in fuel savings in the first place.
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