Until recently, Detroit figured alternative technologies might sell better than hybrids. GM has discontinued the model. This time around, Detroit wants to focus on its hot sellers, and that means trucks. And by 2004, GM is expected to make hybrid versions of its popular GMC Sierra and Chevrolet Silverado trucks. Hybrid cars also are being planned, but for now, only SUVs and trucks are scheduled for production.
Trouble is, hybrid cars have been a tough sell.
Co. Neither Honda nor Toyota are producing their HEV models profitably, and sales have been less than stellar. Honda has sold only around 5,400 Insights since the model was introduced in December, 1999. Toyota's Prius has fared somewhat better. Such legislation would have to be carefully structured, however, as Arizona learned from its experiment with tax abatements for fuel-efficient cars. And if the government decides to tighten gas-mileage standards, says Glenn Chin, equity analyst for Lehman Brothers, carmakers would become more likely to embrace HEVs.