Big Three Automakers Facing Stiff Competition on Fuel Economy Front

General Motors and Ford have all entered the hybrid car market through various new releases, although some would say, begrudgingly. While it’s true that General Motors was one of the first American auto manufacturers to make the move toward hybrid territory with their electric EV1, statements as recent as early 2004 made by Robert Lutz, GM's vice chairman of product development, indicate that GM didn’t see the feasibility of smaller, dual powertrain system vehicles. Apparently, as with the two other "big three" U.S. automakers, General Motors is changing it’s tune.

Recently, Toyota outsold Chrysler in August to take the No.3 position in U.S. car sales for the first time ever. Part of Toyota’s success can be directly attributed to their successful line of hybrid vehicles, which have become more popular as fuel prices soar out of control. Bringing hybrid vehicles to the mass market is an area where all three U.S. manufacturers are lagging several years behind. While they are more expensive than traditional gas only vehicles, hybrid vehicles are beginning to approach the performance characteristics of conventional vehicles. Hybrid vehicles are not only becoming more fuel efficient with each new release, but offer lower emissions, which is a strong selling point for environmentally conscious consumers.

General motors began offering hybrid trucks on the mass market over the last year. Unfortunately, most purchasers of large trucks have little interest in vehicles with performance characteristics below the norm. The new hybrids are unable to tow as much as their gasoline predecessors, have substantially less torque and offer only slightly improved gas mileage and emissions. Fords first offering was an SUV, while DaimlerChrysler has yet to release any hybrid vehicle across all markets, although they have entered into an agreement with GM and BMW to share hybrid technology in an effort to catch up to Honda and Toyota.

As of this writing, low emission vehicles make a very small percentage of the nations overall vehicle ownership. Still, with fuel prices still on the rise and with no signs of slowing down, many in the industry are preparing for eventuality of a market dominated by hybrid cars and trucks. Automotive technical schools have already began preparing for the change, with many offering complete instruction on Honda and Toyota hybrid technology. When education catches up to a trend, it’s a historically healthy sign that the trend is going to continue.

Whether or not U.S. automakers can close the gap will have a large impact on their future. With a market share lower than it has ever been in the past 50 years, it’s becoming increasingly apparent that the poor design, performance and aesthetics which have typified big three auto releases over the last twenty years are finally taking their toll. All this makes hybrid vehicles seem like just another area where U.S. automakers are trying to play catch up.

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