e360 digest

11 Jan 2012: Automakers Unveil New Hybrids,
But U.S. Consumer Demand Still Sluggish

While the major automakers have unveiled new electric plug-in and hybrid cars at this week’s North American International Auto Show in Detroit, including a cheaper version of the Toyota Prius, industry observers say consumer demand for alternative fuel cars remains tepid. Even as auto sales in the U.S. increased by 10 percent last year, sales of “alternative source” light vehicles increased by just 2.3 percent, according to one analyst group. Overall, sales of hybrids and plug-ins dropped to 2.2 percent of all auto sales last year, down from 2.4 percent in 2010, the New York Times reported. So even as automakers say they believe electric vehicles are an important part of the future (with Ford, Chevrolet, and Nissan also unveiling new hybrids this week), some major players concede they might be forced to reduce production. On Tuesday, a General Motors executive said the company may cut production of the plug-in hybrid Chevrolet Volt if sales don’t achieve expectations during the first half of 2012. Last year, the company sold about 8,000 Volts — about half of its target.

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