Folks, I almost spilled my coffee reading this one. It seems that $4 a gallon gas is all it took for Americans to start embracing hybrid cars. And, bless their hearts, the big Detroit automakers are getting left in the dust. Korean automaker Hyundai reported a 39% increase in hybrid sales in the third quarter, while Kia’s hybrid sales more than doubled, rising 152%. Meanwhile, Japanese automakers like Toyota and Honda are also seeing exceptionally strong hybrid sales, with Toyota sales rising 29% and Honda up 21%. I guess you could say the writing was on the wall, but it’s still surprising to see the numbers.
It’s not like American car buyers didn’t see this coming, but with gas prices soaring since the start of the war with Iran in late February, they’re now seeking out more fuel-efficient cars, like hybrids. But, unlike their Japanese and Korean counterparts, most American automakers sell very few hybrid vehicle lines. You can’t make this stuff up – it’s like they didn’t think people would actually care about saving money on gas.
Ivan Drury, director of insights at car buying site Edmunds, said, “It just stresses how important it is to have the right product at the right time, but you can’t predict that nearly as well as you would like.” Well, it seems like the Asian automakers were able to predict it just fine. Sales of pure electric vehicles, however, have fallen sharply over the past year, probably because they’re more expensive than gasoline-powered cars, even more so following the end of a $7,500 tax credit for EV buyers last September.
But hybrids, which use a combination of gas engines and electric motors, are much more affordable. Drury said, “I think that this is one of the most clear-cut examples of how consumers are going to find that going with a hybrid is going to fulfill their needs far more conveniently, and at the lower price point than an EV.” It’s not rocket science, folks – people want to save money on gas, and hybrids are the way to do it.
The sales boost from hybrids nearly allowed the Korean automakers to overtake Ford in US sales for the first time ever. Hyundai and Kia posted combined sales of 506,200 vehicles during the third quarter, rising 5.4% from a year ago. Ford, the third largest American automaker by volume, saw its sales fall 6.6% to 509,764. It’s a tight margin, but it just goes to show that the Asian automakers are giving the Big Three a run for their money.
Asian automakers sold more than half of all the new cars during the quarter, according to Cox Automotive. US companies clocked a record-low share. Charlie Chesbrough, senior economist for Cox Automotive, said, “With the (Detroit automakers) having limited hybrid powertrain options and few passenger car offerings, this trend seems likely to continue.” You don’t have to be an economist to see that the writing is on the wall – American automakers need to step up their hybrid game if they want to stay competitive.
For decades, Detroit’s Big Three companies have discontinued lines of fuel-efficient sedans and smaller cars to produce large SUVs and trucks with higher profit margins. But as the national average surges above $4 per gallon, American buyers are giving new attention to fuel efficiency. And American companies have few options. Ford only has one hybrid midsize pickup, the Maverick, and discontinued its hybrid Escape SUV. GM only has one hybrid model, which is a version of its niche Corvette sports car. It’s like they’re stuck in the past, folks.
In conclusion, it’s clear that the American automakers are getting left behind in the hybrid market. With gas prices soaring and consumers looking for more fuel-efficient options, the Big Three need to step up their game if they want to stay competitive. As Drury said, “The momentum that the Big Three have given up is tremendous… Repeat purchases is the lifeblood of automotive industry. If you lose somebody, clawing them back is the hardest thing you can do.” I guess you could say it’s time for the American automakers to get with the times – or risk being left in the dust. And that’s a wrap, folks – now if you’ll excuse me, I need to go fill up my gas tank… ouch!
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
⚖️ ENTER THE LEGALIZER
Think the government has no idea what it's doing? Put your case before the Federal Case Terminal and find out.
