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GM Changes Plans For Hybrid SUVs

Sending Email General Motors Corp., seeking to counter its image as a laggard in fuel-efficient vehicles, has switched plans for future gasoline-electric hybrid models, putting a stronger system than had been planned in its large sport utility vehicles, GM sources said.

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Reading Email In 2007, GM will offer a hybrid version of its Chevrolet Tahoe and GMC Yukon full-size SUVs that boosts fuel economy by around 30 percent. In January, GM had announced plans to offer a different gasoline-electric system that only raised mileage by about half that amount.

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Storing Email GM has also changed the hybrid system and pushed back the sales date on its Saturn Vue compact SUV, which is smaller than the Tahoe and the Yukon and already gets better gas mileage.

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Email Software In January, GM said it would offer in 2005 a hybrid system on the Vue that would raise fuel economy by up to 50 percent, or to nearly 40 miles per gallon (mpg). Now, GM will use a weaker hybrid system on the Vue, which will raise its fuel economy by about 12 to 15 percent, or to about 30 mpg, and that vehicle won't go on sale until early 2006, the sources said.

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Antispam Software "We've changed some of the specific programs," one GM source familiar with the plans said. "If you want to save more fuel, you want to put your systems on the highest consuming vehicles first, which are SUVs."

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Fight Spam Thad Malesh, principal of The Automotive Technology Research Group in Thousand Oaks, Calif., said GM's revised plans to raise the efficiency of its large SUVs are a smart move to distinguish the automaker from Toyota Motor Corp. and Honda Motor Co., which have moved quickly to add hybrids to small cars.

Stoping Spam "I think it will really resonate with those (large SUV) buyers," Malesh said. "Any improvement from a very low number is valued by consumers more highly than if you give better mileage to a vehicle that already gets pretty good mileage. It's pretty basic economics, it's diminishing returns."

Block Spam TOYOTA, HONDA OUT FRONT

Spam Emails Currently, the only hybrid gas-electric vehicles for sale in the United States are the Toyota Prius, the Honda Insight and a version of the Honda Civic, all small cars. Sales of those cars are fairly modest, and analysts have said Honda and Toyota lose money on those vehicles.

Email Account However, the auto industry is quickly switching to more hybrid pickup trucks and SUVs to help counter their gas-guzzling image.

Sending Email GM and DaimlerChrysler AG will offer hybrid versions of their full-size pickup trucks next year, while Ford Motor Co. will start production next summer of the hybrid version of its popular Ford Escape compact SUV.

Reading Email Sources at rival automakers said Toyota is planning to show a hybrid version of its Tundra pickup truck at the Detroit auto show in January. Toyota declined to comment.

Storing Email Trucks will account for the majority of hybrids by 2008, but sales will remain relatively modest, J.D. Power and Associates said in a recent report. The California-based marketing and research firm last month cut its forecast for hybrid sales in the United States to 350,000 vehicles by 2008 from 500,000 previously, due to the high costs and delays in developing the vehicles.

Email Software To cut costs, GM will use on the Tahoe and the Yukon an adapted version of the hybrid system it developed for city buses. "Certainly they can leverage all that experience," Malesh said.

Antispam Software By Reuters - 11/6/2003

Topic: Transportation

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