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Americans have fallen out of love with the gas guzzler.
A tank of petrol now typically costs more than $100 (£50) for a big SUV – compared with just $30 five years ago – and dealers can barely give away the giant Ford Expeditions, Dodge Rams and Chevy Suburbans cluttering up their lots. Demand for small and hybrid cars is soaring, with vehicles being sold for more than their advertised prices.
By some accounts the wholesale auction prices of small-engined cars have jumped by as much as 40 per cent as dealers fight to buy them in time for today’s federal holiday – Memorial Day – when many American families traditionally shop for new vehicles.
Chrysler – which owns the fuel-inefficient Jeep brand – has gone so far as to give customers credit cards that guarantee petrol prices at $2.99 a gallon for three years. Its scheme is called “Let’s Refuel America”.
Ford has taken a more radical step: with the market share of SUVs having plunged from 14 to just 9 per cent in 12 months, the company will build 350,000 fewer vehicles this year, a move that will almost certainly involve more job losses and plant closures, while delaying profitability.
Ford is also planning to bring the Fiesta to the US later this year – the first time that the small hatchback will have been sold in America since the 1970s oil crisis.
“We saw a real change in the demand in pickups and SUVs in the first two weeks of May,” Alan Mulally, the chief executive, said. “It seems to us we have reached a tipping point.”
With European-style diesel engines unavailable on most noncommercial vehicles in America – they fail the crucial smog test in California, although newer technology might soon change that – Americans have shown the most interest in hybrid cars that combine electric and petrol power.
Hybrids have the added advantage of emitting reduced quantities of carbon dioxide when driven in the city, although they have suffered an image problem thanks to the perceived sanctimony of owners. The TV show South Park lampooned hybrids as creating dangerous levels of “smug”.
Hybrid cars account for only 3 per cent of US car sales but orders are increasing so dramatically – they were up by 58 per cent last month – that manufacturers can hardly keep up. There is a 30-day waiting list in Los Angeles for the Toyota Prius, which can do 48 mpg in the city (the equivalent of 57 mpg in larger UK gallons). Every Prius that arrives at a Los Angeles dealership is sold within three days, according to a recent survey by the Los Angeles Times. As a result, dealers are adding mark-ups of as much as $3,000 a car.
It is the same story with SUV hybrids. “It could be a month or two before we get one in,” a salesman at Toyota’s Santa Monica dealership told The Times, when asked about a Highlander Hybrid SUV that does about 18 mpg in the city. “They sell before they even arrive.” The hybrid Highlander costs $50,000, similar to the price of a far more prestigious but chronically oil-addicted Land Rover LR3 (called a Discovery in Britain). The so-called “sticker shock” is made worse for many motorists because the value of trade-in SUVs has fallen by 8 per cent since last year.
Americans hoping for a longer-term solution to oil costs have few options, other than buying an old car and having it converted to run on electricity by one of many custom workshops. So-called “plug-in” hybrids, which use lithium-ion batteries and can handle a daily commute between charges – thus eliminating the need for petrol – are still suffering development problems, with the much-hyped Chevy Volt not expected in showrooms until 2010.
The Silicon Valley electric car-maker Tesla Motors – which uses Lotus body parts from Britain – recently opened its first dealership in Los Angeles but has nothing to sell because only four production models of its much-hyped 139 mpg sports car have been built. The Tesla Roadster can allegedly accelerate from 0-60 mph in 3.9 seconds and go 220 miles on a single charge, but problems with the transmission have forced the company to delay mass production until December.
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I am ashamed to be from the US in this day and age. Not all of us drive huge SUV's and trucks. There are pleanty of us who want change but if you make too much noise your bumped off just like in any other country. I bought the most fuel efficent car i could afford. We are denied high mpg cars.
Paul, Chesterton, USA
This may sound like heresy, but perhaps major cities around the world should be imposing "congestion charges" and use the funds to improve public transport. The rich will always be williing to pay for the luxury of driving "downtown". What about the "compressed air" vehicles made in France?
Patrick, Toronto, Canada
David from sunnyvale: re: the "long tailpipe" argument against electric cars.
I don't know who's behind the this particular canard ... but it won't fly. Even if you use 100% coal to make your electricity, you're still better off than burning gas. Use clean renewables and it doesn't get any better
Neil, Vancouber, Canada
To those concerned about the cost of building and powering the new generation of hybrid and all-electric cars, I recommend two websites:
http://www.pluginamerica.org/links.shtm
and
http://www.sherryboschert.com/works.html
Both sites provide detailed references addressing your questions.
Paul M. Rybski, Whitewater, WI, USA
Why don't I understand a word of what RM of Lincoln just told me?
Roger, Arese, Italy
Louis Blanc, Liverpool
Try towing a 2 ton trailer full of sound equipment with a 1.6 litre engine you smug eco-fool. Just because you don't need the torque generated doesn't mean other people don't!!!
Rob, Gloucester, England (unfortunately)
A quick calculation based on Automobile Association (AA) figures shows that a 25 percent increase in fuel prices has increased my total motoring costs by 7 percent (193 pounds) a year.
If I were to trade in my Range Rover for a Prius today it would never pay for itself in my lifetime. So why do it?
Tim, London, UK
The more problems that the American public have associated with fuel prices the quicker the environmental issues concerning pollution will be addressed. The American life style, now adopted by most nations of the world, is destroying the planet. America must lead the change in life styles and soon.
Jim Wills, Brisbane, Australia
Automotive greening of America, they don't care about emissions only the price of gas. And to be global about it, why should a Fiesta driver in Croydon, England, pay a fuel tax and be persuaded by the government it is a moral duty.
jane, Whittlesey, UK
Want an immediate solution? Switch to two wheels. I just bought a cheap used motorcycle for $1000 which gets 35-45 mpg and I've been having the time of my life. Maybe it won't pay for itself, but if you've been thinking about getting a bike, do yourself a favor and seize the moment!
Thomas Farnsworth, Bethesda, Maryland, USA
The time is coming when a new speed limit of 60mph will be installed in all motor vehicles apart from police and emergency wagons
ken conway, ayr, Scotland
Time to buy GTL resources on the London AIM....at 33p they
represent the best managed of the E85 producers and they live a few miles from Chicago....fully financed through to completion of 100m gallons.
RM, Lincoln, Lincs
A recent major European media comparison of the Toyota Prius and a BMW 3 Series Diesel (not avail in the US) showed how we are cheating ourselves in the US. The BMW Diesel got 10 more miles to the gallon and ran circles around the Toyota Prius at a near comparable price. Give me a BMW Diesel any day
William, Hobe Sound, Florida, USA
What a joke - highly 'efficient' hybrid that does 18mpg. There is talk here in the USA of engines that might one day be doing 40mpg.. WAKE UP - this has been the norm in Europe for many years.
How many of the large SUV's or trucks actually have any more than 4-5 seats as per a normal saloon?
Paul, Houston, usa
In the US, electrically powered cars are a cruel joke. They are no greener than the power plants which feed them. They just move the pollution sources elsewhere. The problem is there is no "elsewhere" on this planet anymore.
david, Sunnyvale, United States
Most of the problem lies in America's conservative (as a whole) society and its reluctance to accept new or different ideas; especially when dealing with global or national issues like fuel consumption and oil price. Maybe $5-6 per gallon gas is what America needs to finally show some change.
N.R, Burnsville, MN, USA
With the corruption usually found in U.S. politics and bureaucracies, one wonders why a California emmision's ruling on diesel engines has eliminated the possibility of more these more efficient diesel engines for the entire rest of the country. Is this really due to the ethanol lobby's payoffs?
Jim, Roscoe, USA
Louis Blanc, what is the cost, in green terms, of the production and disposal of all of the batteries required for your hybrids?
David Leslie, Perth, Scotland
SUV hybrids do 18 mpg in the city! Aren't Americans meant to be really suffering from sub prime fallout instead of pre-ordering these monsters? How bad does the economy have to get before there is no longer a "traditional" holiday dedicated to buying new vehicles?
Diana, Derby, uk
Louis Blanc, why do you want to force everyone to have a hybrid? You can buy a BMW diesel or lots of other cars that do a good 60 mpg imperial, better than hybrids, and they go better too. Soon there will be other solutions out there so no point forcing everyone down a road that will be superceded.
James, Limoges, France
What happened to all of those wonderful steam engines invented for cars, that allegedly disappeared not long after they got invented; and all of the perpetual motion gizmos?
Myth has it the US oil companies bought up the patents only to hide the plans away.
Maybe we will see them yet.
G.Gibson, Sydney, Australia
Finally the chickens have come home to roost....for decades America has been in denial over oil, climate change and anything else that affects their cosseted lifestyles...welcome to the world...perhaps now that you are hurting we will finally get some action from your President.
James, St Peters,
Yes Louis Blanc, but at the same time we also need to force through legislation that woman are no longer allowed to use hairdryers as the energy they use is certainly wasteful when a dry towel will do.
GM, Brisbane,
I drive a non-hybrid that gets over 60mpg imperial, and have done for years. It's a regular 5-door hatchback available throughout Europe. There are millions on the roads here. But the Americans don't want them, they'd rather do things less simply with all this hybrid stuff than use diesel.
Paul M, Puerto del Rosario, Spain
Americans and their God... America, the largest producer and the largest importer of oil on the planet, a country which accounts for close to 40% of word oil-burning.
Rui, Lisbon, Portugal
I have been saying this for years that ....Every government has to force legislation through that every motor manufacturer has to produce cars with a max engine size of 1600cc and they have to be hybrid engines within next 3 years.
louis blanc, Liverpool, UK
I do believe that this is the beginning of new era. Cheap oil has gone and we are on a way to new forms of energy generation and utilisation. Hybrids will buy us some time, but they also cannot live without petrol, so maybe in 30 or 50 years we'll see new types of cars.
Rassul, Rakhimov, Kazakhstan
The price of gas will drop some and Americans will revert to their old habit of buying automotive inefficiency. After all, we do have a god right to gas guzzling vehicles and cheap fuel to put in them.
Bruce Northwood, Washington, D.C., USA