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Demand For Hybrid Cars Rising Again even in Iowa! February 2005As new technology seeps into the automobile marketplace, Ames-area car dealerships struggle to keep up with the nation-wide interest in hybrids. Car manufacturers are generating newer, faster and sometimes more efficient models, while dealers are selling them as soon as they arrive.With gas prices on the rise, consumers are becoming more economically savvy and environmentally conscious in their automobile purchases. "To me, it's a symbol of what needs to be fixed in terms of conserving, in terms of passing on to the next generation, in terms of world peace," said Pat Brown, the first person to purchase a Honda Insight from Honda of Ames (Iowa) in July 2002. The Insight was the first hybrid automobile to be sold in the United States. Brown's political frustration with the environmental policy of the Bush administration prompted her to purchase the hybrid without having seen it. Since then, she has replaced her Insight with a second hybrid, a 2005 Honda Accord, in order to transport her grandchildren more easily. The Accord's 255 horsepower engine and larger interior space contrast with the Insight's 73-horsepower engine and two-seater design. "You see every demographic across the board come in and buy them," said Danny Wilson, vice president of Wilson Olds-Cadillac-Toyota. "You can't pinpoint and say, this group of people are buying this car." Wilson has observed several owners of high-end cars - BMWs or late-model Lexus sedans - trade in their vehicle for a Toyota Prius. Going green Political and environmental considerations are motivators for many hybrid car customers, including Mikesch Muecke, associate professor of architecture at Iowa State University and owner of a Toyota Prius. "I thought it was time to show some civic responsibility and say, 'I'm not going to drive a car that makes us more dependent on non-democratic states like Saudi Arabia,'" he said. He is not only a satisfied owner; he's an advocate of hybrid technology. He purchased signs for his front car doors that read, "Gas electric hybrid, SULEV (Super Ultra Low Electric Vehicle)." "I have the signs on the door to convince whoever sees me that they should look at the car, too" Muecke said. His environmental stance extends beyond the university parking lot. He incorporates concepts of green design, or the transformation of human industry through ecologically intelligent design, into his architecture classes. "I try to bring that kind of thinking into my teaching," he said. "There's no way that we can keep going with what we're doing because we're using so much energy." How they work Most hybrid vehicles operate on three principles: regenerative breaking, electric motor assist and automatic start/shutoff. "It recharges those batteries as you're driving it," explained Tim Ellett, general manager of Honda of Ames. "So you use the batteries by accelerating, and as you're breaking and slowing down to a stop sign, it regenerates (kinetic energy)." Both Honda of Ames and Wilson Olds-Cadillac-Toyota have hybrids on the lot to test drive, but coming to own a hybrid takes a careful balance of patience and preference. Most dealerships require customers to go through an ordering process that requires a $500 deposit. Supply and demand The wait time is in constant flux as the supply and demand changes, but the average turnaround ranges from two to five months. This time can be further delayed by a customer's preference for make, model, and amenities. "We're selling everything they give us," Ellett said. He believes Honda's waiting list will lighten as the year progresses. "If (customers) are committed to this idea, we've found them to understand that this is going to take a little while," he said. In the case of Toyota, the supply chain has deviated from the normal allocation of vehicles. "They're actually building these cars and sending them, and then trying to match them to an order, as opposed to taking an order and building a car from the order," said Ron Frandsen of Wilson Olds-Cadillac-Toyota. The lag time in Ames is neither unique nor new. Dealerships across the country are waiting for their supply of hybrids to arrive. "There was a point where we actually had a year-long waiting list," Wilson said. What's next General Motors has focused hybrid development on its most popular pickup trucks, the GMC Sierra and Chevrolet Silverado. Hybrid models of these trucks not only offer improved gas mileage, they are supplied with three-pronged, electrical power outlets in their cabs and truck beds. Outdoorsmen can use the outlets for camping, and construction workers can use them for tools or equipment. "For tailgating, you can plug in the George Foreman grill, and you can have reserve power from those batteries," said Mitch Roese, new car inventory manager at Benson Motors. Roese said customers can order a GMC Sierra Hybrid and receive it in six to eight weeks. The next wave of hybrids to hit the Ames community will be sport utility vehicles. Willey of Ames anticipates the arrival of the 2005 Ford Escape Hybrid in April or May. Despite the high levels of customer inquiry, Guy Willey, general manager of Willey of Ames, explained, "They're going to be in very short supply to begin with... Most dealers, regardless of size, are going to see one or two at the most early on." The Wilson Olds-Cadillac-Toyota dealership is expecting to receive the 2005 Toyota Highlander Hybrids in late summer or early fall. Wilson said it has already received deposits for this new vehicle. "The awareness of (hybrids) is out there," he said. The dealership educates consumers on "what the technology really is while giving them an understanding of what it's like to drive the car." While Toyota and Honda have pioneered the road to hybrid accessibility, many other manufacturers are in the process of rolling out their own versions, such as the Lexus RX 400h SUV and the Dodge Ram Pickup. Sticker shock While most if not all Ames dealerships offer hybrids at manufactured suggested retail price, Muecke warns consumers not to get drawn in to paying more than sticker price. In July 2002, he researched online vendors and purchased from Toyota of Iowa City due to local unavailability of his model. "We have not charged over the suggested price of the car," said Frandsen of Wilson Olds-Cadillac-Toyota. "There was a time on eBay (that auctioneers) were selling $6,000 over window sticker price." The estimated cost difference between a hybrid versus a standard model is $3,400 in the Ford Escape and $3,500 in the Honda Civic and Accord, according to general managers at Willey of Ames and Honda of Ames. Consumers currently receive a $2,000 federal tax deduction on approved hybrid purchases. Although this helps defray the higher cost, the deduction will drop to $500 for 2006. Safety As with any technological advancement, hybrids raise new public safety concerns. The Ames Fire Department visited Honda of Ames to become familiar with the design layout. "If they're going to extract somebody from a wrecked (hybrid) vehicle with the Jaws of Life, they have to be a little careful of the high-powered electric circuit. They have to cut it in a certain fashion," Ellett said. Many car manufacturers are addressing this concern by color-coding wires and adding automatic shut-off switches. In addition, manufacturers are distributing emergency response guides to increase public awareness. One of the most important concerns with new automobile technology is maintenance and repair. In preparing for the Escape rollout, the Ford dealership has upgraded its service department. "We've had to do special training for our technicians, and most of that relates to the battery cell that helps run the electric motor," Willey said. Otherwise, the Escape Hybrid is pretty similar to the standard Escape. Happy customers Neither Brown's Insight nor Meucke's Prius has required any service beyond normal wear and tear. Both hybrid owners love their vehicles, and they want others to own them too. "I think it's people who want to make a real difference, Ellett said. "They want to make a statement and be part of a movement - cleaner air, cleaner water, use less natural resources." "You have to drive a car. You have to get from Point A to Point B. Why not have a hybrid that would get the best fuel economy possible?" | ||
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