Hybrid Sales Decline

According to figures released by J.D. Power and Associates, sales of hybrid vehicles in the U.S dropped in the second half of 2008 as gas prices began to fall. Prius sales in November and December plunged more than 45 percent, prompting Toyota to delay plans to build the car in the United States. “Cheap gasoline combined with fuel efficiency mandated by the government is an economic and environmental disaster for America,” Auto Nation CEO Mike Jackson said at a news conference earlier this week.

“When the cost per mile driven goes down, people buy bigger, faster” cars and trucks, he noted. Ford Motor Co., No. 3 in hybrid sales behind Honda, suffered the greatest decline, down 22.2 percent. The sales declines coincided with steep declines in sales of all autos due to a severe credit crunch and global economic crisis. The drop in hybrid sales complicates the already difficult task of retooling the American auto industry to be more competitive through increased production of fuel-efficient cars.