Hybrid cars: GM makes move as Toyota sees dip

That old ad slogan that the car in front is a Toyota could never be more apt when applied to hybrid cars. Okay, Honda might have a thing or two to say about that statement, but when you compare Japan’s number one automobile maker with the big three US car makers, you will see what we mean.

GM has been suffering with its big thirsty monsters of the highway apparently going the way of the dinosaurs, while the sleek Toyotas seem to be natural selection’s answer.

But this week has seen something of a change. First of all GM announced it plans to move into hybrids yesterday, with its chief executive, Rick Wagoner, who was at the Los Angeles Auto Show saying: “I can tell you that is a major priority for General Motors”.

It’s not so much what Mr Wagoner said, it was more the timing and location that had the industry sitting up. GM is not popular in California. It’s the state where hybrids are especially popular, and recently, while Brits have been queuing to see the latest blonde Bond, in California the documentary, “Who killed the electric car”? is all the rage at the flicks. The film, produced by Chris Paine, interviews a host of electric car fans including Mel Gibson and Tom Hanks, and leaves GM, which had its own hybrid car in the ’90s which it then ditched, looking less than - how can we put it tactfully, environmentally pro active.

Yet, while GM starts making hybrid noises, Toyota may have stalled. Apparently, October saw the lowest level of Toyota hybrid car sales since March. Just two months ago, they were queuing round the block for the vehicle; this time the company actually produced more cars than it sold.

The US government gets the blame. There’s a big tax break for purchasers of hybrids, but there’s a snag. The tax credit only applies to the first 60,000 vehicles a car manufacturer can shift, and Toyota passed that milestone in the summer, and with that, sales have fallen like a British Leyland car off the edge of a cliff - actually that’s a little harsh, sales were still 15,000 in the month; it’s just that the company was doing a lot better.

There’s talk the legislation may be revised so that once again Toyota can get the tax break.

The hybrid car has its critics. They say that the electricity it uses is just as damaging on the environment as gas. It’s just that the point of damage is changed. With gas, it’s obvious you can virtually see the pollution as the car trundles along. With electricity, the carbon dioxide is released at the point of production. This argument misses an important point however. Wind, solar (see Monday’s article Desert provides panacea to energy crisis), nuclear, even tide power can all provide a greener and sustainable way of generating electricity. However many alternatives to oil have drawbacks. The use of bio fuel can also damage the environment, while hydrogen cars are said to be a long way off.

Still with cars, but away from the environment, nearly half of workers at Ford have accepted its redundancy plans. Cost slashing Ford need to get rid of 30,000 of its US staff, and has earmarked around $7billion to fund the job cuts. Yesterday, news broke that over 38,000 workers had accepted the redundancy offer - more than the company targeted. A meaner sleeker Ford may be better suited to take on the world, but it will need sleeker cars, meaner with gas as well as cost cuts, if it is to be successful.

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