Car Makers Stay Ahead of Curve with New Models

Despite lackluster sales, hybrids and electric cars were a dominant part of the scene at Detroit’s auto show, the New York Times reports.

Last year, hybrid sales declined to 2.2 percent. That’s down from 2.4 percent in 2010, according to research firm LMC Automotive. Plus, analysts do not expect major growth this year as a result of cheaper gas prices and higher upfront costs for electric cars.

Nevertheless, the Times says, car manufacturers are forging ahead with hybrid and plug-in models. That’s in part because of fuel efficiency requirements that demand increases later this decade, the Times notes.

Consulting firm McKinsey told the Times hybrids could make up 25 percent of sales by 2020 and battery-powered cars could constitute 5 percent, but internal combustion engines will continue to dominate until at least 2030.

Automakers told the Times battery shortages also hurt sales in 2011.

But executives remain optimistic, including Carlos Ghosn, the chief executive of Nissan, and G.M.’s chief executive, Daniel F. Akerson.

To read the full article by the New York Times cited in this story, click here

Comments are closed.

Featured News Topics