This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Has Interest in Hybrids Run Out of Gas?




By Phil LeBeau, CNBC Correspondent

NEW YORK ( CNBC) -- Strange how things have changed in the last four years.

Back in 2008 when gas prices spiked above $4 a gallon, the demand for hybrids was so great dealers charged more than the MSRP for some models and had waiting lists of buyers more than willing to pay up for a gas-electric car.

Compare that with the way people are looking at hybrids right now.

Even as gas moves close to $4 a gallon demand for gas-electric cars is modest at best. There has been a clear change of heart when it comes to hybrids in the U.S.

More from CNBC
The Fight to Win Your Breakfast Dollar
Google Will Beat Apple to $1,000: Greenberg
What the 'London Whale' Is (Probably) Doing

What changed is the sudden and rapid development of new cars that get at least 40 MPG. What was once the kind of mileage you could only attain by driving a Prius or some other hybrid, is now almost common. In 2008, there were only two models getting over 40 MPG (Civic Hybrid and Prius). Today, there are 22 models and many are not hybrids.

In addition, the new wave of 4 cylinder cars that get 40 MPG have a far different feel when you drive them. These 40 MPG cars allow drivers to have their cake and eat it too.

This doesn't mean hybrid cars and SUV's are going away. They are here to stay. Look at the expanded line-up of Prius hybrids now offered by Toyota. The new Prius c has been a red-hot seller since its introduction last month. And as gas prices move higher, you can bet hybrid sales will likely increase.

But as we see more cars with internal combustion engines getting at least 40 MPG, the growth of hybrids will likely be limited. This year, just 2.4 % of all vehicles sold in the U.S. have been gas-electric models. A lower percentage than we saw four years ago.

Unless we see a surge in the average mileage achieved by hybrids (60 MPG becoming the norm) we may not see demand for gas-electric cars grow substantially.



--Written by Phil LeBeau at CNBC

CNBC is a world leader in business news, providing real-time financial market coverage and business information.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs