Looking At The Challenges Ahead

As 2008 goes gentle into that good night, here's a look at some of the pressing issues facing hybrid vehicles in 2009.

Auto Loans: Two US car makers received a reprieve just before the holidays, but returning to profitability will be Job #1 for both GM and Chrysler in the New Year. After the Senate failed to approve the appropriation requested by the automakers, the White House stepped in and delivered as much as $17.4 billion in emergency funds. The government of Canada came across with an additional $3.25B to aid the effort to save CAW jobs north of the border. Expect leaner product lines, fewer model options and better fuel economy in exchange. Analysts say, however, that the loan may come too late to save Chrysler

Batteries: In the race to put hybrid vehicles on the market, manufacturers are scrambling to come up with batteries suitable for powering their vehicles. The major sticking point for US manufacturers has been the long-term availability of batteries. As this article, originally published by EV World suggests, there are few options when it comes to alternative power for EVs, HEVs and PHEVs.

Cost: Cost is shaping up to be a major issue for potential hybrid buyers. As it turns out, the 80-20 rule applies to hybrid purchases, too - with only a small segment of the population is willing to pay extra money to drive a hybrid vehicle. When the price on a gallon of gas was north of $4, car dealers couldn't keep hybrids in stock. Now that gas is below $2, hybrids - like all other models - are piling up at the dealerships and the ports. Chinese automaker BYD announced earlier this month that it plans to bring its PHEVs to the non-Chinese marketplace by 2011. Early reports say the vehicle, known as the F3DM, can travel up to 68 miles on electric power alone and will sell for USD$22,000. BYD plans to crack the European and North American markets with the car, but may have to re-engineer the product to meet stricter safety standards.

Design: For years, consumers have complained about the utilitarian look of hybrid electric and electric vehicles. With GM's unveiling of the somewhat stylish Volt in September, and the introduction of the Tesla Roadster on the higher end, consumer hopes were raised, only to be dashed again by sneak peaks at the newly-redesigned-yet-decidedly-jellybeanish look of the 2010 Prius. Design has long been a potent arrow in the quiver of automobile manufacturers, and the right mixture of style and audacity can capture hearts and minds alike. Unfortunately, the manufacturers have yet to use that arrow on their hybrid models.

Economy: There's no getting around this one. The economy stinks for just about everyone right now. There are no bright spots for any automotive manufacturers when it comes to sales figures. Toyota recently warned that it will post its first-ever annual loss. GM, Ford and Chrysler all went to Washington, DC - hats in hand - to secure emergency funding. Across the board, auto sales figures are down, and no one is really expecting 2009 to be much better. The question for 2009 remains "Who will be left standing at this time next year?"

Here's wishing you and yours a Happy New Year! We'll be here to ring in the new year and to offer our perspective on hybrid cars, technologies and the companies that bring them to you.

Photo Credit: Ayhan Yildiz