Consumers Shun Large SUV, Luxury Hybrids Due To Additional Costs

by Cameron Aubernon

May 12th, 2014 2:54 AM

consumers shun large suv luxury hybrids due to additional costs

While hybrids like the Toyota Prius and Honda Civic Hybrid are doing well among most consumers, luxury and large SUV consumers are thumbing their nose at hybrid offerings aimed at them.

USA Today reports the additional cost of hybridization — which was a sound business case with regards to size considerations and better fuel economy only a few years before — on top of already-high prices has kept potential consumers away from the likes of the Cadillac Escalade Hybrid and Mercedes-Benz S400, both which have been cancelled as a result. Toyota itself has managed to sell only nine units of the Lexus LS600hL last month, making up just 1 percent of the 706 LS models sold overall during the period.

Despite poor sales and scrapped plans among some automakers regarding hybrid offerings in larger vehicles, Infiniti is one of a few staying the course with its QX60 full-size hybrid SUV. According to spokesman Kyle Bazemore, around 10 percent of QX60 owners have opted for the $3,000 hybrid option not only for fuel economy purposes, but for the V6-esque power.

#Full-sizeSUVHybrids #LuxuryHybrids #Sales #SupplyAndDemand

Comments

Join the conversation

10 of 72 comments

Mandalorian on May 12, 2014

Personally, I wouldn't buy a hybrid because of the inconvenience. Having a battery pack that limits trunk space or prevents rear seats folding down is a real drag. People shouldn't be expected to pay a hybrid premium for less utility.

Like Reply
- Stuki on May 13, 2014
  
  A giant BOF truck in general has so much unused space, that if there really was a market, they'd be able to tuck the batteries where few would mind having them. That would, however, shoot a big hole in business plans revolving around using the cheapest battery packs, and the minimum engineering necessary, to capture as much of the hybrid markup as profits as they can.
  
  Like
FreedMike on May 12, 2014

I'm amazed anyone thought these would actually get bought in the first place. People who buy these enormous SUVs don't care about fuel economy, and they don't care if anyone thinks they're environmentally conscious. If they were, they wouldn't be buying one of these in the first place.

Like Reply
- See 2 previous
- Highdesertcat on May 12, 2014
  
  Thank you, Mike. Exactly my sentiments AND..... MY lifestyle. The next large SUV we buy will be a 2015 or 2016 Sequoia 5.7-liter, if they still make them. We'll be trading off my wife's 2012 Grand Cherokee V6 and stepping up to a V8. Is the cost of gasoline a consideration? Not in the least bit. Has the cost of gas EVER been a consideration for most Americans? Not if you can believe that the F150 is the best selling vehicle in America, and this was long before ecobust was cool.
  
  Like
- Stuki on May 13, 2014
  
  @highdesertcat It seems to be enough of a concern to warrant rah-rah-ing around any half literate yahoo who claims Scary Muslim Virgins wants to make their gas more expensive. And that it's better to spend a few tens of thousands per tax payer constructing elaborate bomb craters around the world, than to simply sit back and see if that drivel has some actual merit first.
  
  Like
- Highdesertcat on May 13, 2014
  
  @stuki I have traveled up and down the I-95 corridor and the I-5 corridor, and even more times going East-West on I-8, I-10, I-40, I-70 and I-80. And even during the times when gas was over $5/gal there was never a lack of demand for it. People just lined up at the pumps and sucked that stuff down like it was the elixir of the gods. Until something happens that would make gasoline and diesel unobtainable at any price, like in 1973, I don't see it as an issue. People may p!ss and moan about the price but they aren't altering their buying behavior. Instead what they do is spend less money at small businesses like coffee shops, diners, fast-food joints, and the like. That's why so many of those have gone belly up.
  
  Like
APaGttH on May 12, 2014

It's real simple. If you can cough up $65K+ for a Suburban, even if that Cheddar is coughed up over 72 months - you're probably not losing sleep on the price of a gallon of gas.

Like Reply
- Highdesertcat on May 12, 2014
  
  There's always the 120-month loan repayment plan......
  
  Like
George B on May 12, 2014

I think the hybrid BOF SUV didn't sell well because there were better solutions to the problem of poor SUV fuel economy. Soccer moms never really wanted an Escalade, hybrid or not. They just wanted a tall vehicle that wasn't a minivan. The CUV provides the ride height with more car-like suspension tuning. The Range Rover thoroughly and completely beats the Hybrid Escalade for status vs. price. Men with big toys like large boats want a luxury SUV as a tow vehicle. A drivetrain which reduces tow ratings is a big negative for the boat towing customer. In addition, city cycle fuel economy improvement isn't that useful for a truck so spectacularly unsuited to fitting in city parking spots.

Like Reply
- Stuki on May 13, 2014
  
  You, sir, should consider a career in auto industry consulting....
  
  Like