Higher gas prices fuel hybrid sales

By Paula J. McGarvey for The Montana Standard - 09/17/2005

Rising gasoline prices, federal tax incentives and threats of global warming are increasing sales of hybrid gasoline-electric vehicles nationwide, and Montana is no exception.

In a state where residents are known for their love of opening it up on the open road, drivers are feeling the pinch at the gas pump. More and more new car buyers are considering hybrids.

For those intimidated by new technology, rest assured, hybrids are here to stay. Introduced in 1999, hybrids get better gas mileage and have cleaner emissions than their gasoline-powered counterparts. Hybrid performance has been proven to rival or exceed comparable conventional engines.

Market research conducted in February by JD Power and Associates predicts that 17 hybrid-electric vehicle models will be on the market by 2006 and an estimated 38 models available by 2011.

Local auto dealers are taking note, with hybrid sedans or SUV models currently available at Butte's Toyota, Ford and Honda dealerships, with GM joining the local market with hybrid trucks for 2006.

Toyota Jim Fisher, sales manager at Leipheimer Toyota in Butte, said technology and availability has improved since the Toyota Prius hit the market in 2001.

"When they first came out, they were very hard to get," said Fisher, who added that the dealership is currently selling about 15 Prius hybrids a year. The demand for the vehicles has increased since gas prices started to climb, he said. "The demand is higher than the supply," he said.

Locally, Fisher said Prius prices range between $21,000 for a base model to $27,000 for the high-end model, which includes a navigation system. Pricewise, that's substantially more than the comparably equipped gas-powered Toyota Corolla, which lists for $17,000 and averages 35 mpg. With the Prius averaging 50 mpg, Prius drivers should make up the sticker price difference at the pumps over time, said Fisher.

When it comes to performance, the Prius has proven reliable. "We haven't had to do a lot of work on them," said Sherwood Wolstein, a mechanic at Leipheimer Toyota. Wolstein attended a special training class to learn how to service hybrids. He said he didn't find the hybrid motors any more difficult to work on, just different. "They're more high-tech," he said.

When asked about the reliability of the electric motor's 500 volt battery in the cold, Wolstein said the motor's batteries seem to be faring well through Butte's subzero winters, but he has seen a few dead batteries in the hybrid's gasoline-powered engine due to forgotten headlights.

In addition to the Prius, Toyota recently introduced its Highlander SUV for the 2006 model year. Fisher said that he has already sold one off the Butte lot and more are scheduled to arrive. Although the sticker price is high at $40,000, the Highlander is still a better bet economically and environmentally than Toyota's gas powered version. The hybrid averages 31 mpg in the city and 27 mpg on the highway. The gas-powered Highlander lists at $36,000 and reports mileage of 21 mpg city and 25 mpg highway. The deal improves when tax incentives for clean emission vehicles from the federal government are factored in (see story at right).

Christopher Borton and Linda Welsh of the Sage Mountain Center near Whitehall purchased a Prius from Leipheimer Toyota this past spring. Borton and Welsh already use solar electricity and wind power to run their retreat center and had been watching the car market over the past five years to find a hybrid that would support their See HYBRID, Page A6 environmentally friendly lifestyle.

"There really hasn't been a hybrid electric car available that's been affordable," said Borton.

"My car was on its last legs, so we needed a new one this year," said Welsh, who admitted to driving a 1991 Mitsubishi Montero, which was only averaging 18 mpg. Welsh said that after a cost analysis adding up insurance, fuel and repair costs and factoring lower hybrid prices with federal tax credits, the numbers finally worked for the couple to purchase their first new car.

After researching the local market and numerous test drives, Borton and Welsh ultimately decided on the Prius. So far, they are very pleased with their purchase. "The mileage is amazing. The first tank of gas went 540 miles and it's just a 10-gallon tank," said Borton.

Despite the camel-like ability to bypass the gas pump, Welsh said they do try to limit their driving. "We're still trying to be conservative as far as our consumption," she said. Nevertheless, Borton couldn't help but be excited about the Prius' fuel efficiency on a recent road trip. "It cost us $3 to drive to Bozeman and back," he said, smiling from ear to ear.

Ford (Photo of Betty Jeffery with 2005 Ford Escape SUV hybrid) The Ford Escape hybrid SUV has been available at Brooks Hanna Ford in Butte since early spring. Listing at $32,985, the Escape hybrid gets an average mileage of 33 mpg in the city and 29 mpg on the highway. The gas-powered Escape lists at $23,350 with mileage reported to average 19 mpg in the city and 22 mpg on the highway.

Hybrids vehicles like the Escape are powered by both a gasoline engine and an electric motor, the latter giving the hybrid its trademark quiet ride, clean emissions and great fuel efficiency.

Service Manager Tom Boucher, who underwent special training to work on the Escape hybrids, explained how the vehicle operates. According to Boucher, the Escape uses the gasoline engine to power a generator, which provides power either to a 330-volt battery pack, or directly to the electric traction motor that drives the vehicle.

"It also has regenerative breaking. When you hit the break it recharges the battery," Boucher said, a trait that adds to the vehicle's economical appeal and gives it better mileage in the city. Boucher added that when it comes to performance, the hybrid has another benefit. "The advantage to electric is that it has maximum power all the time," he said.

Boucher said that in the Escape, the battery is located in the back of the vehicle and has its own cooling and heating system. Like all hybrid vehicles, the high voltage batteries do present a risk when servicing the vehicle and all high voltage wiring on hybrids is color coded in orange.

Hybrid engines truly offer drivers a quieter ride. "My vacuum cleaner is louder than this," said Salesman Dave Coleman on a recent test drive. Coleman pointed out how the electric motor shuts down when the vehicle comes to a stop and resumes power when the accelerator pedal is pushed, a plus for keeping down engine emissions. Other than the stillness in the SUV's interior, the Escape performs like any gas-powered vehicle.

Don and Betty Jeffery traded in their 2002 Ford Explorer to buy the first Escape hybrid sold in Butte. Betty Jeffery said that she had been concerned about the environment and started looking at hybrids five years ago, when the Toyota Prius was the only option.

"We wanted to buy American," said Jeffery, who put off buying a hybrid until recently. Jeffery said her son saw an Escape Hybrid on the Brooks Hanna lot and called them.

The couple drove out to the lot to have a look and took it for a test drive. "It never went back," said Jeffery.

According to Jeffery, the couple hasn't had to compromise on the vehicle. "It's so quiet. You can sneak up on people in this thing and they never know you're there," she said. Jeffery said the vehicle handles well, the ride is nice, and passing and traveling over mountain passes hasn't been a problem. "It's got lots of power," she said.

The fuel efficiency has been an added plus with the rising cost of gasoline this summer. "We've had it since March and we've put out less than $150 in gas. We fill it at about a half a tank and it's usually between $12 and $13," said Jeffery, who added that the couple does most of their driving in town. "Economically I think it's been good for us." Jeffery thinks buying a hybrid makes good sense. "I think we need to get away from being dependent on the gas. They're starting wars over it and that's crazy," she said.

Honda (photo of Gene Hewitt and his 2005 Accord Hybrid and Joe Leskovar) Honda has been offering hybrid models since 2001 with the introduction of the Insight. The Insight was joined by the Civic hybrid in 2002 and the Accord hybrid in 2005.

According to Joe Leskovar, owner of Leskovar Honda in Butte, Honda hybrids have been hard to come by in Montana. "It's a very high demand car," he said, explaining that Honda had an allocation system that limited the number of Civics and Insights to their dealers. "They just can't build them quick enough," he said.

Leskovar said sales of Honda hybrids hadn't taken off locally because it is hard to get a person to buy a car sight unseen. That has changed with new dealer allocations for the Accord. "Once you get them on the lot, people are interested," said Leskovar, who has sold four Accord hybrids since March.

From the outside, the new Accord hybrid resembles the gasoline version, although there are some differences, the most notable, in sticker price and mileage. According to Leskovar, Accord hybrids list for $30,665 with average mileage reported at 29 mpg in the city and 37 mpg highway. In comparison, the gasoline-powered Accord lists at $27,365 with average mileage of 21 mpg in the city and 30 mpg on the highway.

Other changes in the Accord hybrid include lighter alloy wheels, aluminum hood, omission of moon roof and the addition of a tire repair kit with sealer and air compressor in lieu of a spare tire, said Leskovar.

Gene Hewitt purchased an Accord hybrid from Leskovar Honda in March. "I mostly got it for mileage," said Hewitt, who added that he didn't bother to shop around due to brand loyalty and his personal friendship with the owner. "I don't think you can beat a Honda for anything. I've had two or three other ones and never had any trouble before," he said.

Thus far, Hewitt has been happy with his choice. "It's a very tight handling car. It has really good acceleration," he said. He said he has been averaging 30 mpg in town and 37 on the highway, and he drives his Accord almost exclusively, barring the occasional fishing trips in his 2004 Ford F150. "I love my truck," he said.

Hewitt believes the increased mileage in the hybrid is a plus, despite the increased cost over gasoline models. "I think it will pay for itself before too long, the way gas prices are," he said.

The only negative thing Hewitt expressed about his new car was the difficulty getting used to the car shutting off when it comes to a stop. "It's a little different, said this 75-year-old who has driven his share of gas-powered vehicles.

Hewitt said he is optimistic about the growth of fuel-efficient technology. "I think these hybrids in the future will be better than they are now. Something's gotta change, that's for sure," said Hewitt.

GMC (no photo available) Up until recently, the Chevy Silverado and the GM C15 Sierra hybrid trucks were only available on a limited basis to West Coast dealers, said Sterling Aanstad, Internet manager at Butte GM. "They're not in hot demand yet," said Aanstad, who added that both trucks will become more widely available in the 2006 model year in 2WD, 4WD and extended cab versions.

Currently, Butte GM doesn't have any hybrid trucks on the lot, but Aanstad said the dealership has the ability to order them in. "We might be getting a lot more call for it if gas prices stay the way they are," he added.

Aanstad said the hybrids typically see a 10 percent improvement in fuel efficiency and the option has an add-on fee of $1,500 when compared to a conventional gasoline engine truck.

According to www.fueleconomy.com, the 4WD-hybrid trucks average 17 mpg in the city and 19 mph on the highway with price ranges between $30,000 to $32,000. In comparison, the gasoline engine 4WD versions have mileage averaging 15 mpg city and 19 mpg highway.