Consumer Reports might have issues with the ROI of gasoline-electric hybrids, but GSE Magazine has figured out electric airport ground equipment is a real money saver.
The debate over the economic payback of gasoline-electric hybrids just continues to swirl like a troubling tropical low that's not quite a hurricane. The most recent twist comes from the folks at Consumer Reports who concluded -- erroneously, it turns out -- that all current hybrids realize no cost savings compared to non-hybrid versions during the first five years of operation. The most expensive hybrid by CR's calculation is the Toyota Highlander, which the non-profit consumer testing bureau estimated would cost $7,704 more than its non-hybrid sibling. They estimated the Lexus RX400h would run $6,371. The Accord Hybrid came in by their calculation at $4,913, followed by the Ford Escape Hybrid at $3,833.
CR did note there also are less-tangible benefits to owning a hybrid, including HOV access in some states, high consumer satisfaction, lower pollution and greenhouse gas emissions, as well as superior fuel economy.
But when it came to the Toyota Prius and Honda Civic Hybrid, CR admitted they screwed up. They originally estimated each would cost their owners $2,744 and $1,783 more, respectively. When they re-ran their numbers, they found that with these two models, at least, that they would actually cost less to operate than their non-hybrid versions: $406 and $317, respectively.
In the case of the Prius, they used the Corolla as the comparative model, even though, as Ben Ovshinsky pointed out in an email circulated last week, the new Prius actually compares more favorably with the larger, more expensive Camry. Yes and no. In fact, there is nothing in the Toyota line-up that is comparable to the Prius, but Ben speculates that if CR had used the Camry, the numbers for the Prius would be even better.
Of course, next time CR does its review, it will have a Camry Hybrid to compare with the non-hybrid version, though we'll still be left with the puzzle of Prius.
Ford Offers $1000 Rebate for Escape Hybrid
Demand for cars like the Prius continues to be brisk and carmakers haven't had to resort to consumer rebates to stimulate sales... until now.
According to the Detroit News, Ford has upped its sales rebate incentive to consumers to $1000 for its Escape Hybrid. The reason is the company has sold only about 2,000 in the first two months of 2006, or about half its production capacity.
Dealers told the paper, "hybrid buyers are looking more like the average consumer, hunting for a bargain and searching for a standout automobile. Ford's $27,000 Escape Hybrid, and its low-volume $30,000 Mercury Mariner Hybrid, are posting weak results as many buyers compare the vehicles with nonhybrid versions of the same car that sell for as little as $17,000 when incentives are factored in and get respectable gasoline mileage."
It also noted that, "The technophile crowd willing to open pocketbooks for an American-made hybrid has already been satisfied... that group is gone."
Could it be that falling consumer interest in SUV's in general is also impacting hybrid versions, as well, especially when cost-conscious buyers do the math or have Consumer Reports do it for them? They probably figure that they can buy an awful like of gasoline for $3,800-7,700; and it may take the imposition of a carbon tax or higher federal fuel tax to change that view.
One thing seems certain, when -- not if -- it comes to that, it's going to be painful and a lot of people aren`t going to be happy campers.
The Cost of Electric GSE
If the average consumer finds the hybrid premium hard to swallow, operators of electric-powered airport ground service equipment or GSE find themselves in a much more easily rationalized position, according to Ground Support magazine.
They found that even when you include the cost of periodic battery replacement, electric GSE, which includes airport baggage tugs, belt loaders, and freight handlers. They estimated that while the up-front cost of electric vehicles on average is about 30 to 35 percent more expensive than their gas counterparts, over the lifetime of the vehicle, the total costs are lower. Where a gasoline baggage tractor costs about $13 a day to operate, its battery counterpart runs just $2.50.
Ground Support wrote, "In the case of a baggage tractor with a useful life of 15 years, the estimated fuel savings alone will be more than $40,000, factoring in new batteries every five years. If maintenance costs an average of $2,000 per year for a gas unit, over the life of an electric the savings would add up to $18,000. Over the life of a tractor, that is an annualized savings of $3,866 per year per unit".
It concluded, "For those who are considering making a switch from gas to electric fleets, there are clear benefits not just financial but environmental and staff health."