Why Hybrids Are Hot

I got behind the wheel of a hybrid Escape when I visited Ford's product-development center in Dearborn, Mich., earlier this month. Ford would not let me drive the prototype up the steepest test hills or around the sharpest curves, but I was impressed by the gentle, seamless shifting between the gas engine and electric power at low speeds. The car went silent every time I released the gas pedal or drove it slowly in reverse.

For all their benefits, however, hybrids do cost a few thousand dollars more than their gas-only counterparts. While you may be able to recoup that money in fuel savings within 10 years, it's still a big initial investment. And the batteries are guaranteed under warranty for only eight years, at which point customers may have to shell out as much as $2,000 for a replacement. "People are not willing to pay extra money for fuel economy in the U.S.," says Rich Marsh, who heads GM's hybrid-truck program. That's why GM plans to market its hybrid GMC Sierra and Chevrolet Silverado pickups, due out in 2004, not on their tiny 2-m.p.g. improvement in fuel consumption but on the benefits of their onboard electric generators and standard outlets for plugging in power tools.

It's still hard to tell whether Detroit is really serious about the hybrid-car business. After all, the same companies touting their hybrids today just lobbied successfully to put the brakes on legislation that would have mandated tougher fuel-efficiency standards. President Bush has proposed tax credits of $2,000 to $3,000 for hybrid-car buyers, but those funds aren't likely to kick in for another two years, if ever. Until then, if you want your fancy hybrid car, you'll have to pay a premium. Maybe that's what appeals to the movie stars.