Despite bumps in road, hybrid cars are still powering on
Their future is bright amid shaky market
Drivers may have lost interest in the most fuel-efficient cars because of low gasoline prices, but don’t kick hybrid vehicles to the curb just yet.
In fact, their future looks more certain than ever after Swedish automotive brand Volvo an- nounced Wednesday that it would stop launching conventional gasoline-engine vehicles after 2019. Volvo said all of its new models would be electric cars, hybrids or “mild” hybrids, which are gasoline vehicles partially powered by battery-driven motors.
Despite plummeting sales for the world’s most popular hybrid, the Toyota Prius, and a shaky market for electric cars, Volvo is moving ahead in a real-world example of how foreign regulations are exerting more influence on the U.S. car market.
The industry is still hoping President Trump will weaken U.S. fuel economy standards amid low gasoline prices that have undermined the appeal of fuel-efficient vehicles. That in turn has driven up demand for crossovers, sport-utility vehicles and pickups.
But automakers operate on a global scale and like to develop models they can sell internationally to spread out costs and maximize revenue. With China and European regulators pressing for fuel-efficient vehicles to combat air pollution and climate change, automakers like Volvo may have no choice but to embrace hybrids until lower battery costs make pure electric vehicles more affordable.
Anticipation of stricter emissions standards in Europe “is one of the reasons we are making this announcement,” Volvo global CEO Hakan Samuelsson said in a news conference.
Volvo is owned by Chinese automaker Geely, which is under pressure to deliver more fuel-efficient models in its home market.
“This is where some of the talk about going backward on the fuel economy emission standards is out of step with the rest of the world,” Autotrader.com analyst Michelle Krebs said.