Quote:
Originally Posted by Number 3
Because real Hybrids aren't profitable. Sorry, but Hybrids are an exercise in losing money. It's really that simple.
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Technically you're correct, hybrids aren't going to make you any money. Having said that, neither will the eco malibu, nor eco impala for that matter. They'll never sell enough of the eco to be profitable, so the question that should be asked is; why buck the trend if neither is going to turn a profit?
Most manufacturers that want to remain competitive will have a competitive hybrid model however. This isn't just about profitability though, a clear example are mid size V6 models. There is no money in those either. Chevys outgoing V6 Malibu had a lower than 20% take rate, so also unprofitable. I understand the new 2T will be less expensive, & more efficient than the V6 it replaces, but I'm willing to bet the replacement mill still won't be profitable. Does that mean we should not have something in the segment that competes though?
Or.... should we just build our meat and potatoes mid-size cars since that's where the profit remains? After all if we know we can't compete in other model segments of the mid-size market, shouldn't we just experiment and just maybe we'll trip over a winner?
Doesn't make sense when you say it that way, right?