Will the recession prevent hybrid and electric cars from going mainstream?
David Blume, a 48 year-old seafood retailer from Bloomfield Hills, Mich., feels guilty about the gas he burns during his 60-mile roundtrip commute—up to a point. A self-described environmentalist, he considered purchasing a hybrid, but balked at spending $5,000 more, an amount he won't soon recoup with gas prices at their current level. He ultimately picked a conventional Honda Civic that gets 37 miles per gallon. "I'm all for saving the environment, but my first priority is putting my kid through college," says the father of a high-school senior. "I won't even consider a hybrid unless gas prices change dramatically again."
Such sentiment could pose a major problem for beleaguered automakers that are shifting away from SUVs and banking on fuel-efficient hybrids and electric cars to stay in business. As expected, the cars showcased at this year's North American International Auto Show in Detroit were vehicles that run primarily on batteries, including the much-hyped Chevy Volt, the Jeep Patriot and the Dodge Circuit EV sports car. Also front and center were updates of already popular hybrids like Honda's Insight and the revamped Toyota Prius.
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