When is 54 MPG unimpressive? When gas is less than $3.
In 2004, the price for a gallon of gas averaged $1.88. Four years later, after topping more than $4 per gallon, the average price settled in at $3.27 per gallon for the year, a nearly 75 percent increase. This move basically put Hummer out of business as who would want 8,000 lbs of steel on the road sucking down petrol at a rate of 10 MPG’s? No one, and GM was forced to shut it down after a deal to basically give it away to Chinese heavy equipment maker Sichuan Tengzhong Heavy Industrial Machines Co. fell through.
But the rise of gasoline wasn’t done yet, as in 2012 average annual gasoline prices peaked at over $3.50. At the time, the Prius and other Hybrid’s were in top demand, while also becoming the “socially acceptable” form of transportation in Hollywood, as everyone from Larry David to Jennifer Aniston were cruising around in their hybrids. The Prius was the awkward teenager that blossomed into a star — it became cool to own one, and also gave rise to the electric cars by GM, Tesla and others.
Fast-forward to 2016, and prices for the year have been creeping back down to the $2.00 range again, and Americans are re-embracing their trucks and SUV’s once again, and the Prius and other hybrids are feeling the pinch.
Toyota isn’t the only manufacturer facing difficulties selling hybrids in the U.S. Sales for the vehicles are down 14.4% for the year, according to Hybridcars.com and market-research firm Baum and Associates.Still, even accounting for the overall decline in the market, Prius sales are sputtering in the U.S. Sales of the flagship Prius sedan are down 9.6% for the year, compared with a 50% decline for the seven-seater Prius v and a 45% decline in sales for the Prius c.
Source: Toyota’s Prius Pays Price for Cheap Gasoline – WSJ
