Hybrids Will Be Money Losers at GM, Says Lutz

GM Vice Chairman thinks hybrids will never make up more than 10% of US market.

Published: 14-Feb-2010

ORLANDO, Fla. -- General Motors Co. Vice Chairman Bob Lutz on Friday said the auto maker will probably always lose money on hybrid vehicles, which he expects will never comprise more than 10% of the U.S. auto market.

Money lost on hybrids, which are required under new, stricter U.S. fuel-economy regulations, will force GM to increase the cost of other vehicles, Lutz said.

"GM will lose money on hybrids," he said, speaking at an industry event in Orlando. "We will continue to build them--they are required by (Corporate Average Fuel Economy regulations)--and the cost will be spread across other cars."


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Customers in Japan placed orders for 5,000 in the first week the Insight went on sale.

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The company makes retrofit hybrid conversion kits and intends to produce its own four seat hybrid sports coupe when economic conditions improve.

2010 Lexus RX 450h gets about 7 mpg better fuel economy than non-hybrid RX350.

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