Hybrids cost 15 to 25 percent more than gas-only vehicles because they are complex to engineer and a pain to assemble, according to a comprehensive article in Assembly Magazine.
The article details the high cost of the duplicate components needed for gas and electric systems, the additional steps needed on the assembly line, and specialized training as all contributing to the cost. Since most hybrid components are made in Japan they are in short supply today, which adds to the cost.
Auto manufacturers hope to cut the hybrid premium by 50 percent during the next few years as the number of hybrids is expected to continue doubling each year. By 2008, there could be a million hybrids sold annually.
Speaking of hybrid problems, Toyota has recalled 170,000 Prius' because of a problem with the steering shaft assembly.
Hyundai has delayed the sale of its first hybrid vehicle until 2009 because of a non-technical problem. It's president is in jail for embezzling money, and the company is waiting for his say so to go ahead with production.
