'Forced Features' Drive Up Hybrid Prices

Anyone looking for a hybrid these days can choose from 31 models, from tiny econoboxes to hulking SUVs and even a pickup or two. The best of these vehicles top 50 mpg, but even the underachievers hit the low 20s. Trouble is, most of them are packed with high-end features that inflate the sticker price. […]

ford_f

Anyone looking for a hybrid these days can choose from 31 models, from tiny econoboxes to hulking SUVs and even a pickup or two. The best of these vehicles top 50 mpg, but even the underachievers hit the low 20s. Trouble is, most of them are packed with high-end features that inflate the sticker price.

So says the Union of Concerned Scientists in its inaugural "Hybrid Scorecard," a rundown of the gas-electric rides currently available in the United States. Although the union praises automakers for offering hybrids with excellent fuel economy and low emissions, it faults them for stuffing those vehicles with DVD players, keyless entry systems, heated power mirrors and other pricey gadgets. These features are standard equipment, not options, and add an average of $3,000 to the bottom line. That's on top of the "hybrid premium" that typically adds three to four grand to cover the cost of the electric motor and battery pack.

"Consumers shouldn't be forced to take features on the hybrids and pay thousands of dollars more because manufacturers don't want to offer them a choice," said Don Anair, a senior analyst in the vehicles program at the union. "People are looking for fuel-efficient vehicles, and they shouldn't be forced to pay thousands more for them."

The auto industry says there's a simple reason hybrids are packed with features: economics.

Although hybrids have enjoyed growing popularity, they're still a tiny niche. Of the 10.5 million vehicles sold in the United States last year, 290,232 were hybrids -- and almost half of them were Prius hybrids (.pdf). To put that in perspective, Toyota sold 356,824 Camrys in the United States last year, while Ford sold 413,625 F-series pickups. Given the relatively small number of hybrids, automakers can't offer a smorgasbord of options, said Charley Territo, a spokesman for the Auto Alliance. The trade group represents 11 automakers, including the Big 3 and Toyota.

“Because of the volume of hybrid-electric vehicles being sold, they have to provide a vehicle that appeals to the widest number of consumers possible," he said. And that means offering an array of features consumers expect, even if that means not everyone wants every one.

The Union of Concerned Scientists singled out two cars it says illustrate the problem of "forced features," which it defines as features as options on the gasoline model but standard equipment on the hybrid. Those cars are the Ford Fusion Hybrid (pictured) and the Honda Civic Hybrid. Although the union hailed the two cars as excellent environmental performers -- each emits 31 percent fewer greenhouse gases than their conventional counterparts -- the "forced features" cost almost as much as the hybrid drivetrains propelling the cars.

For the Fusion, which gets 39 mpg combined, that comes to almost $4,000. The extra cash buys you things like 17-inch aluminum wheels, power heated mirrors, an eight-way power adjustable driver's seat, a back-up camera, a leather-wrapped steering wheel with integrated audio controls and, of course, the Sync in-car infotainment system.

Ford said it includes those features on the car because consumers want them.

"Our Fusion Hybrid starts at $28,350, which includes destination and delivery, and is nicely equipped," said spokesman Said Deep. "What we are seeing is that 87 percent of our customers are buying vehicles that are equipped well above the base model. To put it another way, just 13 percent of all Fusion Hybrids are sold as base models. That is what our customers are ordering. As the market for hybrids matures in the coming years we could see demand increase for lower-specification hybrid vehicles. We are prepared to make that transition once it shows in the marketplace. Until that time, we will continue to build the vehicles demanded by our customers."

The Civic Hybrid (42 mpg combined) includes more than $3,000 in goodies including a security system, a deck-lid spoiler, power windows and locks, steering wheel mounted audio controls and a six-speaker audio system. But Honda got props from the Union for the Insight hybrid, a bare-bones gas-electric car with a bargain-basement (for a hybrid) starting price of $19,400. The thrifty car gets 41 mpg combined, making it a great value, according to the union.

Honda spokesman Chris Martin said the Civic Hybrid has a list price of $23,800 and has won several awards for its high resale value, something he said proves "even second-hand buyers are happy with its content for the price."

"And," he added, "consider that many features added to the Civic Hybrid over the Civic LX are either safety related, such as traction control and vehicle stability control, or provide improvements to fuel economy such as lighter alloy wheels, aerodynamic body parts, and an automatic climate control system that works with the hybrid auto-stop feature."

The union also called the 2010 Toyota Prius a great value, noting that it gets 50 mpg (combined) and includes just $1,600 in "forced features" like heated mirrors, remote keyless entry and 15-inch alloy wheels. Because the Prius is a dedicated hybrid, the union compared it to the Toyota Matrix. Anair said that was the car most like the Prius in terms of size, horsepower and functionality.

The scorecard ranked 31 hybrids available in the United States according to environmental impact and value. To determine the environmental impact, the union compared the fuel economy and emissions of the hybrid against its gasoline counterpart and gave it a score of 0 to 10. The top scorers were:

  • Toyota Prius. 9.8
  • Honda Civic Hybrid. 7.8
  • Mercury Milan Hybrid. 7.8
  • Ford Fusion Hybrid. 7.8
  • Lexus HS 250h. 7.6

"The Prius came out on top with a reduction of 44 percent in greenhouse gases over the Toyota Matrix," Anair said. "And the next three top performers all had a reduction of more than 30 percent over their gasoline counterparts."

To judge a hybrids' value, the union divided the estimated cost of the hybrid technology in the car by the percent reduction in greenhouse gas emissions over the vehicle's gasoline counterpart. The top scores were:

  • Lexus HS 250h
  • Toyota Prius
  • Cadillac Escalade Hybrid
  • Ford Fusion Hybrid
  • Honda Civic Hybrid

Pricing concerns aside, the union praised the auto industry for the wide range of hybrids it offers and the environmental performance the cars deliver. Even a behemoth like the Cadillac Escalade Hybrid delivers 22 mpg combined, an improvement of 37.5 percent over the gas-burner.

"That was one of the most interesting findings," Anair said. "Looking at these, you might say the smaller vehicles have the advantage so that's where you'll see the biggest benefit in a hybrid. But we found some larger vehicles and even SUVs that see significant improvements."

UPDATED: Jan. 28 to include comment from Honda, which came after our deadline.

Photo: 2010 Ford Fusion Hybrid Jim Merithew/Wired.com