Sales of Hybrids, Diesels to Rise; Big Three Automakers to Rebound

The automotive market will see an increase in sales of both hybrid and diesel fueled engines in 2007, with hybrid engines outselling diesels, predicts a University of Alabama engineering professor. He also predicts automotive makers, such as Ford and GM, will begin a “rebuilding season,” after years of being hurt by foreign car manufacturers.

Fueled by gas price worries, the popularity of hybrid vehicles will continue to climb because of their greater availability, as compared to diesel engines, says Dr. Clark Midkiff, professor of mechanical engineering and director of UA’s Center for Advanced Vehicle Technologies.

“Sales of hybrids will continue to increase in 2007, even though diesel engines are the most fuel efficient on the open road,” says Dr. Clark Midkiff, professor of mechanical engineering and director of UA’s Center for Advanced Vehicle Technologies. Hybrids are more fuel efficient than gasoline engines in that they excel in stop-and-go city traffic.

Midkiff predicts an increase in diesel engines in years to come, which will balance the market between hybrids and diesels.

“The U.S. has passed stricter emissions rules that diesel technology is just now being able to overcome,” says Midkiff. “The diesel engine is increasing in popularity because it is 30 percent more fuel efficient than similar sized gasoline cars.”

“Americans are finally becoming aware that diesel engines aren’t just for 18-wheelers anymore,” says Midkiff. “Americans’ perceptions of the diesel are still distorted by the infamous 1978 GM diesel.”

The Big Three American car manufacturers have been hurt by higher fuel prices as they made much of their profit from sales of sport utility vehicles. However, they will make a dramatic comeback, as Midkiff predicts they will produce more hybrid and diesel options. Automakers will also produce popular and profitable smaller cars in efforts to reduce their financial dependence on SUVs and trucks. The success of this “rebuilding” will depend, Midkiff says, on fluctuating gas prices and vehicle changes.

“Even though recent surveys have highlighted quality gains in both new cars and SUVs, such as the Ford Fusion, Chevrolet Tahoe and GMC Yukon, the survival of these large U.S. automotive manufacturing industries hinges on how quickly the product is improved versus how rapidly gas prices increase,” explains Midkiff.