Bunnies R Us

Short Description:

Hybrids face more scrutiny than most cars, especially when potential buyers are concerned about whether their gas savings will justify the extra money they’ll have to pay. New hybrid models such as the Ford Fusion Hybrid and Lexus RX 450h unveiled at the Los Angeles auto show will have to contend with the slowing car market and gas prices that have dropped below $2 a gallon.

Long Description:

Hybrids face more scrutiny than most cars, especially when potential buyers are concerned about whether their gas savings will justify the extra money they’ll have to pay.

New hybrid models such as the Ford Fusion Hybrid and Lexus RX 450h unveiled at the Los Angeles auto show will have to contend with the slowing car market and gas prices that have dropped below $2 a gallon. Those lower prices reduce the pain at the pump that drove buyers into the arms of fuel-conscious hybrids in the first place.

“I think the panic is gone as it relates to gas prices,” said Erich Merkle, lead auto analyst at consulting firm Crowe Horwath LLP. “Now it’s more of an issue of, ‘Jeez, do I have the money to spend on a new car?’”

“People are not spending money right now,” said Paul Lacy, manager of technical research at forecasting firm IHS Global Insight. “Asking them to spend more money (for a hybrid) is kind of reaching.

“The economy is real tough, but the pressure on fuel has come off. We know that’s temporary, but we also know that it takes pressure off the [manufacturers] to put out green vehicles right away.”

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