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Has the auto industry hit peak hybrid?

Hybrids are known for their great fuel economy and low emissions, but it looks like given current market conditions, only about three percent of new car consumers are willing to pay the premium for them. A new study from IHS/Polk finds that the hybrid market share among overall US auto sales are falling, despite more models with the technology on sale than ever before.
The study examined new car registrations in March from 2009 through 2014. In that time, the auto industry grew from 24 to 47 hybrid models available to consumers, but market share for the powertrain remained almost stagnant in that time. As of 2009, hybrids held 2.4 percent of the market; it fell slightly to 2.3 percent in 2010 and grew to 3.3 percent in 2013. However, 2014 showed a drop back to 3 percent. Overall hybrid sales have been growing since 2010, but they just aren't keeping up with the total auto market.
According to IHS/Polk, this isn't what you would expect to see. Usually, each new model in the market brings along with it a boost in sales. The growth in hybrid models 2009 to 2014 should have shown a larger increase in share for the segment.

Ford, GM still doing new business with Takata amidst airbag crisis

Lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. You might expect automakers to be fleeing any connection with beleaguered supplier Takata in the wake of the company's exploding airbag inflator crisis. After all, with a Senate hearing, pending lawsuit, plummeting stock value and demand for a national recall, the tier-one supplier isn't at its strongest right now. However, years of cooperation mean that automakers are standing by Takata, and necessity may be playing a role, as well. About 39 percent of Takata's business comes from airbags, and seatbelts make up another significant chunk of the operation too, says Bloomberg. The long-term relationships and lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. "Takata has so much product breadth that I don't really see that they could just disappear," said AutoPacific analyst Dave Sullivan to Bloomberg. For example, Takata helped develop the unique front center airbag with General Motors in models like the Chevrolet Traverse and Buick Enclave. Outside of safety tech, it is also a partner with Ford on the adaptive steering system available on the upcoming 2015 Edge. These long-lasting partnerships make change difficult now that there's a problem. According to Reuters, automakers claim it would take a year or longer to set up with a different supplier for replacement airbag inflators. Switching to a completely different part for the repairs might not be a viable option either, because of the engineering time needed. BMW is taking action, though. According to Reuters, the Bavarian brand is working with the supplier to move inflator production from Monclova, Mexico, to a Takata factory in Freiburg, Germany. The Mexican plant may be the source of some of the faulty parts. News Source: Bloomberg, ReutersImage Credit: Jens Meyer / AP Photo BMW Ford GM Safety Takata airbag recall

Ford C-Max, Fusion hybrids subject of MPG lawsuit in California

A California lawsuit over the fuel economy claims for the 2013 Ford C-Max was first reported back in December. Based on the numerous reports we've heard of disgruntled owners failing to get their car's EPA fuel economy ratings on the C-Max and 2013 Fusion Hybrid, we suspected there would be more to this story. The Detroit News is reporting that two California law firms are combining their lawsuits against Ford on this matter for "false and misleading" claims.
The article states that there are hundreds of C-Max and Fusion Hybrid owners who have joined the lawsuit, but the issue isn't limited to customers. In December, Consumer Reports extensively tested both the Fusion Hybrid and C-Max and found that both hybrids performed significantly worse than their EPA claims. This all comes just a few months after Hyundai and Kia took the unprecedented step of lowering the fuel economy ratings for all of their 2012 and 2013 model-year vehicles.