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Will Price Rule?

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Old 02-26-2007, 11:12 AM
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Will Price Rule?

Saturn hopes to beat Honda, Toyota in hybrid arena.

http://www.cleanmpg.com/photos/data/501/2007_Saturn_Aura_Green_Line.jpg
Richard Truett - Automotive News - Feb. 26, 2007

In taking on the Honda Accord and Toyota Camry hybrids, the gasoline-electric Saturn Aura Green Line will offer a dramatically lower price and roughly the same high fuel economy rating. But is that enough to make it a success?

The Aura Green Line is a so-called mild hybrid. Unlike the Camry and Accord hybrids, the Aura's powertrain isn't capable of driving the car on electric power alone. And that might matter to environmentally conscious buyers who want to drive at least part of the time on electric power only.

Mild hybrids, such as General Motors' pickups and the first generation of the Honda Civic, have not sold well.

Aura has a belt-alternator-starter hybrid system that provides a light boost during acceleration, captures energy during braking and restarts the engine after the vehicle comes to a stop.

Light weight, less filling

But a mild hybrid's advantage is less weight and mechanical complexity and a much lower price. The hybrid Aura costs just $1,700 more than the gasoline model, making it the least expensive mid-sized hybrid sedan.

The Aura goes on sale in early May with a sticker price of $22,695 and an EPA fuel economy rating of 28 mpg city and 35 on the highway. The fuel economy figures are the same as the Honda Accord Hybrid, which has a base price of $31,685. The Camry Hybrid has a base price of $26,820 and an EPA rating of 40 city/38 highway. All prices include shipping.

Scott Stapf, director of the Hybrid Owners of America, a Washington lobbying group, thinks the Aura may do well even though it doesn't have the technical sophistication of the Camry or Accord. "You still do have an environmentally sensitive group of consumers who are worried about emissions and global warming, and just about any hybrid will cut it," he says.

And then, Stapf says, the Aura could attract buyers looking for a low sticker price as well as less pain at the pump.

But he says the majority of hybrid buyers generally want more than just high fuel economy. They want to be on the cutting edge of technology. The Aura Green Line isn't.

The least expensive

Andre Kazewych, product manager for the Aura Green Line, says Saturn will pitch the car to potential buyers as the least expensive hybrid on the market.

"We're not looking at it in terms of tech sophistication but as an economical way to deliver better fuel efficiency," Kazewych says.

"It's going to offer a lot of people a hybrid option who don't have one. It should be a strong product in the marketplace," says Kevin Riddell, an analyst at J.D. Power and Associates in Troy, Mich. He says the Aura Green Line likely will start as a low-volume car and steadily build sales momentum.

No national ad campaigns are planned for the Aura Green Line. Saturn is planning to promote the car heavily on the Internet and might buy print ads. But Saturn spokesman Randy Fox says the company has other vehicle introductions and limited resources.

Neither Fox nor Kazewych would say how many Aura Green Lines GM plans to sell.

John Danielson, sales manager at Saturn of the Lakes in Tavares, Fla., says few customers have asked about the Aura Green Line, and no orders have been taken.

Danielson says the Vue Green Line crossover hasn't sold as well as expected. Most customers, he says, want the Vue with the Honda V-6.

"If gasoline hits $3 per gallon this summer, that might change," he says.

The Aura hybrid, made in Kansas City, Kan., is expected to arrive just about the time dealers run out of the Vue Green Line. Production of that vehicle ends in March at Saturn's Spring Hill, Tenn., plant.

The new Vue Green Line, which will be produced in Mexico, will be introduced in the fall.

Green Rivals

2007 Saturn Aura Green Line

Base price: $22,695, including freight
Powertrain: 2.4-liter 4-cylinder and 4-speed automatic transmission
Hybrid system: Mild, belt-alternator-starter
EPA estimated mpg: 28 city/35 highway
Available: Spring

2007 Honda Accord Hybrid

Base price: $31,685, including destination
Powertrain: 3.0-liter V-6 and 5-speed automatic transmission
Hybrid system: Full, integrated electric motor
EPA estimated mpg: 28 city/35 highway
Available: Now

2007 Toyota Camry Hybrid

Base price: $26,820, including destination
Powertrain: 2.4-liter 4-cylinder and continuously variable transmission
Hybrid system: Full, integrated electric motor
EPA estimated mpg: 40 city/38 highway
Available: Now
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Old 02-26-2007, 11:46 AM
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Re: Will Price Rule?

I don't think it's going to work. Go to GH and read the Vue Greenline forums. Just about every post there is a complaint about how much the car sucks and fails to meet expectation. (I do hope that changes with warmer weather.) Comparing the Aura GL to the TCH and HAH is positively ridiculous...the better comparison would be a 4-cyl, non-hybrid Accord.
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Old 02-26-2007, 11:53 AM
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Re: Will Price Rule?

Hi Tim:

___It won’t be catching up with the non-hybrid I4 Accord in the near future either About the AH, well dahhh. That thing will be lucky to sell 200 units/month by summer. Not that we have not all told Honda it was a mistake to release it w/ the V6 a thousand times … And imagine what the HiHy would do if it had the TCH’s I4 in it?

___We were talking about this amongst ourselves at the Milwaukee Autoshow yesterday and GM needs to release BAS on all their vehicles for the $300 - $500 it is actually worth. Do not even bother calling them hybrids, just include it. BMW is doing a BAS system running off a Pb-Acid in Europe so why include a POS Cobasys 36V NiMH pack? Just place BAS in their lineup across the board. Secondly, they really need to get the DualMode out on the streets in the Malibu/Vue as that is the only way GM will be able to compete with the likes of Toyota.

___Another side note. The GM product pics I have access to show the Aura GL in a drab blue with no great pics to choose from whereas the regular Aura is filled with much prettier pics (like the shot I posted). It almost feels like GM is down playing their hybrids yet again. In the case of BAS, they probably should but if they play this game with the DualMode’s, they may as well close up shop now. Gas is $2.45 - $2.49 in the Chicago area now and I can only imagine where it will be mid-summer?

___And about the 08 EPA specs. The 08 FEH is shipping now with the 34/30 08 EPA spec ratings. The 07 Aura GL will not be out for months and will be labeled as an 07 for some reason obvious to many of us here. Same with the 07 HiHy

___Good Luck

___Wayne
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