Thursday, February 21, 2008

26.3 MPG in a Chevy Tahoe? No Way
Yes, Way - Per Mark Phelan

Mark Phelan, the auto reviewer for the Detroit Free Press has posted his (glowing) review of the 2009 Chevrolet Tahoe Hybrid. During his test period, he reports an average MPG of 26.3 in all around driving, handily beating the EPA figures of 21-22. The Tahoe hybrid is a full hybrid (ala the Toyota Prius) unlike the GM hybrid cars currently marketed. Phelan's test vehicle, a fully-equipped 2-wheel-drive model, has a sticker price of $50,885. That's a big chunk of change, and much more than I have spent or plan to spend on a vehicle. On the other hand, there are some full-sized SUVs that cost more.

One can argue that once you get to this price level, the price of fuel even for a guzzler is a small portion of the cost of ownership. That's true. On the other hand, as Phelan points out, the annual savings in fuel costs (he calculates at $1330) between the hybrid Yukon and a comparable non-hybrid SUV is higher than the difference between, say, a Chevrolet Malibu and a Toyota Prius.

As a practical matter, innovations tend to originate on higher priced models, and as the experience curve results in refinements and cost savings, they trickle down to less expensive models. Viewed in that light, as a dollars and cents proposition, the hybrid option on the Tahoe might not make sense today, but as a harbinger for what's possible in the future, it's a positive development.

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