Rivals Join To Develop Hybrid-Car Technology
DaimlerChrysler, GM Had Spurned Gas-Electric Idea
By Greg Schneider
Washington Post Staff Writer
Tuesday, December 14, 2004; Page E01
General Motors Corp. and DaimlerChrysler AG are throwing their combined weight behind a new hybrid technology for cars and trucks, setting the stage for what had been a niche product to spread to the mainstream for American consumers.
The popularity of Toyota Motor Corp.'s gas-electric hybrid Prius has forced the hand of manufacturers who once regarded the futuristic sedan as a fad. Buyers still wait months to get a $24,000 Prius, which was Motor Trend magazine's car of the year for 2004 and has become a pop culture icon.
Americans are showing lasting interest in hybrids partly because of concerns about high gas prices and instability in the Middle East. At the same time, Toyota and Honda Motor Co. -- which builds the Civic Hybrid -- have succeeded in winning state and federal tax breaks for people who buy such cars. Yesterday, the IRS announced that the new Escape Hybrid sport-utility vehicle from Ford Motor Co. also qualifies for a federal tax deduction. Virginia, California and other states have granted the cars exemptions for driving in high-occupancy-vehicle express lanes.
Those forces have become too much to ignore. While GM is still pushing toward a future of hydrogen-powered fuel cells and DaimlerChrysler has been touting super-efficient diesel engines, the companies yesterday said they will team up next year to develop a new hybrid system....
http://www.washingtonpost.com/wp-dyn/articles/A62110-2004Dec13.html