Support the fact-based journalism you rely on with a donation to Marketplace today. Give Now!

Carmakers bet on green future

Adam Allington Dec 31, 2012
HTML EMBED:
COPY
Ford Motor Company President and CEO Alan Mulally kisses the hood of the brand new all electric Ford Focus at the 2011 International Consumer Electronics Show on January 7, 2011 in Las Vegas, Nevada. Justin Sullivan/Getty Images

Carmakers bet on green future

Adam Allington Dec 31, 2012
Ford Motor Company President and CEO Alan Mulally kisses the hood of the brand new all electric Ford Focus at the 2011 International Consumer Electronics Show on January 7, 2011 in Las Vegas, Nevada. Justin Sullivan/Getty Images
HTML EMBED:
COPY

2012 was a record year for fuel economy, with an average 23.5 miles per gallon. That trend is expected to continue next year.

Jessica Caldwell, a senior analyst for Edumunds.com, says increasing fuel economy laws continue to drive the market, and the rewards for research and development are huge. Just ask Toyota, she says:

“Every automaker wants to have that car that is like the Prius, and really stands for moving forward, technology, fuel efficiency. So, I think it is in their best interest to create these vehicles.”

In 2013 six new hybrid models and eight more plug-ins will be sold across the country. And while the fuel efficiency of regular old internal-combustion engines is also improving, Caldwell says automakers are still banking on hybrid technology.

“They’re definitely going to win out in the long run. So it’s not a short-term strategy, but a long-term strategy.”

Right now, hybrid or all-electric cars make up only three percent of the market, up from just 0.2 percent a decade ago.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.