Greenspan to American Drivers: Buy A Hybrid

Mercury News
Jun 08, 2006

Alan Greenspan has advice for drivers who are struggling with sky-high gasoline prices: Buy a hybrid. Testifying before Congress, the former Federal Reserve chairman said higher oil prices are beginning to hurt the U.S. economy, but not so much to cause "serious erosion" in business activity.

Even so, with consumers hit by gas above $3 a gallon, the nation is ready for alternative fuels such as ethanol and more use of hybrid gasoline-electric vehicles, Greenspan told the Senate Foreign Relations Committee.

"We are gradually . . . weaning ourselves off petroleum," Greenspan said, according to an Associated Press report. "It is slow and in many ways like watching grass grow."

Speaking of hybrids, if you want to buy one, you had better act quickly if you're counting on perks such as a federal tax credit or the ability to drive alone in high-occupancy-vehicle lanes on California's freeways.

According to a report this morning by our auto writer Matt Nauman, Toyota has already sold 60,000 hybrids so far this year, which means federal tax credits for its hybrids including the popular Prius will be cut in half after Sept. 30. And California has already received more than 64,000 applications for HOV-lane stickers, and expects to hit the cap of 75,000 by the end of the summer.

Speaking of Toyota, the Japanese automaker and its upscale Lexus division took 11 of 19 top spots in J.D. Power and Associates' 2006 Initial Quality Study.

Toyota and Lexus won in these categories: compact, entry premium, mid-size premium, large premium, premium sporty, mid-size sporty and mid-size cars. Among trucks, Toyota earned the top spot in these categories: mid-size, large, mid-size premium and large premium multi-activity vehicles. And again, auto writer Matt Nauman has more details.