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To gain traction in pickup market, GM goes hybrid

Pickups and SUVs are among the most profitable vehicles that Detroit sells. They are built on truck platforms and carry relatively high margins.

The problem with pickup sales recently is that high gas prices hurt sales of cars and trucks that use a lot of gas. Sales of most light trucks fell over 15% last year, and the Big Three have not found a solution.

General Motors (NYSE: GM) thinks it may have found a way around the fuel issue -- hybrid pickups. It will offer a new Sierra, one of its larger light trucks, powered by the new technology. "GM says the 2009 GMC Sierra hybrid gets a 25 percent improvement in fuel economy without compromising performance," according to the Associated Press.

If the new truck sells well, GM may be able to step ahead of its rivals with a solution to get consumers back into the SUV market. For its profitability that would be a big deal.

Douglas A. McIntyre is an editor at 247wallst.com.

General Motors' (GM) Tahoe, Yukon going hybrid this fall

Hybrid vehicles as a category is picking up steam with the American public. As as prices hover around $2.80, there is little to no relief in sight for that go-juice that powers almost all our cars and trucks. With a hybrid Chevy Camaro being rumored for sometime in the future (General Motors (NYSE:GM) really needs to do this), how about hybrid versions of several popular full-size SUVs for the Detroit automaker? These are in addition to the E85 Ethanol-powered cars and trucks already on the market form GM.

These are not rumors, but are coming this fall to a GM dealer near you. The hybrid versions of the GMC Yukon and the Chevy Tahoe should be landing on the doorsteps of dealers here in a few months, with a combination V8 gas engine and an electric motor powered by batteries that are recharged using "regenerative braking" techniques widely used in hybrid cars and trucks already.

GM claims a 25% increase in fuel economy, with a slightly higher figure in city driving since quite a bit of driving will happen under 32 mph. When driving under that figure, the gas engine won't even be on (no gas burning). Although a 25% increase in fuel economy for a large SUV just barely brings it up to where most normal passenger cars (non-hybrid) already are, what is the point, you may say? Well, to those that must have an SUV and who are in the market, these hybrid versions may may be good options. But if prices are 30% higher than all-gas counterparts, GM may see sales sit on the sideline instead of replacing normal gas-guzzler SUV sales.

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Last updated: February 11, 2012: 03:45 PM

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