General Motors' newest hybrid, the Saturn Aura Green Line, will be available later this month and qualifies for a $1,300 federal tax credit, making it the cheapest hybrid in the U.S. market, the automaker announced.
The Aura, which will be the first passenger sedan hybrid from a U.S. automaker and will compete with Toyota's Prius, started shipping to dealers last week. Ford Motor Co. has hybrid versions of its Ford Escape and Mercury Mariner sport utility vehicles on the market.
The Aura is being assembled in Kansas City, Kan., where President Bush on Tuesday toured facilities to promote hybrids and other automotive technologies.
With a 2.4 liter engine, the hybrid Aura has EPA fuel economy ratings of 28 mpg in the city and 35 mpg on the highway, GM said, up to 30 percent better than the non-hybrid Aura. But that's far less than the Prius, rated at 60/51 mpg.
GM, which launched its Saturn Vue Green Line hybrid SUV in 2006, has been trying to distance itself from its reputation as a company focused first on gas-guzzling trucks:
- In 2008, Saturn will offer a revamped Vue Green Line "expected to deliver up to a 45-percent improvement in combined city and highway fuel economy compared with the non-hybrid Vue," GM said.
- The carmaker said it is working on "a plug-in hybrid that has the potential to achieve double the fuel efficiency of any current SUV."
- GM later this year will launch a hybrid version of its higher-volume Chevrolet Malibu sedan.
- GM has set a target for production of an all-electric car in 2010, which will be called the Chevrolet Volt.
The automaker has not disclosed a sales target for the Aura Green Line, which will be priced at $22,695, including delivery and handling fees. On that basis, the Prius is priced at $22,795.
Hybrids can run on a combination of battery power and a conventional engine and are usually priced higher than traditional vehicles due to the battery and other advanced technology.
The Energy Policy Act of 2005 calls for hybrids purchased or placed into service after Dec. 31, 2005, to be eligible for a federal income tax credit of up to $3,400.
"With a starting price over $2,000 less than any midsize hybrid sedan and a $1,300 tax credit, it makes true hybrid fuel savings available to more people than ever before," Saturn General Manager Jill Lajdziak said of the Aura Green Line.
Credit amounts begin to phase out once the automaker has sold more than 60,000 eligible vehicles. Toyota was able to offer a tax credit of over $3,000 on its Prius, which is phasing out now and will expire in October.