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Page added on August 9, 2007

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Car rental outfits head in a green direction

WASHINGTON: Faced with sluggish rentals of sport utility vehicles and eco-conscious consumers demanding cars with higher gas mileage, auto rental companies have scrambled in recent months to stock their fleets with more fuel-efficient vehicles — including cutting-edge hybrid vehicles and flex-fuel cars that run mainly on ethanol.


Analysts of the rental car industry say that the number of “green” vehicles still represents a small fraction of the overall fleet, but is on a rapid upswing, growing from a few hundred vehicles last year to more than 6,000 today.


“SUV sales in general are on a significant decline. Some rental companies are practically giving SUVs away just to get people to drive them,” said Neil Abrams, president of Abrams Consulting Group, which follows the auto rental industry. “Because of the price of fuel, leisure travelers are leaning more toward smaller cars with higher fuel mileage. It’s become a hot subject — each of the companies are touting their sensitivity to the subject.”


But going green can come with a price: Some rental car companies that have hybrid vehicles on their lots charge more to rent them than for standard economy cars. And though companies say the savings in gas can offset that premium, those savings might pay off for the renter only after driving long distance.


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