CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Rules of Retirement Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts

GM takes two-way road on hybrids

Once the hybrid hype has worn off, General Motors is betting that buyers will still want one that gets the job done at a sensible cost.

Time to pay-off
Time to pay-off
In one sense, neither of GM's hybrids is much different from other hybrid vehicles on the market.

With either of these vehicles, you'll need four to six years to save as much in fuel expenses as the system costs. That's about the same as for other popular hybrid vehicles like the Camry Hybrid, Civic Hybrid or Ford Escape Hybrid.

Here's the breakdown:

After taking a $1,300 tax credit, the Malibu Hybrid will cost about $500 more than a non-hybrid Malibu LT. But you'll save about $134 a year in fuel. That's a relatively quick pay-off

For the Tahoe, everything is bigger including the time to pay-off. The hybrid cost premium is roughly $5,000, but it will save you about $700 a year in gas.

Tahoe hybrid buyers will get the most benefit if they drive a lot on surface roads and not so much on highways, where the fuel economy benefit is much smaller.

But the most important thing about these vehicles is that neither one sacrifices driving pleasure or functionality. The Tahoe can still tow and haul, and the Malibu can still fit a family's weekend luggage in the trunk. That might be enough to make these vehicles work for those who otherwise wouldn't consider a hybrid.

Last updated February 18 2008: 9:29 AM ET

Two ways

Big vehicle

Big trim

Big savings

Light vehicle

Light touch

Light savings

Mid-sized pay-off
Video: Malibu Hybrid GM's new hybrid system trades lower fuel economy gains for lower up front costs. (more) video
All aboard! Top 10 family rides Vehicle valuation expert Kelley Blue Book gives CNNMoney.com a first look at its picks for the best new family vehicles. (more)
Saturn Astra: Lost in translation GM's new imported Saturn compact fails to make up in performance what it lacks in practicality. (more)
© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy. Advertising Practices.
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.