Wednesday, November 03, 2004

Hybrid vehicles: A Scary Story for America?

In a recent editorial by the St. Louis Post dispatch, the paper asks the question, "What if gas prices remain high?"

The article points out the some 10,000 auto workers in St. Louis work in auto factories that make gas-guzzlers, and that if gas-guzzlers continue to lose popularity, these factories will probably close.

Much like the 70's and 80's, following the 70's oil recession, Detroit spent decades making up for lost market share when car-buyers switched brands for more efficient vehicles.

And there is reason to be scared. Just a couple of years ago, hybrid cars were nothing but a buzzword.

Then came Toyota's Prius hybrid, and then announcement-following-announcement of increased Prius production, which now stands at 100,000 hybrids per year. Demand continues to surpass supply, and American automakers are scrambling.

Recently, Ford launched the Escape Hybrid SUV, but it had to do so leasing some of its hybrid technology from Toyota.

In reality, the only other serious competitor to Toyota is Honda, which should really become a hybrid player when the Honda Accord Hybrid hits showrooms in December.

Let's hope the American automakers are paying better attention than they did in the '70's, or as the Dispatch editors stated things will get scary and, "That would be a sign of very poor management in Detroit - with ghastly consequences for autoworkers here. "

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