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Hybrid Downturn a Temporary Setback

It really shouldn't come as a surprise after leading hybrid maker Toyota announced an 11 day production freeze earlier this week, but the hybrid sales numbers from 2008 still sting a bit: down over 40% from the previous December, and down 10% for all of 2008.

I realize times have gotten tough recently, but it wasn't until October that the tanking Dow Jones Industrial Average really thrust an ailing economy into the national spotlight. With gasoline prices well above their historical high water marks though much of the rest of the year, you'd think the hybrid frenzy that caused many new models to sell above labelled price would have balanced out the cheap gas and empty pockets of the past few months.

While green jobs and infrastructure development may prove to be an important part of any economic recovery, could it be that this recession will kill demand for clean vehicles in the American market? After all, hybrids were widely ridiculed from many sources before the gas price spike in the first part of this year—fuel savings rarely offset their higher price tags, and their not-for-everyone styling made them easy targets in a raging culture war.

Due to their extended range and similar refueling when compared to gas-only counterparts, hybrids have proven to be the most appealing clean vehicles to American consumers. Short ranges and charge times make EVs unsuitable for many drivers, and they suffer from the same shortage of nationwide recharging stations that helps keep hydrogen-fueled cars similarly inviable. If hybrids can't sell, it's a safe bet none of the other technologies will, either.

However, I don't think this recent decline is a sign that Americans have turned their backs on the idea of cleaner-running cars. The real problem striking across the car industry has been a lack of credit from lenders, and a lack of cash in the pockets of consumers. Though hybrids have taken a hit as a result, these conditions may prompt many automakers to produce smaller cars, and motivate many consumers to keep older small cars running. And as we know, it's tough to beat the green credentials of the '96 Geo Metro.

As Obama has stated many times, he sees a retool of Detroit's production facilities as critical for reviving the American auto industry, as well as the economy as a whole. As long as this retool leads to the cheap, no-frills hybrids that consumers have been demanding for years, I think it's safe to say hybrids will once again become a fixture on American roadways.

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