Friday, June 17, 2005

The hybrid car stage, America

While hybrid cars are only a small percentage of total U.S. automobile sales, America is still THE market for hybrids. The hybrid leader, Toyota, sold almost 10,000 Prius hybrid cars in May alone, and recently added the Lexus RX400h and the Highlander hybrid to its lineup. Still, getting your hands on a Toyota hybrid isn't easy, and prices often include significant dealer markups.

Supply simply isn't catching up to demand.

To address the problem, Toyota recently announced that it would begin moving some hybrid production to the States. In late 2006, for example, Toyota will begin building 50,000 Camry hybrids per year in Kentucky and plans to add the Prius to U.S. production as well.

The hybrid component supply chain; however, will remain in Japan and this remains the largest obstacle to mass hybrid vehicle production. Currently, Panasonic EV Energy Co, produces all of Toyota's hybrid batteries, but according to AutoWeek, Toyota wants to move some of this supply chain to the U.S.

"Obtaining the necessary components will be the real restriction in how many hybrid vehicles Toyota manufacturers here," says Jim Press, COO of Toyota Motor Sales U.S.A. Inc.

Other hybrids, such as the Nissan Altima hybrid, which will be built in Tennessee and the Ford Escape hybrid, as well as the Mercury Mariner hybrid, Toyota hopes, will help create new hybrid component manufacturer's in the U.S. Additionally, in late 2007 through 2008, GM and Chrysler will also begin building hybrids in the U.S., and both Ford and Toyota will be adding new models to their hybrid lineups.

All of this hybrid activity should eventually force Japanese battery companies to move some production facilities to the U.S., as well as create a new market for emerging companies and divisions. Until this happens; however, the supply of hybrids is almost certain to continue to trail demand.

While it is a bit disappointing that it will take some time for the hybrid market to truly flourish, this is great news for America. Hybrid technology isn't just going to be an interim technology or bridge to fuel cell vehicles, hybrid technology is going to become fuel cell technology.

In July, Toyota will begin leasing its first fuel cell hybrid vehicle which has "become the first vehicle in Japan to acquire vehicle type certification under the Road Vehicles Act, as amended and enacted on March 31, by Japan's Ministry of Land, Infrastructure and Transport (MLIT)," according to just-auto.com.

Just as with hybrids, America will be THE market for the majority of the first generations of mass produced, commercial fuel cell vehicles. Thus, America must become home to the production of not only fuel cell vehicles, but the technology behind fuel cell vehicles, and that begins with hybrids.

So buy a hybrid vehicle. Not only are you helping fight foreign oil dependency, pollution, and global warming today, but you are helping lay the foundation for a revolution in automotive technology to be built in America.

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2 Comments:

Anonymous Anonymous said...

My name is Kristen and I am working with ForbesAutos.com. I thought you might be interested in reading some of the reviews or checking out some other features available at ForbesAutos.com. There are reviews, information and photos available for the different makes and models of hybrid cars as well as other luxurious cars. I think you find the features on this site very helpful in answering any automotive questions you may have! Hope it's helpful!!

www.forbesautos.com

10:40 AM  
Blogger Dahcredyns said...

Update:

Energy Conversion Devices, Inc. is going to begin increasing NiMH battery production, an essential component of the hybrid vehicle powertrain.

The good thing about this is that ENER is an American company. This should provide good competition in the hybrid battery space, in addition to American made hybrid batteries.

While forbes is nice, the best place for information on hybrid
cars
is still Soultek.com

2:07 PM  

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