Monday, May 15, 2006

Toyota Hybrids: The Calm Before the Storm?

Sure Toyota has cut some hybrid production to make room for other hybrid models, but they know that the hybrid supply chain is building and that their hybrid technology is only just emerging.When I first heard that Toyota was going to cut Prius production in order to produce the Camry hybrid, I was very disappointed. Let's face it, hybrid cars wouldn't even be on America's radar if not for Toyota, but cutting Prius production? How could they?

Now I know that many hybrid parts, particularly batteries, are in short supply and every automaker can only produce so many hybrids. Nonetheless, the hybrid supply chain is growing and no automaker is more knowledgeable about that subject than Toyota. They have essentially built the hybrid supply chain. Therefore, when I read that Toyota believes hybrids will become an important part of their profits by 2008, my disappointment turned to elation.

While there are numerous hybrid skeptics out there, I cannot help but feel that they remind of people that predicted computers were silly back in the early 80's, or that e-mail and the Internet were silly in the early 90's - and these were smart, successful people. I fully believe that the potential of hybrid technology has barely been tapped, the best is still yet to come. Ultimately, you can never judge an emerging technology only by the capabilities of the present - something done habitually by many hybrid critics.

GM might be building hybrids for P.R. and Nissan might think that hybrid technology isn't yet ready, but Toyota is now just sitting back quietly as the entire automotive world argues about the future of hybrids. But Toyota isn't just sitting, they are using their huge profits to take their hybrid technology to the next level.

Every other automaker better beware - this could just be the calm before the storm.

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