Do gas price fluctuations threaten hybrid future?

"The problem for the whole hybrid vehicle sector is America's evident short-lived concern over higher fuel prices. Even though there is plenty of concern among energy analysts that fuel costs could head north again before the year is out, vehicle buyers only seem to take notice of the latest prices displayed at gas stations."

"The public's short term, blinkered view of gas prices is already taking a toll on hybrids. Their sales fell last month by 11 percent compared to August. In the same period total vehicle sales slipped by just 1.9 percent, while truck sales were up by 5.4 percent." (more)

It is no big surprise that the sales of hybrid cars are dropping. Still, I doubt very much that Toyota expected sales of the Prius to ever reach the levels that they did. Ultimately, I don't think that Toyota expected the surge in gas prices that America just witnessed.

Nonetheless, when Toyota did launch the Prius hybrid car, gas prices were not that high. Toyota's hybrid vehicle development was not driven by the current energy market, but the future energy market. As I wrote earlier today, in 2008 we could see the highest gas prices we've ever seen.

In the end, gas price fluctuations might threaten the future of American-made hybrid vehicles, but I doubt very seriously that it will threaten the future of Toyota hybrid vehicles. Unlike the short term view of the average American, American auto companies MUST take a long term view, and almost every indicator is signaling much higher gasoline prices in the future.