NO. Hybrid vehicles are not losing their appeal

Today, Roland Jones of MSNBC asked the question, Are hybrid vehicles losing their appeal?

No, Roland, they are not. Also, Roland, how can you utilize the Honda Accord hybrid to discuss hybrid vehicle economics? First, the Accord hybrid isn't a hot-selling hybrid, it's possibly the worst selling hybrid. Second, it's a performance hybrid, and was not produced purely to achieve fuel efficiency.

Sure, the sales of hybrid cars are down. Automobile sales overall are down and expected to be down into 2007. Yes, hybrids are down more, but that fact has nothing to deal with appeal, Roland. Obviously, the fact that Toyota's hybrid tax credits have been cut in half is a key issue since the Prius is by far the best selling hybrid, as is the drop in gasoline prices.

But there is also a bigger, non-hybrid issue. Why are automobile sales down and expected to be down next year? Are automobiles losing their appeal? Or, do consumers have a little less financial power? If economic times are tight, it isn't surprising fewer consumers can justify paying more for a hybrid when the tax credit has been cut in half and when gas prices are down.

Nonetheless, consumers are very interested in hybrid cars, especially the hybrids of the future. Consumers are not stupid, and they know the best of hybrid vehicles is yet to come. Currently, the public appears to be particularly fascinated with the idea of plug-in hybrid vehicles. So, since consumers have less cash and gas prices are low, many are waiting for next generation hybrid technology.

And no, Roland, diesel is not an alternative. Diesel might compete with hybrids today in some driving conditions, but reliance upon diesel instead of gasoline will NEVER end foreign oil dependency. Next generation hybrid technology, however, certainly has the capability to end foreign oil dependency.