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Will the current hybrid technology save the industry? I'm pretty sure not. As you point out Grumpy, too many Americans want to drive huge, inefficient hulks.
I think in the long range, transportation will be fueled by something other than oil (not even hybrid w/gas). But I don't think it will happen soon enough to affect the current situation for the auto industry. Now is the time for R&D which is a huge economic drain that the industry can't afford with its current income (losses).
I'm all for fuel efficiency, but not interested in hybrid at this point, because it's too new and I'm not sure they are any less impactful on the environment when you consider battery manufacture and disposal. I'd rather have a conventional gas powered car that gets 35-40 MPG which we've been able to make for decades now.
I think what will save the US auto industry is that it will continue to do what its doing and shrink to meet its new market share position.
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