Summary

1.   Nearly all automakers will be in the hybrid scene

2.  "Hybrid" as a category name will evolve beyond the typical gas-electric versions currently offered, thus making it easier for automakers and OE suppliers to state they are playing in this space.

3.  German interests in hybrids need to be balanced with infrastructure that supports diesel and European emission needs.

Analysis

There are approximately 12 hybrid vehicles sold today which make much of a difference in North America and Japan (which are the two leading global markets for hybrids - U.K. is a very distant third).  And in the case of the U.S., this only account for 1.5% of all U.S. new auto sales.  But that projected penetration is expected to hit better than 7% - 10% by 2015.  That's at least 1.2 million hybird vehicles alone in the U.S. assuming a 16.8 million sales base.  Hitting that volume won't be just from Toyota selling more of their vehicles (which they currently control 70% of all hybrid sales in the US between Toy/Lex divisions).  But will it all be based on the currently known gas-electric forms sold today?  No.

Gas electric is the mainstay of hybrids right now.  Bio-diesel, hydrogen and fuel-cells are aggressively being pursued.  With Ethanol (E85) in place (yet terribly challenged by very few fuel stations carrying E85), the category as a consumer will see it, will change form. 

Taking the varying forms of "hybrid" into account, it's key to remember many automakers based in Europe are trying to balance the demand for diesels (far more popular abroad than in North America) with the investments needed to convert to what other regional markets say they want.  So it's not suprising that German hybrid efforts are "plagued" because, relative to the Japanese, they have not sunk R&D into this technology.  Good moves by BMW AG show a hydrogen-based 7-Series.  It's only a matter of time, so German or other core-European manaufacturers are not to be discounted by any means in terms of their ability to offer solid products in the evolving catgory of hybrid vehicles.

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