Can America Build Their "Toyota Prius"?

As the global recession bites and local economies in the industrialized and advanced nations are slowly crumbling; shouldn’t we be buy ‘local’ goods to benefit our own domestic economy? Perhaps we should, but that hasn’t stopped the sales of the Japanese manufactured Toyota Prius from jumping by 30% from this time last year and an astonishing 50% from last month alone. While we are being told to support our local economies, especially in the case of the declining American car industry, it seems that more and more people are turning to foreign imports. Foreign manufacturers such as Toyota are enjoy a sales growth because Americans are increasingly looking for vehicles with better fuel economy. It is certainly a major factor in the buying decision.

“I don’t want to have to import a hybrid car,” said President Obama “I want to build a hybrid car here.”

With a new President in the White House there seems to be a desire now from Washington to halt the monopolization of Toyota on hybrid vehicles and create an American rival. However is it possible to create a similar alternative? Many would argue that you cannot. It is basic economics they say; if you are producing the best product then you will accumulate the most sales. So to create an almost identical version would fall short of denting Toyota’s profits in the United States.

However there is another side to this issue; Toyota aren’t producing the hybrid batteries crucial to the Prius fast enough and this is where President Obama’s $2.4 billion investment comes in. It is earmarked to provide both research and production of United States made nickel metal hydride batteries to use in hybrid cars and is hoped to go some way to faltering Toyota’s domination. Indeed even the Ford Escape Hybrid uses foreign batteries at the moment.

The consensus seems to be that hybrid cars will be essential and the norm in the long term if we are to combat the problems facing our environment; namely, each individuals carbon footprint. While the hybrid cars today might not be perfect they are going a long way to developing a carbon neutral form of private transport, the question is; is $2.4 billion going to be enough to ensure that America gains a firm foothold in the hybrid automotive market?