It's all emissions...the Japanese are attacking the problem with hybrids, while the Europeans are attacking it with diesels. The Europeans IMHO are succeeding. With their diesels, they're getting the same fuel economy (a Jetta TDi gets the same mileage as a Prius), they don' thave to deal with new technology, and unlike the Japanese hybrids, the Europeans are making money when they sell their diesels (I heard once that the Japanese have to mark their hybrids down as much as 50% to make them affordable).
I came to the conclusion years ago that it's just about impossible to make an econobox safe, so that coupled with the fact that I don't fit in them has made me decide to never buy a Japanese car.
I have a feeling that, as soon as something else comes up, the Japanese will stop seling the hybrids...me thinks they won't truely catch on (notice that, while some other manufacturere played with them some, I think only Toyota and Honda are producing any)...
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