Following up on the previous post, there is more evidence that the automobile industry is truly poised to have a revolution of its own. While 100 mpg vehicles may not be too far off in the future, 50mpg vehicles can be purchased today. Or this spring, that is. Toyota’s 2010 Prius will go on sale in a few months boasting 50 miles a gallon in the city and 49 on the highway. Several technical improvements have allowed for the increase in fuel efficiency. More details can be found on the NY Times “Wheels” blog.

Though taking a severe beating in the recession, those car companies that manage to survive the downturn will be poised for major growth when the economy recovers. All the major car makers are shifting resources and focus (forcefully by the government or on their own) toward producing plug-ins, hybrids, and more efficient cars that save people money and yet also have a certain cache. With the effects of this recession likely to linger on for years, especially consumers new found sense of conservation and personal financial responsibility, the market for cars like the Prius and the 2010 Ford Fusion Hybrid (41mpg city) will be deeply competitive. For all the good they can do for reducing oil consumption, one of the most appealing features of hybrids is the cost savings over time. This will be a particularly important selling point once gasoline prices begin to rise again.

- Justin Manger