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"Think of it as one more manifestation of the rewards for those who build a better mousetrap. Toyota's U.S. sales have skyrocketed in the past five years as it has shown that year after year, model after model, it makes reliable cars. The Prius opens up a whole new front on which Toyota can demonstrate its prowess. Its success is a potent symbol of Detroit's woes. In the 1990s, federal taxpayers poured over $1 billion into something called the “Partnership for a New Generation of Vehicles” to help Ford, General Motors and DaimlerChrysler develop hybrids and other fuel-efficient cars. Despite the largesse, Honda and Toyota got to market first, and Toyota came up with the first big hit with its Prius.
Some five years after the first hybrids were introduced, Japan is about to take a 6-to-1 lead over Detroit, putting it in a strong position to capitalize on rising fuel prices. Honda offered the first hybrid with its spartan two-seater, the Insight. It has since released hybrid versions of its Civic and Accord. In a matter of days, Toyota plans to offer a hybrid Lexus RX 400 SUV. And in June, a Toyota Highlander SUV hybrid is coming to market.
Detroit has a number of hybrids in the works as well, ranging from the Saturn Vue, a small SUV, to full-sized pickups such as the Dodge Ram. But its only existing model is the Ford Escape, which uses technology licensed from Toyota. To make matters worse, Detroit is not only lagging in hybrids, it's leading in the kind of gas-guzzling road hogs whose sales are off by more than 20% this year. And to add yet more misery, Detroit can't seem to market what it does have in the way of environmentally friendly cars. In 2003, for instance, Ford came up with a version of its Focus that has virtually no tailpipe emissions. But some two years later, the car is largely unknown to the driving public.
For these and other reasons, a gloom has descended over Detroit. Both Ford and GM have slashed their earnings estimates for the year. Both have seen their credit ratings cut to one grade above junk, and the companies' stock prices have cratered."
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http://www.usatoday.com/printedition/news/20050413/edtwo13.art.htm