Ford: The Future American Hybrid King (F)

The national debate raging today may be about health care, with the controversial debates over energy seemingly a distant memory, but the search for a reliable and secure source of energy and fuel for transportation is as important now as ever.

Continued growth in domestic and global demand for oil, coupled with a new urgency in competition due to the recession and Asian auto ascendancy, will make developing a workable, efficient, and desirable hybrid or alternative-fuel car a critical goal for two companies: Ford (NYSE:F) and GM.

Which will emerge as the American leader in alt-fuel automobiles? Both companies are significantly behind the curve, as represented by Toyota (NYSE:TM) and its alt-fuel flagship, the Prius. They have, however, managed to unveil some promising prospects, such as the electric Chevy Volt and the hybrid Ford Fusion and Ford Escape. Which will eventually have the edge?

My money is on Ford. I am impressed by the hybrid lineup Ford has envisioned and developed, and am (pleasantly) surprised by this development. The Fusion and Escape are both affordable, efficient, and attractive to the mainstream consumer who will fuel the resurgence of the American auto industry – provided the auto companies get it right.

Ford is still a very long way from revitalization, and they probably will not overtake Toyota either in hybrid sales or total sales in the foreseeable future. But, if they continue the conceptual direction that they currently have, they will earn enough market share to turn a profit – and will likely be backed by every (Democratic) administration and rich government subsidies for the time being.

Based on the growing demand for hybrids, and Ford’s pretty decent conceptuals and developments for their line of hybrids, I see Ford as a valuable long-term investment.