Hybrid cars face 'Catch 22' situation

CAMBRIDGE, Mass., May 31 (UPI) -- A U.S. study shows alternative fuel cars with the same performance and price as gasoline vehicles won't sell well, even if three times more fuel efficient.

The Massachusetts Institute of Technology analysis found, among other things, until many alternative fuel vehicles are on the road, people won't consider buying one -- so there won't be many on the road, thereby producing a "Catch-22" situation.

"The challenge is not just introducing an (alternative fuel) vehicle," said postdoctoral associate Jeroen Struben of the Sloan School of Management. "Consumer acceptance, the fueling infrastructure and manufacturing capability all have to evolve at the same time."

Thus, he said, fuel suppliers won't build alternate fuel stations until they're certain of future demand; but until the fuel is widely available, consumers won't buy the vehicles. And manufacturers can't make such vehicles cheaper and better until production volume is high; but high-volume production won't happen until such improvements are in place to attract buyers.

The research was supported by MIT, the U.S. National Renewable Energy Laboratory and Shell Hydrogen.