AFSCME 3357-HOF'S BLOG

Is Chevron Holding back Hybrid Vehicle production?

Toyota has recently announced that a hybrid version of the popular Highlander SUV will soon be sold. Industry scuttlebutt is that Toyota has about 100,000 pre-orders, a figure that dwarf's the capacity to produce the vehicle. Toyota has also announced that a hybrid Lexus luxury car, the GS 450h will be available next year. Production of hybrids by all manufacturers is said to be constrained by a lack of batteries.

The website www.soultek.com is dedicated to hybrid vehicles. According to Soultek, Chevron & Ovonics control patents on the NiMH technology necessary to create batteries for hybrid cars. Soultek raises the possibility that Chevron is deliberately creating a supply shortage to keep demand for oil (and profits) high.

I don't know that I buy into this argument. Chevron acting independently can reap near monopolistic profits on the battery technology used in the hybrids. By withholding battery production, Chevron is only getting a increased oil profits in proportion to its market share.

Hybrid vehicle article: Could Chevron end hybrid vehicle hold up?