Posted by bandi high efficiency diesels are the way to go.
Actually, the environmental impact from manufacturing a Prius is insane. All these tree hugging, tweed jacket wearing knobs may as well be driving an international navistar.
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Well, the Prius and hybrids in general are more of a "gap" technology as it for the most part uses existing parts to make a new vehicle. Its a gimmick that kind of works. I just don't care for the idea that the gas and electric motors are mechanically linked into the same gearbox; its not the most efficient use of either motor types and one of them is going to be dragging down the other.
My dream alternative engery car is something like a Ford Ranger with a small Caterpillar diesel genset that is electrically connected to a electric motor much like modern locomotives work. You have the diesel genset working at its most efficient speed providing and the electric motor that works efficient at any speed pretty much.