[Jim Sims]

"Nobody is buying the Prius now that oil/gas prices have dropped from high levels this past summer..."

Actually, it appears few vehicles of any kind are being bought. Vehicles last much longer now and when the fashion of wanting the latest thing in styling wanes (in time of reduced consumer confidence) there is less reason to buy. Automotive manufacturing capacity was based on artificial demand, not real need. IMO demand is now at the "real need level" but will decline even further for a while as people who would normally be getting a new vehicle defer the purchase until better times by making do with what they have. Then there is also the growing deflationary expectations and the knowledge that better products may be available in the future. It will be interesting to see if the experiences of the past year in terms of fuel costs and vehicle choices and use "stick"; those experiences followed immediately by the recession may effect a more permanent change in consumer behavior.