Internet Article – Ford Struggles to Meet Hybrid DemandSummaryThis article will explore points from a Washington Post article titled “Ford Struggles to Meet Hybrid Demand” and will explain why changes have occurred in its supply, demand, and price of hybrid vehicles. The supplier mentioned in this article, Ford Motor Company, has recently seen a surge in demand for hybrid vehicles, which will likely continue to increase. This rise has made it difficult for suppliers to meet demand for their hybrid vehicles.SummaryHybrid vehicles are gasoline and electric vehicles. They offer more efficient gas mileage than conventional vehicles powered solely by gas. For Ford Motor Company, an increase in its demand for hybrid vehicles appears to be a double-edged sword. It is beneficial if there is an increase in demand; however, they were unable to keep up with the demand. Ford introduced the first hybrid SUV, the Ford Escape, to auto showrooms in 2004. It was one of the few hybrid vehicles available to consumers. When the Ford Escape was launched and fuel prices increased, Ford experienced an unexpected increase in demand for its Escape, causing the company to be unable to keep up with demand. Dealers began selling this popular hybrid model as soon as it hit the showroom floor (Freeman, 2006). With gasoline prices steadily rising, consumer interest has continued to grow. Demand for hybrid vehicles has become greater than supply. With Ford Motors unable to meet demand, its vehicle sales fell from 2,526 in June 2007 to 1,578 in July 2007 (Freeman, 2006). hybrid vehicles were in California (Freeman, 2007). According to AAA, California has the highest gas prices in the country at $3.14 for regular gas. The only state with higher gas prices than California is Hawaii, at $3.46 for regular gas. In California, consumers pay a few thousand dollars more than the sticker price for the Ford Escape (Freeman, 2007). Supply of Ford Escapes was lower in many areas because most Ford Escapes produced were shipped to California (Freeman, 2007). Rising gasoline prices have created a shift in demand, leading to increased interest in the more economical hybrid. vehicles (strainer, 2006).