For the auto industry to survive they are going to have to think outside the box and plan for 3-5 years down the road. I think this has to include CNG powered vehicles as well as PHEV. Build the cars and the fueling stations will come.
I really wish someone would produce the next VW beetle.
A box with wheels that gets you where you're going.
Built to be cheap to buy and maintain.
Good gas mileage.
Two passenger (maybe).
Small.
Something like a 4 wheel motorcycle or fast, enclosed golf cart/4 wheeler.
Problems I see
A small car is going to suffer more in a collision. Sad but unavoidable. Even the treehuggers can't change the laws of physics.
You'll still have a lot of mandated expensive stuff such as airbags.
Sorry, but the Smart Car ain't it. It's expensive and overly stylish.
A CNG option would be perfect match for such a vehicle.
I don't really see the big car manufacturers doing something like this. They're too tied into the big car/style sells/big bucks mindset. There's a bit of an oligopoly aspect to the car industry with artificial barriers to entry for new players.
I think Ray is right that this is most practical for municipalities or businesses with large fleets. The cash strapped city of Corpus Christi just installed a station for their first 30 gas vehicles. Now I think it'll just be a matter of time before all of their city vehicles will be runnin' on gas.