It was my understanding that Ford's trouble was in developing the algorithm that HSD incorporates, and that's why they had to go to Toyota with their tail between their legs and license the patents. If I'm wrong about it, I'd like to know because I'd feel better about Ford. I never heard about a "cross" licensing scheme 'cause it was my understanding for all of Ford's efforts they brought nil to the table.

My brother wound up with a Ford Escape Hybrid 4x4 instead of a Prius for lifestyle reasons and is generally okay with his decision but has complained a lot about the quality/fit/workmanship of the interior for the price he paid for the vehicle. He said if he'd bought a stripped down Escape for 18,000 the interior might be okay, but when you pay over 30,000 for a car you expect a little more. He's used to driving luxury cars, though, so he may just be spoiled.

All of this is to say that Ford is not competing very well on the hybrid front, and I agree that it sounds like there were probably backroom deals made to try to slant the tax credit in favor of US manufacturers instead of forcing them to do something like make a Pontiac Solstice-looking car that gets equivalent or better mileage than the Insight.