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When trying to maximize efficiency, one must choose the right tool for the job. A vehicle optimized for city driving in relatively flat terrain may not do as well in hilly or mountainous terrain or over long distances. Most vehicles are used in city driving in relatively flat terrain, so there is definitely a strong market for the Peugeot HYbrid Air Car (great marketing approach, by the way) and other hydraulic hybrids that may be manufactured.
Hydraulic hybrids are certainly not going away. Peugeot already sells a full line of electric hybrids. If hydraulic hybrid had no merits, they wouldn't be wasting their resources on it. I welcome Peugeot's aggressiveness and hope they sell many "air" cars. It will encourage their competitors to duplicate their success.
The hh system I am most impressed with is the one designed by Folsom Technologies (you will have to google it, as I haven't posted enough to include links).
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