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Most large automobile manufacturers are considering adding hybrid electric vehicles (HEV) to their product portfolio for environmental reasons. Some, like Toyota, Nissan and Honda, have already begun producing or have plans for producing hybrids. Skeptics in the industry see these efforts as mostly intended to enhance the automaker's environmental image at a cost that is not recoverable in the marketplace. Few in the automotive industry claim a sound economic basis for hybrids, and furthermore are repelled by the disruption of existing systems they promise. To test the validity of the industry's generally negative view of HEV economics, this paper establishes a logical, mission-based classification for HEV system architecture and performs a present value analysis for the three classes.