Sales of hybrids have dropped like a rock as gas prices have done the same. In other words, the marketplace is working its magic, reflecting consumer demand.

Despite this reality, carmakers are being forced by politicians, via government rules and regulations, to produce cars that consumers are clearly signaling they don’t want to buy. From the Los Angeles Times (emphasis is mine):

Last month, only 15,144 hybrids sold nationwide, down almost two-thirds from April, when the segment’s sales peaked and gas averaged $3.57 a gallon. That’s far larger than the drop in industry sales for the period and scarcely a better showing than January, when hybrid sales were at their lowest since early 2005.

In July, U.S. Toyota dealers didn’t have enough Prius models in stock to last two days, and many were charging thousands of dollars above sticker price for the few they had.

Today there are about 80 days’ worth on hand, and dealers are working much harder — even with the help of $500 factory rebates — to move the egg-shaped gas-savers off lots from Santa Monica to Miami.

This month, Honda is offering $2,000 in cash, financing and leasing incentives to buyers of the formerly sold-out Civic hybrid, while a dealer in northern Michigan is dangling $6,000 cash back to those willing to buy a hulking Chevy Tahoe hybrid.

Yet automakers believe they have little choice but to make more hybrids. Though car buyers are losing interest, politicians are pushing them as key to reducing U.S. dependence on foreign oil and limiting the global-warming gases that cars emit into the atmosphere.

In January, President Obama called on the industry to “thrive by building the cars of tomorrow” and prepare for federal and state regulations that could push average fuel economy above 40 miles per gallon by 2020.

“The automakers are in the situation of needing to pacify politicians that are in the position to bail them out with expensive fuel-efficient cars,” said Rebecca Lindland, auto analyst with IHS Global Insight. “But shouldn’t it be more about satisfying the needs of the American consumer?”

In a thriving, functioning economy, yes, it is indeed about responding to consumer demand. But sadly, in today’s political and economic environment, the marketplace is being distorted by politicians who wrongly believe they know better than you and I do about what we want to buy.

And it’s all taking place at a time when American auto manufacturers are fighting for survival. The last thing these companies need is government policy that works against them by limiting their pool of potential buyers. What a shame. What poor public policy.