The folks who buy hybrid vehicles (who tend to be older and more affluent) are willing to pay a little extra to use less gasoline and to be kind to the environment, which makes them the exact demographic to also put alternative fuel in their tanks. 
Toyota might be the first company to deliver a flex fuel hybrid, as Edmunds reports that the company will deliver an eE85 capable Tundra truck in 2008. Ford showed off a flex fuel hybrid Escape prototype in January, but no word on when it will become real.
Adding an electric motor makes E85 vehicles more attractive because ethanol has less energy density than gasoline, and otherwise requires more frequent refueling.
While auto companies can excuse themselves for stalling on this golden opportunity because it takes a few years to develop new models, the changes needed to convert a vehicle are well documented. A unique issue to developing a flex fuel hybrid is controling the evaporation of ethanol which would be more difficult when the engine is turned off, according to the Green Car Congress.
If they are smart, several automakers will step forward in January at the Detroit auto show and introduce flex fuel hybrids for the fall.
