Lack of supply reduces hybrid sales
Lack of supply reduces hybrid sales By Chris Woodyard, USA TODAY
Tue May 9, 7:26 AM ET
Just when sky-high gas prices should be raising demand for fuel-efficient gas-electric hybrids, Toyota and Honda are selling fewer of the hottest models than a year ago.
They blame supply shortages for sales declines on Toyota Prius and Honda Civic hybrids in April from April 2005.
"We sold down our inventory. We're down to a two-day supply," says Toyota U.S. President Jim Press. "The fact is, demand has never been higher."
The Power Information Network's Tom Libby says dealers sell Priuses and Civics in an average of less than 10 days. The average for all models is 57 days.
How hybrid sales played out:
•Toyota. Prius sales were down 27% for April and 10% so far this year compared with last year. Press blames having to reallocate parts for the start-up of the Camry hybrid, which went on sale April 24.
Waits for a new Prius can run up to a couple of weeks at Rice Toyota in Greensboro, N.C., up to four months at Toyota Santa Monica, Calif. "We are selling every one we get," says Rice's general sales manager, Elmon Dale.
•Honda. Civic hybrid sales fell 7.5% for the month, although they are up overall this year. "Sales were purely constrained by supply," says spokesman Sage Marie. Sales of Honda's generally overlooked Insight hybrid two-seater jumped 22.2% last month, while sales of the Accord hybrid, unpopular because of its V-6 engine, fell 69% in April from a year ago.
•Ford. In contrast to its Japanese competition, Ford says sales of hybrid versions of Ford Escape and Mercury Mariner SUVs soared 68% in April from a year ago. They doubled from March. Ford has promoted hybrids heavily and has offered incentives in some markets.
Toyota and Honda found sympathy among some analysts, who say makers can't be expected to react fast to quick upturns in gas prices. "They can't turn that quickly," says Bradley Berman, editor of HybridCars.com. "You can't speed up a pipeline of production in three weeks."
Others are beginning to wonder if hybrid interest has peaked. "There are many more compact and subcompact sedans in the market that are proving competition for hybrids," says Kelley Blue Book spokeswoman Robyn Eckard. With those new contenders, "you really have to be 'green' to buy a hybrid."
Just-introduced fuel-sipping subcompacts Toyota Yaris and Honda Fit are selling for full window-sticker prices or more, says car-shopper CarsDirect.com. Toyota's Scion line of small, youth-oriented vehicles continues in short supply.
Re: Lack of supply reduces hybrid sales
Quote:
Originally Posted by Midnight Mike
•Ford. In contrast to its Japanese competition, Ford says sales of hybrid versions of Ford Escape and Mercury Mariner SUVs soared 68% in April from a year ago. They doubled from March. Ford has promoted hybrids heavily and has offered incentives in some markets.
Anyone buying a Ford Escape hybrid is a moron. It gets about the same highway mileage as the NON-HYBRID Toyota RAV4, which costs $10,000 less.
