Toyota Can Barely Meet Demand for Prius and Compact Cars

Hybrids are so in demand right now, automaker giant Toyota can barely keep up. In fact, they’ve had to refuse giant orders for the Prius and energy-efficient compact cars from rental car companies because they simply don’t have the capabilities to produce the vehicles as quickly as they’re needed. Had they been prepared for the surge, Toyota could be swimming in profits right now, but since they had a limited stock of small vehicles, they’re actually down by 11.5% since June.

From Reuters:

Toyota executives said a dwindling inventory of vehicles, such as the Prius, Yaris and Corolla, had forced the automaker to scramble to try to keep up with demand in June, a month when industry-wide U.S. auto sales dropped almost 9 percent.

Sales of Toyota’s Prius, the top-selling hybrid in the U.S. market, fell 26 percent as dealers ran short of inventory and customers faced a six-month waiting list. Toyota said it would only partly be able to satisfy the backlog of demand from its dedicated Prius factory in Japan this year.

Production of the Prius’s battery, in particular, is putting a stain on Toyota’s ability to meet demand. The current generation Prius uses nickel-metal hydride batteries produced by Panasonic EV. Meanwhile, Honda has made plenty of profits lately due to the availability of its line of hybrids and compact vehicles. Detroit is still ailing, since the three major automakers there – GM, Ford and Chysler – failed to anticipate the need for efficient cars.

Link [Reuters]
Photo credit: Flickr user Stephen Witherden

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