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2010 Toyota Prius

2010 Honda Insight

A pair of Japanese buyers check out the new 2010 Prius hybrid vehicle, the first hybrid to outsell all other vehicles in Japan.  (Source: BBC News)
Hybrids come in at number 1 and number 4 on Japan's sales charts

Consumers will tend to hold off their purchases if there is a new and significantly improved model coming soon. This is particularly true for electronics and automobiles. Word of the third generation Prius has been known as far back as 2006, and while the economic downturn played a significant role in cutting sales of the older Prius, the waiting game may have had a larger impact than previously thought.

Toyota had already decided to increase production of the Prius to 600,000 units per year in late May after seeing huge sales in Japan. The company has had to begin weekend production of the Prius in order to make a dent in demand. Increases in fuel economy and horsepower had led many to delay their purchases of the Prius until the 2010 model was available. However, many potential customers also switched to Honda's Insight hybrid, which topped the Japanese sales charts in April.

In the two months since, hybrids have continued their sales dominance, with the 2010 Toyota Prius and Honda Insight both posting strong sales.  The Toyota Prius seized the top spot in May, with sales of 10,915 cars.

This month, though, it set an even more impressive mark, becoming the first hybrid in Japan's history to outsell all other vehicles.  The Honda Insight's previous sales record had excluded popular mini-vehicles with engines of up to 660cc.  Those mini-vehicles were easily outsold by the Prius, thanks to sales of 22,292 units.

Honda continued to do well, with its Insight Hybrid coming in fourth place.  Honda's Fit, a fuel efficient traditional offering came in second place, with 13,016 vehicles sold.  The sales of Toyota and Honda's hybrids were helped by relatively high worldwide gas prices, which drove Japanese consumers to take fuel economy more seriously.  Japanese tax breaks have also helped convince users to switch to hybrids.

Hybrid vehicles have yet to crack the top of U.S. sales charts, but some believe it’s only a matter of time before a foreign hybrid like the Toyota Prius, or a domestic like the Ford Fusion pushes towards the top. 

All of this bodes well for those hoping of a restart of Toyota's $1.3 billion Prius assembly plant currently under construction in Blue Springs, Mississippi. Toyota has already spent over $300 million on the plant. The building shell itself is finished, but the tooling and production machinery will be installed at a later date. Parts suppliers have also halted building expansion and tooling operations until Toyota commits to a restart date.

The case for a restart is particularly strong since New United Motor Manufacturing Inc. (NUMMI) appears destined for a shutdown. The joint venture between Toyota and General Motors will cease to produce the Pontiac Vibe, which is based on Toyota's Matrix. It also produces the popular Toyota Corolla and Toyota's Tacoma truck, production which could shift to Blue Springs. Production of the Toyota Yaris hybrid is also a possibility.

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RE: How surprising....
By bhieb on 7/6/2009 5:36:14 PM , Rating: 2
The problem here is the fact that in America the top selling car is a truck, which shows how seriously people are taking the whole gas issue

Or it could illustrate how the masses may not be so dumb aferall. They have spoken, and what they have chosen as the vehicle to have is the F150.

My point was not really against what you said, just that it should not be a surprise that it is the best seller since it logically makes more sense than a larger car. One could almost argue that it fiscally makes more sense as well. Depending on the mileage you drive and cost of gas, the MPG savings may get eaten up if you need to rent a truck more than a handful of times each year.

Guess I'm just disagreeing with the whole stigma that the yuppie driving the F150 is just showing off his ego, it does not pan out. Even said yuppie probably takes 4 buddies golfing a half dozen times a year. Try squeezing 4 of the large golf bags in a sedan. Granted he may not have thought of that when he bought it, but clearly it is not a bad choice either. Now the douche in his Bentley is a completely different story.

There is an undeserved stigma attached to trucks not actively hauling a ton of bricks daily. Just because 90% of them are not in use daily does not make them evil (not saying you implied this but others do). One does not need to use them all the time to enjoy the utility and spaciousness of one.

I drive a CTS-V now (I know talk about the Bentley douche), and do miss my F150 dearly sometimes. Fortunately I have access to several others in my immediate family nearby. What can I say I love the speed :)

RE: How surprising....
By Fireshade on 7/7/2009 12:53:16 PM , Rating: 3
Even said yuppie probably takes 4 buddies golfing a half dozen times a year. Try squeezing 4 of the large golf bags in a sedan.

Sorry, but I don't think you know real yuppies ;)
Real yuppies would all drive their own car, so there's no squeezing 4 golf bags in any car :P
Driving their own car has great benefits in their time-scarce world (no waiting on the other).

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