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.
quote: which shows how seriously people are taking the whole gas issue, crying a river about gas prices whilst driving a Hummer.
quote: The problem here is the fact that in America the top selling car is a truck
quote: Most people who buy them for their usfulness?
quote: NO OTHER people in the world NEED an F150, but hell americans all need them, lol.
quote: But what happens when oil goes up again? Another economic catastraphy waiting to happen?
quote: I guess we could keep sourcing coal from China
quote: I get nearly 40mpg in my car, and I am looking for one that does even better.
quote: we're spending each year on gas at $2.50 per gallon, and a large part of that is going to Venezuela and the Middle East.
quote: And as we all know, as demand goes down, prices follow.
quote: So the very people who shout USA with their God-given right to drive trucks are the very people who undermine this country by sending US currency overseas to countries that hate the USA. Well Bushy and his buddies got their money. snap No he didn't!
quote: When are you yanks going to get real? For F#$%'s sake, an F150 is a good car?
quote: If you can't see the problem, you are the problem.!! When are you yanks going to get real? For F#$%'s sake, an F150 is a good car? Most people who buy them for their usfulness?