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Wheels of Progress Turn Slowly 

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by jkash, Nov 18, 2004.

  1. jkash

    jkash Member

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    Tom Petty could have had hybrid vehicles in mind when he wrote the lyric, "The waiting is the hardest part." The lengthy wait to buy a Toyota Prius is expected to continue until mid-2005, and the queues for two new hybrid vehicles are already growing.

    Shortly after the second iteration of the Prius sedan hit the streets in October 2003 to rave reviews, consumers interested in purchasing the hybrid gas-electric cars were asked to take a number. By early 2004, the wait for many would-be owners was six months or more, depending on where they lived.

    Today, Prius customers are still waiting half a year or longer for delivery. "We have some customer-satisfaction issues we are working on," said Toyota spokeswoman Nancy Hubbell.

    So why have U.S. customers been asked to wait for the seasons to change before getting behind the wheel? Since the Prius shipped, Toyota has been using a single assembly line in Japan to produce the vehicles. The company announced in September that it would increase production from 10,000 to 15,000 cars per month beginning in 2005 by adding a second assembly line.

    Hubbell said that even with increased production, the waiting period wouldn't likely dissipate until mid-2005. "Never have we had waiting lists for a year after the product year has debuted," she said. Toyota sold 6,123 Priuses in October, up 49.9 percent from the previous October.

    Toyota's decision to continually allow demand to outpace supply might be an intentional move to generate interest, according to Jesse Toprak, the director of pricing and marketing analysis at automotive website Edmunds.com. "It could be seen as a marketing decision," Toprak said.

    Toprak said requiring customers to wait several months to buy a vehicle rarely happens with mainstream vehicles, but Toyota might be overly cautious with the Prius rollout because the cars use new technology that combines the power of a gas engine and electric motor. Although Toyota plans to build 150,000 Priuses in 2005, the company could easily sell 200,000 or more, Toprak said.

    Along with the waiting list, the price of the Prius has also continued to swell. The suggested retail price for the Prius was $19,995 when it debuted in October 2003, and the company raised the price in April 2004 to $20,295, and again in August 2004 to $20,875.

    Read entire story by clicking this link.
     
    #1 jkash, Nov 18, 2004
  2. DaveinOlyWA

    DaveinOlyWA 3rd Time was Solariffic!!

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    great article.

    as i have said before, the Prius has the potential to become Toyota's #2 seller if not #1 if the supply were there.

    the fact that Toyota is not taking fleet orders for the Prius is a telling stat. as there are several Prius fleets in this state.
     
    #2 DaveinOlyWA, Nov 18, 2004
  3. NiMHPrius

    NiMHPrius New Member

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    The main snag is the lack of NiMH battery production capability in the world. Major construction of battery facilities need to be made before car manufacturers can bring hybrids to the same level of production as normal cars. Panasonic is making them as fast as they can for Toyota. Sanyo is doing the same for Ford. Unless the auto industry pours money into building battery manufacturing facilities, the fragile hybrid market will continue to suffer.

    NiMHPrius
     
    #3 NiMHPrius, Nov 18, 2004
  4. DaveinOlyWA

    DaveinOlyWA 3rd Time was Solariffic!!

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    hmmm... seems to me that the battery companies should be the ones doing the pouring since they will be getting a lot of the benefit especially as the batteries in service now reach the end of their lifecycle
     
    #4 DaveinOlyWA, Nov 18, 2004
  5. NiMHPrius

    NiMHPrius New Member

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    Margins on battery sales are very small. Investing in making plants to build batteries specifically for hybrid systems is a risk at this time. Holders of storage technologies are all pushing their product, but its still up in the air which one is the right solution. It seems for now that NiMH is the way to go, but Toyota almost went for Mega-capacitors, Honda is using Mega-capacitors in their Fuel Cell car.

    So who's going to stick their neck out? That why the battery manufacturer will say," OK Toyota, if you think NiMH is the way to go for you, then we'll make it for you, but we share the risk. Give us capital to build a plant for you" This isexactly what is happening between Toyota and Panasonic ( who recently had to settle a suit with Ovonics for copying their technology).

    NiMHPrius
     
    #5 NiMHPrius, Nov 19, 2004
  6. DaveinOlyWA

    DaveinOlyWA 3rd Time was Solariffic!!

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    hmmm ok... i guess my thoughts on the role of business is just different.

    i feel that all businesses run the risk of manufacturing an undesirable product down the road. if they are making only marginal profits on their product, they should either work on streamlining their manufacturing processes or work on their suppliers.

    that is how successful businesses become successful. they manufacture a product that demands the bigger buck, knowing that if the product doesnt measure up that they will not have a future.

    as product requirements morph and changes, the company is either flexible enough to meet the challenges of providing those changes or smart enough to prepare the plant for bankruptcy sale.

    now of course, having outside investors will help greatly in getting the plant off its feet and in full production swing. but that will only dilute profits and leave them more vunerable. but that is still an option IF you have the product and a viable method to get that product to market.

    and as far as producing batteries on a margin... hmmm hard to believe since margin profits are only viable with large volumes. and at the volumes that the plants are producing. i certain that the profits per unit arent as marginal as i am led to believe.
     
    #6 DaveinOlyWA, Nov 20, 2004
  7. NiMHPrius

    NiMHPrius New Member

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    Simple fact, they are marginal.

    NiMHPrius
     
    #7 NiMHPrius, Nov 22, 2004
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