Wall Street Journal: Toyota reportedly delays Prius production in U.S. - MarketWatch I'm assuming that things will change as time moves forward. It all depends on gas prices, and independently, demand for hybrids (inferring that gas prices are not the only factor that boost demand for hybrids).
I was hoping the van would be NA built since we get hit with a 6% duty on car built outside of NA 6% would better in my pocket
I agree but for different reasons. First there are a boatload of announced hybrids coming out in 2011/2012. These are going to 'scramble' the market until folks get hands on and we can see how things settle out. But I am more concerned about the true depth of the hybrid and EV market. We have not seen Prius waiting lists and over MSRP prices for at least two years. Last month had just under 11,000 Prius sold. As for the Honda Insight, it is barely holding on and appears to be struggling. The Ford hybrids are a bright light by gaining market share although we don't know how much is from other hybrids. Meanwhile, nearly three times as many Prius were sold in Japan as sold here. Gas prices are relatively low and come October, the winter drop should show up. So we're looking at low demand today and lower demand in the up coming months. Toyota needs growth markets, wealthy markets, to sell hybrids. Japan and Asia are probably better markets today and in the near future. Bob Wilson
The main reason prii aren't being built here is NUMMI. With GM pulling out and the facilities available Toyota will save a lot of money getting out of UAW and California and moving production to new plants in Mississippi and Texas. The shift of north American prii to north america made perfect sense in the past, a us plant could serve NA and the capacity of the Japanese plant serve asia. Cheapest capacity could be used for Europe. I can't find the link right now but toyota said the risk also had to do with immature battery and motor technology. Bob, this is where your analysis comes right in. In 2015 the prii may need a major revamp to various plug in capabilities and better batteries. Toyota may want to sit on the sidelines as they figure out how the volt, focus, sonata, civic do before committing to major changes.
All good points .... but there could also be a political issue as well. This administration has been hostile towards Toyota .... maybe they want to see which way the political "winds" blow in the future before committing major resources.
That dog won't hunt. The prius production decision was made before the congressional investigation. This turn of events can much more easily be explained by Toyota realizing that it was growing too fast, the NUMMI developments, and competitive technologies. I doubt hurt feelings would stop toyota from lowering the cost of production.
Automobile production across the board will have to be cut. How long does anyone think a manufacturer wants to see retail sales at under invoice? Unemployed people don't need cars to drive to work or to drive on vacations. The official rate is close to 10% which doesn't count those who no longer qualify for benefits. Toyota seems to recognize the error of its ways in subcontracting parts & increasing production. (Remember where the recalled pedals came from.) Hopefully they will bring the design & manufacture of more parts back in house and bolstering their economy. Toyota is not going to sit on the sidelines to see what shakes out. Innovate or die (or get the government bailout). No FUD. No announcements. They will just "do". The Japanese plan for the long term (which means years) not next month or next quarter like we ADD affected Americans do. It doesn't matter who the President is or what popular opinion at the moment is.
