Car buyers hit brakes on Prius purchases

[uclabruins]

Interesting article from CNNMoney.com:

- Says 2007 models currently not qualified for tax credit.
- Also possible extension of Prius line.
__________________________________


Car buyers hit brakes on Prius purchases
Toyota reports slow sales of popular hybrid, blaming waning buyer interest on absence of full federal tax break.
November 29 2006: 8:07 PM EST

WASHINGTON (Reuters) -- U.S. sales of the popular Prius and other hybrids made by Toyota Motor Co. slipped this fall when buyers of those vehicles no longer qualified for a full federal tax break, Toyota officials said Wednesday.

"Until recently, there was a two-month wait to get one," Jim Press, president of Toyota North America, told an auto technology conference about Prius availability.

Sales and marketing officials said lower gas prices and production changes at the Japanese automaker were other factors that cut into its industry-leading gas/electric hybrid sales in October. The October figure of 14,598 was the lowest since March.

Press said for the first time since rolling out the Prius in 2003, Toyota is able to fulfill consumer demand for the car.

He also called on Congress to extend the hybrid tax incentive for 2007 purchases. The Bush administration supports the extension, but it is unclear if lawmakers will act in the waning days of the current session next month.

Energy legislation in 2005 allowed consumers to claim up to $3,600 in tax credits for hybrid purchases. The full credit was capped at 60,000 vehicles per manufacturer, a ceiling Toyota hit last summer.

Consumers can still reap a partial tax credit for Toyota hybrid purchases.

Toyota currently makes six hybrid vehicles and plans a seventh next year: the first V8 hybrid option on its Lexus LS sedan.

Press also said Toyota is considering expanding the Prius line, but no decisions have been made.

He remarked that the government should consider converting its fleet of vehicles to hybrids, saying military applications alone could lead to significant fuel savings and lower emissions.

While Toyota continues to lead all manufacturers in hybrid sales and plans to ramp up production next year, the company is less aggressive than its chief U.S. rival, General Motors Corp. (Charts), in developing another hybrid model - the plug-in.

GM said Wednesday it planned to introduce a plug-n hybrid version of its Saturn Vue SUV. It will plug into an outlet - much like a toy car - to recharge its battery. The plug-in theoretically would run longer on battery power than conventional hybrids before needing to be recharged by power from the vehicle's gasoline engiene.

Wagoner would not give a timetable for introduction of the plug-in hybrid saying more work is needed into advanced battery technology.

Press said he did not feel threatened by GM's plans for a more aggressive push into hybrid vehicles and said Toyota will continue to research battery technology and potential markets before deciding whether to commit to a plug-in vehicle.

Plug-in advocates meeting in Washington would like Congress to approve tax credits and research and development grants to facilitate battery research and production of demonstration models. Plug-in batteries must be more robust than current technology, experts said.

[erogla]

I think slowing sales are also due simply to much lower gas prices.

[Beryl Octet]

I'm having trouble seeing how they can categorize Toyota as "less aggressive" than GM on plug-in hybrids, when there's no GM timetable on introducing one.

[PriusRos]

<div class='quotetop'>QUOTE(erogla @ Nov 30 2006, 01:14 PM) [snapback]355777[/snapback]</div>

I think slowing sales are also due simply to much lower gas prices.
[/b]

That's my thinking, too, although the lower tax credit is definitely also a factor. I've seen a whole bunch of brand new SUVs on the road recently. Memories are short.

[Sarge]

<div class='quotetop'>QUOTE(erogla @ Nov 30 2006, 01:14 PM) [snapback]355777[/snapback]</div>

I think slowing sales are also due simply to much lower gas prices.
[/b]

Indeed, most consumers have incredibly short memories, even for a purchase as significant as a *CAR*... I'm sure the lower gas prices are only temporary...

[Marlin]

<div class='quotetop'>QUOTE(Beryl Octet @ Nov 30 2006, 03:18 PM) [snapback]355779[/snapback]</div>

I'm having trouble seeing how they can categorize Toyota as "less aggressive" than GM on plug-in hybrids, when there's no GM timetable on introducing one.
[/b]

Toyota has a timetable for producing plug-ins? As of yesterday they said they had no plans to build plug-in hybrids.

True, the actual quote was "no plans at the moment", and one could argue about what "at the moment" really means, but I would say that if they have a timetable, then they have plans, and if they have no plans, then they have no timetable.

[bulldog]

Probably the Camry Hybrid and the new Civic hybrid managed to get some Prius sales. Epsecially now that the Civic will still get a good rebate. Both those came onto the market since last year, tied to the wait times for the Prius earlier.

Demand for the Prius will probably stabilize lower given the alternatives and lower gas prices. Which is good for new buyers as they will pay less and have a very short wait time.

[Maytrix]

<div class='quotetop'>QUOTE(Sarge @ Nov 30 2006, 02:25 PM) [snapback]355786[/snapback]</div>

Indeed, most consumers have incredibly short memories, even for a purchase as significant as a *CAR*... I'm sure the lower gas prices are only temporary...
[/b]

And they forget they'll be stuck with that SUV when the prices do go up.

[Charles Suitt]

QUOTE:

"Interesting article from CNNMoney.com:

- Says 2007 models currently not qualified for tax credit. "

Misinformation abounds. Sounds like CNN Money may have been paid by GM and Ford to write this article. The 2007 Prius is qualified for a $1,575 tax credit [NOT A DEDUCTION but a direct 'bottom line' credit] while other models are qualified for credits in different amounts.

In the North Texas area, some Toyota Dealers found themselves with 5 to 10 Prius 'in stock' ready for immediate delivery. Within a couple of weeks, a buyer could find discounts off MSRP. Dealers had been spoiled for nearly 3 years to MSRP [OR MORE!] and waiting lists so it took awhile for them to realize that those days were gone at least for awhile.

[subarutoo]

What most people just don't seem to get is that the Prius is a pretty darn good car, forgetting the Hybrid, Green Culture, Low Emisions, Fuel Economy, HOV access, "or fad of the month attraction". My Prius is one of the most comfortable, roomy, practical, fun to drive, quiet cars (with lots of cool gadgets) I've had in 40+ years of driving. The fact that it gets 50 mpg (actual), and is good for the envitonment is a bonus on top of its actual goodness as a vehicle. I'm tired of "Your Prius is ...(fill in the blank)...for a Hybrid". If prople realized what a good car it is, the sales wouldn't be so dependent on gas prices, governmental legislative whims, etc.