Silicon Valley makes Prius No. 1

Linky

Silicon Valley makes Prius No. 1
GAS-SIPPER JUMPS FROM NO. 5 IN '06
By Matt Nauman
Mercury News
Article Launched: 07/20/2007 01:34:33 AM PDT

Toyota's Prius hybrid has become the bestselling car in Silicon Valley.

Through May, 1,627 Prius registrations have been recorded in Santa Clara County, according to R.L. Polk. That puts the Prius ahead of Toyota's Camry and Corolla and Honda's Accord and Civic, all cars that outsell the high-mileage, gas-electric sedan nationwide. Locally, the Prius was No. 5 behind those models last year.

"Are we ahead of the curve, or what?" asked Rod Diridon, executive director of the Mineta Transportation Institute at San Jose State University, and a Prius owner.

The Prius' newfound status reflects the continued greening of Silicon Valley. Diridon listed sustained higher gas prices, the availability of carpool-lane stickers



for solo Prius drivers - no more are being issued - and the intelligence of local residents as factors in the Prius' popularity.

"The intellectual capacity within Silicon Valley is amazing," he said. "That higher level of education reflects a higher level of understanding of the terrible consequences of global warming."

At 60 miles per gallon in city driving and 51 mpg on the highway, the 2007 Prius is the most fuel-efficient car on the road, the U.S. Environmental Protection Agency says. When the EPA's formula for figuring gas mileage changes for the 2008 model year, the Prius probably will retain its gas-sipping status, but the numbers will drop to 48 city and 45 highway.

Prius sales are up 45 percent in Santa Clara County and 65 percent in the 11-county Bay Area so far this year. The model has been popular in California since it went on sale in 2000, but it is catching on nationwide. U.S. Prius sales through June, according to industry publication Automotive News, are up 96 percent compared with the first six months of 2006.

Still, at 94,503 sales, the Prius represents just 1 percent of U.S. car and truck sales so far this year. In Santa Clara County, Prius registrations represent 5.3 percent of the market.

The Prius news doesn't surprise Bob Boden. He has driven more than 63,000 miles on his 2004 Prius and he gets about 50 mpg in the city and a little more on the highway.

"My 2004 Prius is easily the best car (of 29) I have ever owned," he said.

Boden has homes in Oregon and San Jose. His granddaughter, a recent graduate of California Polytechnic State University-San Luis Obispo, is now driving the 2006 Prius that Boden bought for his wife. "She says she just loves the car," he said.

Besides a "convergence of awareness" about environmental issues, Prius availability is another key to its success, said Toyota spokesman John Hanson.



Until this year, Prius models were in short supply, which led to customer waiting lists and some instances of people paying more than sticker price for the car.

Now, Hanson said, customers walk in and find available Priuses on the showroom floor. "That really made a difference," he said.

Today, people are paying less than the sticker price for a new Prius. A base 2007 Prius lists for $22,795, including destination charge. People are paying $21,711 for that car, car-shopping Web site edmunds.com says.

Diridon got a Prius in 2002 when General Motors made him give back his leased EV1 electric vehicle. "I love it," he said. "It's quick, spacious. It takes four people comfortably and can carry a couple of sets of golf clubs or luggage. I get over 40 mpg, and I'm heavy-footed."

Besides the success of the Prius, the news isn't good for local car dealers.

Polk registration data shows that 30,463 new cars and trucks were registered in the Santa Clara County between January and May. That's down 5.4 percent from the 32,208 registered in the first five months of 2006.

In the Bay Area, registrations have fallen 9.3 percent so far in 2007. Nationally, through June, new-vehicle sales are down just 1.5 percent.

The state's dealer organization has predicted sales will fall about 4 percent this year in California, blaming high gas prices, consumer debt levels and uncertainty in the housing market.