When I first read this
TOYOTA IS UPPING PRIUS PRODUCTION: 36,000 units headed to U.S. this summer.
over at Glenn Reynolds’s place I thought it was good news: Toyota had overcome its production issues for Priuses and its supply chain issues caused by the earthquake and tsunami. A remarkable feat. However, when I read the article to which Glenn linked:
U.S. sales of the Toyota Prius slipped from 18,605 in March of 2011 to 12,477 in April, a decline that’s largely attributed to a shortage in supply related to the quake and tsunami that rattled Japan on March 11. However, by late March, Toyota had resumed Prius production, if on a limited level.
Now, Bob Carter, Toyota’s group vice president and general manager, says that Prius production, which was halted for a solid two weeks following the quake and has been steady at 50 percent capacity since late March, will increase to 70 percent in June. This, Carter said, will allow Toyota to ship at least 36,000 Prius hybrids to the U.S. this summer to partially satisfy demand. According to Ward’s Auto, that’s 60 to 70 percent of the Prius’ typical summer inventory level.
it told a somewhat different story.
The bottom line here is that Toyota is on track to sell fewer Priuses in the United States this year than last. Last year Toyota sold about 140,000 Priuses in the United States. That’s a spit in the ocean whether you related it to Toyota’s total worldwide sales (about 8 million vehicles), or Toyota’s total U. S. sales (something like 3 million vehicles). Toyota is struggling to get their ability to sell and deliver back up to where it was last year.
Is this good news or bad news? I think bad news but it’s pretty darned hard to tell based on the way it’s being pitched.
Why is it bad news that Toyota is selling fewer Priuses this year than last year?