May 2, 2006
Toyota Motor Corp., the world's largest manufacturer of hybrid automobiles, is facing a shortage of its popular Prius hybrid sedan.
Toyota reports U.S. sales of its Prius hybrid have been hurt by the shortage and not by a decrease in demand as fuel prices approach record levels.
Prius sales fell again in April, after a 3.3 per cent first-quarter decline. Sales dropped to about 7,500 Prius units last month, from 11,345 in April 2005.
Even with the decline, Toyota sold more than three times the number of hybrids than Ford.
Hybrid sales at Ford are up 50 percent over April of 2005 and 75 percent from March 2006 to nearly 2,800 units in April. The increase is due at least in part to aggressive incentives as well as increasing gasoline prices.
Ford began offering interest-free loans for up to 60 months to consumers nationwide in April on its Escape hybrid and Mariner hybrid SUVs.
In addition to rebates, Ford is also spending lavishly on advertising campaigns, featuring Kermit the Frog, that tout the company's commitment to hybrids.
Federal and state tax benefits, which in some states can total as much as $5,925, also spurred demand for Ford hybrids. The federal tax credit for the Prius will expire in 2006 unless Congress extends the tax benefit.
