June 8, 2009
Government involvement in Chrysler and General Motors operations may coincide with a new emphasis on small, fuel-efficient cars. The American taxpayers, who start off owning a big chunk of the bankrupt automakers, better hope consumers warm up to the idea of green cars. But so far, they havent.
Toyota reports U.S. sales of its Prius hybrid are down a whopping 45 percent so far in 2009. Its a far cry from this time last year, when Toyota dealers were tacking on a premium to the sticker price and had waiting lists for the cars.
Toyota says it has sold just 42,743 Prius models through the first five months of 2009, compared to 79,675 during the same period last year.
Why have American consumers fallen out of love with the Prius? Gasoline prices may have something to do with it.
At this time last year gasoline prices were about a $1.50 a gallon more than they are now, costing consumers an extra $30 per fill-up if they were driving a vehicle holding 20 or more gallons. It suggests consumers flocked to the Prius, not because its cute or they want to save the planet, but because they wanted to save money on fuel.
Gas prices may not be the only factor.
In a recession, consumers are buying fewer new cars altogether, and when they do make a purchase, are looking for the best deal possible. The Prius -- especially with the surcharge tacked on by dealers last year -- is more expensive than other small cars.
The Prius remains a top-selling model in Japan. In fact, it was the best-selling car in Japan during May, according to the Japan Automobile Dealers Association. Of course, gasoline prices are much higher in Japan than they are in the U.S.
