Hybrid Car Sales Hurt by Battery Shortage - HUH?

Washington DC June 9, 2008; The AIADA Newsletter reported that with gasoline at $4 a gallon, the market is screaming for more hybrids.

But sales of hybrids dropped significantly in May. Battery shortages are crimping supplies of the Ford Escape Hybrid and Toyota Prius, two of the top-selling hybrids.

According to Automotive News, Prius sales dropped 37.5 percent in May to 15,011 compared with 24,009 in May 2007. The Camry Hybrid also was down in May with sales of 5,999, down 12.5 percent from a year ago.

Bob Carter, the head of Toyota's U.S. operations, said limited supplies hobbled Prius sales. "A year ago, our supplies were at record level in Prius," he said. "Now we're in that catch-up mode."

Toyota couldn't ramp up battery production fast enough to build enough Priuses to meet demand, Carter said. He denied a suggestion from a reporter that his company was deliberately holding down its Prius supply to encourage customers to buy other models with higher profit margins.

"We're pushing for every bit of production we can get," Carter said. "We're working very closely with our suppliers to increase that capacity." For more on hybrid batteries, click here.