Around the Net

Automakers Can't Keep Up With Demand For Hybrids

With customer demand for hybrid cars surging, several automakers -- including Toyota, General Motors and Ford -- are struggling to produce enough vehicles to meet the need, causing sales of many hybrid models to drop in May.

Sales of the Toyota Prius declined 37.5% compared with May 2007, and sales of the Camry Hybrid sank 12.5%. In April, Prius sales increased 61% and Camry Hybrid sales rose 51%. Toyota says Prius sales slumped in comparison to a surge in May '07 because of a promotion designed to clear out inventory. But perhaps the biggest factor is that Toyota and its suppliers were unable to make enough batteries and other component systems to meet rising demand.

Even with the industry's battery-availability issues, J.D. Power and Associates says hybrid vehicle sales are still expected to grow this year, while sales of most segments fall. Mike Omotoso, a senior manager and hybrid expert at J.D. Power, says he anticipates total hybrid sales to top 400,000 this year, up from 350,000 last year.

advertisement

advertisement

Read the whole story at Detroit Free Press »

Next story loading loading..