Last month, gas prices began to top $4 per gallon in many metro areas. This proved to be the “magic number” or “tipping point” that experts had long debated – the point at which consumers were no longer willing to keep paying the price. While prices of $3 and even $3.75 per gallon drew grumbles, consumers did not take significant action. At $4 per gallon, however, people became motivated. Legions of drivers began to trade in their gas-guzzling luxury cars and SUVs in favor of fuel efficient hybrid vehicles.
There was only one slight problem. For years, hybrid vehicles had been a somewhat specialized niche market. Middle America had not been willing to accept drastic changes to their vehicles. Therefore, production was a great deal lower on hybrids than on other vehicles.
When the hybrid revolution began, demand quickly outstripped supply. Dealers were simply unable to keep the cars on their lots. Many customers found themselves wait listed, waiting as long as six weeks for their new hybrids to come in.
Therefore, many were surprised when May’s sales figures were released. In May 2008, only 15,000 Toyota Prius units were sold. In May 2007, Toyota sold 24,000 Prius units. How was this possible?
As it turns out, in 2007 hybrids were still a relatively niche vehicle. Toyota ran a series of incentive programs to increase sales, and those efforts were successful. However, in 2008 demand was up all year. By the time of the May 2008 sales spike, Toyota was nearly out of hybrid batteries. Despite selling only 15,000 units, the company ended the month with less than a day’s supply of batteries left over.
Toyota is working on several new battery plants, which will dramatically increase output. In the meantime, however, if you are in the market for a Prius or other hybrid vehicle, you may need to wait in line.
Hybrid vehicles are suddenly are in massive demand. Steadily growing in popularity since their introduction in the United States in 2000, the vehicles’ demand has soared this month in the wake of steadily escalating gas prices. Now at approximately $4 per gallon in many areas, and well over that price in a few places, gas has finally become a major concern.
Hybrid vehicles first appeared in Japan in 1997 and in the United States in 2000. Yet despite a decade of history, many consumers see hybrids as new and untested technology. Although gas prices have now topped $4 per gallon in many areas, some car buyers are still reluctant to make the switch. One of the biggest fears seems to be concern over the price of replacing hybrid batteries. However, this concern appears to be unfounded due to the proven life of a hybrid battery.
This week we have been discussing the details of how a hybrid works. We have talked about the similarities and differences among hybrids, gas-powered vehicles and electric vehicles. We have given you a basic explanation of the hybrid system and the design features that maximize fuel economy while minimizing environmental impact. Today, we will give you some basic information on hybrid batteries.
