- New Edmunds.com data shows that consumer consideration for the Toyota Prius has fallen even as gas prices have risen from March 13 to the present.
- Jeremy Anwyl, the CEO of Edmunds.com, explored the possibility that shortages in the supply of the Toyota Prius, along with rising prices, in the wake of the March 11 earthquake may prevent some shoppers from including the hybrid on their shopping lists, in a column in AutoObserver.
- Toyota told Inside Line on Thursday that it is hearing "anecdotally that some people think we're 'out of business' temporarily due to the earthquake" and that "it's possible that some people may not be considering us for that reason."
SANTA MONICA, California — New data from Edmunds.com suggests that the Toyota Prius may be falling off some consumers' shopping lists in the wake of the March 11 Japan earthquake and subsequent perceptions that supplies of the Japanese-built Prius may be seriously disrupted.
Edmunds.com data show that consumer consideration for the Prius has fallen over the past month, even as gas prices have continued to rise. The Prius has been the poster car for supply constraints in the aftermath of Japan's earthquake, tsunami and nuclear reactor disaster.
Jeremy Anwyl, the CEO of Edmunds.com, explored the possibility that potential shortages of the Prius may prevent some shoppers from including the high-profile hybrid on their purchase consideration lists, in a column in AutoObserver entitled "Are Prius Consumers Too Smart?"
In response to a query, Toyota told Inside Line on Thursday that it is hearing "anecdotally that some people think we're 'out of business' temporarily due to the earthquake."
"So it's possible that some people may not be considering us for that reason," wrote Greg Thome, Toyota Division communications manager, in an e-mailed response to an Inside Line query. "Those that don't have that impression and are considering Toyota are buying Prius at a very strong pace. Prius currently has less than 11 days supply, which is the lowest since third generation launched in June 2009."
Anwyl had posited that "rising fuel prices this year have resulted in a steady increase in shopping consideration for the Prius. Then disaster struck Japan. News reports started appearing (like this one) pointing out that the Prius is built in Japan and that supplies may be constrained. How will consumers react? It seems that they are anticipating shortages and higher prices for the Prius and compensating by NOT considering a Prius."
Toyota on Friday said it will build cars in Japan at half of the original planned volume at least until June 3, as it — and other automakers and suppliers — continues to struggle with parts shortages and power blackouts. Automotive News estimates the ongoing supply disruptions in Japan will cost Toyota another 120,000 vehicles in lost production. Some auto analysts speculate that it will take years, not weeks or months, for the Japan auto industry to recover from the natural disasters.
The economic laws of supply and demand say that when too many dollars are chasing too few goods, prices will rise in response to the shortages. But in free markets, surpluses and shortages tend to be temporary and obey the law of supply and demand, since actions of buyers and sellers tend to match prices back toward their equilibrium levels.
Toyota raised prices on many models recently, including the Prius, but Thome told Inside Line it was not a result of the earthquake. The base 2011 Toyota Prius got a price increase of 2.2 percent or $470, going from $22,410 to $22,880, including a $760 destination charge.
The price for a gallon of unleaded gasoline stood at $3.81 on Friday versus $2.85 a year ago, according to the AAA Daily Fuel Gauge. Many analysts predict that gasoline will hit $4 per gallon by Memorial Day.
Inside Line says: Have you scratched the Prius off your shopping list? And, if so, what is its replacement? — Anita Lienert, Correspondent
Add A Comment »
wikiwiki says:
08:53 AM, 04/18/2011
More competition plus everyone saying the Prius will now have a huge sticker price due to the earthquake is not helping.
qdp says:
07:52 AM, 04/18/2011
This Article Is Rubbish.
Yes, gas price is rising, but car buying is seasonal, so there is no such direct co-relationship between these two factors.
You need to go back to school to better your basic stastics so that you can earn what you are deserved.
stingray454 says:
06:10 AM, 04/18/2011
I think it's because the Prius has a lot more competition now. In the past year, you've got the Fusion Hybrid, the Volt, the Leaf, new Jetta TDI, and even the new Lexus hybrids are cannibalizing some Prius sales. While the Prius is still arguably the fuel economy champ, people are tiring of the ugly looks, cheap interior, and boring drive.
houston2_sd says:
05:03 PM, 04/17/2011
No wonder the Prius is off the shopping list, the dealers in So Cal are getting $3K over list. I'll just curtail my driving, and drive my old car. As the saying goes, a piglet gets fed, but a hog gets slaughtered.
cz_75 says:
01:17 PM, 04/17/2011
There are other, better choices out there now, so this is mostly competition and a little bit of earthquake.
jm1212 says:
12:18 PM, 04/17/2011
i would rather have a Golf or Jetta TDI than a Prius any day, or save up a bit longer and get a Fusion Hybrid, A3 TDI, or Volt, or maybe even a Highlander Hybrid or 2012 LaCrosse
wideturnone says:
06:33 AM, 04/17/2011
After driving a prius, I have to say that this car is proof that a lot of people care nothing about driving experience or ergonomics. I would in no way put up with the handling, acceleration or even the strange layout inside the cabin. It doesn't even afford enough room to fit my dog in the boot.
This is where cars like the fusion hybrid make more sense - to people who actually appreciate driving. Personally, I can't wait for more carmakers to offer diesel options or even diesel hybrid cars/trucks.
I don't get why some carmaker can't figure out how to take the benefit of electric motors - huge amounts of torque - to start the driving process and then switch to diesel or gas once at a certain speed, since it takes less energy to maintain speed than get up to speed.
christopher42 says:
06:17 AM, 04/17/2011
The pries is easily off my list, I think I'm gonna go with a Ford Fusion Hybrid.
shawnandt says:
01:38 PM, 04/16/2011
It is supply and demand, for EDMUNDS. We use Edmunds to prepare for 'Negotiations' and get our Market research to get the best deal possible, but with all the reports of limited Prius supply and Prius' selling for MSRP, really no use spending our time on Edmunds before buying as we're wasting our time.
Our dealership here in Florida stopped participation in the USAA's discount for the Prius and currently have none that aren't sold prior to their arrival at the dealership...prices paid, full sticker and the dealers says they could easily 'Mark Up' the car as other dealers are doing.
So botttom line is, research on EDMUNDS isn't time well spent for buyers right now, they have all the information they can use right from the many news stories and headlines about Prius prices being paid.
dg0472 says:
12:00 PM, 04/16/2011
I think many potential buyers may just be waiting to see how things in Japan shake out. After all, if it's hard to come by parts to make a Prius, it'll be hard to come by parts to fix one. And market seems to have finally come to the realization that while most Toyotas may be generally reliable, they're not flawless. So it's a reasonable factor to consider.