Can Honda increase hybrid production?
Are hybrid buyers simply doomed this summer?
To date, Toyota still doesn’t know exactly how bad the production crisis is in Japan. While 50 percent of production has been resumed and will continue through at least May, full production could still be many months away. And since hybrid cars such as the Toyota Prius are only produced in Japan, 50 percent of US hybrid sales face very real uncertainties. As of this morning, Prius sales were down to just 9 days.
So, will any other automaker be able to fill this hybrid void if it becomes reality?
Certainly, there is the potential that less Japanese consumers will be buying cars in coming months enabling Toyota to focus on key markets like the US. One way or another, however, reduced Toyota hybrid supplies seem inevitable without a serious crash in gas prices.
Unfortunately, during the 2008 gas spike, as Toyota hybrid car supplies dwindled and dealer markups increased, other automakers did little to offset demand. Or, maybe that should be rephrased. Other automakers did nothing.
This time around, there are some new hybrids on the market, for instance, so overall hybrid supplies have increased since 2008. But can any other automaker increase their supplies significantly to fill any Toyota hybrid void?
Almost certainly not.
Ford, for instance, appears constrained by very defined battery supplies. GM, Hyundai and Nissan have no history of any serious hybrid production.
Ultimately, the only automaker with any possible capability to fill some of the Toyota void is Honda, another Japanese company sure to face many of the same production problems as Toyota. Even if unaffected, based on 2008, even Honda would probably offer little relief.
Nationwide gas prices will probably top $4.00 this summer, a number places like Los Angeles passed weeks ago. In fact, just the other day a gas station in my LA neighborhood was at $4.33 for regular unleaded. $4.33. Sadly, however, it appears hybrid cars will offer limited relief for consumers to fight these higher prices. As a result, today’s hybrid prices are probably as good as buyers will find through the summer.