Demand Spikes for Popular Prius August 2004

Inside the spotless garage of Toyota Sunnyvale, those who wait are gathered.

This night was billed as a get-together for people who own the phenomenally popular Toyota Prius gas-electric hybrid. Instead, it is a drool session for those who want to buy the Prius -- there aren't enough to go round.

Tonight, would-be owners who handed over $500 checks to get on the waiting list have questions -- about the Prius' Smart key, about the car's batteries, but primarily about when they'll get their new car.

At a time when unsold auto inventories are at near record highs and high-dollar rebates for other cars are prevalent, people are still lining up for the Prius. The car's popularity comes from green appeal, great gas mileage, high-tech engineering -- and clever marketing. The image cultivated is of cool, green chic, and Toyota's Web site even lets users buy T-shirts with slogans like "Start getting that new planet smell."

As of early August, Toyota Sunnyvale on El Camino Real has 220 orders for the Prius. That equates to a five- or six-month wait, said David Reuter, the dealership's new car sales manager.

Nationally, as of last week, Toyota dealers have 22,349 people on waiting lists. That's more than the total number of Prius models they sold in the United States in 2002.

Bonnie and Mike Laster of Mountain View have been waiting for several months. They want the Prius, Mike Laster said, because "we're very interested in the environmental aspect of it, to be an example to people."

Why are people like the Lasters willing to wait for a Prius?

"It's the only car like it," said Jim Hall, an auto analyst with AutoPacific in Detroit. He called it a product with "no real compromise" that can use its electric motor to move its wheels, unlike the milder hybrids sold by Honda. Sales have been steady of the Honda Civic Hybrid, the closest competitor to the Prius, but it doesn't look different from a regular Civic and hasn't generated waiting lists. Shun Obinata, a technical translator, and his wife, Toyoko, ordered their Prius in July and hope to get it in late October.

"I'm impressed that Toyota is packaging a hybrid car in the Prius not only as a car with great fuel economy but also as a car that is fun to drive and comfortable to ride," he said. "And by buying one I'm casting a vote for that kind of astute design philosophy."

Adam Simms, the former CEO of Internet used-car seller imotors.com, is now general manager and co-owner of Toyota Sunnyvale. He tells the assembled crowd -- one Prius owner and perhaps 25 others on the waiting list -- about the future of Prius production:

" Toyota has said it'll double production the rest of 2004.

" Toyota is raising prices. The price on the 2004 model grew $300 on April 1, and Toyota will jack up the price on the 2005 Prius by 2.9 percent, or $580. But those on the waiting list who ordered 2004 models before March 10 will be reimbursed for the price increase, Toyota said. The 2005 Prius will sell for $20,875.

" Sales of the Prius represent 4.2 percent of new-car sales at Toyota's Northern California dealerships, Simms said.

Toyota, which originally projected it would sell 12,000 Prius hybrids a year, sold 20,387 in 2003. This year, through July, it has sold 27,013. The full-year sales target is now 47,000.

SOURCE: Contra Costa Times

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