Is the Toyota Prius an Endangered Species?

WATERTOWN, MA (03/29/2011)(readMedia)-- At his suburban Massachusetts Toyota dealership just outside of Boston, General Manager Adam Skolnick checks his Prius inventory. Nearly two dozen of the popular hybrids are in stock.

"Not what I'd call a shortage, at least not right now," he says. "I'd love to have more Prii on the lot, because rising gas prices have made them a hot seller lately, but we're not going to run out of them tomorrow."

Skolnick's observations come amid warnings that Toyota Prius supplies are drying up nationwide as Toyota works to resume production in areas damaged by the 9.0-magnitude earthquake that shook northern Japan on March 11. Online doomsayers have suggested that the Prius could disappear from dealer lots, and there have been reports of some dealerships raising prices on the popular Toyota hybrid.

Like most Internet rumors, the tales of coming Prius shortages wildly distort a small grain of truth. At the time of the earthquake, Autodata Corp. reported a 32-day supply of Prius models in the United States, or about 18,000 cars. February saw Prius sales grow by 10% as gas prices rose above $3.25 per gallon, helping Toyota to sell 13,539 vehicles in the United States.

Should Prius production plants remain idle for an extended period of time, the first signs of a shortage would appear in mid-April, although some specific trims might become scarce at Toyota dealers before then.

The Prius is one of the few Toyota models that is vulnerable to a shortage, because all Prius models sold in the United States are made in Japan. Most of Toyota's U.S. lineup is built domestically, although some models use parts made in Japan. Toyota's parts production resumed on March 21, which should prevent shortages of other Toyota models.

One potential setback for Prius production is damage to a plant in Miyagi Prefecture that builds the batteries for approximately 300,000 Toyota hybrids each year. Toyota delayed the April launch of its all-new Prius wagon in Japan as a result of the plant shutdown, but the company still plans to have it ready for a summer rollout in the United States.

"Right now, there is really no reason for anyone to pay a premium to own a new Prius," Skolnick said. "Greater Boston Toyota customers should know that they're available, and that there are no foreseeable shortages of any of the other Toyotas that we carry. Selection could be limited in a month though, so I would encourage anyone who wants to buy a Prius to visit our dealership soon, while there's still a good variety of trim levels and colors available."

About Toyota of Watertown:

Toyota of Watertown is recognized as one of the premier Toyota dealerships in Greater Boston. Centrally located just minutes off the Mass Pike between Route 128 and Route 93, they are renowned for their selection and low prices, as well as customer service that is second to none. They strive to make your automotive experience a positive one for the life of your vehicle. For more information, you can visit them online at www.toyotaofwatertown.com, like them on Facebook at www.facebook.com/toyotaofwatertown, call them at 617-926-5200 or visit their showroom at 149 Arsenal Street, Watertown, MA.