Driving a Toyota Prius may no longer be a reality for many people as a result of the earthquake and tsunami that killed around 10,000 people in Japan and plunged the country into a nuclear crisis. This will also come as a bad news for American car buyers as the Prius is the top selling hybrid car in the United States.
The Prius is exclusively made in Japan with its factory located 164 miles west of Tokyo. Its second plant, run by both Toyota and Panasonic, the main supplier of batteries, situated at the city of Sendai was damaged during the quake. Unfortunately, the calamity would have an impact on all of Prius’ factories. With 11 nuclear power plants and 21 thermal generators expected to permanently shut down, most of the Prius plants are in the area that will most be affected by power outages.
But it will not only be Toyota that will feel the impact of the earthquake and tsunami but also other Japanese car makers. Nissan and Honda also have facilities that have been damaged or closed down by the earthquake. The Toyota Yaris and some Scion models are manufactured in areas affected by the quake as well. As a result, car buyers will see an increase in the prices of automobiles.
The impact of the quake on Japanese car manufacturers will also be felt by American car makers as well. Most companies rely on Japanese manufacturers for spare parts and there is no clear time table as to when production and shipping will commence. General Motors closed down its plan due to shortage of parts. According to Mark Reuss, GM North America President, there is no clear picture as to the real situation in Japan.
However, most Japanese car manufacturers say that majority of the vehicles they sell in the United States are either manufactured there as well as in Canada or Mexico. Aside from that, Nissan, Toyota, and Honda have few factories in the quake region. Toyota believes that it is too early to tell whether it will run short of Prius.
Prior to the earthquake, the supply of Prius was already tight. The increasing cost of gasoline as well as the improved economy has resulted to the increase in its sales. Since January, 24,174 units of the Prius have been sold, up by 47% from a similar period in 2010. In the United States, Autodata revealed that by the beginning of March, Toyota had 18,000 new Priuses available, equal to a 32-day supply.
In addition, more Priuses were rolled out to the US before the quake struck but it is not clear when Japan will be able to ship more. The battery plant just outside Sendai can deliver 200,000 batteries annually but the longer it is not functioning, the more difficult it will be to resume manufacturing of the Prius.
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