MINNEAPOLIS
- Marc Miller bought a Honda Accord a year ago, but
with his 50-mile round-trip commute and ever-rising
gas prices, even his Accord's 26-miles-per-gallon
average hasn't been cutting it.
So a
few weeks ago, he started thinking about buying a
hybrid. His employer, Tile X Design, offers incentives
to workers who buy one - $3,600 toward the price of
the vehicle - and with gas nearing $4 a gallon, the
time seemed right.
Until
he started calling dealers. Nissan doesn't sell its
Altima hybrid in the Midwest, and Honda dealers report
low supply. Even Toyota, the hybrid king with its
Prius and Camry models, has few on lots. Part of that
is by design. A Toyota spokeswoman said Prius sales
are down 2 percent in its Midwest region that includes
Minneapolis-St. Paul and Chicago, because of lack of
availability. But that comes as Prius production has
increased over last year and sales are up nearly 23
percent nationwide during the first four months of the
year.
"We
just didn't have enough vehicles to provide to the
consumers," said Mona Richard, adding that Prius
production is at capacity.
Particularly
not to Midwestern consumers.
Sales
of hybrid vehicles in the Midwest region have always
lagged significantly behind the national average,
according to data from J.D. Power and Associates'
Power Information Network. In March and April, hybrids
accounted for 3.6 percent of all vehicles sold
nationwide. In the Midwest they comprised just 2.5
percent of sales.
Tom
Libby, senior director of industry analysis for J.D.
Power, said most auto manufacturers allocate vehicles
based on historical sales data.
The
allocation system is "sort of a Catch-22,"
he said. "The more you sell the more you get, but
you can't sell more until you get them."
Libby
also said despite the recent surge in interest,
shifting production to accommodate that would take
longer than with a nonhybrid because of the
technology. And that technology, which typically adds
thousands of dollars to a hybrid's cost, won't get any
cheaper until they're mass-produced.
"It's
a nonsensical decision for the consumer," Libby
said. "So the consumer's not going to buy them in
high quantities, but the price can't come down until
they make them in the high quantities."
"I
think there will be shortages (of hybrids) for the
foreseeable future," he said.
Barbara
Jerich, president and chief of staff for the Denny
Hecker Automotive Group, said she wasn't surprised to
see the increased demand for the Prius and Camry
Hybrid.
"The
wait has gotten longer in the last six months,"
she said of hybrids. "We're seeing a very marked
movement away from trucks and SUVs."
Chuck
Schifsky, spokesman for American Honda, said gas
prices are a universal issue for Americans, as opposed
to things like home heating costs that tend to mostly
affect people in Northern states.
"No
one is immune to the gas prices," he said.
"The interest is equal across the board."
The
Honda Civic Hybrid, which accounts for about 11
percent of all Honda Civic sales this year, has also
seen an increase in demand in recent months.
Minnesota
and Wisconsin have "traditionally been pretty
good for Civic hybrids," Schifsky said, which may
account for their extremely limited availability in
the Twin Cities. Other areas are able to keep "a
handful of days' supply" of the hybrids in stock,
he said.
Jessica
Caldwell, manager of pricing and industry analysis for
Edmunds.com, said the recent storm for hybrid vehicles
isn't unique to the Midwest. Nor is it just hybrids
that are popular.
Other
small, fuel-efficient cars, such as the Toyota Yaris
and Honda Fit, have been in high demand through the
spring as well, doubling or tripling their usual sales
rates, she said.
Of the
typically strong summer months for car sales, Caldwell
added, "I think it's definitely going to be an
intense summer to get a car, and a fuel-efficient
car."
For
Miller, even finding cars to test drive proved to be
difficult. He said he called about a dozen Saturn,
Toyota and Honda dealers before lining up test-drives.
Even when he did find a Toyota Camry Hybrid to try,
the dealership called him the night before his
appointment to tell him they had sold the vehicle.
"What
they're telling me is within the last four weeks, they
may have had some on the lot, until the price of gas
started spiking," said Miller, who commutes about
30 miles each way between the Twin Cities suburbs of
Eagan and Plymouth. "They went from having a few
on the lot to having nothing."
Once he
finally got in to some to drive, the Prius "blew
me away," he said. The wait time though: three to
six months, depending on options.
Ultimately
he probably would have settled on the Honda Civic -
"I'm partial to Hondas," he said. But this
year it's not meant to be.
"At
this point, the big boss - my wife - says 'no,'"
he said. Maybe the couple will revisit the purchase in
a year. Her resistance might change, he said,
"when gas hits $5 or $6 a gallon."