The hybrid revolution: Is Toyota just coasting?

According to Toyota, its hybrid cars are selling as fast as they can be made. Contrary to recent articles, even the Highlander hybrid and the Lexus RX400h, are also selling well, notes a recent AutoWeek story.

Nonetheless, Toyota isn't necessarily selling many more hybrids this year compared to last year. In fact, with the release of the Camry hybrid, for example, Toyota has had to reduce its production of the popular Prius, in order to have the capacity to build the hybrid Camry. Thus, overall sales of Toyota hybrids are not accelerating as fast as in the past, even though interest is growing.

So, why isn't Toyota producing more hybrids?

"Expanding hybrid volume requires increasing the number of vehicles that have the hybrid option available," stated Jim Press, President of Toyota U.S.A. "That's driven by engineering resources, and it's difficult to accelerate that."

One can only speculate that "engineering resources" also includes technical parts from suppliers, such as batteries. Why don't suppliers rush to this demand? Maybe the better question is, why should they? NiMH batteries appear to already be a dead technology soon to be replaced by lithium-ion technology. Yet, unfortunately, this whole transition will take years, maybe even a decade.

Whatever the causes for this lack of "engineering resources", it appears that Toyota is either willing, or has no choice, to just coast for a few years, producing only a few hundred thousand hybrids annually.

Hopefully, soon-to-be-released hybrid technology from GM and Chrysler, or a new hybrid Fit from Honda, will accelerate Toyota's hybrid production.