Toyota Hybrid Production Crippled For The Rest Of 2008

Toyota Executive VP Takeshi Uchiyamada indicated to the press this week that the company is struggling to keep up with current demand for hybrid vehicles, and that the new battery plants announced last month - which were thought to increase the carmaker's production capacity - are simply to help meet current demand.

Uchiyamada predicted that the company's diminished production status would remain in place for the rest of 2008, and battery production is unlikely to be increased until the new plants open. Battery production is one of the major sticking points in the company's hybrid strategy, and while HEVs are thought to be more environmentally friendly than conventional vehicles, HEV battery production is anything but.

Uchiyamada said that Toyota hasn't been able to make strides in "greening" its battery production because they're doing all they can to make enough batteries to supply their assembly plants. At least one of Toyota's recently announced plants, built in cooperation with Matsushita, will produce Li-ion batteries for the next-generation Prius. The third plant will produce nickel-metal-hydride batteries for Toyota's older Priuses and other hybrid models.

Honda is already producing HEVs and will increase hybrid production to 500,000 units after 2010. Nissan will also enter the HEV market with its first hybrid vehicle platform in 2010 and Toyota plans to sell at least a million hybrid vehicles in the 2011 model year. Ford plans to add hybrids to its vehicle lines, bringing its hybrid total to five models. Chrysler is introducing the Dodge Durango HEMI Hybrid and will have a second model, the Chrysler Aspen Hybrid, in dealer showrooms in the Fall.

GM's foray in to hybrid vehicle production has also stalled on battery problems. For GM, hybrid production has been all but shut down in the 2008 model year, as it works with its main battery supplier to replace the battery packs in its Saturn Aura and Vue, and Chevy Malibu hybrid lines. Despite the setbacks, GM says it's going full steam ahead with its plan to introduce the all-electric Chevy Volt in 2010. Vice Chairman Bob Lutz announced on Monday that GM was close to naming a battery supplier for the Volt, and the 2010 production date was all but given.

Source: AP