Toyota would like the hybrid tax credit extended past 60,000 vehicles
Here is a story to be filed under the "Not Surprising" category. Here it is: Not surprisingly, Toyota, as the only manufacturer that has sold more than the 60,000 hybrid vehicles (the limit mandated by Congress where the federal tax credit expires), would like to get the number increased. Not surprisingly, no other manufacturer agrees with Toyota.
As you can imagine, it makes good financial sense to consumers interested in saving fuel to redeem their tax credit. Buyers of the Prius have not been able to get the full tax credit since Toyota passed the 60,000 mark of Priuses sold. Not surprisingly (again!), sales of the Prius have dropped since that mark was reached, according to Jim Press, the President of Toyota North America.
So, what is going to happen? Soon, the House will meet and discuss their options. House Speaker Nancy Pelosi, a Democrat from California has introduced a plan that will be discussed at their next meeting. If you are in the market for a Prius, you should pay attention to those meetings.
[Source: USA Today]
Reader Comments (Page 1 of 1)
Peter 4:45PM (1/16/2007)
Toyota should lobby to raise the price of gas so owning a hybrid makes more sense. As it is, gas price at the pump is artificially low compared to the actual political and social costs incurred in delivering a gallon of gas (see Chicago Tribune article: http://www.chicagotribune.com/news/specials/chi-oilsafari2-htmlstory,0,3163462.special) Then consumers will choose more efficient cars like the Prius on their own.
Of course, that might hurt the sales of the FJ Cruiser, Tundra, Tacoma, Land Cruiser, Sequoia, and 4Runner. And they've sold a lot more than 60,000 of those.
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A5-14 5:19PM (1/16/2007)
Why provide an extra subsidy for Toyota? Hooray for Toyota and its vision, but let's get real here.
The credit should go to people using mass transit, or in the alternative, more money should go to mass transit. That'll save much more fuel than tax credits for hybrids.
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Tim 6:58PM (1/16/2007)
Peter- I think you're right, but don't hold your breath! Increased fuel prices have forced new technologies and conservation. HOWEVER, the new ruling left will consider increasing the fuel tax to be a burden on the “working poor.” http://en.wikipedia.org/wiki/Working_poor These “working poor” folks vote in greater numbers than the environment and the politicians can’t see past the next election. A tax credit for strong hybrids may be a good idea if the fuel they burn contain NO other subsidies. Humm… Strong biodiesel hybrids or maybe even PHEVs. This could actually be a good idea! Hello, GM? I have this great idea I'd like to sell you... I think the idea is SHOCKING!
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CM 7:37PM (1/16/2007)
There is another option. Toyota could make an agreement with another car company - one without any qualifying vehicle - to "rebadge" the Prius, perhaps altered a bit, and sold by the other car company as one of their models. That way the other company gets more sales, Toyota gets more money, and consumers can have another option to snag that big tax rebate!
The only downside? All that lost tax revenue swelling the deficit.
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Tim 7:50PM (1/16/2007)
CM- Common now, don't give them any ideas...
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DB 7:57PM (1/16/2007)
"Toyota should lobby to raise the price of gas so owning a hybrid makes more sense."
No offense, but I don't believe you thought before typing that out. An auto manufacturer lobbying for higher gas prices might as well tell consumers that the seats are made up of cow manure, as it would have the same effect- nobody buying their cars. The backlash would be astounding.
Toyota is banking on their Tundra and Tacoma taking out the huge proportion of F-150s and Silverados on the road. Toyota has sunk a large fortune in trying to make that so. Overall, Lexuses aren't exactly fuel efficient (for their class sure, but not overall) They'd be cutting themselves off at the legs.
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Andy 11:57PM (1/16/2007)
"No offense, but I don't believe you thought before typing that out. An auto manufacturer lobbying for higher gas prices might as well tell consumers that the seats are made up of cow manure, as it would have the same effect- nobody buying their cars. The backlash would be astounding."
I feel the same way. Only some loony politician from a whacked-out congressional district would push for something like that, much less a carmaker trying to expand its full-size pikcup sales to two hundred thousand units per year. I would like to see even more state support for hybrid purchases. California has set forth a good example (rare that California does anything good), and I hope to see more state rewards for Prius and Civic Hybrid purchases.
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Peter 9:21PM (1/16/2007)
DB: thanks for your comments. I was being ironic -- see the last statement in my post. My point is that Toyota is not as green as its PR campaign would like us to believe.
If Toyota really did produce efficient cars across their entire range, then higher fuel prices would be in their favor. But they don't -- they make a huge chunk of profit selling some pretty inefficient cars and trucks.
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Jimmy 1:29AM (1/17/2007)
#4 "Toyota could make an agreement with another car company - one without any qualifying vehicle - to "rebadge" the Prius".
Well, that is called the 2007 Nissan Altima Hybrid. Toyota Hybrid system in a non-Toyota product.
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M 9:52AM (1/17/2007)
Why are more taxes or more tax subsidies a good idea?
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RyDawg 10:55PM (1/17/2007)
Toyota sold their first gen Prius technology to both Ford and Nissan. What they should do is give tax credits to all Hybrids that acheive a certain MPG average. That would keep it fair, and would also force car companies to produce a cleaner product.
As far as raising gas prices? Yeah right...
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DB 6:28PM (1/17/2007)
Peter: What you mentioned is so true. Ironic that GM catches so much flack for producing big trucks and SUVs, while people think of Toyota as some super green company (I own a Toyota BTW). The truth of the matter, and what people overlook is that Toyota is hoping to follow in the footsteps of GM and take their place in the big-mofo car and truck segment.
Toyota is like any other realistic company- they want to make money, and the easiest way is via bigger and more expensive vehicles. Toyota hopes to be able to produce in mass, the exact type of vehicles that people give GM so much crap about. Ironic.
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Hippie Hunter 9:25PM (1/17/2007)
Going with the Idiot Choir:
MAKE A DIESEL!
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