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GREEN WITH LUXURY; Raising the bar for full hybrids.(News)

AutoWeek

| February 07, 2005 | COPYRIGHT 2005 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: ROGER HART

Toyota created a gasoline-electric-hybrid consumer monster, and now it's struggling to feed it.

Since Lexus announced at last year's Detroit show that a hybrid version of its best-selling RX sport/utility vehicle would be for sale, nearly 10,000 people have plunked down deposits. More than 46,000 others say they're also interested in the RX 400h.

In the car world, that's a home run-out of the park.

While the line gets longer to own an RX 400h, building them is taking more time than first thought.

Why: Toyota was taken aback by the popularity of its Prius hybrid and increased production to meet demand. More than a year after launch, supplies are still short for the economy car. Toyota makes most of the hybrid drivetrain parts in-house, so it can't simply say to a supplier, "Give us more.'' To help meet demand, Toyota recently announced it is looking to build hybrids at a U.S. plant to supplement supply from Japan.

"We fully expect the RX 400h to be 25 percent of [U.S.] RX sales,'' says Denny Clements, Lexus group vice president and general manager. Lexus sold 106,531 RX 330s in 2004, making it the best-selling Lexus model. Annual production from the RX 400h plant in Japan is about 38,000 vehicles, and as the hybrid sport/ute will be sold worldwide, Clements has been told the United States will get 24,000 vehicles annually. "We know that's probably not enough to meet demand,'' he says.

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