In July, U.S. Toyota dealers didn't have enough Prius models in stock to last two days, and many were charging thousands of dollars above sticker price for the few they had.
Today there are about 80 days' worth on hand,
and dealers are working much harder -- even with the help of $500 factory rebates -- to move the egg-shaped gas-savers off lots from Santa Monica to Miami.
This month, Honda is offering $2,000 in cash, financing and leasing incentives to buyers of the formerly sold-out Civic hybrid, while a dealer in northern Michigan is dangling $6,000 cash back to those willing to buy a hulking Chevy Tahoe hybrid.
Yet automakers believe they have little choice but to make more hybrids.
Though car buyers are losing interest,
politicians are pushing them as key to reducing U.S. dependence on foreign oil and limiting the global-warming gases that cars emit into the atmosphere.
In January, President Obama called on the industry to "thrive by building the cars of tomorrow" and prepare for federal and state regulations that could push average fuel economy above 40 miles per gallon by 2020.
"The automakers are in the situation of needing to pacify politicians that are in the position to bail them out with expensive fuel-efficient cars," said Rebecca Lindland, auto analyst with IHS Global Insight.
"But shouldn't it be more about satisfying the needs of the American consumer?"
Dubbed the Prius-fighter because of its similar looks and performance, the new Honda Insight hybrid is set to arrive on dealer lots in the next few weeks.
Next year, the Japanese automaker will make a sporty hybrid coupe.
Hyundai and Audi will deliver their first hybrids in 2010, and Toyota has a redesigned Prius and a new Lexus hybrid coming this spring.
Toyota said Friday that it would make a subcompact hybrid priced below $20,000 in 2011.
The biggest push is coming from Detroit.
Ford plans to follow its new 41-mile-per-gallon Fusion and Mercury Milan hybrids with a battery-powered van in 2010 and a "family" of hybrids by 2012.
And last month, in their request to the Obama administration for $21.6 billion in additional bailout cash, both General Motors and Chrysler announced a hybrid onslaught.
Chrysler promised eight
new hybrids or electric vehicles by 2015, and GM, which already sells eight hybrids, said 26 of the 33 cars it sells in 2015 won't run on gas alone,
including the Chevrolet Volt, a plug-in hybrid due out next year.
The hybrid flood marks a lasting commitment to a powertrain technology that currently represents only about 2% of U.S. vehicle sales and, by most accounts, is deeply unprofitable.
Toyota said last year
that it was finally
making money on the Prius after nearly a decade producing it
, but executives at other automakers acknowledge that they lose money on every hybrid sold
< Only after the effects of the humongous Yen Subsidy at that time were added in - they're very probably losing again now with the current exchange rates. >
we were making money on the Civic hybrid, we weren't making a lot," Honda spokesman Chris Martin said.
That may help explain why fewer than 2 of every 100 Chevy Malibus sold last month had the hybrid powertrain and why Ford priced its new hybrid Fusion, which dealers expect to start receiving this month, $8,000 above the gasoline-only version.
Ford expects to produce about 20,000 Fusion and Milan hybrids this year, or about 1% of its total production.
"It's a tough time to bring out almost any product right now," said George Pipas, the company's chief sales analyst.
"But getting hybrids out right now is as much about image as anything else."
In November, months before Honda even announced the price of its new Insight, Jim Johnson of Eagan, Minn., plunked down a $500 deposit for one.
"I asked to be on the waiting list, and the salesman said he didn't have one," said Johnson, who works in investments. "So I said, 'OK, I want you to start a waiting list.' "