Hybrid Car Review

It seems Jim Press, North American President for Toyota, wants the tax credits extended. He's attributing a drop in sales for Toyota hybrids to the halving of tax credits back on September 30th.

When any automaker surpasses a 60,000 vehicle limit sold, the federal tax credit on hybrid cars goes into a phase out period. Every two quarters following that point will halve the credit. For instance, the Prius had its tax credit go from $3,150 to $1,575 on October 1st.

Toyota is the only company to surpass that limit (and is probably the only company in danger of passing that limit before the tax credit ends in 2010).

The limit was originally intended as a domestic incentive. Once the limitation was surpassed, consumers were assumed to be more likely to buy from another car maker (say Ford or GM) since they have not passed that mark and can still offer the full credit.

And it looks like Toyota is feeling the pressure from that loss. Press is trying to encourage Congress to extend the federal tax credit on hybrid cars and he has backing from the President. Some environmentalists also would like to see the tax credit extended.