2010 Toyota Prius production ramped up

Toyota is ramping up production of its redesigned 2010 Prius hybrid to meet higher-than-expected demand, according to an AP report.

Toyota was among the Japanese automakers forced to halt production at its assembly plants earlier this year to reduce production and lower inventories after being hammered by the global financial crisis, with a loss of $7.7 billion.

But production has returned to normal at Toyota and other plants this month, and there is talk that workers are paid overtime to keep up with demand for the Prius.

The Prius is popular in what is otherwise a languishing Japanese auto market, because of growing consumer interest in mileage and the environment.

Tax breaks on ecological vehicles that started in April are making the Prius and other green cars a good deal for Japanese consumers. Additional incentives may win legislative approval soon, boosting hybrid sales in Japan later this year.

Toyota says it has received 80,000 orders for the third-generation Prius, which rolled out earlier this month. It declined comment on a Kyodo News report that such orders had jumped to 110,000, and Toyota is raising Prius production from its initial plan for 42,000 to 43,000 vehicles a month to 50,000.

The Prius should also be a minor hit in the United States, provided banks loosen their purse strings by summer.

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