As gasoline prices continue to climb, fuel-efficient vehicles - particularly the Toyota Prius hybrid - are selling quickly.

Rising gas prices hitting home

An example of the growing demand for hybrids erupted the weekend of April 19-20 at Toyota's new dealership, Mesa Riverview, when 116 of the battery-and-gasoline powered Priuses were sold.

"At first, people were a little skeptical about buying a car that ran on both batteries and gasoline," said Robert Miller, a salesman at the dealership, one of nine Toyota dealerships in the Valley that sell the Prius.

"They asked a lot of questions about how the Prius worked," Miller said. "Now, they just want to know how much gasoline they can save with it."

Gasoline prices, which averaged $2.93 a gallon last summer, are projected to average $3.54 during the driving season from April 1 to Sept. 30, according to the Energy Information Administration, which keeps energy statistics for the U.S. government.

The monthly average gasoline price is projected to peak at just over $3.60 per gallon in June, the administration reported. However, it is possible that prices at some point will cross the $4 per gallon threshold, said the federal agency.

The Prius, which was introduced in Japan in 1997 and in the United States in 2000, now sells for between $22,000 and $29,000 depending on the extras. Its introductory cost was about $19,500.

It gets 48 mpg during stop-and-go driving and 45 mpg on the open highway, explained Miller. Cost for a fill-up, based on fuel at $3.51 a gallon, is $37.59.

The vehicle is powered by batteries and unleaded, regular gasoline and alternates between the two, depending on whether the car is running steadily (gasoline) or haltingly (gasoline and battery-powered electricity).

"We sold our last Prius on the lot last weekend and we're waiting for our regular monthly delivery order," Miller said.

Potential buyers can make deposits and add their names to a waiting list for the next delivery, which is expected in four to six weeks. The list has steadily grown, Miller said.

In 2007, Prius reported national sales of 181,221, an increase of almost 69 percent over 2006, according to Toyota Motor Sales U.S.A. Inc. As of the end of April, national year-to-date Prius sales reached 64,664 units, a 22 percent increase over the same period in 2007.

Prius reported sales of 21,757 in April, up more than 66 percent from the same month last year.

"Smaller vehicles are going over big," said Jim Lentz, Toyota Motor Sales president. "With oil prices at record levels, smaller cars and hybrids continue to lead the way."

Meanwhile, the economic impact of higher fuel prices is directly affecting U.S. automakers as Detroit-based General Motors Corp. reported recently its plans to cut one shift at four North American factories that make pickup trucks and big sport utility vehicles, laying off about 3,500 workers.

The world's largest automaker said the cuts are due to sagging sales brought on by high gasoline prices and the economic slowdown.

The company said the cuts mean it will make about 88,000 fewer pickups and 50,000 fewer large SUVs.