("U.S. Toyota Dealers Concerned Of Prius Supplies," published at 1 p.m. EDT, incorrectly said Group 1 was the largest Toyota franchise owner in the U.S. in the third paragraph. The correct version follows:) By Mike Ramsey Of THE WALL STREET JOURNAL DETROIT -(Dow Jones)- U.S. dealers for Toyota Motor Corp. (7203.T0), TM) are growing concerned over the tight supply of Prius hybrids and the auto maker's ability to produce the popular cars in the wake of the earthquake and tsunami in Japan last week. Because of a sharp rise gasoline prices over the past two months in the U.S., Prius sales in the U.S. have been rising, leaving some dealers with low inventories on their lots. After the earthquake, Toyota said it has halted all vehicle production in Japan--where the hybrid is made--until at least Wednesday. The plant that makes the Prius wasn't damaged, but the company is still assessing whether parts suppliers were hurt in the devastation caused by the tsunami. "Prius stock is a little bit short," said Pete DeLongchamps, vice president of manufacturer relations for Group 1 Automotive Inc. the second-largest Toyota franchise owner in the U.S. "What we have to keep an eye on is the actual supplier, not the plant that makes the car." At end of February, Toyota had 17,997 Priuses in dealer inventories in the U.S.--enough to last about a month. In February the company sold 13,539 Priuses, and March sales were expected to rise, because warmer weather brings out more car shoppers and higher gas prices have boosted demand for the Prius. Prius sales traditionally rise and fall in direct relationship with the price of gas. Gas prices averaged $3.56 across the U.S. Monday, up from $3.13 a month ago. "I would say the days' supply is getting short quickly, and sales have gone up quite a bit and the supply was anticipated to go up as well," said Larry Kull, president of Burns-Kull Automotive in Vineland, N.J. and president of Toyota's dealer council. "They are still assessing the damage, but I doubt we are going to get a lot of clarification within a day or two." Toyota spokesman John Hanson would only say that Prius production had stopped along with all its plants in Japan. A report by IHS Automotive said a Panasonic Corp. (6752.TO, PC) battery component plant in Japan may have been damaged, but the report didn't indicate whether the plant may have supplied batteries for the Prius. Earl Stewart, owner of Earl Stewart Toyota in North Palm Beach, Fla. said he is completely out of Priuses and is waiting on new shipments. His dealer is one of the largest in the Southeast. "The Prius is a huge issue for us," he said. "What I am worried about is how they are going to get them from the plant to the ports and what shape are the ports in?" By Mike Ramsey, The Wall Street Journal
