Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Toyota taking risk by double-teaming Insight with current and new Prius

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
DainBramaged Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jan-21-09 07:17 PM
Original message
Toyota taking risk by double-teaming Insight with current and new Prius
Toyota Motor Corp. plans to keep selling the current version of its Prius hybrid alongside the third generation after the new Prius debuts later this year, a newspaper reports. The strategy: Slash the sticker price on the current Prius so it can go head to head with Honda's cheaper Insight hybrid.

It is the best evidence yet that Toyota is worried about Honda Motor Co.'s new rival. But Toyota is also taking a big risk in putting a 5-year-old model up against a new contender.

Toyota declined to comment on the report. But Japan's Nikkei newspaper said the current Prius will stay in showrooms and be priced to compete with the Insight -- around $20,000.

The current Prius costs around $24,000. And the third generation, unveiled at this month's Detroit auto show, is expected to cost more.

The current and new Prius will be sold next to each other after the new version is released in May, the Nikkei said. It didn't specify whether this was a Japan-only policy.

Honda had hoped the Insight would scoop a yet-untapped low-end market for hybrids. But Toyota apparently doesn't want to surrender that crown without a fight. Its answer is to make the current Prius cheaper by simplifying the interior, the Nikkei says.

The question is, how enticing will it be?

The fresh Insight undoubtedly will have more cachet among image-conscious, eco-minded drivers. Why be seen driving a car that has been on the road for half a decade?

Another problem facing Toyota: Potential buyers of the redesigned Prius may opt for the lower-end current generation. After all, it still gets great fuel economy.

With gasoline far below the highs of last year, customers will see less reason to spend big on hybrids. That goes for the new Prius, even if it does eke out 50 mpg as opposed to 46.

More important, it shows that Honda may be on to something in taking cheaper hybrids to the masses. While Toyota and Nissan roll out ever-bigger and more expensive hybrids, Honda is making them tinier and more affordable. It is even planning a hybrid version of the Fit.

A giant like Toyota may have its fingers in everything from full-sized pickups to luxury sedans. But keeping the current Prius in action concedes that at least one segment was overlooked.

(Posted in full due to subscription only basis) http://www.autonews.com/apps/pbcs.dll/article?AID=/2009...


May the cheapest hybrid win (Unless gas goes back over $4.00 soon, the payback on expensive hybrids is way too long).
Printer Friendly | Permalink |  | Top
TlalocW Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jan-21-09 07:46 PM
Response to Original message
1. I have to say
I'm really disappointed with the mileage on these cars. The original Insight was exciting because it was pushing 70, but officially, the new Prius is only slated to get 48 on the highway, which is what a Volkswagon Bug gets. It just seems like it should be more. I'm driving a 1994 Nissan Sentra with 180,000 miles on it which I bought new in 1995 (I refuse to buy a new car until my current one dies), and it still gets 30+ mpg on the highway. I realize 18 is quite a big jump, but I still think they can do better.

TlalocW
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Tue Sep 02nd 2014, 08:44 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC