Hybrid Wars: Toyota To Sell Two Prius Models

TOKYO — Toyota will continue to sell the current Prius when the revamped version goes on sale in May in an unusual move likely to help the top-selling hybrid ride out a threat from rival Honda.

Toyota Motor Corp. President Katsuaki Watanabe said Thursday there is demand in the Japanese market for both the third-generation Prius and the smaller model that's already on sale.

He declined to give details, including overseas plans. But his comment is the first from Toyota confirming recent Japanese media reports that the current Prius gas-electric hybrid will continue to be on sale, partly to match the cheap price of Honda Motor Co.'s new Insight hybrid.

Prius faces an unprecedented challenge from the Insight, which starts at 1.89 million yen ($19,000) in Japan, and $19,800 in the U.S. The Prius now sells for $22,000 in the U.S. and 2.3 million yen ($23,000) in Japan.

Watanabe said Toyota has been slashing costs on hybrids to almost a fourth of the early costs. He declined to give details on pricing, adding Toyota will give an explanation when the new model is unveiled, expected in May.

"Honda has made an excellent car that addresses ecological problems," Watanabe said of the Insight at a Tokyo showroom. "It will stimulate the development of hybrid technology, including cost-cutting. And that is also our goal."

The Insight has been a hit since going on sale in February in Japan. It is expected in overseas showrooms in coming weeks. The Prius is the global best-seller in hybrids at a cumulative 1.2 million sold around the world since its 1997 debut.

Watanabe also expressed hopes General Motors Corp. will avert bankruptcy, as that would hurt the overall auto industry as well as parts-makers, which Toyota shares with the Detroit automaker.

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GM received a $13.4 billion bailout loan from the U.S. government, but is asking for more money to avoid collapse. The Obama administration is expected to give a restructuring plan for GM and Chrysler LLC by the end of this month.

"I think it will be best if General Motors is able to continue its operations," Watanabe said in a response to a reporter's question.

He also said Toyota's California joint venture plant with GM, New United Motor Manufacturing Inc., or NUMMI, remains important for Toyota.

"There is no problem to continue with that," he said.

But he was pessimistic about prospects for any quick recovery in global auto sales.

Toyota global vehicle production plunged 49.6 percent in February from the same month a year ago. Toyota's U.S. sales tumbled 39.8 percent in February.

"There surely has to be light at the end of the tunnel," he said after showing a luxury model for the Japanese market, the Crown Majesta. "I want the decline to stop, and I'm watching closely for it every month, but it's not coming."

Comments

[SPQR1775]

American Auto Industry survival is glued to clean and efficient fuel technology and fuel mileage. American Auto makers vehicles are OVER PRICED. GM, Ford and Crysler will not reduce their price and their fleet of GAS GUZZLERS will NOT MOVE from the lots until they slask prices by half. Why would anyone buy vehicles that are over priced and does not support fuel efficiency. I went to a lot for GM and FORD last week and I was turned off by the refusal to reduce prices. Why would I buy a truck for 45K or 25 that give me 12 to 14 miles to the gallon. Education and Knowledge is POWER and I am going to purchase foreign made cars because they are cheaper and give me what I want. After I return from IRAQ in November 2010 then I will get me a Japanese or German built vehicle. NO NO American cars!

[NoPCZone]

Toyota seems to have gotten GM disease a generation later than Detroit. Each generation of Prius has grown in size and price. Remember Lower, Longer, Wider? I think BMW has a bad case of the same disease.

The average US family doesn't have a zillion kids, many of us are not married and don't want a big car. Safe comfortable, reliable, affordable and sustainable would do just fine.

[KillTheMessenger]

The new Prius is almost the same size as the old one. The little tweaks are more tiny visual clues to the human eye than they are real changes in vehicle size.

Toyota had two ways to go with the new engine design: substantially more efficient or slightly more efficient and substantially more powerful. The picked the second solution. One can clearly argue that a hybrid that does not sell will not save any oil whatsoever and that a hybrid that sells even better will save even more. As an environmentalist I prefer a good car that sells over a better car that doesn't.

"Safe comfortable, reliable, affordable and sustainable would do just fine."

That's what the Prius is. So is the new Insight if I can make an educated guess.

[fanifesu]

Why fix it if it ain't broke...
The old version looked better than this new design, car makers always have to tamper & tinker with things.

[ChiProgressive]

These electric hybrids aren't that great. Think about the waste when the batteries go bad.

Switch over to a newer high mileage, low sulphur diesel instead.
Or just convert an older diesel to run on used vegetable oil.

The VW Polo gets 72 mpg, but it hasn't made it across the pond yet :(

[rkimball]

vw will soon be out with a eu version ultra clean burn diesel hybrid polo capable of 100+ mpg. it will meet even california's strict emmision standards.

i see politics coming between the american consumer,the oil companies,detroit & capitol hill meaning we will never see it on our shores. greed & corruption can't take a bite on efficient products like the pole.

[DRaymond]

It will be interesting to see what the Toyota folks come up with to name the current Prius when the new and obviously improved one is also carrying the Prius label but the old one has still been known for years as the Prius.

How about this: Prius Classic!

[PlayTOE]

Two versions of Prius, plus a Honda Insight.

This gives hybrid shoppers a little more flexibility to match their needs with the choices available.
Well done Japan.

And so far, GM is still sitting back with a loosing fleet and asking for another handout.

(Obama should ditch GM and fund Tesla)

[Tperl]

Tesla is no better. Their pricing is outrageous.

[gjohntheterrible]

Only because they don't mass manufacture their cars like GM. Look at GM's volt which is set to have a starting price of 40K. If I can afford a 40K car I can certainly afford to buy a Corrola and fill it with gas.

[marlovian]

Can't wait to see Vin Diesel and Paul Walker duking it out at 55 mph and 55 mpg next year.

[KillTheMessenger]

Now that would actually be a fun movie to watch. Or make it reality tv. Every contestant gets ten gallons of gasoline and the goal is to get from A to B... at 55mpg or more. Those who don't make it have to push the car over the finish line.

:-)

[Dystopic]

Top Gear did something similiar to that not too long ago.

[gjohntheterrible]

Ah yes, the 2010 roach mobile offering from Toyota and Honda, excellent.

[KillTheMessenger]

The simple fact is that Toyota has too many parts for their old Prius in stock that need to be cleared because the slump in sales was not in their production planning models.

And the decision to sell them rather than to scrap them makes perfect economic and ecological sense.

Bravo. Toyota still knows how to make good business decisions.

[MotorMouths]

Thus far, critics are giving the edge to the 2010 Prius in their reviews:

http://motormouths.com/car/toyota/prius

It's close, though. The Prius is beating the 2010 Insight by a single point:

http://motormouths.com/car/honda/insight

By the way, both of those averages are very high, so you're probably safe with either hybrid.

[KillTheMessenger]

Competition is good. Especially when it is between two well designed cars. I will, for sure, check out the Insight. I had Hondas in the past and I was never disappointed.

[JnrNorman]

The Honda sounds underpowered but some people dont mind that.
If they do mostly local driving.

http://video.aol.com/video-detail/the-obama-deception/1757361927

[KillTheMessenger]

There is no such thing as an underpowered car. There are only impatient and reckless drivers.

[BearsLeft]

You should drive a Trabant.

http://www.youtube.com/watch?v=MQwj0EqOQJw

[LADawson]

I dunno, I like to be able to push the gas pedal and actually get onto the highway at traffic speed without having a mile head start. :) The old Honda HF models from the late 80s were pretty anemic, but got great mileage.

[rkimball]

the new honda insight is based on the hond civic hybrid drivetrain & platform. you get what you pay for. the insight will be underpowered & overworked. i leased the civic hybrid. there is no power merg on to interstate. no power to pass semi tractor trailors or climb hills. at 1.3 cc & 70 hp there is no comparison.

the prius gets a new 1.8 124 hp engin with better performance while improving fuel economy. the prius is well worth the extra $2k. note: the prius is also more expensive to service.

[karelles]

In 2005, looking ahead I could see the gas price rise coming and I purchased a Honda Civic Hybrid. I live in Colorado, in the mountains of the Front Range (the eastern side of the Rockies). I drive up and down virtually every day.

Yes. Going east on I-70 from Dillon to the Eisenhower tunnel, one of the few >7% grades on the interstate system, I can only go 40mph. However, most everywhere else, I have no trouble maintaining 70mph even going uphill. I have NO trouble accelerating on entrance ramps, and driving up the canyon toward my town I have no trouble exceeding the speed limit. Driving up the 10% grade to my favorite hiking trail is no problem.

I have been nothing but happy with my Civic Hybrid. Especially when gas was >$4.00 a gallon.

And the few times I am inconvenienced by less-than-stellar performance, I make allowances in my driving and smile when I look at my gas usage gauge and see 45mpg even living in the mountains. Perhaps a Prius would have done better, but when I bought they were $4000 more and not available.

[Solsister]

I also live in the mountains of Colorado. I own a 2007 Prius and my husband bought a 2007 Honda Civic hybrid. He loves his car and I love mine. They're both excellent vehicles with way more than enough power to accelerate when needed.

My husband decided on the Honda because he didn't want everyone to know his car was a hybrid, plus the federal tax credits for the Prius had been used up, so the Honda cost considerably less at the time.

As far as the batteries wearing out - I had a 2002 Prius with 130,000 miles on it when I bought my 2007 model. I have never heard of batteries on these wearing out. Anyone else experienced this?

[Sumocat]

Why is it unusual for Toyota to sell two models of the Prius? They sell at least three versions of the Corolla.

[Dystopic]

yeah, but they don't usually sell a 2006 model next to the 2009's.

this is not a trim level thing, this is the previous model and the brand new model being sold at the same time.

[mcamp52]

I've been watching the [progress of both of these releases because I'm in the market for a new car and would like to get a small hybrid. Both cars will be exellent. So far, I'm leaning toward the new Third Gen Prius because is is a little bigger and I have a family. After reading blogs and reviews, I have also ascertained that although well made, the Honda Insight is probably a little noisier than the Prius. The Prius will also have a moon roof, which I find highly desirable. And the moon roof has solar powered cells that run a venting system that helps keep the car from getting super hot as it sits in the sun all day in the parking lot. I like that but will probably gag on the cost of that option when Toyota finally releases its pricing. Last, I'd like all the readers to get curious and take one of these cars for a test drive. I have and my impression is very positive. These are really nice cars. They are different from what you are used to but they handle well, they are comfortable and I think you will be pleasantly surprised.

[Tom95134]

The solar powered venting system on the new Prius will be well worth it. The Prius has a lot of glass and it can take a bit to get the car cooled down after setting in the sun for a few hours. The way I handle it is to open all the windows as soon as I get in the car and leave the driver's door open for a minute or so. When the car is really hot the A/C goes into recirc mode so when setting there with the door open and the "power "ON" I manually change the A/C to non-recirc to flush out the air ducts. Once you've gotten your acto together and are ready to drive, close the driver's door, roll up the windows, set the A/C to Auto, and drive away. This reduces the amount of time it takes for the A/C to bring the car down to a more comfortable temperature.

Also, plan on putting a good, high quality (shop installed) tint of the windows. I have V-Kool installed but I think the new 3M Crystalline product might be superior. Both are nearly clear but with excellent heat rejection.