Does Toyota lose money with each Prime sale?

Well, they are losing my money.

 

I am confused if any other state except California has a mandate with $penalty for failure to sell enough Plug_ins. My perception is that CA is the 800-lb gorilla in the room. WA is also CARB just not extended CARB, right?

But yes I agree the mandates force the auto makers to reduce prices to make the sales. Also demand for plug-ins has not been what autos hoped. Good time to buy though.

 

From the article:

Sounds crazy, but the damage makes perfect business sense

I think along similar lines, regarding the mandatory TPMS in the States. If I had to put them in, say on an extra set of snow tires on rims, I'd say: "Sure, put them in, and use the cheapest available please. What do I owe you?".

And then never initialize them, problem solved.

 

Nothing like wagging the dog.

But most of these articles are pure bs. Check their math, no different than the 250,000 loss GM took on each 2011 volt. (In Bloomberg s imagination)

Almost as bad as the rediculous massive 20 billion barrel oil find in Texas that is touted as energy independence when we use 7 billion barrels each year.

 

I think the ZEV mandate looks at the fleet sales in other CARB(extended?) states, not just California.

 

Supposedly Tesla is going to lose a good amount on every M3 they sell at base price. I read they need them to sell at 50k to make a profit. Any options will put it close to 50k just like any nice Model S is 100k

 

no way to know if toyota is making, losing or breaking even. but a 9 kWh battery is not that expensive, they cut a lot of corners, and it's just a prius after all. so, imo, they're breaking even or making very little.

 

Lose money? Are you saying the only profit on the G4HB is equivalent to the cost of the added battery, charger, and plug on the Prime?

 

well, they do get a few thousand more for prime plus over similarly equipped lb.

 

It does seem several of the 8 "full" CARB states CA, MD, NJ, NY, MA, ME, CT, RI are getting the most Primes.
OR is not considered full CARB but they are close to full CARB status (10yr/150k mile warranty).

But I assume this will expand in 2017. I think they try to hit the highest sales states. This included Virginia for PiP but we seem to be off too for the first Primes. Our PiP sales in VA were probably not what Toyota hoped, due to de-emphasis of free HOV for hybrids in VA.

 

I suspect the reason you can't get the Prime in some places yet (like Canada), is limited production. They will come next year.
As far as "loosing money", nice imagination!
Even -if- (and that's a big "if") Toyota's cost of production is equal to or more than the sale price, the sale allows them to make a lot of money on their other models. It also allows them to sell the Prime and learn how it works in the hands of the "great unwashed public" (Prius Chat members especially! ). To prepare for "future developments". Note that Toyota has finally admitted to themselves that H2 cars are not the way of the future and they are preparing for EVs. Or perhaps I'm reading too much into the announcement just made re EV research at Toyota.

Ask yourself this, if -any- company is "loosing money" on the sale of any of their cars, how are they staying in business? Something Bloomberg, at least, should appreciate! They are supposed to be "business experts" aren't they?

 

patience grasshoppers, prime will be ubiquitous at some point in the future.

 

The Prime is a 2017 model, that just arrived in Nov 2016. Some states were going to get it first, and some are going to have to wait. Plug ins tend to go to California and full CARB states first. These are cars, and not some little consumer good like a phone that can be delivered to all the stores and be kept in the back room until the release date.

 

Here in Miami I check with my dealer and they have none. The dealer app no luck either. I understand having them in the garage is waste of inventory. Even my Gen 4 Two Eco was not at my dealer. It came from the main dealership that they have . I don't think they are in a hurry right now to make those sales. I want to drive one .

Posted via the PriusChat mobile app.

 

I doubt Toyota looses money on each sale but the ZEV facts likely do play into where the Prime is currently in early distribution.

"Special provisions in the Clean Air Act allow states to either follow the federal requirements or adopt California’s vehicle emission regulations. Nine other states adopted the California regulation: Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont." -- ZEV Mandate - ZEV Facts

Check the map and article at the link above. Informative.

Plow - just waiting for my ship to come into The Port of Newark.

 

I have the window sticker to my 2013 PIP advanced. It was $40,900. It says a lot that they can sell the Prime Advanced for 34k

 

I read yesterday that Toyota will have an across the board price increase of 3% starting Jan. 1, 2017.

 

Ok, but judging by the reference to dollar exchange rates it looks like this applies to the US only for now.

This is worth mentioning IMHO in a forum which has English speaking members from all over the world, not just from the US.

Here is the quote:

""We have been absorbing all the additional costs till now, thereby protecting our customers from the price increase. However, owing to continued pressure of high costs and foreign exchange rates remaining at high levels of above Rs 68 against USD, we have been pressured to increase the cost of our products," he said.

Posted via the PriusChat mobile app.