Toyota to continue offering stripped-down 2G Prius alongside 3G Prius

omg

 

You have hit on the key point, MONEY. From the latest reports Toyota is down to $19B in cash and has debts equal to their assets. Between their push to be the #1 global automaker, the rise in the Yen, and the collapse of the automotive market they are not in the same financial position that they were in even 2 years ago when they had a reported $90B in cash.

Add to this the reality that the Prius dominates the hybrid market. Why would Toyota introduce a new generation of Prius, one that is a significant upgrade over the past generation, and then discount it by eating the currency losses. It is not going to happen. Their closest rival will be the new Ford Fusion Hybrid that is going to start at $27,000. Why would they price the Prius at $22K?

I see the hope for the 2010 Prius to come to market without an increase in price as wishful thinking by those that want to trade in their G2 on a G3. The dual effects of the weakening used market combined with an increase G3 price could keep many from upgrading.

 

This was a phony story written by a moron. He had no idea about what he was writing. I understand accounting and can read financial statements. As a matter of fact Toyota has increased its cash flow position over the last 5 yrs UP to $19 Billion at the end of FY 2007 ( 3-31 ). Six months later at 9-30-08 that position had increased to $20.5 Billion its highest position ever. Cash was never at $90 Billion...at any time ... EVER!

I never believe anything written in a 'blog' until I check it for myself.

Agreed. If the currency issue doesn't resolve itself soon then a) prices will be a lot higher or b) volumes will be withheld and redirected to other markets ( what happened in 2008 ).

 

Correct me if i'm wrong but didn't Toyota improve the hybrid drive , reduce its size and also its cost. Why would you continue to offer an hybrid car with older technologies , when you have made vast improvements? I can see down the road Toyota offering a compact size hybrid car that would be cheaper.

 

Interesting. I guess we will get a better picture of Toyota's financial health when they submit their Annual Report in April.

Regardless of whether Toyota has increased their cash to $19 Billion or if their cash has decrease to $19 Billion that is still not a lot of cash on hand when they are losing billions of dollars a quarter.

My point is that Toyota is not in the financial situation to subsidize a popular new product. They also have no reason to do it.

 

But if you look at Toyota's financials which are published at various places on the internet ( google: toyota financial statements ) they've never had any more than $16-$17 Billion in Cash at any time over the last 5 years....until last Sept when it increased to $20.5 Billion.



Well run companies do not hold massive amounts of cash on hand for two reasons:

1. Cash on Hand earns little or nothing. Cash needs to be put in action somewhere.
2. Having that much Cash on hand is an invitation for some company to swoop in and try an unfriendly takeover using the cash to pay for the purchase. Very very bad business.

'Losing billions a quarter' also has to be understood in the overall frame of reference. I believe that the estimate is that Toyota might lose something under $1 Billion last year. But that's Income-Statement-speak. That has nothing to do with Cash Flow which is far more important. Always look at the Cash Flow first. The reason that GM and Chrysler are in the current mess not because they are making losses ( losses are only paper representations of the direction of a company - nothing more ) but because they are taking in $14 Billion per month but they are spending $16 Billion every month.

It's no different than you or me. If our credit sources are maxed out and our bills are $5000 per month but we're making $3000 per month we are bankrupt and the bill collectors will be on the phone daily.

Cash flow statements are really what needs to be watched.

 

No way Toyota is going to sell 180K 2010 Prius units in the first full year of sales if Silver is $29K and Platinum is $41K especially considering the stagnant US economy. These are getting to be Lexus prices.

My guess is Silver will be $23K and Platinum will be $35K. Those prices are high enough, considering a fully-equipped 2009 Touring pkg 6 is $27.8K less sales region discounts.

 

I agree. Although I think that the Silver with EJ as presented at the Prius Connection shows will come in around $24500. The Base model without EJ will likely be $23000-ish.

 

What is EJ?