Toyota Comments on Cost Reduction of 4th-gen Prius

good news, another amazing achievement.

 

does this mean cheaper Prius or more profits to Toyota?

 

Seems like the first candid comment out of Toyota regarding the fourth generation.

 

Cost is what it costs to construct something. Price is what customers are willing to pay. The difference is profit or loss.

They'll either demand the same or higher prices and take the hit on low volume with high margins or reduce prices and increase volume at the cost of reduced margins. Somewhere in the middle is an optimum for maximizing overall profit. That optimum will vary by location.

 

So what is gonna happen if they reduce prices? will it eat into Prius C/Aqua and Corolla sales?

 

Not to mention TDI sales!

 

they won't lower the msrp unless it gives them a needed competitive advantage. they will weigh the cost benefit across their entire lineup.

 

Common parts can lower the cost by buying in larger lots. It will also aid in determining which cars need to be recalled because THE brake pedal or THE airbag is defective. The answer is: All of them.

GM & Chrysler were masters of his game. Just change the badging & the grill so the car could be a Pontiac, a Buick, or an Oldsmobile. Chryslers could be Plymouths or Dodges depending on the model.

When accountants have more influence than engineers it is a sure sign quality is being costed out.

 

i think you're over reaching. especially trying to link toyota mentality to gm/chrysler.

 

I agree with both. Accountants seem to lose track of value in their pursuit of low cost but I don't yet see anything to indicate that accountants have more influence here. Stylists might be a different story.

I'd also note that Japanese companies seem to have a better track record of thinking long term than Western companies.

 

I wonder which Toyota car shares the most parts with the Prius? Maybe the Auris. I keep wishing Toyota made a non-hybrid prius like other manufacturers make non-hybrid versions of their cars. It sounds like the HSD-gen 4 has the same cost as the HSD-gen3. Oh well. There's a limit to how many improvements can be made.

 

That would drive me 'round the bend, lol.

 

Toyota reduced size & weight of the hybrid components, while at the same time made them more efficient. Those are improvements needed after cost-reduction is achieved. It sounds like they have successfully achieved them.

That's a big deal, not an "oh well" situation. It's the next step required to further penetrate into the mainstream. Cost alone isn't enough.

 

The Cost Reduction of Prius means hybrid vehicles become more price competitive than conventional gasoline and diesel engine vehicles.

Ken@Japan

 

In 2009 there were to MSRP increases for the Prius then the bottom fell out of the automotive market and the unprecedented happened--Prius selling for invoice. I believe the same thing is going to happen to the Gen4. By the time Toyota gets around to stocking dealers sales are going to be falling.

 

Is there a reason to prefer a non-hybrid vehicle?
Maybe, for low mileage per year, then one may choose a Corolla or a Camry.

 

They'll only be available in black.