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Toyota questions hybrid approach

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Jonnycat26, Aug 10, 2005.

  1. v.jones

    v.jones New Member

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    tomdeimos said: "Also if a regular model is discounted I would think customers would demand that for the hybrid version also or it would be like paying way over list for the hybrid portion."

    Apparently, Ford does not agree with you. If you listen to the fine print in the ad blitz for the "Employee Discount for Everyone" campaign, you'll discover it does not apply to the Escape Hybrid and to several of their pickup truck lines.

    --
    Vince
     
  2. richard schumacher

    richard schumacher shortbus driver

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    By all means, let's rathole on which market was cited, and ignore the general question of whether hybrid drives are a passing fad.
     
  3. bookrats

    bookrats New Member

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    <div class='quotetop'>QUOTE(richard schumacher\";p=\"115364)</div>
    OK, that's a good question. But let's ask it another way: what would cause growth of hybrid cars to stall?

    My submissions:
    • Cost of gas comes dramatically down
    • Cost of hybrid is perceived to be too expensive over "equivalent non-hybrid"
    • Alternative technology appears that provides equivalent or better benefits (in gas mileage and emissions), at equivalent or cheaper prices.
    • Hybrids really are just a fad -- gas mileage and low emissions aren't why people are buying them, they think Priuses are "cool".


      • Then, the question is: which of these is likely?

        I'd say (1) is not likely at all. (3) is always possible some time in the future, but from what I've read, I think it would be (at least) 5 years out.

        (4) is possible, but Priuses are still selling really quickly. Maybe this needs to be asked in 1-2 years -- it's still too soon to tell.

        (2) -- that depends a lot on the buyer and the price. But if Toyota jacked up their hybrid system prices -- really price-gouged them -- I could imagine that happening.

        I just know that I'm glad I have a Prius.
     
  4. Jonnycat26

    Jonnycat26 New Member

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    <div class='quotetop'>QUOTE(bookrats\";p=\"115392)</div>


      • I'd add this...
        • The perceived value of a hybrid model is less than it's non-hybrid counterpart.


          • Which is I think the problem with the Highlander Hybrid/Rx400. The premium is almost an extra 8K over the V6 model (2WD). For the extra 8K, you get milage of 33/28 versus 19/25. If you compare it to the 4 cylinder version, it's nearly 9K more and the milage of the 4cyl is 22/27 (all comparisions done with the 2WD models).

            So if you want the milage, it's almost more paletable to get the 4cyl and drive it like you have an egg under your foot than to spend the extra 9K for 11 more mpg in the city, but 1 more mpg on the highway. If you do a lot of city driving, it's perhaps worth it... but the highway doesn't make as much sense.

            When you compare the Escape (again, using 2WD) V6 to the Hybrid, the premium there is 3.5K. The milage for the V6 is 20/25, vs 36/31 for the hybrid.

            I think the "over 30" on both city and highway is something that's going to catch a consumer's eye. The milage of the Prius is what attracts buyers to it, and it's probably one of the main reason it sells as well as it does. The HH and FE are unique in that consumers can compare a hybrid and a non-hybrid implementation of the same platform side by side, and the HH just may not cut it from a cost/benefit perspective.
     
  5. bookrats

    bookrats New Member

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    <div class='quotetop'>QUOTE(Jonnycat26\";p=\"115408)</div>
    That makes sense to me. But since I've never been interested in an SUV, or a Lexus/Acura "luxury"-level car, I admit it's all sort of a mystery to me in the first place.

    If I hadn't decided to buy a Prius, I doubt I would have bought anything more expensive than a Mazda3.
     
  6. Jerry P

    Jerry P Member

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    The next big thing for Toyota on a world-wide basis will be a hybrid version of the Yaris/Vitz/Echo platform. These cars are the #2 seller in Japan and extremely popular in Europe and Canada. Having owned an Echo prior to my Prius I must say it was a great little car. A hybrid should easily be able to get 70-80 mpg with a 1.0 liter engine. This is a vehicle the rest of the world needs and would embrace. SUVs are an American item only and would not be expected to sell well elsewhere.
     
  7. john1701a

    john1701a Prius Guru

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    If Prius was just a fad, how would you know it? At some point, it becomes common enough to be considered normal. I see several every single day now, so it is close already. The 2006 model year should push beyond the perceived threshold.

    And I doubt Echo (as we know it) would be hybridized. That vehicle size is a perfect candidate for a light-weight body. A conversion to plastic would fill in the rather empty category that Smart is hoping to capture.
     
  8. efusco

    efusco Moderator Emeritus
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    Prius doesn't count as goes this article. In fact, it supports the contention in the article that hybridization of existing models may not work. Part of the good about Prius was that it is unique...styling, features, etc. You felt like you were getting value despite the fact that it cost a bit more than a comparable vehicle.

    Not so with HiHy, 400h, or Escape hybrid...you're getting essentially the same as the non-hybrid with nothing to set it apart....not even badging is significantly different.

    I think Toyota has misread the market a bit here. I don't think the problem is that they're building hybrid versions of existing models, but that they aren't doing enough to set them apart...HiHy...should have SKS, should have a MFD (standard), needs some unique body styling and badging to make it immediately recognizable, needs to sacrifice a little of the excess power for better and truely outstanding SUV gas mileage. I think THAT would get some attention and boost sales. Otherwise they're competing against themselves AND everyone else with an SUV on the market and when push comes to shove that 20% premium doesn't give the buyer much to show for their money.
     
  9. hobbit

    hobbit Senior Member

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    As I've said before: by selling the HH and the rx400h as
    they are being sold, i.e. power wagons instead of a true bid
    for fuel economy in larger vehicles, Toyota has totally
    screwed the pooch. That's not the way to get
    people to start thinking differently about vehicles
    and energy.
    .
    _H*
     
  10. Jonnycat26

    Jonnycat26 New Member

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    I'd argue that the Escape hybrid *is* a good value. I don't know if it's because Ford is selling at cost to get the model out on the streets, or if Toyota is just grossly marking up the HiHy and 400h (I suspect it's both), but for the Escape you pay 2.5K more, get 10mpg more, and a bunch of standard options that aren't on the regular model.

    For the HiHy and rx400, it's more like a 35% premium. For the Escape Hybrid, it's more like a 5% premium.

    Another thing may be research... I think people are going to research a hybrid before they buy it, and if they read any comparison tests of the HiHy and Escape, the Escape is going to come out as a better value. Sure, it can't do 0-60 in 7.2 seconds, but it is a better value.
     
  11. Tadashi

    Tadashi Member

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    I thought the Echo and Prius use the same engine. So would they not get the same milage? I noticed even the model numbers of the engines are the same. Did they detune the Prius engine to compliment the electric motor?
     
  12. slortz

    slortz New Member

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    Did Ford do the employee discount for everyone thing also? My understanding was that it was the GM Employees Discount that was being opened up to everyone. Oh well, I'm sure GM's big sales campaign caused the other auto makers to come up with some kind of buyer incentives too, just don't think Ford would call it the same thing because I'm sure GM trademarked it.
     
  13. slortz

    slortz New Member

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    Apologies. I guess I was wrong. Even Chrysler apparently was offering the employee discount to everyone. Although it is a month old, I found this article: http://www.autoblog.com/entry/1234000403049447/
     
  14. bookrats

    bookrats New Member

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    <div class='quotetop'>QUOTE(Jerry P\";p=\"115439)</div>
    It's possible that Toyota already is selling this, or something like it, in Japan. Apparently, they have something like 5-6 Japan-market-only hybrids on sale right now.
     
  15. prius04

    prius04 New Member

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    In a number of posts above it was suggested that the hybrid Lexus, Ford and Highlander are not selling like the Prius because they are only slightly more valuable than the non hybrid versions of those cars.

    But isn't it more fair to compare these 3 SUV hybrids not with the V6 version, but with a theoretical V8 version?

    Now this is not easy as some of these vehicles don't come in both versions. But according to the Toyota Web site, the 4Runner V8 is about $2000 more than the V6. So this suggests a comparison point for the v6 versus v8.

    And isn't the hybrid version of these cars really about power and not economy? Therefore, I would suggest that the best way to compare the price of these SUVs is not to compare the V6 non hybrid to a V6 hybrid, but to compare the cost of a mythical V8 version of these vehicles, to the V6 hybrid version. Thus, rather than costing $4000 dollars more, the car really only costs $2000 more.

    And even with the MPG, comparison to the V6 non hybrid is not a fair comparison. It needs to be compared to the "mythical" V8 version. Thus, the MPG is not just mildly better, it's phenomenally better.

    However, my arguments above only hold true if these hybrids really do have the power more like the V8. Does anyone know about this comparison.

    And isn't the Lexus selling well? I thought there was still a long waiting list for them?
     
  16. Godiva

    Godiva AmeriKan Citizen

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    The bottom line is no one knows what the public is going to buy.

    Weren't there plenty that thought the Prius would tank? Wasn't the success of the 04 redesign a surprise?

    And no one expected oil to go over $60 a barrel.

    No one is going to know what is going to sell until the Toyota Camry Hybrid comes out. If they're able to rein in costs a bit and if the price of gas is over $3 a gallon by that time....it may sell quite well.

    As long as their are waiting lists, as long as you're paying MSRP or over, I'd say they're successful. Toyota can't make them fast enough.

    I'm not sure how reliable the marketing predictions are from an engineer in product development. I'd like to hear what the marketing guys have to say.
     
  17. Jonnycat26

    Jonnycat26 New Member

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    If you compare a Highlander to a theoretical V8 counterpart, even using 3K as the premium for the price of the V8 over the V6, the Hybrid still comes out a really bad loser in terms of price (nearly 5K more). I'd imagine it'd probably get nearly 10mpg more(combined), so that may be worth the premium.

    The bottom line is the public isn't going to buy anything that they feel is a poor value or is overpriced. The Prius is a good value, that's why they sell. The Escape Hybrid is a great value, that's why Ford is complaining it can't get parts fast enough to keep up with demand and has no plans to put the Mariner hybrid into showrooms because they can't handle all the orders at the moment. The Highlander and RX400 are too expensive for too little value.
     
  18. tomdeimos

    tomdeimos New Member

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    If you want to compare to a mythical V8 you should not forget the synnergy drive. The closest equivalent to that would be like a 5-7 speed automatic transmission option.

    Then with the 4 wheel drive option there's built in advantages of not needing a drive shaft and another differential that you can't get in a gas car at all.
     
  19. Jonnycat26

    Jonnycat26 New Member

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    <div class='quotetop'>QUOTE(tomdeimos\";p=\"115843)</div>
    I was comparing 2wd to 2wd. The 4wd wouldn't skew the comparison much... And the 4Runner does come with a 5speed auto.
     
  20. Godiva

    Godiva AmeriKan Citizen

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