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

Substituting basic steel wheels instead of fancy wheels can easily save $1000+. Making the rear seats optional could save $800 on the base model.

People steal wheel nuts in the UK ??? Heck, I don't think anyone in America would do that unless they intentionally wanted to kill someone. I've never heard of that before. In the US, theft of all four wheels (expensive wheels) used to be common a few years ago, but they'd either replace them with basic wheels or else leave the vehicle on blocks. Stealing just the lug nuts would be considered sinister/attempted-murder here in the States. When I was in London in 1996, we walked around the city at 1am and felt perfectly safe. Things must have changed over there.
(Fyi: my car alarm is so sensitive that if someone leans on my car or a bird lands on it, the alarm will go off. I'm not kidding. No one is going to steal my wheels!)

 

The thing that amuses me about this is that they expect a lot of MY2010 Prius to go to current owners who, presumably, will trade-in the existing car. But if they slash the price of the new G2 Prius, so goes the resale on used cars. I have a 2010 on Pre-order, but am I actually going to take it if I suddenly have to pony up $3k more than I originally planned due to crappy resale price on my own? Hell no! All I really want is the telescopic steering wheel and I'm pretty sure I can learn to weld for less than that.

 

In the UK they have to cable tie on their hubcaps to prevent theft.
They would pinch your false teeth if you fall asleep on the train with your mouth open over there.

 

That's not against theft, it's because the wheel covers tend to fall off.

 

in europe, it is against theft.

 

its recession... sucks, i know... "good" thing about it is that they might give you guys better incentives for 2010.

 

The other thing to consider with regard to recession is fuel price, and the fact that the US market has a short memory. Last summer I could have just about sold the car for the same price as I paid, now it looks like I would be lucky to get 80% from a private buyer, more like 65-70% of original value if I were to trade it in.

Don't get me wrong, though, because I'm not complaining! The worst case (not splurging on a new toy) is still a blessing.

 

There is a bright side to this. The pre-owned Prius cars just became affordable to thousands of people that previously wouldn't have paid the $25K price. I'm sure there are thousands of people in the US that want a Prius regardless of gas prices but only had $15K to spend on a car. (college students, people who don't make as much but still care about the environment, green peace kids that work at starbucks (no, i'm not implying that all or most green peace people work at starbucks). Looking at the situation on a large scale, it will keep more Prius cars on the road and fewer sitting on dealer lots).

 

This just goes to show you how unreliable Edmunds is...

 

Hold on a minute here...I read the article and it doesn't say ANYTHING about lowering the U.S. prices or offering a 2G in the U.S. For all we know, they might just finish out their 2G inventory in Japan and only release the 2010 3G in the states (with similar pricing).

They do NOT need to compete on price with the Insight. The Insight is a different car and Toyota has established itself as a hybrid leader, Honda has not (they gave up on the hybrid Accord and the hybrid Civic is nice but not nearly as popular). Toyota has a better "hybrid" reputation and can charge a premium. If they want to compete with the Insight, they can "hybrid" the Corolla.

Also, offering a 2G Prius alongside a 3G Prius in a deep American recession would be a disaster! Everybody would get the 2G - it is almost the same vehicle and it would be cheaper. Offering the 2G would kill the 3G before it got off the ground. Upselling is extremely difficult right now.

I just don't see it happening - doesn't make any sense. I think 2010 (in the US at least) will be only 3G starting around 23k msrp.

 

Sorry Chris, but I disagree. Approximately 70 % of the U.S. economy is driven by consumer spending. By nature, North Americans love to shop and typically want the latest and greatest. (Shopping for a new vehicle is typically not a logical decision making process, and unfortunately most people are driven by emotions.) For those who want the latest product, the 3G model is available (at an increased price). And for those that behave in a more rational manner, the current 2G model is a better value. We'll just have to wait and see...

Keith

 

You cannot force the consumer to buy something more expensive then they were intending on spending by NOT offering the cheaper version in a competitive market. The 3G has many features that make it worth more and there is a certain crowd that will buy it no matter what (evidenced by people paying thousands OVER list for the Prius G2).

I still predict the G2 at $19999 (stripped base maybe minus some features standard even in the base today) and the G3 at the $24000+ range.

Toyota does not NEED to do this, but doing this will really hurt the Insight and keep Toyota the volume and technology leader. Sometimes in a bad economy aggressive moves like that keep momentum going for a company.

 

I agree. Everyday in meeting clients who are shopping or buying I find that they have already classified themselves pricewise. There is a huge number of buyers that have been excluded from buying a hybrid simply because they won't or can't spend more than $20000. The Prius, both the G2 and G3, along with the HCH are out of the range of these buyers.

Honda has made a great decision to try to attract these budget-conscious buyers with a solid hybrid at $18500. Toyota would do well to jump in and try to get some as well @ a price of $19900.

 

I agree. It said "Japan." But Toyota is a very flexible company, and could easily extend the offer to the US - especially in this global economy.

I think there will be a huge market for both versions. Americans have proven over the past three months (evidenced in economic reports and corporate earnings reported this past week) that although they are being "spend thrifts" on most of what they purchase, they have NOT changed their habits when it comes to electronics and other "gotta have" items, such as fancy cars. I think there is a large number of Americans that would buy the 3G and a large number of Americans that will extend their thriftiness to a new car, and only opt for the 2G. I think Toyota would be very smart in offering both products. And, it is very wise to note that the 2G Prius is a "tried and true" product with consumers.

 

Let's see that's 4 votes that say 2G will continue, 1 vote that says nay. I love being the underdog! Go Cardinals!

 

Uhh... as one of the people who has seen and been in the 3G (too bad we didn't get to drive one), they are NOT almost the same vehicle.

 

Of course the current model will continue. What is Toyota suppose to do about the supplier contracts already in place? You can't just abandon the components already ordered when in business to make a profit... especially in such a time of economic uncertainty.

How long the dual existence will last is the real question.

Since the Prius base-model is so well loaded, there's lots of opportunity to reduce goodies for the sake of offering a lower price. The key is high-volume potential... which takes years to establish... and just happens to be where the Iconic model is now.
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Agreed. There are plenty of differences. But the key is to watch the other markets around the world. Whether or not it is a good idea here won't matter elsewhere anyway.
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In EPA med-size car segment, Toyota has two hybrid cars i.e. Camry Hybrid and Prius G2.

It’s probably Toyota’s attempt to complete the EPA med-size car line up i.e. Prius G2 (1.5L ICE) , Prius G3 (1.8L ICE) and Camry Hybrid (2.4L ICE).

 

Since I plan to take advantage of the current economic troubles to acquire the G2 Prius I have long desired at a reasonable price, at about the time when the first G3s are in the showrooms, I have been watching nearby dealers' inventories with interest. It seems that they stock pretty few Package 1 Prii, and these have always tended to move more slowly than better equipped ones. Historically, manufacturers have not found many buyers for the stripped-down cars that they make available to substantiate their low base price claim. It seems that the mainstay of G2 sales in better times, and of the the present standing inventories is Package 2. The more fully equipped ones and Tourings seem to be way more plentiful than the "plain Jane" ones. So, while I could see continuing to provide a few stripped-down G2s, mainly for fleet buyers, I cannot see very many buyers passing well-appointed, well-equipped Insights by for G2s without cruise control, mp3 capability, etc.

I can well imagine that Toyota management is stung by the experience of having ramped G2 production up in mid-2008, only to have the bottom fall out and big inventories pile up. That points to keeping G3s scarce in order to have waiting lists and sales at full MSRP, like in the heyday of the G2.

Toyota can still come along with hybrid versions of the Yaris, Scion, etc. A stripped-down G2 would be a really backward looking, short-sighted response to the Insight.