{"id":132114,"date":"2018-12-12T11:05:05","date_gmt":"2018-12-12T16:05:05","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=132114"},"modified":"2018-12-12T11:30:00","modified_gmt":"2018-12-12T16:30:00","slug":"sales-sliding-toyota-rethinking-plans-for-prius","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2018\/12\/sales-sliding-toyota-rethinking-plans-for-prius\/","title":{"rendered":"Sales Sliding, Toyota Rethinking Plans for Prius"},"content":{"rendered":"
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For 2019, Toyota is launching the first AWD version of the familiar Prius hatchback.<\/figcaption><\/figure>\n

Say the word, \u201chybrid,\u201d and one name is almost certainly going to pop into your mind: Toyota Prius. First launched in Japan in 1997 and brought to the U.S. three years later, it has been the world\u2019s best-selling hybrid-electric vehicle, or HEV, ever since. For several years, earlier this decade, it was the best-selling vehicle in the huge California market and number one in Japan, as well.<\/p>\n

But, as the clich\u00e9 goes, times have changed. Whether due to increased competition, cheap gasoline, or other issues, sales of the original Prius hatchback have been tumbling. Though still the best-selling hybrid in the U.S., the first 11 months of this year saw demand dip 23.2%. And, at just 3,180 vehicles in November, sales are now running barely a quarter of their peak pace earlier in the decade.<\/p>\n

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Beyond the Headlines!<\/figcaption><\/figure>\n

Toyota is trying to address some of the issues that came up with the launch of the fourth-generation Prius hatchback for the 2016 model-year, among other things tweaking its design and introducing a new electric all-wheel-drive system that could enhance the car\u2019s appeal in Snowbelt regions. But during a series of interviews at a media drive of the 2019 Prius, Toyota officials acknowledged they are looking at even more radical options for the fifth-generation hybrid hatchback due out early in the coming decade.<\/p>\n

(Toyota set to reveal reborn Supra at next month’s Detroit Auto Show. <\/em>Click Here<\/a><\/span>\u00a0for more on what’s coming to the show.)<\/em><\/strong><\/p>\n

<\/em><\/strong>Prius has developed a reputation for being fuel-efficient, reasonably prices and spacious, said Rick Lofasso, Toyota\u2019s U.S. general manager for vehicle marketing. “For 2019, we want to add another descriptor: versatile,\u201d with the addition of AWDe technology.<\/p>\n

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The original U.S. version of the Prius reached showrooms in 2000.<\/figcaption><\/figure>\n

The system adds a third motor on the Prius hatchback\u2019s rear axle which automatically comes on at speeds up to 6 mph and can continue to assist in low-traction situations until 43 mph.<\/p>\n

Toyota is betting that as much as 25% of the Prius hatchbacks that will be sold in 2019 will feature the AWDe system available on several trim levels for an additional $1,400. What remains to be seen is whether it will bring in incremental buyers or simple be ordered by customers who would have bought a Prius anyway.<\/p>\n

Even if the AWDe system largely attracts new buyers, Prius is selling at a fraction of its peak rate earlier in the decade, acknowledged Lofasso and other Toyota officials, with little likelihood it will reach former peaks anytime soon \u2013 if ever again.<\/p>\n

Industry analysts point to a variety of factors for the hybrid hatchback\u2019s decline, including the quirky and controversial design of the latest-generation Prius. But there\u2019s also a lot more competition in a space the hybrid once owned almost entirely \u2013 including hybrid versions of the Toyota Corolla sedan and the brand\u2019s best-selling model, the RAV4 crossover. Some observers are betting the RAV4 Hybrid could, in fact, become Toyota\u2019s best-selling HEV within a year or two.<\/p>\n

(Toyota has no plans to abandon U.S. car market, says top exec. <\/em>Click Here<\/a><\/span>\u00a0for the story.)<\/em><\/strong><\/p>\n

There are other factors at play, including cheap gas, as well as the rapid increase in availability of more advanced plug-in hybrids and pure battery-electric vehicles. Toyota itself plans to launch new BEV models when it opens a new plant in Alabama in about two years.<\/p>\n

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The Toyota Prius Prime plug-in hybrid joined the Prius "family" in 2017.<\/figcaption><\/figure>\n

\u201cFor the next Prius we have to think about how to\u2026separate (it) from the rest of the Toyota line-up,\u201d said Deputy Chief Engineer Koichi Kaneko, during an interview.<\/p>\n

(EV sales skyrocketing in CA. <\/em>Click Here<\/a><\/span>\u00a0for the story.)<\/em><\/strong><\/p>\n

The Prius executive stressed that while Toyota has added a plug-in hybrid version of the hatchback, dubbed Prime, he does not want to see Prius evolve into either a BEV or a fuel-cell vehicle. Part of that is because of the additional cost that would make it difficult to pitch Prius as \u201caffordable.\u201d There is also the fact that the hatchback and other members of the Prius \u201cfamily\u201d have long been marketed as \u201cno sacrifice\u201d vehicles. You don\u2019t need to find a charger or a hydrogen pump to get fuel economy that, with the current hatchback pushes beyond 50 mpg.<\/p>\n

Nonetheless, Kaneko conceded, \u201cToyota has to be ready to respond to these trends\u201d reshaping the automotive market and might even have to consider the possibility of either shifting to a crossover body style or adding a CUV to the broader Prius family that today also includes the small Prius C and bigger Prius V.<\/p>\n

\u201cI don\u2019t think Prius can be the same as before,\u201d said Kaneko, looking forward to the gen-5 model that is just now beginning to enter the development process. \u201cOur role is to figure out what we can do with it. We need to find a new direction.\u201d<\/p>\n

Considering the self-imposed constraints on what a Prius can and must be, the job isn\u2019t going to be easy. But while Prius may not be the brand\u2019s best-seller it remains a critical part of Toyota\u2019s identity, and that means the automaker will be throwing a lot of resources at the problem in a bid to keep the nameplate relevant.<\/p>\n

(Toyota\u2019s U.S.\u00a0CEO warns more tariffs will hurt U.S. auto sales.\u00a0<\/em>Click Here<\/a>\u00a0for the story.)<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Say the word, “hybrid,” and the Toyota Prius is likely to pop into mind. But while it’s still the world’s best-selling hybrid, demand for the hatchback has dropped dramatically and a top Toyota exec says “We need to find a new direction” for the next-gen Prius. What does that mean? TheDetroitBureau.com reports.<\/p>\n","protected":false},"author":2,"featured_media":132116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,10,12,9],"tags":[],"make":[111],"post-state":[],"category_old":[150,151,123,131,319,142,155,158,152,154,132,139,128,291,206,278,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/132114"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=132114"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/132114\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/132116"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=132114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=132114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=132114"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=132114"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=132114"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=132114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}