Toyota revs up smaller hybrid, Subcompact concept will debut at Detroit auto show in January
Toyota Motor Corp. is moving to expand its renowned hybrid franchise by developing an all-new hybrid-only model that will be smaller and more affordable than its wildly popular Prius.
The Japanese automaker will unveil a concept version of the car on Jan. 11, the first day of the North American International Auto Show's press preview.
Toyota officials declined to discuss the vehicle, but people familiar with the project say the car, a subcompact, is scheduled to go into production in Japan in late 2011 and roll into U.S. dealer showrooms in early 2012.
Toyota is the world's leading producer of gas-electric cars, offering a selection of several Toyota- and Lexus-brand hybrids. But the biggest seller by far is the Prius, a designated hybrid compact with distinctive styling and a starting price of $22,400.
Demand for the fuel-efficient Prius exceeds the combined sales of the hybrid versions of the midsize Camry, Highlander SUV and other Toyota models.
Worldwide, the Prius, now in its third generation, accounts for more than three-quarters of Toyota's hybrid sales, totaling 417,000 vehicles through October.
Analyst Jessica Caldwell at online research firm Edmunds.com said Toyota's plan to build a hybrid for the budding subcompact segment seems promising. "It'll be interesting to see what they name it," she said. "The Prius name has such cachet in the marketplace."
This year, Toyota rolled out the first hybrid-only model for the Lexus line, the HS 250h, but sales are modest. In November, U.S. sales of the Lexus HS 250h came to 1,400, compared with 9,600 Prius sales.
According to people familiar with the project, Toyota is counting on the hybrid subcompact to be a big seller. Toyota plans to produce around 150,000 annually, at least at first, they said.
Adding another high-profile hybrid to Toyota's lineup would not only boost sales, but also increase the profitability of the automaker's hybrid car business by reducing the per-vehicle cost of components.
Toyota also hopes to refocus attention in the new year on its technological achievements after grappling in recent months with a giant U.S. recall of more than 4 million vehicles and new concerns about the quality of its cars.
Sources familiar with Toyota's plans say the automaker is accelerating development of hybrids and other small fuel-efficient vehicles, including a Lexus hatchback, while delaying other models by a few months to ensure that the quality is good.
Toyota's push into hybrids has cast a green halo over the brand. A subcompact hybrid would get even better mileage than the Prius' combined city-highway 50 miles per gallon.
Toward the end of next year, the automaker will be in a position to increase its hybrid vehicle output because its battery venture with Japan's Panasonic Corp. is boosting its production capacity to more than 1 million nickel-metal hydride batteries.
Toyota uses nickel-metal hydride batteries in its traditional hybrids, but the venture also will produce lighter, more powerful lithium-ion batteries for a plug-in Prius hybrid going on sale in late 2012.
With the proliferation of alternative technologies, Toyota also is developing a battery-powered pure electric car due out in 2012.
But the automaker is trying to get the most out of its market-leading position in hybrids, which were pioneered by Toyota and Honda Motor Co. Toyota officials say they expect demand for pure electric cars to grow very slowly.
Some analysts question what they see as Toyota's single-minded focus on hybrid technology, which many auto experts and executives say is an expensive interim phase on the way to zero-emission all-electric and fuel cell cars.
"Toyota is completely convinced about the potential for hybrids spreading to all segments," said auto analyst Maryann Keller of Maryann Keller and Associates of Stamford, Conn.
"That has yet to be proven. There aren't many places in the world where hybrids have caught on."
The key markets for Toyota's hybrids are the United States and Japan, where the Prius is the best-selling car.
Toyota has said it eventually plans to offer a hybrid version of every model in its lineup.
Source: Toyota revs up smaller hybrid, Subcompact concept will debut at Detroit auto show in January
The Japanese automaker will unveil a concept version of the car on Jan. 11, the first day of the North American International Auto Show's press preview.
Toyota officials declined to discuss the vehicle, but people familiar with the project say the car, a subcompact, is scheduled to go into production in Japan in late 2011 and roll into U.S. dealer showrooms in early 2012.
Toyota is the world's leading producer of gas-electric cars, offering a selection of several Toyota- and Lexus-brand hybrids. But the biggest seller by far is the Prius, a designated hybrid compact with distinctive styling and a starting price of $22,400.
Demand for the fuel-efficient Prius exceeds the combined sales of the hybrid versions of the midsize Camry, Highlander SUV and other Toyota models.
Worldwide, the Prius, now in its third generation, accounts for more than three-quarters of Toyota's hybrid sales, totaling 417,000 vehicles through October.
Analyst Jessica Caldwell at online research firm Edmunds.com said Toyota's plan to build a hybrid for the budding subcompact segment seems promising. "It'll be interesting to see what they name it," she said. "The Prius name has such cachet in the marketplace."
This year, Toyota rolled out the first hybrid-only model for the Lexus line, the HS 250h, but sales are modest. In November, U.S. sales of the Lexus HS 250h came to 1,400, compared with 9,600 Prius sales.
According to people familiar with the project, Toyota is counting on the hybrid subcompact to be a big seller. Toyota plans to produce around 150,000 annually, at least at first, they said.
Adding another high-profile hybrid to Toyota's lineup would not only boost sales, but also increase the profitability of the automaker's hybrid car business by reducing the per-vehicle cost of components.
Toyota also hopes to refocus attention in the new year on its technological achievements after grappling in recent months with a giant U.S. recall of more than 4 million vehicles and new concerns about the quality of its cars.
Sources familiar with Toyota's plans say the automaker is accelerating development of hybrids and other small fuel-efficient vehicles, including a Lexus hatchback, while delaying other models by a few months to ensure that the quality is good.
Toyota's push into hybrids has cast a green halo over the brand. A subcompact hybrid would get even better mileage than the Prius' combined city-highway 50 miles per gallon.
Toward the end of next year, the automaker will be in a position to increase its hybrid vehicle output because its battery venture with Japan's Panasonic Corp. is boosting its production capacity to more than 1 million nickel-metal hydride batteries.
Toyota uses nickel-metal hydride batteries in its traditional hybrids, but the venture also will produce lighter, more powerful lithium-ion batteries for a plug-in Prius hybrid going on sale in late 2012.
With the proliferation of alternative technologies, Toyota also is developing a battery-powered pure electric car due out in 2012.
But the automaker is trying to get the most out of its market-leading position in hybrids, which were pioneered by Toyota and Honda Motor Co. Toyota officials say they expect demand for pure electric cars to grow very slowly.
Some analysts question what they see as Toyota's single-minded focus on hybrid technology, which many auto experts and executives say is an expensive interim phase on the way to zero-emission all-electric and fuel cell cars.
"Toyota is completely convinced about the potential for hybrids spreading to all segments," said auto analyst Maryann Keller of Maryann Keller and Associates of Stamford, Conn.
"That has yet to be proven. There aren't many places in the world where hybrids have caught on."
The key markets for Toyota's hybrids are the United States and Japan, where the Prius is the best-selling car.
Toyota has said it eventually plans to offer a hybrid version of every model in its lineup.
Source: Toyota revs up smaller hybrid, Subcompact concept will debut at Detroit auto show in January
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