Toyota creates Prius 'family'

2011-01-11

DETROIT " Toyota Motor Corp. aims to boost demand for the Prius, the top-selling alternative-power car for a decade, by extending the brand to counter new rechargeable challengers to its status as an environmental icon. Toyota showed the Prius v, a wagon-type model larger than the current gasoline-electric car, on Monday in Detroit at the North American International Auto Show. Along with the wagon and a previously announced all-electric Prius due by 2012, Toyota showed the compact Prius c concept car, which may be the fourth model in the Prius line. "The wagon/minivan market needs a compelling hybrid, something to carry three kids and cargo," said Jim Kliesch, senior engineer for the Union of Concerned Scientists in Washington. "The challenge is to avoid diluting the Prius brand as Toyota branches out, to make it fuel-efficient enough to meet the public's perception of what Prius is." Since its introduction in Japan in 1997, Toyota has sold more than 2 million Prius cars worldwide, including 955,438 in the U.S. from 2000 through last year. The Prius is a "pillar" model for the automaker, President Akio Toyoda told reporters at the show Nissan Motor Co.'s all-electric Leaf hatchback and General Motors Co.'s plug-in Volt sedan, both released in December, are designed to appeal to U.S. drivers seeking vehicles with technology that's a step beyond Toyota's gasoline-electric system. "Expanding the Prius family doesn't really have much of a wow factor," said Takashi Aoki, a Tokyo-based fund manager at Mizuho Asset Management Co., which sold 94,800 Toyota shares in July. Nissan and GM have promoted their rechargeable models as offering greater efficiency than the Prius. "We'll let customers make the decision as to which is most efficient for them," Bob Carter, Toyota's U.S. group vice president, said Monday in an interview in Detroit. The current Prius, with a base price of $22,800, delivers 50 mpg in combined city and highway driving, according to U.S. government tests. The Prius v wagon will get a combined 40 mpg in city and highway driving, Toyota said Monday. Nissan's $32,780 Leaf gets 62 miles to 138 miles of range solely on its lithium-ion batteries, depending on driving conditions. The $40,280 Volt travels about 35 miles solely on lithium-ion batteries before a gasoline engine engages to provide more power. "This is a great time to emphasize the Prius brand as gas prices are likely to spike in the spring," said Jeremy Anwyl, chief executive officer of industry researcher Edmunds.com. By Alan Ohnsman • BLOOMBERG NEWS • January 11, 2011