How much money does Honda lose on each hybrid? $0.00. That’s how much Honda loses on each hybrid it sells. In fact, the other day I read that both Honda and Toyota make about a $3,000 profit on each hybrid sold. Of course, that doesn’t include all R&D costs, especially on Honda’s hybrids since Honda hasn’t sold nearly as many hybrid cars as Toyota. Now that Toyota has sold well over a million hybrids, however, development costs have probably been recovered. Yet, not one US automaker has a solid Insight or Prius contender. When will they? Ever? Within the next five years I’d bet gas prices will be about $3.00 – $4.00 per gallon, a price that could make hybrid cars like the Insight and Prius two of the top selling vehicles in America. What will the Big 3 have?

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But hybrids aren’t profitable……