Posted by Dahcredyns in
Honda,
Hybrid Cars,
Hybrids on 12 7th, 2011 |
Comments Off
Toyota’s hybrid plans can’t make sense
The Prius is driving Toyota's future, despite the skeptics Trying to take hybrids — and not just the Prius — into the mainstream When it comes to hybrid sale’s forecasts, Toyota has thus far defied the doubters — which has pretty much been the rest of the entire auto industry. But, now that fuel economy is becoming more important, automakers are taking notice. However, as other automakers move to supposedly cheaper new transmissions, turbo-charging, cylinder deactivation, etc, rather than hybrids, Toyota continues to push its hybrid sale’s projections into unrealistic new ground. According to the naysayers, it’s simply impossible for Toyota to achieve large enough profit margins on hybrid cars to keep Toyota’s business as robust as it needs to be. Of course, that’s what the Big 3 claimed regarding small cars and sedans just a few decades ago. Yet, companies like Toyota and Honda used such unprofitable vehicles to turn the automotive world order upside down. Likewise, while other automakers tout their 40 mpg non-hybrids with “hybrid-like fuel economy without the hybrid premium” consumers are quickly learning that these 40 mpg cars are more like 30 mpg cars, or even 20 mpg cars for heavy urban drivers. This fuel-efficiency focused spin and hope can only last so long. Eventually, the real world will rule. True, but hybrids are still too dependent upon gas prices, right? Well, last month was a great month for Toyota Prius sales, and I doubt gasoline prices are really going much lower from here. While some price pullback is possible, the future is more likely higher energy prices, not cheaper ones. So, maybe Toyota’s hybrid plans make sense. By 2015 Toyota wants to double US hybrid sales along the way to making the Prius family its best selling vehicle, largely propelled by the smaller and cheaper Prius C . If Toyota can double US sales, that would make hybrids about 20 percent of Toyota’s business. By 2020, consequently, 30 percent penetration should be a cakewalk, with even 40 or 50 percent completely within the realm of penetrating possibility. Can such scale really make the smaller hybrid profit margin that enticing, that business-worthy for Toyota? Ultimately, it seems something has to...