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Wednesday, October 15, 2008

Toyota Prius: US automakers can't handle the truth

US automakers can't compete?

According to analysts that follow Japanese automakers, the Toyota Prius, king of hybrid cars, has become a strongly profitable vehicle for Toyota. It also helps drive consumers into Toyota dealerships.

Yet, not one US automaker has concrete plans to challenge the Prius.

Sure, GM plans to leapfrog the Prius with the Chevy Volt, but that's a plug-in Prius contender. Most US cars won't be plug-ins for at least two decades. Moreover, according to Congressional testimony, by 2015 GM hopes to have sold a total of 200,000 Volts. That's not per year. That's in total. In 2015 Toyota will be selling more than 200,000 Prius hybrids per year.

Obviously, GM should pursue the Volt with great vigor, eventually, it will be a huge success. Nonetheless, can GM and the rest of the Big 3 survive the next several years without a direct challenge to the Toyota Prius?

Labels: Chevy Volt electric vehicle concept, Hybrid Vehicles, toyota prius

posted by Dahcredyns at 10:53 AM

22 Comments:

Blogger Noz said...

Dahc:

Look at the title of your last post and this will answer question you pose in this post.

You're dealing with the dumbest people in the planet...the American consumer.

There's not much else to be said.

1:17 PM  
Blogger Dahcredyns said...

you say dumb. i say ignorant. maybe it's the same thing.

i just think we've been so brainwashed and bullied by both corporate america and our political system that we've become very apathetic. we just don't care anymore, so we've allowed ignorance to permeate. see no evil, hear no evil, do no evil.

we need to revolt against our entire culture to some extent, but we just don't know how or where to begin.

still, i have some hope. i think most americans were ready to let the financial system collapse, even if it meant depression. i think the american populace is close to reaching its boiling point.

still, have we become too ignorant to have a smart revolution?

3:07 PM  
Blogger Jabroni said...

It is truly inexplicable, why no US auto company is making a Prius like hybrid. Instead, they give us the Tahoe Hybrid, which I spotted today. Guess what? The old fart who was driving it was going about 75 in a 65 zone. What a waste.

It seems that the US auto companies are hoping this hybrid mania goes away, so they do not have to invest in a Prius type vehicle. Of course, with Prius sales they way they are, it is increasingly hard to ignore the market.

4:17 PM  
Blogger Dahcredyns said...

make the tahoe hybrid. make the cadillac escalade hybrid - just put at least 6 passengers in it during the commercial!

still, make a hybrid car!

the part of the US population that mistrusts the Big 3 automakers are the kind that think the Big 3 can ONLY make SUVs.

if you want the buyers of Japanese products to give the Big 3 a second chance, you have to give 'em a reason to think you're different, that you've changed.

big 3 hybrid suvs are for big 3 suv buyers becoming concerned about fuel economy. they don't bring new customers back to the big 3.

i had dinner with bob lutz last year and he seemed quite convinced that a prius-fighter, other than the Volt, was unnecessary and irrelevant.

i've been around him a few times and he loves taking shots at the prius. he, i can pretty confidently say, hates the prius.

no doubt around 2015 the Volt will probably be a much better choice for many consumers than a prius, but what about tomorrow?

4:46 PM  
Blogger Noz said...

Dahc:

I don't agree. There are people out there that are doing what they do because they truly believe it is their God given right...that they have more than others, that they are allowed to shit on others and harm others for their own benefit.

Look at suburban dwellers....they are dumbest of the dumb. They are also the most arrogant bunch you'll find anywhere with their self-righteous, lemming lifestyles.

You know La Canada...just look at the arrogance and fascism there. These are ignorant people....they are just really dumb and arrogant.

5:41 PM  
Blogger Dahcredyns said...

i can't deny what you say, noz. but most of the US isn't well represented by rich California neighborhoods.

Many average Americans also have problems with the materialistic, elitist lifestyle so well portrayed by La Canada and many parts of Southern California.

of course, a lot of rednecks also think it's their right to guzzle, but that's largely because they've been duped by the advertising execs that reside in places like La Canada.

6:00 PM  
Blogger ZenDude said...

Have you seen these photos? Not too different than what we have seen before:

BREAKING: Possible leakage: 2010 Toyota Prius! - AutoblogGreen

Oh and yeah, you would think that someone would challenge the Prius but other car makers must think that they can't beat the Prius so why bother. I can't wait till there are no restriction on buying a Prius. It will be interesting to see how many will sell then.

6:14 PM  
Blogger LB said...

Hi Dahc, could you give some references? This is also a request for future post: whenever you post news that have an electronic version elswere, please, please, add a link!
PS: This is the great news for everybody who belives in the future of eco-friendly world!

11:06 PM  
Anonymous drivin98 said...

"Most US cars won't be plug-ins for at least two decades."

Hopefully sooner. I don't think we have two decades to waste. One thing about that 200,000 Volt count is that it doesn't include other models on the same E-rev architecture. The number of GM E-revs (or serial hybrids, if you prefer) might possibly be multiples higher by 2015.

Also, American consumers are not much different than people everywhere else in the world. People are people.

7:47 AM  
Blogger Dahcredyns said...

lb - for what are you seeking a reference?

in general, if i've blogged about it in the past, i don't always re-reference it. i sort of consider common knowledge at that point.

8:42 AM  
Blogger Dahcredyns said...

zendude - thanks for the link. when you posted it i hadn't heard of these pictures yet. Thanks for the heads up.

__________


driving98 - i'm pretty sure that there won't be other E Flex vehicles on the road by 2015, or at least not many.

there might be other E Flex vehicles in europe or australia, for example, but still they will be very closely related to the Volt.

when GM cited these numbers it was to help congress determine how many plug-ins GM would have on US roads by then, and how that would help offset offset lesser efficient vehicles to meet new CAFE rules.

now i'm sure gm took a safe stab at those numbers and they could be higher if every thing goes perfectly, but I doubt it would be significantly higher.

8:50 AM  
Blogger LB said...

Dahc: if you are saying to you are following some analyst it just a good practice exactly which analyst, reference published reports, etc... What you are saying it by far not A COMMON KNOWLEDGE. As to the profitability of hybrids, in general, even american hybrids are expected to become profitable in 2008.
http://www.leftlanenews.com/ford-hybrids-will-become-profitable-this-year.html

2:06 PM  
Blogger Dahcredyns said...

LB-

When I first reported this analyst on September 18 in the post Next
Prius "hugely profitable" and cheaper
I provided a reference. Since that time, I've brought up this analyst in several different stories regarding the Prius and hybrid cars.

Whenever I cite new information I always provide a link. After that, it depends. Often I'll provide a link at least one more time, but after that I consider it common knowledge on this blog.

That's not a perfect system, I admit, but I'm glad to cite my references whenever asked.

2:48 PM  
Blogger LB said...

Dahc, thanks alot for the link, appologies for missing it. However, it say only that "Toyota has already reached the break-even point on sales of its hybrids;". Nothing about being hugely profitable.

1:10 AM  
Blogger LB said...

Yes, Dahc. It will be hugely profitable in the future. Not right now :-)

1:12 AM  
Blogger Dahcredyns said...

No problem LB.

Yeah, today's Prius is profitable, but due to improvements in most of the hybrid synergy drive components, manufacturing experience, and economies of scale the third generation will be "hugely profitable".

It's disappointing, really. US automakers could be here. The government gave them money to develop such vehicles - which largely pushed Toyota to follow. Then they abandoned the plan and decided only gas-guzzlers mattered until fuel cells could be developed.

7:13 AM  
Blogger LB said...

Dahc, I think this is a part of more global problem. Engineering is not popular in US anymore. Times of Ford and Edison has gone. So, the engineering jobs: to Japan, China and India. Not sure if they return in the foreseeable future.

8:49 AM  
Blogger Dahcredyns said...

For the most part we have the best engineering schools in the world here in the US. Unfortunately, most of the students at these engineering schools are from countries outside of the US.

We do need to inspire young, American students to become interested in science and engineering and not just becoming the next rock or NFL star.

9:10 AM  
Blogger LB said...

We do need to inspire young, American students to become interested in science and engineering and not just becoming the next rock or NFL star.
O yeeh.... What would these engineers do in US? With an Auto industry dying, GE not dying right now but may very well soon, considering how bad their home appliances are... Converting to insurance agents???? This can be done without going to a fancy engineering school.

1:02 PM  
Blogger Dahcredyns said...

That's a great point. There aren't lots of jobs that reward engineering students in the US.

But, if the the US is to change, to embrace the idea of fighting global warming, of ending foreign oil dependency, it will take technology. It will take engineering. We can't shop our way back into economic prosperity, but we can engineer our way back.

By focusing more on science in our educational system, you will inspire and develop more creative engineers. The far majority of students in the US have boring science classes, if any science classes at all. We're missing out on tons of potential.

It only takes a few very creative engineers to create 1000's of engineering jobs. Think Bill Gates, Steve Jobs, and the boys from Google.

Science and technology are the ONLY way forward. Either that or a massive reduction in population.

2:50 PM  
Blogger LB said...

We can't shop our way back into economic prosperity, but we can engineer our way back.
Who knows... The bad news for all Americans is that corporations will try to shop as hard as possible. This strategy is working for 200 years. Why shouldn't it work for some more time? :-)

7:57 AM  
Blogger Dahcredyns said...

Well, this whole bailout demonstrates that most economists still think unadulterated consumerism is the key to success. Obviously, consumerism is a piece of the puzzle, but if its the only piece heading into the future, I'm not too optimistic.

8:12 AM  

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