Will Toyota's hybrid price increases affect dealer markups?

Still leaving all the competition behind

Effective August 1st, the Toyota Prius will cost $500 more, starting at $22,720. Soon after that, on August 25th, the Camry hybrid will also see a $500 increase that will bring its base price up to $26,870 as the price of the Highlander hybrid increases $518 to $35,445.

Considering that most automakers are raising prices on any vehicle that can sell to help offset both declining auto sales and increased commodity prices, the price increase is neither surprising or unexpected. However, when coupled with dealer markups as high as $3,000 - $5,000, isn't the pricing of Toyota's hybrid vehicles becoming a little ridiculous?

Camry hybrid: Best hybrid for the money?

Payback in just 18 months?

According to Edmunds, the Toyota Camry hybrid recovers its costs compared to the the base 4 cylinder Camry in just 18 months. The Chevy Malibu hybrid was second at 2.7 years, although it won't save as much money over the long run as other hybrids. Thus, the Toyota Prius at 3.5 years will save more money than the Malibu hybrid if you keep the vehicle for at least 5 years. The Honda Civic hybrid takes 4.8 years to recover its hybrid costs.

Because of large price increases in the last year, the Ford Escape hybrid, now priced more than $2,300 more than last year, and the Toyota Highlander hybrid, now up $5,482 over last year, take 7.3 years and 12 years respectively to recover their hybrid costs. Ouch!

Obviously, some hybrid vehicles are a great hedge against high gas prices, but the Toyota Camry hybrid is beginning to look like a steal.

Highlander hybrid seatbelt recall

Don't put your baby in the third seat

If your Toyota Highlander hybrid was built between May 2007 and March 2008, then you might be receiving a recall notice in June. According to the AP Toyota needs to "fix a problem that could prevent the seat belt in a third-row seat from securing a rear-facing child seat."

Toyota's hybrids continue to lift Sales

Camry hybrid continues to post strong sales

The Toyota Prius achieved a 109 percent increase in November sales compared to last year, selling 16, 737 units. The Camry hybrid achieved sales of 5,118 units, a 65 percent increase compared to last year. Even the sluggishly-selling Toyota Highlander hybrid achieve an almost 11 percent increase in sales at 2,577 units.

Did the Prius give Toyota a green halo? I don't know, but the sales of Toyota's hybrid cars continue to increase and they continue to lift Toyota.

Turbocharged hybrids at SEMA

Some not-so-green hybrids make SEMA appearance

Several hybrid vehicles have found their way onto the floor of the SEMA show this year. Unfortunately, many of them lost their color along the way.

Toyota collaborated with BorgWarner Turbo & Emissions Systems to create the world’s first hybrid turbocharged SUV. According to Toyota, the turbocharged Highlander hybrid "highlights the feasibility of forced induction in a hybrid vehicle. Boost is provided by an AirWerksTM hybrid turbocharger developed specifically for this application, and features a forged billet compressor wheel, a ni-resist turbine housing, and a water-cooled bearing housing to increase longevity. Early testing of the Highlander Hybrid Turbo has shown that vehicle power has increased by close to 20 percent, or 305 hybrid system net horsepower."

West Coast Customs showcased a Toyota Prius that had received "a luxury and performance makeover."

"The green car is starting to make a big effect on the car world, which takes a big effect in our aftermarket world," said Ryan Friedlinghaus, chief of WCC. "People look at the Prius, the younger generation looks at it and says, 'I wouldn't drive that'. Now we made our Prius and the kids start looking at it.

Only 10,000 GM dual mode hybrids?

Just a PR effort?

I'm not a big fan of SUVs, but when I test drove the Chevy Tahoe hybrid, I was quite impressed. If you have to have an SUV of this size, I believe it should be the hybrid Tahoe.

Nonetheless, GM doesn't seem to have very high expectations for either the Tahoe hybrid or the GMC Yukon hybrid. While I can't remember the source, I read something the other day quoting Bob Lutz in which he said GM planned to sell about 10,000 of these hybrids in the first year - in total.

Considering the sales of other hybrid SUVs, such as the Ford Escape hybrid or the Toyota Highlander hybrid, these numbers are not that surprising. Nonetheless, the Highlander hybrid will outsell both of GM's hybrid SUVs, even though it barely qualifies for any tax credit.

I'm glad GM is finally launching some dual mode hybrids, I just wish they were being a little more aggressive.

A good time to buy a hybrid?

The 2008 hybrids are coming

Are you in the market for a new hybrid vehicle? Then now might be a great time to do some hybrid shopping, as dealers prepare to unload 2007 models to make room for 2008 models.

The 2008 Toyota Camry hybrid is already available at some dealerships, and the price of the hybrid Camry is $1000.00 less than last year. Thus, buyers can only assume that dealers are ready to bargain.

The 2008 Toyota Highlander hybrid has been totally revamped, although only small changes were made to the hybrid powertrain. Still, many are calling the new Highlander the best ever, which might create some deals on the 2007 Highlander hybrid.

Unfortunately, Toyota's other hybrid, that quirky little Prius, continues to be a hot seller, so deals on this popular hybrid might not be common. Still, the 2008 Prius will offer a cheaper base version.

The 2008 Nissan Altima hybrid is also set to launch, so again, dealers might be prepared to discount the 2007 model to make room for the 2008s.

Overall, this is a good time of the year to buy an automobile, so get out there and check out your favorite hybrid vehicles. You just might find a deal you can't refuse.

Why not a 2008 Highlander hybrid two-wheel drive?

Only 4WD versions?

Say you're a soccer mom or dad. You need seating for six, but you don't need to do any off-roading, and you want to be as green as possible, as fuel efficient as possible. In fact, you're really interested in hybrid vehicles, and you are interested in buying a hybrid station wagon, mini-van or SUV - any hybrid - it just has to be a fuel efficiency-focused 6-seater.

Well, forget about a two-wheel drive version of the 2008 Toyota Highlander hybrid. Instead, soccer moms and dads will have to fork over extra money for unnecessary 4WD technology. Even though Toyota started out with a 2WD Highlander hybrid, it appears Toyota has given up on this segment.

With better marketing, I think Toyota might have achieved relatively more sales success with the 2WD version of the Highlander hybrid if they had focused on fuel economy-focused minivan orientated consumers.

But, I guess we'll never know.

Highlander hybrid pricing announced

Base hybrid slightly cheaper, loaded - ouch!

The base Toyota Highlander hybrid will see a small price reduction of less than one percent, starting at $33,700 for the 4WD-i vehicle. The loaded Limited Highlander hybrid will see a large price increase of more than 9 percent to $39,950.

The new Highlander hybrid will ride on a new chassis that is almost 4 inches longer and 3 inches wider, significantly increasing the roominess of the Toyota's hybrid SUV. In addition, the Highlander hybrid will offer new tools to manage fuel economy, adding EV Mode, ECON Mode and a Hybrid System Indicator.

Expect the new Highlander hybrids to hit showrooms in October.

Toyota reports hybrid sales for June

Toyota's hybrid sales still strong

Toyota sold almost 30,000 hybrid vehicles in June, an increase of almost 50 percent compared to last June. Not surprisingly, the Prius was the top selling hybrid, posting sales of 17,756 units. The Camry hybrid achieved sales of 5,530 units, while the Highlander hybrid posted sales of 2,403 units.

The Lexus RX400h hybrid achieved sales of 1,562 units.

How about a Toyota FSC-like hybrid-only brand?

Does a hybrid crossover make sense?

So, you like the Toyota Prius, and it works, in theory, for your family of 4. Nonetheless, it seems like your brother's two kids spend almost as much time with your family, as with his. Thus, ultimately, the Prius just doesn't accommodate the needs of your extended family.

Well, what if Toyota offered another hybrid-only brand, as unique as the Prius, but a little larger, with a slick foldaway third row of seating?

We know Toyota is almost certainly going to launch a new hybrid-only brand that is probably going to be larger than the Prius. Wouldn't such a hybrid crossover be the perfect vehicle? It wouldn't really adversely affect Camry hybrid sales, Prius sales, or Highlander hybrid sales.

I'd buy it.

2008 Highlander hybrid in September?

Roomier and more fuel efficient?

Toyota will begin selling the 2008 Highlander hybrid in late September, but has not yet announced pricing.

The 2008 hybrid Highlander will be "larger, roomier and more powerful" and include "one of the most comprehensive lists of standard safety features in it the mid-size SUV class," such as 7 airbags.

Despite some possible tweaking, the 2008 Highlander hybrid will be built on the same hybrid powertrain as the current hybrid Highlander, which Toyota is running a special $2000.00 discount through June.

Prius, hybrid vehicles, hot in Pasadena - A quick shop

Time to get a deal?

I was running some errands the other day that took me near a Toyota dealership, so I thought I'd stop in and check out the selection of hybrid cars.

I haven't been out shopping hybrids in many months, but I was shocked by how things have changed. At one time you couldn't find any hybrids on a Toyota lot. Six months ago or so, you might find a few on the lot, but selection was still very limited. Now, the Toyota lot is loaded with hybrids.

--Finish: Prius, hybrid vehicles, hot in Pasadena - A quick shop

Toyota hybrids post record sales in May

The Camry hybrid was also hot

Ouch! That's all I can say regarding the sales of the Toyota Prius hybrid car this May.

With a tax credit that has been cut in half, then cut in half again, one might have expected a bit of a drop in the sales of Toyota's hybrid vehicles, or at least some stagnation. Instead, Toyota posted its BEST EVER month of Prius sales, selling some 24,009 Prius vehicles - almost equaling the total sales of Toyota's entire Lexus division.

----> Finish: Toyota hybrids post record sales in May

Hard sell? Hybrids help drive record Toyota sales

Almost 20,000 sold in March

With significant help from hybrid cars, Toyota posted "best-ever monthly sales" for the month of March. The Toyota Prius achieved the best month of sales for the second month in a row with 19, 156 vehicles sold, an increase of 133.2 percent according to Toyota.

The Camry hybrid achieved sales of 5,144 units sold in March, while the Highlander hybrid achieved 2,501 units sold. In addition, Toyota also sold 1,471 units of the Lexus RX400h hybrid.

While some of this increase in hybrid sales might be attributed to a decreasing tax credit for Toyota hybrids, that's still an amazing month. Too bad the credit is expiring, I guess Congress just doesn't feel the need to get as many foreign oil dependency fighting, global warming reducing automobiles on the road as fast as possible?

Two Toyota hybrids on Consumer Reports Best of 2007

Highlander hybrid was a top pick

The Toyota Prius received the best mileage ever for a 5 passenger vehicle and was picked as the Best Green Car. In addition, Consumer Reports highly recommends the rearview camera.

One of Toyota's other hybrid cars, the Highlander hybrid was picked as the Best SUV over $30,000. While the 2007 Highlander hybrid was picked by Consumer Reports, CR still suggested waiting until the 2008 Highlander hybrid is released later this year.

(Source: CNN)

Incentives to buy a hybrid vehicle

Ford is offering some nice financial incentives on hybrids in some areas

How many incentives do you really need to buy a hybrid vehicle? Foreign oil dependency is threatening our national security. Pollution from automobiles is threatening our health and almost certainly causing global warming.

How much is it worth to you to do the right thing? How much is it worth to invest in a better future for your family, for your children?

O.K. So, I'm overly optimistic - just a silly, utopian dreamer. You need a few financial incentives to buy a hybrid. Well, even for those with less altruistic motives, hybrid cars can still be a great deal.

---> Finish reading Incentives to buy a hybrid vehicle.

What to expect from the 2008 Highlander hybrid

A Hybrid Highlander at 2007 NAIAS

So, what can you expect from the newest version of the Highlander hybrid? Well, the 2008 Highlander hybrid will not offer any changes to the Hybrid Synergy Drive, nor to any of the hybrid technology powering this vehicle.

Essentially, the 2008 Toyota Highlander hybrid will receive mostly cosmetic changes. Nonetheless, for larger families interested in hybrid technology, the newest hybrid Highlander does offer at least a few interesting upgrades.

The new Highlander hybrid is both wider and longer than the previous hybrid Highlander so there is more interior space. Unfortunately, this extra size adds extra weight. That extra weight will almost assuredly cause decreased acceleration. Fortunately, however, Toyota has indicated that the weight increase will not cause a decrease in fuel economy.

Ultimately, the extra size creates more room for larger families seeking a hybrid. In addition, the latest Highlander hybrid offers more airbags - a total of 7, and AWD is no longer optional. Instead, AWD is standard on all hybrid Highlanders.

Hybrid Vehicles Dead? Toyota Prius sales soar in January

Are hybrid vehicles losing their appeal?

Despite lower gas prices and a federal tax credit that was reduced by 50 percent, the Toyota Prius had its best January on record, selling 8,299 units. The Camry hybrid posted sales of 2,801 units, the Highlander hybrid reported 1,810 sales, while the Lexus RX400h reported 1,245 units sold.

So, if Toyota sold more than 14,000 hybrid cars in January with only a reduced tax credit, how many more would Toyota have sold if it still qualified for the full tax credit? Considering the seriousness of foreign oil dependency, pollution and global warming, it is simply silly that Toyota is being punished for being too successful doing the right thing.

--> More on Hybrid vehicles dead? Prius sales soar in January

How long before FT-HS hybrid technology finds other Toyota hybrids?

0 - 60 in 4 seconds with 4 cylinder fuel efficiency! What are we waiting for?

I've already stated that I want the FT-HS hybrid concept to become a reality, and I've also stated that the technology behind the FT-HS hybrid is more important than the vehicle itself. Obviously, this begs the question, "When is some of this new hybrid technology going to find its way into Toyota's current hybrid cars?"

Already, Toyota has contemplated a city Prius, for example. Why not put FT-HS technology into a smaller Prius - say one with only a 3 cylinder engine - that would achieve greater fuel efficiency, yet still be capable of amazing bursts of speed or power.

Also, why not a sporty version of the Camry hybrid? Couldn't this new hybrid technology provide more torque and/or towing capacity for the Highlander hybrid?

Since Toyota has claimed the FT-HS is basically a production-ready vehicle, one has to assume the third generation Hybrid Synergy Drive has to be almost production-ready as well. So, why not give consumers a little taste?

Toyota hybrids at the LA Auto Show

Heading to the Los Angeles Auto Show this weekend, I had few expectations regarding Toyota and its hybrid vehicles. Pre-show hybrid buzz focused on the Aura and Yukon hybrids and GM's new green identity. Since, I started out on the GM side of the convention center, I thought the best of the show's hybrid displays were behind me, especially when I walked into the Toyota side of the convention center and saw Toyota Tundras everywhere.

Eventually, though, I did make my way through the Tundras and into Toyota's hybrid section.

The difference between GM's hybrid offerings and Toyota's was absolutely stunning. In fact, there was simply no comparison between Toyota and any other automaker at the show regarding hybrid vehicles. Ironically, Toyota's hybrid section was all business and no show gimmicks. There was a huge information bar where you could sit down, talk to a rep and obtain product literature. Then of course, there were Toyota's three hybrids, the Highlander hybrid, Camry hybrid and the Prius.

As I sat near the Toyota hybrid section I was amazed at the visitors to this area. This was a high traffic area, but it wasn't just people looking at hybrids. Here people were getting into hybrids - sitting in the front, then the back, opening the trunk, touching every gadget that the vehicles had to offer. These visitors looked like buyers.

Wow, I thought, not bad for a company without any new hybrid debuts. Then, however, I noticed the Lexus hybrid section and realized Toyota did debut a hybrid at the show, the Lexus LS600h L hybrid. While Lexus had the GS 450h hybrid the RX 400h hybrid at the show, in addition to a split 450h show gimmick, the LS 600h was the show stopper. Still, the Lexus hybrid section was pure auto show marketing, unlike the Toyota section, and it worked. The buzz around the Lexus hybrids was nothing short of phenomenal.

In terms of hybrid vehicles, Toyota didn't just dominate the LA Auto Show; it was the LA Auto Show.

Hybrid vehicles still offer excellent reliability - Consumer Reports

Hybrid vehicles are very reliable according to Consumer Reports survey research. The Honda Accord hybrid and the Toyota Prius hybrid are the number one and two most reliable family cars, and the Honda Civic hybrid took third place for most reliable small car. The Toyota Highlander hybrid and the Lexus RX400h took the first and fifth spots for most reliable midsized SUVs.

The only hybrid to suffer a bit this year compared to last year was the Ford Escape hybrid, which dropped from above average to just average.

(Source: CNNMoney)

Civic and Escape hybrid sales up big in October

Sales of the Honda Civic hybrid were up 890% in October compared to October 2005, reaching 2,288 units sold. The Ford Escape hybrid and the Mariner hybrid hit 1,602 units combined, up 30.6% compared to October 2005. The sales of all other hybrid vehicles were down in October 2006 compared to October 2005.

So what is the story? Why are sales of the Toyota Prius, for example, down while the Civic hybrid is up? Or why are sales of the Highlander hybrid down, while sales of the Escape hybrid are up?

Well, I'd bet it all comes down to tax incentives. October was the first month that tax incentives for Toyota hybrids were cut in half.

While Prius sales were down about 12%, Toyota still sold 8,733 of the hybrid vehicles - far more than Honda's Civic hybrid. Nonetheless, it will be interesting to see what happens over the next couple of months. If gas prices begin to again go up, I think Prius sales will be fine despite the lower tax incentive. If gas prices remain stable, this downward trend might continue.

(Source: Green Car Congress)

Hybrid Interest down 10% in Q3 according to Autobytel

Overall interest in hybrid vehicles was down 10% in the 3rd quarter according to Autobytel. Still, interest in the Toyota Prius and the Camry hybrid remained relatively strong, while interest in the Highlander hybrid surged 32%. On the other hand, interest in the Ford Escape hybrid dropped a whopping 49%.

(Source: Autobytel)

Do you want to be in a Toyota hybrid commercial

Are you so proud of your Toyota hybrid vehicle that you want to tell the world about it? If you own a Prius, Highlander hybrid or Camry hybrid then you can apply to be in one of Toyota's next hybrid commercials.

"We want to know who you are and what your reasons are for owning a hybrid vehicle. Participants will not only get the chance to be part of an important national campaign that supports a good cause but may also receive financial compensation for participation! You must own or have a Toyota hybrid vehicle in your immediate family to apply."

HOW TO APPLY:

Send an email to telluswhy@nvbb.net including:

Your name
Age
City/state of residence
A photo of yourself and anyone in your household who uses the car (ideally posed in front of your Toyota hybrid)
Your reason for purchasing a Toyota hybrid vehicle

Deadline:All applications must received no later than OCTOBER 30TH, 2006

For further questions please contact: epoteet@nvbb.net

Last Day for full Toyota hybrid tax credits

Tomorrow is the last day to buy a Toyota Prius, Highlander hybrid, Camry hybrid, or Lexus RX400h if you want to receive the full hybrid vehicle tax credit.

If you are going to buy any other hybrid, no worries - not this year.

Hybrids only 9% more efficient than regular vehicles?

Are hybrid vehicles only 9% more fuel efficient than conventional vehicles? That's what J.D. Power claims, according to the Detroit News. While noting that interest in hybrids is growing, J.D. claims that hybrid buyers have unrealistic expectations in terms of performance.

While I agree that some buyers have unrealistic expectations, I have to question the 9% figure. Other studies have claimed the same, but those studies were done using track testing. For the majority of drivers, track testing is about as accurate for gauging real world fuel economy as are EPA estimates of hybrids.

Moreover, saying 'hybrids' are only 9% more efficient than conventional models is completely deceptive. For example, some hybrids were not produced to achieve the highest fuel efficiency possible. The Honda Accord hybrid, for example, is really a performance hybrid, though it achieves excellent fuel mileage for that performance. The same is largely true of both the Lexus RX400h and the Toyota Highlander hybrid, though these vehicles are - for their class - more fuel efficient than the Accord hybrid.

In terms of fuel efficiency, both the Ford Escape hybrid and the Toyota Prius hybrid, are the two hybrids most designed for fuel economy. While the Civic hybrid is a very fuel efficient vehicle as well, so to is the standard Civic. Additionally, the Civic hybrid doesn't offer as much electric assist as the hybrid Escape or Prius.

Consequently, comparing some hybrids is about as accurate as comparing apples to oranges. Thus, averaging their fuel economy is completely useless.

Even worse, if the Silverado hybrid was also included in the 'hybrid class' by J.D., then the results are completely skewed against hybrid fuel efficiency. The Silverado hybrid isn't even a mild hybrid in my book. In fact, its not even a hybrid in my book.

Consequently, the class of current hybrid vehicles are actually a very diverse group of vehicles. To average their fuel economy is misleading at best and, ultimately, deceptive. Studies by both Consumer Reports and Edmunds very much call into question the number, 9%.

Some hybrids are more fuel efficient than other hybrids. Some hybrids offer more power than other hybrids. Some hybrids perform better on highways compared to other hybrids, and some hybrids perform better in urban slow-and-go or stop-and-go traffic than other hybrids. Inevitably, hybrid fuel efficiency can ONLY be assessed vehicle by vehicle. Even then, two different drivers of the same hybrid can still achieve vastly different outcomes.

So, don't take this 9% very seriously. It might be true for some hybrids, but it certainly isn't true for all hybrids. If you want to read more about real world fuel economy from real world hybrid drivers, check out these hybrid testimonials.

Business Week helps pick your hybrid vehicle

O.K., so you've read all of my articles and you still can't decide which hybrid is best for you? While I don't believe that, you can still check out Business Week's latest article on hybrid cars, New choices boost hybrids into mainstream.

Prius part of another Toyota recall

Toyota is recalling over 400,000 more vehicles due to a faulty engine part. Around 8,476 Toyota Prius hybrids are part of the recall - manufactured in the year 2001. This is the second Toyota recall which has also included hybrid cars. A few days ago both the Toyota Highlander hybrid and the Lexus RX400h hybrid were also part of a large recall. In all cases; however, the problem was unrelated to hybrid technology and a only a very small number of hybrids were included in the recalls.

Highlander hybrid, Lexus RX400 part of huge Toyota recall

Early 2006 Toyota Highlander hybrids and Lexus RX400h hybrids are part of a recall affecting nearly 370,000 Toyota vehicles. According to Toyota about 3,700 Highlander hybrids and 8,300 RX400hs are part of the recall. Owners should be notified by the end of this month. The recall is regarding a small piece of console trim on the center-left side which could come loose and interfere with the accelerator. No other Toyota hybrid cars were part of the recall.

2010: Year of the hybrid?

Today, critics often question the value of hybrid cars. Only a few can save money over the long term at today's gas prices they state and reliability is still an issue.

Yet, hybrid technology is only just emerging and the future of hybrid vehicles won't really be understood until at least 2010. By then Toyota will offer 14 different hybrid models. Even Detroit will offer numerous hybrid vehicles. Plus, Nissan, Hyundai, Porsche - even Suzuki - will be in the hybrid game.

Then it won't just be the Toyota Camry hybrid that challenges the Prius for total sales, but many new hybrid models.

More important, there will be several different types of hybrid technology on the market and many more hybrid parts suppliers. This competition will give consumers real choices. Should I get the Chevy Tahoe hybrid, Ford Escape hybrid or Toyota Highlander hybrid? That will really begin to depend on your needs, such as towing, and that is just the beginning.

Moreover, Toyota has indicated that its hybrids in 2010 will not only be significantly more fuel efficient, but the cost differential between hybrid cars and conventional cars could be cut in half. Other automakers will have to do the same if they want to compete.

Competition, better technology, cheaper costs - by 2010 the question won't be why would you want a hybrid, it will be why would you want anything less than a hybrid.

Newsweek's Green Gap: Hybrid Critics have become boring

I was just reading Newsweek's Green Gap which asks, "Hybrids might be hip, but are they saving consumers enough at the pump to compensate for their high sticker price?" Over and over auto writers have noted that the Honda Accord hybrid and the Toyota Highlander hybrid are not selling well because of their sticker price. So hybrid cars are dead, right? Well, not exactly, the Toyota Prius and the Toyota Camry hybrid are hot, the Honda Civic hybrid is also hot. Ultimately, hybrid sales keep going up, and the hybrid market is only just emerging, only just being understood. It seems today's media loves to talk about hybrids. Recently, I questioned whether there was a media bias against hybrids. When Toyota announced a recall that includes the Prius, but wasn't limited to hybrids, nor was it related to hybrid technology, yet most of the media focused only on the Prius, not the fact that the majority of the affected cars were NOT hybrids.

GM and Ford Claim Hybrid Car Pool Lane Discrimination