Hats off to Toyota for pushing the envelope to make more effecient cars more economically affordable.


I wonder what timeframe "not in the short term" is referring to on the development of their diesels.

Forget about price, increase production..
The problem is not price, you get a nice car for that price, if you increased production so that dealers wouldn't gouge you then it would be something

Toyota is clearly the leader in hybrids, but don't expect the Prius to drop in price within two years. Toyota cannot make enough of the Prius and has raised its prices while most other non hybrids have lowered in price. Next year the government is offering a tax credit that will drive demand for the Prius even higher and who knows what gas prices will do.

Toyota knows the demand is high and makes many expensive Priuses with option packagages 5 and 6 and less with 1, 2 or 3.

I beleive next year 2006 Toyotas entire production of low cost Priuses (opt 1,2,3) will be sold on a waiting list basis.

Yesterday, I spoke with a sales manager from a Toyota dealership, and he told me - in a rather hushed voice - that Toyota is keeping production below demand intentionally, because it allows them to charge what they want, and keeps the dealers happy because they can tack on several hundred themselves. In the auto sales business, this is not out of the norm, nor is it considered unethical. The same thing happened with the New Beetle and the Mini.
Early adopters of new technology always get hosed on price, but so do people who buy cars just because of looks or prestige.
Toyota generates more profit per sale than any car company in the world. They are masters of the game of supply and demand. Makes me glad they're kinda on our side....

Carl,

Actually, Nissan makes more money per vehicle than Toyota right now, with Honda third.

As for Toyota's supply problems, whether they are intentional or not, I seriously doubt that a dealership manager would be privvy to that information. I'm sure there are many rumors circulating around and I've heard that one in the past, but it's also very possible that Toyota is squeezed by it's supply chain -- after all, they didn't expect hybrids to be that popular and the companies that make batteries, motors, etc, can't ramp up production that easily to keep up.

There's also the fact that Toyota has always been a "slow and steady, reach your goals" kind of company. They took their time with hybrids and it's paying off now.

Actually, I was perpetuating a claim made by the NY Times last Spring, that said Toyota was the "most profitable" car company because the sales of their more expensive models - Camry, luxury SUVs, Lexus were very strong, compared to GM, the No.1 Carmaker. (Toyota is now #2). But that was last Spring. statistics change quickly.

I have friends in the manufacturing industry, and I know that the game of supply-control happens very often.

That sales manager said he's been in the business for 20 years and seen it happen on a regular basis with surprise-hit models.

I do not know if the manufactory play the game supply control or not, but I think this is a good for our enviroment, also It will cut down the need of gasoline, let imagine that if the hybrid car take about 40-50% of cars on the highway, we should cut down the gas cosuming to about 30% of the rate right now, and I think that it'\ should be agood way to cut down the depend on supply of gasoline. I think the goverment should pass some law that allow people get more tax credit when they buy hybrid model( right now they just limit to certain amount of hybrid per manufactory can get tax credit) .