Toyota bets the farm on hybrids...
06-13-06, 09:26 PM
#1
Lexus Fanatic
Thread Starter
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Toyota bets the farm on hybrids...
Toyota's Long View
Tuesday June 13, 5:00 pm ET
By Brian Gorman
Toyota (NYSE: TM - News) is the darling of the automotive world. Whereas American giants like Ford (NYSE: F - News) and General Motors (NYSE: GM - News) seem to stumble from crisis to crisis, Toyota has blazed a path to torrid growth. Now, the Japanese juggernaut is laying out another bold plan -- to rapidly increase the number of hybrid vehicles in its lineup. The company's aspiration doesn't make a lot of sense based on current data, but its plan seems to have less to do with today and more to do with the not-so-distant future.
Toyota currently offers five hybrid models, but by 2010, it plans to offer 10, with a target of 1 million hybrid sales annually after that year. Reuters quotes Masatami Takimoto, Toyota's executive vice president for technology development, as saying that hybrids "will be the core technology of the 21st century."
Takimoto's prediction seems fairly bold. True, Toyota's Prius continues to sell well, with 8,103 units purchased last month. However, sales of Toyota's other hybrids have not been nearly so robust. The new Camry hybrid, for example, had sales of 3,032 units in May, the first full month it was available.
The message from the divergence in Prius and the hybrid Camry sales numbers seems to be that consumers are looking for more fuel-efficient alternatives, but that price trumps all. The trend toward an increased interest in fuel miserliness also seems to be backed up by robust sales of the low-priced and highly fuel-efficient Yaris, a subcompact introduced a month before the Camry hybrid. With the Camry hybrid priced at $6,000 more than the base conventional model, though, consumer interest seems destined to stay limited.
However, just because the Camry hybrid is much more expensive than its conventional counterpart today, that doesn't mean the price difference will hold forever. Even if Toyota is not seeing strong hybrid sales beyond its Prius model at the moment, increasing hybrid production now is likely to help the automaker achieve its goal of halving the cost of hybrid powertrains and closing the price gap between hybrid and conventional models. If Toyota can make good on these plans, its darling status is likely to be secure for years to come.
Tuesday June 13, 5:00 pm ET
By Brian Gorman
Toyota (NYSE: TM - News) is the darling of the automotive world. Whereas American giants like Ford (NYSE: F - News) and General Motors (NYSE: GM - News) seem to stumble from crisis to crisis, Toyota has blazed a path to torrid growth. Now, the Japanese juggernaut is laying out another bold plan -- to rapidly increase the number of hybrid vehicles in its lineup. The company's aspiration doesn't make a lot of sense based on current data, but its plan seems to have less to do with today and more to do with the not-so-distant future.
Toyota currently offers five hybrid models, but by 2010, it plans to offer 10, with a target of 1 million hybrid sales annually after that year. Reuters quotes Masatami Takimoto, Toyota's executive vice president for technology development, as saying that hybrids "will be the core technology of the 21st century."
Takimoto's prediction seems fairly bold. True, Toyota's Prius continues to sell well, with 8,103 units purchased last month. However, sales of Toyota's other hybrids have not been nearly so robust. The new Camry hybrid, for example, had sales of 3,032 units in May, the first full month it was available.
The message from the divergence in Prius and the hybrid Camry sales numbers seems to be that consumers are looking for more fuel-efficient alternatives, but that price trumps all. The trend toward an increased interest in fuel miserliness also seems to be backed up by robust sales of the low-priced and highly fuel-efficient Yaris, a subcompact introduced a month before the Camry hybrid. With the Camry hybrid priced at $6,000 more than the base conventional model, though, consumer interest seems destined to stay limited.
However, just because the Camry hybrid is much more expensive than its conventional counterpart today, that doesn't mean the price difference will hold forever. Even if Toyota is not seeing strong hybrid sales beyond its Prius model at the moment, increasing hybrid production now is likely to help the automaker achieve its goal of halving the cost of hybrid powertrains and closing the price gap between hybrid and conventional models. If Toyota can make good on these plans, its darling status is likely to be secure for years to come.
06-13-06, 09:33 PM
#2
Guest
Posts: n/a
Originally Posted by bitkahuna
Toyota's Long View
Tuesday June 13, 5:00 pm ET
By Brian Gorman
Toyota (NYSE: TM - News) is the darling of the automotive world. Whereas American giants like Ford (NYSE: F - News) and General Motors (NYSE: GM - News) seem to stumble from crisis to crisis, Toyota has blazed a path to torrid growth. Now, the Japanese juggernaut is laying out another bold plan -- to rapidly increase the number of hybrid vehicles in its lineup. The company's aspiration doesn't make a lot of sense based on current data, but its plan seems to have less to do with today and more to do with the not-so-distant future.
Toyota currently offers five hybrid models, but by 2010, it plans to offer 10, with a target of 1 million hybrid sales annually after that year. Reuters quotes Masatami Takimoto, Toyota's executive vice president for technology development, as saying that hybrids "will be the core technology of the 21st century."
Takimoto's prediction seems fairly bold. True, Toyota's Prius continues to sell well, with 8,103 units purchased last month. However, sales of Toyota's other hybrids have not been nearly so robust. The new Camry hybrid, for example, had sales of 3,032 units in May, the first full month it was available.
The message from the divergence in Prius and the hybrid Camry sales numbers seems to be that consumers are looking for more fuel-efficient alternatives, but that price trumps all. The trend toward an increased interest in fuel miserliness also seems to be backed up by robust sales of the low-priced and highly fuel-efficient Yaris, a subcompact introduced a month before the Camry hybrid. With the Camry hybrid priced at $6,000 more than the base conventional model, though, consumer interest seems destined to stay limited.
However, just because the Camry hybrid is much more expensive than its conventional counterpart today, that doesn't mean the price difference will hold forever. Even if Toyota is not seeing strong hybrid sales beyond its Prius model at the moment, increasing hybrid production now is likely to help the automaker achieve its goal of halving the cost of hybrid powertrains and closing the price gap between hybrid and conventional models. If Toyota can make good on these plans, its darling status is likely to be secure for years to come.
Tuesday June 13, 5:00 pm ET
By Brian Gorman
Toyota (NYSE: TM - News) is the darling of the automotive world. Whereas American giants like Ford (NYSE: F - News) and General Motors (NYSE: GM - News) seem to stumble from crisis to crisis, Toyota has blazed a path to torrid growth. Now, the Japanese juggernaut is laying out another bold plan -- to rapidly increase the number of hybrid vehicles in its lineup. The company's aspiration doesn't make a lot of sense based on current data, but its plan seems to have less to do with today and more to do with the not-so-distant future.
Toyota currently offers five hybrid models, but by 2010, it plans to offer 10, with a target of 1 million hybrid sales annually after that year. Reuters quotes Masatami Takimoto, Toyota's executive vice president for technology development, as saying that hybrids "will be the core technology of the 21st century."
Takimoto's prediction seems fairly bold. True, Toyota's Prius continues to sell well, with 8,103 units purchased last month. However, sales of Toyota's other hybrids have not been nearly so robust. The new Camry hybrid, for example, had sales of 3,032 units in May, the first full month it was available.
The message from the divergence in Prius and the hybrid Camry sales numbers seems to be that consumers are looking for more fuel-efficient alternatives, but that price trumps all. The trend toward an increased interest in fuel miserliness also seems to be backed up by robust sales of the low-priced and highly fuel-efficient Yaris, a subcompact introduced a month before the Camry hybrid. With the Camry hybrid priced at $6,000 more than the base conventional model, though, consumer interest seems destined to stay limited.
However, just because the Camry hybrid is much more expensive than its conventional counterpart today, that doesn't mean the price difference will hold forever. Even if Toyota is not seeing strong hybrid sales beyond its Prius model at the moment, increasing hybrid production now is likely to help the automaker achieve its goal of halving the cost of hybrid powertrains and closing the price gap between hybrid and conventional models. If Toyota can make good on these plans, its darling status is likely to be secure for years to come.
Good find. The writer though, cannot compare a more expensive Camry Hyrbids sales with the Prius. Not to mention, the Prius production has been up and running for the last 3 years and has workers on overtime, while the Camry is BRAND NEW.
3k Camry hybrid sales is really incredible, about what 8% of sales?
Hyrids are not the final solution but they are one and kudos to Toyota for offering them
06-13-06, 09:39 PM
#3
Super Moderator
In a wide-ranging announcement in Tokyo of programs to develop and market environmental technologies and environmentally-friendly vehicles, Toyota Motor Corporation pledged Tuesday to double the number of hybrid models in its product line in the next five years.
The company also said it is pushing ahead on the development of plug-in hybrids, and is currently working on a next-generation hybrid that is capable of a greater range of electric-only operation.
In parallel with its hybrid program, Toyota announced that it will completely revamp its gasoline engine and transmission lineup by 2010 to improve fuel efficiency and reduce exhaust emissions. As part of this initiative, the company unveiled a new 1.8-liter gasoline engine and continuously-variable transmission that will be its main powertrain for compact and midsize passenger vehicles, starting with new-model vehicles due out this fall.
With a nod to the flex-fuel alternative touted by U.S. automakers, Toyota announced a 2007 launch of flex-fuel vehicles for the Brazilian market that can run on 100 percent ethanol. The company also said it's considering flex-fuel vehicles for the U.S. market.
Looking ahead, the company said it is continuing its fuel cell development program, with current efforts focusing on practical drivability issues like cold-weather startup.
Source: Toyota
Looks to us like Toyota is following the classic strategy maxim, "Hit 'em where they ain't," exploiting its lead in hybrid technologies to take away future market share from competitors without as strong a hybrid product line, like General Motors, Ford and Chrysler. At the same time, the company is covering its bets with high efficiency gasoline-only engines and flex-fuel vehicles that raise the bar from E85 to E100.
source : autoblog.com
The company also said it is pushing ahead on the development of plug-in hybrids, and is currently working on a next-generation hybrid that is capable of a greater range of electric-only operation.
In parallel with its hybrid program, Toyota announced that it will completely revamp its gasoline engine and transmission lineup by 2010 to improve fuel efficiency and reduce exhaust emissions. As part of this initiative, the company unveiled a new 1.8-liter gasoline engine and continuously-variable transmission that will be its main powertrain for compact and midsize passenger vehicles, starting with new-model vehicles due out this fall.
With a nod to the flex-fuel alternative touted by U.S. automakers, Toyota announced a 2007 launch of flex-fuel vehicles for the Brazilian market that can run on 100 percent ethanol. The company also said it's considering flex-fuel vehicles for the U.S. market.
Looking ahead, the company said it is continuing its fuel cell development program, with current efforts focusing on practical drivability issues like cold-weather startup.
Source: Toyota
Looks to us like Toyota is following the classic strategy maxim, "Hit 'em where they ain't," exploiting its lead in hybrid technologies to take away future market share from competitors without as strong a hybrid product line, like General Motors, Ford and Chrysler. At the same time, the company is covering its bets with high efficiency gasoline-only engines and flex-fuel vehicles that raise the bar from E85 to E100.
source : autoblog.com
06-13-06, 10:40 PM
#4
Moderator
Toyota is definitely thinking long term over five to ten years ahead. Wow! I need to do that. Toyota will be so far ahead in hybrid technology that the other car manufacturers will be left behind. As we see gasoline/electric hybrids getting better and more efficient or we may see diesel/electric hybrids the next trend will be fuel cell(hydrogen)/electric hybrids and Toyota has the capital, technology and expertise to make it happen. I look forward to the future...
Great post of the article Paul...
Great post of the article Paul...
Last edited by Trexus; 06-28-06 at 08:32 AM.
06-13-06, 10:41 PM
#5
Lexus Fanatic
Originally Posted by bitkahuna
Toyota currently offers five hybrid models, but by 2010, it plans to offer 10, with a target of 1 million hybrid sales annually after that year.
The market for hybrid is growing for sure, but no, not that fast. That 1M target is simply Toyota being way too optimistic.
06-14-06, 06:00 AM
#6
Originally Posted by XeroK00L
1 MILLION hybrids per year in 5 years!!?? Sorry but here's my bold prediction: it won't happen!
The market for hybrid is growing for sure, but no, not that fast. That 1M target is simply Toyota being way too optimistic.
The market for hybrid is growing for sure, but no, not that fast. That 1M target is simply Toyota being way too optimistic.
06-14-06, 06:09 AM
#7
5
Originally Posted by bitkahuna
Toyota currently offers five hybrid models, but by 2010, it plans to offer 10, with a target of 1 million hybrid sales annually after that year.
I ponder what the other 5 models will be? I am guessing Tacoma, ES, 4Runner, Rav4 & ummm, Yaris?
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06-14-06, 07:54 AM
#8
Moderator
Originally Posted by GS69
I ponder what the other 5 models will be? I am guessing Tacoma, ES, 4Runner, Rav4 & ummm, Yaris?
06-14-06, 08:02 AM
#9
Moderator
Originally Posted by XeroK00L
1 MILLION hybrids per year in 5 years!!?? Sorry but here's my bold prediction: it won't happen!
The market for hybrid is growing for sure, but no, not that fast. That 1M target is simply Toyota being way too optimistic.
The market for hybrid is growing for sure, but no, not that fast. That 1M target is simply Toyota being way too optimistic.
06-14-06, 08:09 AM
#10
People forgot the obvious 6th hybrid coming to the Toyota lineup...
I think Toyota will only use hybrids for their most popular models used for everyday (city) driving. My predictions:
1) Avalon: a car for the whole family, with gas savings in mind. It would need a more potent hybrid (250+ hp) and therefore need bigger batteries. The car's size can accomodate that.
2) Rav4: pretty much the SUV version of the Avalon: big, roomy, economic. It can share the same type of hybrid engine as the current Camry.
3) Corolla (or any Scion): If the hybrid Civic sells well, Toyota will definately add a hybrid for the next gen Corolla. It is the #1 selling car in the world. A Scion compact would benefit from this as well, but it needs to be a completely different model to reflect a hybrid buyer's wants: a car that is stylistically different that any other on the road (think Prius, not Insight). The xB however has the best space to accomodate the hybrid batteries.
4) Sienna: for the family, saves money, and has the space for the hybrid batteries.
5) The sixth hybrid coming out in the future is the LS600hL.
The First Five: Prius, Camry, Highlander, GS, and RX.
1) Avalon: a car for the whole family, with gas savings in mind. It would need a more potent hybrid (250+ hp) and therefore need bigger batteries. The car's size can accomodate that.
2) Rav4: pretty much the SUV version of the Avalon: big, roomy, economic. It can share the same type of hybrid engine as the current Camry.
3) Corolla (or any Scion): If the hybrid Civic sells well, Toyota will definately add a hybrid for the next gen Corolla. It is the #1 selling car in the world. A Scion compact would benefit from this as well, but it needs to be a completely different model to reflect a hybrid buyer's wants: a car that is stylistically different that any other on the road (think Prius, not Insight). The xB however has the best space to accomodate the hybrid batteries.
4) Sienna: for the family, saves money, and has the space for the hybrid batteries.
5) The sixth hybrid coming out in the future is the LS600hL.
The First Five: Prius, Camry, Highlander, GS, and RX.
06-14-06, 08:29 AM
#11
Corolla
Altho I do agree that a hybrid Corolla would make sense, I did not include in 1 of my 5 choices bc it was so similar to the Prius. Toyota may try to vary out their hybrid lineup by doing something totally different like the Tacoma, especially since Americans have a hybrid truck {I know I know but for the sake of argument .... }.
06-14-06, 11:43 AM
#12
The only kink may be if natural gas powererd vehicles get's the nod from other manufacturers. This is definitely a long term decision.
On Modern Marvels Super Tankers, that show had new ships dedicated to natural gas and their comment was fossil fuels would be around but dwindling till about the next 50 years. Interesting.
On Modern Marvels Super Tankers, that show had new ships dedicated to natural gas and their comment was fossil fuels would be around but dwindling till about the next 50 years. Interesting.
06-14-06, 12:36 PM
#13
Originally Posted by RA40
The only kink may be if natural gas powererd vehicles get's the nod from other manufacturers. This is definitely a long term decision.
On Modern Marvels Super Tankers, that show had new ships dedicated to natural gas and their comment was fossil fuels would be around but dwindling till about the next 50 years. Interesting.
On Modern Marvels Super Tankers, that show had new ships dedicated to natural gas and their comment was fossil fuels would be around but dwindling till about the next 50 years. Interesting.
Heard around the engineering office, BP purchased 6 LNG tankers from hyundai for 3 billion dollars
06-14-06, 03:27 PM
#14
Originally Posted by 1SICKLEX
Good find. The writer though, cannot compare a more expensive Camry Hyrbids sales with the Prius. Not to mention, the Prius production has been up and running for the last 3 years and has workers on overtime, while the Camry is BRAND NEW.
3k Camry hybrid sales is really incredible, about what 8% of sales?
Hyrids are not the final solution but they are one and kudos to Toyota for offering them
3k Camry hybrid sales is really incredible, about what 8% of sales?
Hyrids are not the final solution but they are one and kudos to Toyota for offering them
06-14-06, 03:30 PM
#15
Originally Posted by RA40
The only kink may be if natural gas powererd vehicles get's the nod from other manufacturers. This is definitely a long term decision.
On Modern Marvels Super Tankers, that show had new ships dedicated to natural gas and their comment was fossil fuels would be around but dwindling till about the next 50 years. Interesting.
On Modern Marvels Super Tankers, that show had new ships dedicated to natural gas and their comment was fossil fuels would be around but dwindling till about the next 50 years. Interesting.
Its pricing is also half of the price of petrol as well.