Dear Valued Hybrid Customer...

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by kirbinster, Nov 30, 2005.

  • by kirbinster, Nov 30, 2005 at 10:59 AM
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    kirbinster New Member

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    WSJ article

    November 30, 2005


    BUSINESS WORLD
    By HOLMAN W. JENKINS, JR.






    Dear Valued Hybrid Customer...
    November 30, 2005; Page A19

    We at the Toyota Motor Corporation are writing to address certain misconceptions that have arisen about your Toyota Prius model, which we are proud to note is driven by many celebrities, including Prince Charles and HBO's Larry David.

    Our pioneering gasoline-electric hybrid, introduced in 1999, has become an object of adoration to the world's enlightened car buyers. Our competitors, including America's Big Three, are rushing out hybrid vehicles of their own. Unconfirmed media reports say that we at Toyota intend to double our hybrid output to 500,000 vehicles next year. Along with other members of the auto industry, we will be lobbying for tax breaks and HOV privileges for hybrid vehicles.

    However, any romance entering its seventh year tends to go stale. Some purchasers have begun to question the practical value of our Hybrid Synergy Drive technology. You may be aware that a survey by Consumer Reports found that our vehicles achieve considerably less mileage (some 26% less) than the sticker rating implies. This has led to some unflattering media stories.

    Let us assure you that the Prius remains one of the most fuel-efficient cars on the road. Toyota applauds your willingness to spend $9,500 over the price of any comparable vehicle for the privilege of saving, at current gasoline prices, approximately $580 a year.


    And should the price of gasoline rise to $5, after 10 years and/or 130,000 miles of driving, you might even come close to breaking even on your investment in hybrid technology.

    We recognize that our customers have an "emotional" relationship with their vehicles. This transcends even the regrettable truth that driving a fuel-efficient car does not yield any substantial benefits for society if it doesn't save the owner money.

    Contrary to any loose statements made by our marketing partners in the environmental community and media, petroleum not consumed by Prius owners is not "saved." It does not remain in the ground. It is consumed by someone else. Greenhouse pollutants are released. Also, please note that the warranty and owner's manual say nothing about reducing America's dependence on foreign oil. This is not an oversight. The Prius is an "oil-dependent" vehicle. It runs on gasoline, supplied by the same world market that fuels other vehicles.

    The Toyota Corporation regrets any misunderstanding our marketing may inadvertently have caused (or may cause in the future).

    We share your belief that the days of the internal combustion engine are numbered. Further research by our economists suggests this will happen when the price of gasoline rises high enough to make alternative technologies cheaper than gasoline-powered cars.

    We at Toyota want you to know we recognize this effect and have taken steps to compensate with the rest of our vehicle lineup.

    Our 2006 Tundra pickup will be equipped with Toyota's new eight-cylinder engine, making it every bit as much of a gas guzzler as any American pickup. We are also redirecting our efforts to use our Hybrid Synergy Drive to increase power output rather than reduce gasoline consumption.

    Take our new hybrid SUV, which produces 38 more horsepower but gets the same mileage as our conventional version. A New York Times reviewer wrote, "One question lingers after driving the 2006 Lexus RX400h: How did it come to this, that Toyota is now selling a hybrid gas-electric vehicle with no tangible fuel economy benefits?"

    We hope this corrects any misimpression caused by our latest slogan ("Commute with Nature"). Hybrid technology is not "green" technology. Like heated seats or flashy exterior trim, it's merely an expensive option that generates large markups for the Toyota Corporation and its dealers.

    You will share our pride in the latest figures from J.D. Power & Associates, which show that the Prius continues to move off a dealer's lot in just eight days, compared to 36 days for a Honda Civic hybrid. Clearly, our customers are willing to pay handsomely for the privilege of showing themselves behind the wheel of so conspicuously virtuous a vehicle.

    But we are also a far-seeing corporation. We recognize that the Prius's distinctiveness may be a wasting asset for reasons outlined in this letter. Other motorists may see the Prius operator and think "sucker." Our lawyers advise us this may affect your car's resale value. Toyota regrets any inconvenience.

    We want you to know that Toyota remains committed to advancing hybrid technology just as long as our customers are willing to make it worth our while. Our esteemed competitor, Nissan's Carlos Ghosn, was recently quoted saying, "There's such a buzz today that no CEO of a car manufacturer dares to say his real opinion of hybrid because he's accused of being retarded."

    Another esteemed competitor, GM, has suggested that hybrid technology is best deployed in city buses, where large fuel consumption and stop-and-go driving might actually make it economically sensible.

    These are just two examples of the short-sighted, stick-in-the-mud marketing instincts of our fellow automakers that are helping to make Toyota the largest car company in the world.

    Yours Truly, the Toyota Corporation.

    URL for this article:
    http://online.wsj.com/article/SB113332075479109882.html


    Hyperlinks in this Article:
    (1) mailto:holman.jenkins@wsj.com
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Comments

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by kirbinster, Nov 30, 2005.

  1. naterprius
    This is satire. Toyota did not actually write this letter.

    Nate
  2. hdrygas
    Has to be no company would shoot themselves in the foot like that.
  3. tumbleweed
    I agree, and it's not even very good satire.
  4. Mrfilovirus
    True - but I think everyone should drop the author (his email at the bottom) a quick polite note telling him he is full of it. :D
  5. Bionic
    must... not... feed... troll....
    (not necessarily kirbinster, as this may be a "look how dumb this is" post)
  6. KMO
    He's got a point about all the latest HSD vehicles though. Are there any new Toyotas on the horizon that will actually use the HSD to make them more efficient rather than faster? :unsure:
  7. malorn
    I know that it is satire, but there is much truth in the write-up. I refer you to my original post on here--"Smoke and Mirrors". Is the Prius a very fuel efficient and low emissions vehicle, absolutely, but to think that it was never part of a larger corporate agenda is very naive.
  8. john1701a
    No, he doesn't have a point. All he did was ignore the misconception that Toyota disspelled by releasing the power version with HSD first.

    Yes, the next Toyota (Camry-Hybrid) will emphasize efficiency more than power.

    This is yet another example of selecting only certain info to imply a purpose rather than looking at the big picture.
  9. KMO
    Camry doesn't count as far as I'm concerned - it's not available in Europe (and is even bigger than the Prius, so will be less efficient).

    Apart from that, will it actually be the most efficient Camry?
  10. geologyrox
    i want the comprable vehicle for 12k =)
  11. LaughingMan
    It is equally as cynical to think that Toyota's only using this for image gain... Toyota has spent too much of it's own R&D dollars and engineering man-hours to just be a marketing tactic for the short term alone.

    They intend to use it in every vehicle they make... there is long term strategy here that you refuse to acknowledge.
  12. LaughingMan
    Unlike the Accord Hybrid, which came in V6, and delivers performance better than the regular V6 but economy slightly worse than the 4 cylinder version and worse emissions (the V6 hybrid is still a ULEV, while the 4 cyl comes in a SULEV config)...

    the camry will start with a 4 cylinder engine... HSD is very good at reducing emissions, so this Camry Hybrid should achieve SULEV easily.

    So to answer your quesiton, it will definitely be the most efficient Camry, because it won't be tuned for performance.
  13. malorn
    I think the long-term strategy was an evolutionary strategy and is still subject to outside variables(other tech, cost, gas prices etc). Toyota's proclamation of using the hybrid throughout their line-up is a very recent development.(ie $3 gas)
  14. hyo silver
    Being a sadist, no..satyr...oh skip it.

    I understand satire when I read it.

    About this 'hybrid premium' thing: it's a myth, at least as far as the Prius goes. There is no comparable vehicle.

    It is unfortunate, though not unexpected, that a potentially gas saving technology has been perverted for more power.

    What 'larger corporate agenda' is there, other than to make money?
  15. LaughingMan
    Doubtful.

    The move to create an efficient hybrid version of the Camry is a significant one, and not one made on a whim. The Camry is one of their best selling vehicles, and to create a hybrid version of that vehicle means that they aim to introduce hybrid technology into the mainstream... get consumers used to the idea that all cars should incorporate the technology.

    They want an actual return on investment on hybrid technology... you can't argue that they haven't spent a lot of resources on it already to develop the technology... selling a high volume item like the Camry is a big step.
  16. metamatic
    What total bullshit. A sad reflection of the tunnel vision of the WSJ.

    Suppose I'm a doctor and volunteer to work for free at a local clinic one day a week. That doesn't save me money, so by the WSJ's logic, it doesn't benefit society. Riiiight.

    So having more petroleum available to everyone else, at what will therefore be a lower price, is not a benefit to society? Sheesh, why don't we hear the WSJ complaining every time the US strategic reserve is used? Or even campaigning to get rid of it?

    So basically, we should all consume as much oil as possible, so as to force the price of gasoline up and force the world to develop alternative technologies? Excellent strategy.

    Assuming, of course, those technologies pan out...
  17. malorn
    Toyota wants to make money on big trucks and SUVS while maintaining the 'Toyota is green' image in the media and thus the American consumer. I don't want to get into all of this again, but if you ask 100 consumers on the street which comparable vehicle gets better mileage I can't imagine that today 95% wouldn't pick Toyota over any domestic. If you really get into strict comparisons you'll find that in many cases this isn't the case, and certainly isn't the case with trucks and SUV's.
  18. metamatic
    Toyota is a profit-making company. They're not martyrs. They don't make all their vehicles fuel efficient because the US consumer, unfortunately, generally doesn't give a crap about that.

    What makes Toyota green is (a) they offer the option of fuel efficiency, which most of the US manufacturers don't do; and (b) they are green in other areas, like recycling. (See news of their recent EPA award.)

    If you do the math, I suspect you'll find that the average fuel efficiency across Toyota's range of vehicles is higher than that across Ford's range, or GM's range. Sure, they still make some gas guzzlers--because some Americans will only buy gas guzzlers. You don't get to stay in business by ignoring the market and just doing what you think is best.
  19. LaughingMan
    Fine, it isn't the case with SUVs and trucks...

    But that's the consumer's fault for not doing their homework. Moreover, picking people on the street is not fair because i'm willing to bet that most people aren't actively looking for a vehicle right at this moment. The moment they do, it takes 15 minutes of research online to show the fuel economy numbers.

    A smart consumer would work out the numbers, test drive the cars, and make an informed decision. A stupid consumer would impulse buy something. That's no different for ANYTHING in life.

    But that doesn't change the fact that hybrid is a technology that Toyota has spent too much on to not widely deploy. Letting it languish in favor of their truck buiseness is extremely foolish... their recent push with hybrid is anything but a smokescreen, because they are actually selling vehicles, and they are actually selling like hotcakes.

    and i just checked. Toyota announced their wide hybrid strategy (across all product points, starting with the Camry) long before gas was $3.00 this summer.

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