Toyota: How the Hybrid Race Went to the Swift
As Toyota prepares to motor past Ford as the world's second-largest carmaker, it has become a textbook case on how a green reputation delivers a competitive edge. In the five years since the Prius' U.S. debut, Toyota's brand value has surged by 47%, to $28 billion, according to Interbrand. In the same period, Ford has been beset with numerous troubles, including a failure to meet its goals for SUV mileage gains or to exploit its well-regarded Escape hybrid. Its brand value fell 70%, to $11 billion.
How did Detroit blow it? More than anything, through inertia. For 20 years, GM and Ford earned outsize profits on supersize trucks and SUVs. And following the infamous failure of GM's EV1 electric car, a high-tech, high-cost econo-box seemed like anything but a good bet.
Detroit simply didn't see the potential for Toyota's odd little electric-gas car when the Prius made its debut in Japan 10 years ago. When energy prices spiked, Toyota was ready with a high-tech offering that many consumers embraced. Today, even if hybrids aren't exactly cost-effective, consumers keep buying them. From a few thousand sold in the U.S. in 2000, Toyota expects to move 250,000 hybrids next year. "We didn't appreciate the image value of hybrids," concedes GM's research and development chief, Larry Burns. "We missed that."
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Toyota: How the Hybrid Race Went to the Swift
Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by jkash, Jan 19, 2007.