A second 2010 Prius in introduced in Japan

This isn't much of a surprise. Toyota had supply contracts already established that now equate to excess parts inventory. Why not take advantage of the opportunity?
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Re: A second 2010 Prius introduced in Japan

We had seen this before, but the context previously was that sales of 2G Prius in Japan beyond 2009 would be to fleets only. The cited story above implies that 2G Prius will continue to be sold to retail customers as well. This will make things confusing if both vehicles have the same name.

 

Likely it will be badged as Prius CE or "Cheap Edition".

 

Rumor said the naming will be "Prius 150".

Ken@Japan

 

Will they keep making the 2G with the MFD, back-up camera, SKS, etc. on models that aren't fully decked out? Interesting internal competition then -- especially on the price front.

 

I don't understand why they just don't offer a stripped down version of the 2010? Why go backwards? Maybe this is a temporary move until a compact version of the Prius comes out. Oops!!! Did I let out a secret?

 

It's a fools game, that says "change change change" when your old model is ahead of the game . . . R&D already done, tooling, existing parts abound etc. I look for this to become more & more common.

 

I think the 150 is came from 1500cc engine.

The Prius 150 will be down grade version of the current Japanese S model which doesn't come with SKS.
The down grade area will be...

• body colored front grill garhish (no metaric like 2004-2005 model)
• no wheel caps
• no front fog lamps
• no IPA on Navi option
• limited body colors - white(040), silver(1F7), black(202)

Please note that it is basically for fleet market only.

Ken@Japan

 

It's a mtter of cost and pricing. It's good business.

The Gen 2 has fully paid for itself. There are no more investments and amortizations to be accrued. It can be sold on marginal costing only; i.e. materials, labor and other direct variables. Heck it could be sold at $19995 and make big bucks while the new Gen 3 stays at $23500 and up thus recouping it's own new investments.

This is one of Toyota's best marketing strategies. They do it in all the lines. The lower-priced vehicle 'protects the backside of the key vehicle'. The Corolla is a mini-Camry that hold the line on prices so that dealers don't have to discount the Camry down to the 'teens to compete with the Sonata and other low-priced agressors. Ditto the Avalon protects the backside of the EX Lexus.

The new Venza protects the back of the Highlander. Now the 'Prius 150' will hold the line so that the Gen 3 doesn't have to be discounted down to $20,000 to keep a shopper from going over to Honda.

In the end it's only about the total number of fannies in the seats and the total amount of profit generated. Why let Honda have free access to a huge untapped market with a 'knockoff Prius'?

I think that it's agressive and brilliant. The current Package No 1 is directed to the fleets with an MSRP of ~$22000. It has no SKS and no backup camera. Hey! it's an Insight II with more room and more power. It can be sold at $19995 and make a profit.

 

Anyone know if the 2010 G3 Prius will come off the same production line as the 2009 G2 car, or will it have its own dedicated production line?

I believe the current G2 Prius sources its engine from Toyota's Kamigo plant, the Motor/Generator and the PSD from the Honsha plant, the ECU and power electronics from the Hirose plant. Panasonic EV Energy provides the Traction battery. I hear it all gets put together at 2 major plants somewhere in Japan, but just where I do not know.

 

Following up to Tideland's comment...
Toyota Tsutsumi 2nd production line is used to make Prius and Camry.
Also, Toyota Audo Body Fujimatsu line is used to make Prius.

Starting April, the Tsutsumi 2nd line will continue to make Prius 150, and the 1st line will make 2010 Prius. The Fujumatsu line will make 2010 Prius too.
These production lines are not dedicated to Prius.

edit: Japanese article
Toyota increase Prius production capacity

Ken@Japan

 

Your examples all have a distinction between the two vehicles; size, vehicle class, or brand. The G2 and G3 are similar to each other. The old might cannibalize sales of the new.

The city Jetta brought up as an example of this being successful. What about the Ford Five Hundred? A model which has had lackluster sales. The year of its introduction, and maybe the following, it was being sold on lots next to the Taurus.

Keeping the G2 as a retail model will take sales from the Insight, but it will also take sales from the G3. Keeping the sale in house is good, but is it worth it at the expense of perception of a brand new model's sales performance?

 

Yes this is true, but...is it clear that a $19995 buyer definitely would step up to $23500+ if the Prius 150 were not present .. or .. would that buyer defect and end up in the Honda camp?

In the end it frankly doesn't matter from a volume and profit perspective as long as there is a warm body in one of the two Prius'. Both vehicles will do the same for the company's bottom line. IMO the presence of the Prius 150 will steal more buyers from the Honda camp than it will from the Gen 3. If the total number of Prius' sold is greater because of the presence of the 150 then that's a good result.

I guess that we'll know soon based on the Japanese market.

 

I think so too. Potential hybrid buyers with a $20K budget would not be able to afford a G3 at $23K anyhow.

A Prius 150 for around $20K would give those buyers another option to consider beside the Insight.