Commentary: The Hybrid Puzzle

http://www.signonsandiego.com/uniontrib/20...1d29hybrid.html

Consider this: The success of Prius comes at the expense of no other vehicle in Toyota's lineup. Any additional hybrids in Toyota's future, the company has said, will be based off existing vehicles. Could those hybrids' success come at the expense of their gas-sipping siblings?

So, here's the rub:

Let's say you put two RXes on the sales floor side by side. The 400h is compelling next to the RX 330, and the 400h enjoys 270 hp – nearly 20 percent more than the 330 – and almost incalculable torque.

The 400h also shows similar percentages of improvements in fuel mileage and exclusive conveniences such as electronic all-wheel drive.

If they are both the same price, which one are you going to buy? The one that's more economical to drive, more environmentally friendly, more powerful and better handling? Or the one that's not?

The answer is obvious. But think about this: The RX 330 is the goose that lays golden eggs for Lexus. The last thing management would want to do is torpedo sales of its best-selling model.

So, pardon the Toyota/Lexus braintrust for spending a little extra time considering how these new arrivals on the showroom floor are going to fit into the grand marketing scheme. Toyota can't afford hybrid success to come at the expense of its current model lineup.

(Much More in the Article)