Toyota Wants to Halve Cost Difference Between Hybrids, Conventional Vehicles

Washington DC September 13, 2005; The AIADA newsletter reported that Toyota President Katsuaki Watanabe has told his engineering chief to find a way to cut in half the price difference between fuel-efficient gas-electric hybrids and similar gasoline models, reports USA Today.

Watanabe’s remarks suggest that other automakers must begin to aggressively slice the costs of developing hybrids so they can, in turn, cut prices. And it appears there will be no immediate pressure from Toyota to develop clean-burning diesel vehicles, which use 20 percent to 40 percent less fuel than similar gas models and can be tuned to pollute less than gasoline engines.

Toyota’s most recent U.S.-market hybrids are positioned as high-end models -- more power and features than similar gas vehicles -- and are priced about $5,000 more than their gasoline counterparts. “

The mind-set has changed. (It) used to be somebody would pay $2,000, $3,000 more for a big V-8 and the macho and muscle and squealing tires that went with it," said Jim Press, president of Toyota Motor Sales USA. "Now, at least in some places, people pay the premium for the (hybrid’s) image of being concerned about a clean environment, contributing to their children’s future health and depending less on foreign oil."