Hybrid Wars: Toyota To Sell Two Prius Models

TOKYO — Toyota will continue to sell the current Prius when the revamped version goes on sale in May in an unusual move likely to help the top-selling hybrid ride out a threat from rival Honda. Toyota Motor Corp. President Katsuaki Watanabe said Thursday there is demand in the Japanese market for both the third-generation Prius and the smaller model that's already on sale. He declined to give details, including overseas plans. But his comment is the first from Toyota confirming recent Japanese media reports that the current Prius gas-electric hybrid will continue to be on sale, partly to match the cheap price of Honda Motor Co.'s new Insight hybrid. Prius faces an unprecedented challenge from the Insight, which starts at 1.89 million yen ($19,000) in Japan, and $19,800 in the U.S. The Prius now sells for $22,000 in the U.S. and 2.3 million yen ($23,000) in Japan. Watanabe said Toyota has been slashing costs on hybrids to almost a fourth of the early costs. He declined to give ... (link)