Toyota has announced a price cut for its upcoming third generation 2010 Prius . The new price will be $21,000, $1000 less than the initial target was intended to be.
The price cut comes as competition from the all new Honda Insight is expected to cut into predicted sales volume. The Honda Insight has a base price of $19,800 and Toyota is clearly taking aim squarely at its new main competitor.
Over the last few months, Toyota has considered its options for lowering the price of the new Prius to directly compete with Honda. In the next step in a newly-formed price war, the automaker has decided to lower the price and either lessen their profit or increase their losses on the model just to take Honda on.
In the Japaneses market, Toyota decided to sell their new Prius alongside a discounted last generation Prius. By selling both models in Japan, Toyota could use the old Prius as the competitor with the Insight and keep their new Prius priced higher. Toyota has decided not to follow this approach in the U.S. or Europe and will only market one Prius, at a lower price.
Toyota has said that the low price 2010 Prius will not be immeditely avaible when the model year begins selling next month at $22,000.
The 2010 Prius has a combined EPA rating of 50 mpg compared to the Insight's 41 mpg.
Full Press Release:
TORRANCE, Calif., April 21 /PRNewswire/ -- Toyota Motor Sales (TMS), U.S.A., Inc., announced manufacturer's suggested retail prices (MSRP) today for the all-new 2010 Prius midsize hybrid, scheduled to go on sale beginning in late May at Toyota dealers nationwide.
The third-generation Prius will be available in one grade with a starting MSRP of $21,000. The Prius will be offered with five levels of popular standard equipment combinations.
"The 2010 Prius delivers outstanding mileage, performance and advanced technology at a great price," said Bob Carter, group vice president and general manager of the Toyota Division.
Carter sees the most popular model starting at an MSRP of $22,000, equipped with a high level of standard features. "This model provides more than $2,000 added value, including the features most buyers want, at the same price as the current base model," he said.
A new base model with a lower level of standard equipment is scheduled to be available later this year. It is designed to appeal to the most cost-conscious businesses and consumers.
Celebrated as the benchmark for cars of the future, the Prius has delivered superior fuel economy and ultra-low emissions to more than 1.2 million owners worldwide for over 10 years. When it goes on sale, the 2010 Toyota Prius will once again set new standards for innovative hybrid design and technology, raising its level of convenience features and performance to new heights, including EPA fuel economy estimates of 51 mpg city, 48 mpg highway and 50 mpg combined (EPA MPG estimates, actual mileage will vary).
The third-generation 2010 Prius will offer enhanced performance and innovative design features. It will be quieter, roomier, and equipped with advanced standard and available features such as four driving modes, steering wheel touch controls that display on the instrument panel, a moonroof with solar panels, and Intelligent Parking Assist (IPA).
The Prius is equipped with Toyota's industry-leading Hybrid Synergy Drive and certified as an Advanced Technology Partial Zero Emissions Vehicle (AT-PZEV), emitting over 70 percent fewer smog-forming emissions than the average new vehicle. A larger and more powerful yet more efficient 1.8-liter Atkinson-cycle, four-cylinder engine produces 98 horsepower at 5,200 rpm. Together with its electric motor the hybrid system in the new Prius will generate a combined net horsepower of 134, an increase of 24 horsepower over the previous generation.
All Prius models offer Toyota's Star Safety System(TM) as standard equipment, which includes enhanced Vehicle Stability Control (VSC) and Traction Control (TRAC) Systems, Anti-lock Brake System (ABS) with Electronic Brake Force Distribution (EBD) and Brake Assist (BA). Other standard features include electric power steering and four-wheel disc brakes.
Starting fall 2009, select Prius models will include Toyota's all-new telematics service, Safety Connect(TM), which will offer four safety and security features: Automatic Collision Notification, Stolen Vehicle Location, Emergency Assistance Button (SOS), and Roadside Assistance. Safety Connect will be available by subscription, with an included one-year trial subscription.
Adding to the appeal of Prius is an additional array of standard convenience features on most models that include automatic air conditioning equipped with an electric air compressor; AM/FM/MP3 CD player with six-speakers and satellite radio capability; driver door Smart Key system with Push Button Start and remote illuminated entry; a Multi-Informational Display with an energy monitor and fuel consumption history; six-way adjustable driver seat; power door locks; auto up/down on all windows with window jam protection; cruise control; tilt/telescopic adjustable steering wheel with audio and HVAC controls; color-keyed foldable power heated side mirrors; dual sun visors with vanity mirrors; and tonneau cover.
Prius also brings many new firsts to the Toyota lineup. To help increase fuel efficiency, the 1.8-liter engine is beltless, uses an electric water pump, a new exhaust gas recirculation (EGR) system, and an exhaust heat collection system.
Other Toyota firsts include a new Touch Tracer Display, which features touch sensors on the steering wheel switches that are designed to reduce driver eye movement for better concentration on the road; an available sliding glass moonroof is packaged with solar panels that power a new ventilation system; a remote air-conditioning system functions on battery-power alone, and allows remote operation so the driver can cool the interior temperature for comfort before getting in the car.
Also new to Toyota is an available Dynamic Radar Cruise Control system that uses advanced millimeter wave radar. The system also enables Lane Keep Assist, which helps the driver stay safely within the lane, and the Pre-Collision System, which retracts seatbelts and applies the brakes in certain conditions when a crash is unavoidable.
Base MSRPs do not include a delivery, processing, and handling (DPH) fee of $750. The DPH fee for vehicles distributed by Southeast Toyota (SET) and Gulf States Toyota (GST) may vary.
Standard Equipment MSRP
Prius I To be released at a later date $21,000
Prius II -- 1.8-liter Atkinson cycle engine $22,000
-- P195/65 R15 all-season tires with alloy
wheels & covers
-- Smart Key (driver's door) and Push Button
-- EV, Eco, and Power modes
-- Multi-Informational Display with energy
monitor and fuel consumption history
-- AM/FM/MP3 CD player with six speakers and
satellite radio capability and auxiliary
-- Cruise control
-- STAR Safety System and active front headrest
-- Seven airbags including driver knee airbag
-- Four-wheel disc brakes
-- Tilt/telescopic steering wheel with audio and
Controls with Touch Tracer Display
-- Six-way adjustable driver seat
-- Auto up/down on all windows
-- Color-keyed foldable power heated side
Prius III In addition to Prius II features: $23,000
-- JBL AM/FM/MP3 six-disc CD changer with eight
-- Integrated satellite radio capability
-- Hands-free phone capability via
Bluetooth((R)) wireless technology
Prius IV In addition to Prius III features: $25,800
-- Three-door Smart Key system
-- Leather-trimmed interior
-- Heated front seats with driver lumbar support
-- Driver and front passenger water repellant
-- Plasmacluster(TM) ionizer
-- Auto dimming mirror with HomeLink(R)
Prius V In addition to Prius IV features: $27,270
-- 17-inch alloy wheels and P215/45 R17 tires
-- LED headlamps with auto leveling and washers
-- Integrated foglamps
Optional Equipment MSRP Prius II Prius III Prius IV Prius V
Navigation Package $1,800 NA Available Available Available
DVD navigation system
With JBL AM/FM/MP3
four-disc CD changer,
radio capability, XM
capability and music
streaming via Bluetooth
and integrated backup
Solar Roof Package $3,600 NA Available Available NA
plus power tilt/slide
moonroof with Solar
System and Remote Air
Package $4,500 NA NA NA Available
Package equipment plus
Dynamic Radar Cruise
(PCS), Lane Keep Assist
Public Web site: http://www.toyota.com
SOURCE Toyota Motor Sales, U.S.A., Inc.