For now, Honda has decided to end the price war between their Insight and Toyota's Prius. Honda has stated that they will not lower the price on its Insight to outsell the new Toyota Prius.
In a price war that's been going on for a few months now, Toyota has progressively reduced the price of it's soon to be released Prius. In Japan, Toyota announced that the old Prius will sell alongside the new Prius, but at a reduced price. Just days ago, Toyota announced a base or Level 1 Prius that will come to market soon at $21,000. Toyota has made all the moves to take on the Honda Insight.
Honda's response, the price war ends now. According to Honda Ceo Takeo Fukui, "Honda will not lower the price of the Insight. I think that is something we can't do right now. We have to carefully examine the new Prius to know whether it is necessary for us to take certain measures. We have to think about the balance between cost and effectiveness. If Toyota does come out with three Japan-market Priuses, Honda will be thinking long and hard about those issues."
Honda does have an ace in the hole though. Honda will soon release the Honda CR-Z; A sporty hybrid offering that Toyota can not compete with at this time.
The battle between Toyota and Honda is more exciting than ever. Stay with us for more updates.
Source: Automotive News