Toyota Prius Case Study

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Mention “hybrid” vehicle to most people and the Toyota Prius comes to mind. That’s expected as the Prius family is by far the most dominant hybrid electric vehicles on the market. Furthermore, Toyota is the chief manufacturer, building twice as many hybrids as the industry combined. Despite all the attention given to hybrids, these vehicles account for just under 3 percent of all cars on the road today. That’s not an especially tenable market for a vehicle segment touting all things sustainable. And with gas prices currently averaging $2 per gallon, the market for gas-electric hybrids remains especially weak. Car manufacturers aren’t giving up on the segment and for good reason: automakers must reach progressively higher corporate average …show more content…

A greater payout up front can inhibit sales. Further, recouping the added cost becomes especially difficult when gas prices are low. Second, fuel economy doesn’t always match real world numbers. Achieving 50 mpg with some hybrids is possible, such as with the Honda Accord Hybrid, but that’s only when weather conditions are favorable. In extreme conditions, such as during the winter, fuel economy numbers will drop. Hybrids are most efficient during mild weather, but not when it is hot. Third, battery degradation is a big concern. Whether you’re looking at purchasing a hybrid or an electric vehicle, the battery packs that supply power to the electric motors gradually degrades notes HybridCars.com. Manufacturers help allay such fears by providing extended warranties for the pack and related components, starting at eight years or 100,000 miles, whichever comes first. If the battery fails after warranty, a replacement will run in the thousands of dollars. That’s not a cost many consumers are willing to …show more content…

Indeed, the Porsche 918 Spyder was one such model, powered by a 4.6-liter, V-8 engine along with a pair of synchronous electric motors mounted on each axle. This hyper gas-electric hybrid makes a combined 875 horsepower and 944 foot-pounds of torque, for a vehicle that can be operated in front, rear, or all-wheel drive modes. Another super car, the Acura NSX, is also a hybrid. This all-wheel drive model is powered by a mid-mounted twin turbo V-6 gasoline engine and comes with a 9-speed dual-clutch automatic transmission and three electric motors. Combined, the NSX makes 573 horsepower with an output of more than 500 foot-pounds of torque. Of course, most consumers do not have the discretionary income to afford either model. With a price tag starting at $156,000 and eclipsing $200,000 with every option taken, the NSX amplifies high price and scarcity. Making Hybrids

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