Why Two Compact Hybrids? Demographics Play a Role, Toyota Claims

Steph Willems
by Steph Willems

For two decades, the name “Prius” was all a committed Toyota buyer needed to know when searching for a compact hybrid vehicle. Soon, there’ll be two options, not counting the plug-in Prius Prime.

The automaker’s decision to offer a hybrid version of the still strong-selling Corolla was not made to usher its famed hybrid model into the shadows; rather, there’s two key reasons for it. Sure, the Corolla nameplate carries an enviable reputation and boatloads of name recognition, but Toyota’s also willing to admit that the Prius’ attributes just weren’t resonating with a certain segment of the American public.

To be clear, the next-generation Corolla Hybrid is not earmarked solely for U.S. buyers. It’s on its way to 90 countries.

Jack Hollis, general manager of the Toyota Division at Toyota Motor North America, told Automotive News that the first reason for expanding the brand’s compact hybrid presence involves fuel economy standards. The Corolla nameplate still sees boffo volume, and a hybrid version would help Toyota’s standing in the eyes of environmental regulators.

The second reason to water down the Prius’ importance in the lineup involves the type of buyer who might be in the market for a Corolla hybrid. The Prius just doesn’t play well with Hispanics, he claimed, but the Corolla does. As Hispanic buyers show a strong desire for Japanese brands, the presence of a gas-electric Corolla might sway hybrid shoppers into staying with the brand.

Lassoing resistant buyers is also the motivation behind Toyota’s unveiling, last week, of the all-wheel drive Prius AWD-e. While the Prius has seen its status (and sales) shrink amid newfound competition and the presence of PHEVs and battery electric vehicles, it’s still the first name that comes to mind when anyone mentions the word “hybrid.” But what works for buyers in one region might not work in another.

According to the model’s chief engineer, Shoichi Kaneko, the addition of AWD to the Prius’ equipment roster came about after Northeastern dealers demanded a Prius that could tackle the region’s notorious blizzards.

[Image: Toyota]

Steph Willems
Steph Willems

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  • APaGttH APaGttH on Dec 03, 2018

    Sales have shrunk? The Prius is looking at its worst sales year since 2004 with sales in free fall. Off 9% YTD and off over 26% in November. A lot of other automakers would look at a decline off of a 198K peak with a struggle to get to 85K units a decade later just 2 years after a refresh as a dead product walking.

  • Chris724 Chris724 on Dec 03, 2018

    I just bought a Ford Fusion hybrid. Anyone know how to remove the "hybrid" emblems?

    • See 2 previous
    • Scoutdude Scoutdude on Dec 04, 2018

      They are held on by double stick foam tape. If you can get a good grip twist them off. If you can't get a grip a plastic scraper to tear the foam followed by using your thumb to roll off the remains of the tape.

  • Bd2 Lexus is just a higher trim package Toyota. ^^
  • Tassos ONLY consider CIvics or Corollas, in their segment. NO DAMNED Hyundais, Kias, Nissans or esp Mitsus. Not even a Pretend-BMW Mazda. They may look cute but they SUCK.I always recommend Corollas to friends of mine who are not auto enthusiasts, even tho I never owed one, and owned a Civic Hatch 5 speed 1992 for 25 years. MANY follow my advice and are VERY happy. ALmost all are women.friends who believe they are auto enthusiasts would not listen to me anyway, and would never buy a Toyota. They are damned fools, on both counts.
  • Tassos since Oct 2016 I drive a 2007 E320 Bluetec and since April 2017 also a 2008 E320 Bluetec.Now I am in my summer palace deep in the Eurozone until end October and drive the 2008.Changing the considerable oils (10 quarts synthetic) twice cost me 80 and 70 euros. Same changes in the US on the 2007 cost me $219 at the dealers and $120 at Firestone.Changing the air filter cost 30 Euros, with labor, and there are two such filters (engine and cabin), and changing the fuel filter only 50 euros, while in the US they asked for... $400. You can safely bet I declined and told them what to do with their gold-plated filter. And when I changed it in Europe, I looked at the old one and it was clean as a whistle.A set of Continentals tires, installed etc, 300 EurosI can't remember anything else for the 2008. For the 2007, a brand new set of manual rec'd tires at Discount Tire with free rotations for life used up the $500 allowance the dealer gave me when I bought it (tires only had 5000 miles left on them then)So, as you can see, I spent less than even if I owned a Lexus instead, and probably less than all these poor devils here that brag about their alleged low cost Datsun-Mitsus and Hyundai-Kias.And that's THETRUTHABOUTCARS. My Cars,
  • NJRide These are the Q1 Luxury division salesAudi 44,226Acura 30,373BMW 84,475Genesis 14,777Mercedes 66,000Lexus 78,471Infiniti 13,904Volvo 30,000*Tesla (maybe not luxury but relevant): 125,000?Lincoln 24,894Cadillac 35,451So Cadillac is now stuck as a second-tier player with names like Volvo. Even German 3rd wheel Audi is outselling them. Where to gain sales?Surprisingly a decline of Tesla could boost Cadillac EVs. Tesla sort of is now in the old Buick-Mercury upper middle of the market. If lets say the market stays the same, but another 15-20% leave Tesla I could see some going for a Caddy EV or hybrid, but is the division ready to meet them?In terms of the mainstream luxury brands, Lexus is probably a better benchmark than BMW. Lexus is basically doing a modern interpretation of what Cadillac/upscale Olds/Buick used to completely dominate. But Lexus' only downfall is the lack of emotion, something Cadillac at least used to be good at. The Escalade still has far more styling and brand ID than most of Lexus. So match Lexus' quality but out-do them on comfort and styling. Yes a lot of Lexus buyers may be Toyota or import loyal but there are a lot who are former GM buyers who would "come home" for a better product.In fact, that by and large is the Big 3's problem. In the 80s and 90s they would try to win back "import intenders" and this at least slowed the market share erosion. I feel like around 2000 they gave this up and resorted to a ton of gimmicks before the bankruptcies. So they have dropped from 66% to 37% of the market in a quarter century. Sure they have scaled down their presence and for the last 14 years preserved profit. But in the largest, most prosperous market in the world they are not leading. I mean who would think the Koreans could take almost 10% of the market? But they did because they built and structured products people wanted. (I also think the excess reliance on overseas assembly by the Big 3 hurts them vs more import brands building in US). But the domestics should really be at 60% of their home market and the fact that they are not speaks volumes. Cadillac should not be losing 2-1 to Lexus and BMW.
  • Tassos Not my favorite Eldorados. Too much cowbell (fins), the gauges look poor for such an expensive car, the interior has too many shiny bits but does not scream "flagship luxury", and the white on red leather or whatever is rather loud for this car, while it might work in a Corvette. But do not despair, a couple more years and the exterior designs (at least) will sober up, the cowbells will be more discreet and the long, low and wide 60s designs are not far away. If only the interiors would be fit for the price point, and especially a few acres of real wood that also looked real.
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