‘Forced Features’ Drive Up Hybrid Prices | Autopia | Wired.com While the Union of Concerned Scientists in its inaugural “Hybrid Scorecard,†praises automakers for offering hybrids with excellent fuel economy and low emissions, it faults them for stuffing those vehicles with DVD players, keyless entry systems, heated power mirrors and other pricey gadgets.
I agree. I find it irritating that it is not possible to buy a "low-end hybrid" for around $15,000. After all, the target audience for hybrids should be young people since they are more likely to be green than older people. Yet, young people cannot afford cars in the $20,000+ price range. I realize the cost of the hybrid components drives the price of the car up, but if they'd leave off some of those other gadgets, the price could come down.
There is a reason for this. Hybrid components have been in short supply. If a manufacturer can sell more of a product than can be produced, it only makes sense that they will make as much off of each item as possible. As the hybrid components become more of a commodity, the greater availability will allow for more economical versions. Tom
I also wonder if the cost of production really is so high that selling a base model doesn't provide an acceptable return on investment. But throwing in gadgets is a pure money-maker. Also, I wonder if blaming the accessories takes the focus off charging for the hybrid components themselves. There's already the perception of the "hybrid premium."
The auto industry says there’s a simple reason hybrids are packed with features: economics. Although hybrids have enjoyed growing popularity, they’re still a tiny niche. Of the 10.5 million vehicles sold in the United States last year, 290,232 were hybrids — and almost half of them were Prius hybrids (.pdf). To put that in perspective, Toyota sold 356,824 Camrys in the United States last year, while Ford sold 413,625 F-series pickups. Given the relatively small number of hybrids, automakers can’t offer a smorgasbord of options, said Charley Territo, a spokesman for the Auto Alliance. The trade group represents 11 automakers, including the Big 3 and Toyota. “Because of the volume of hybrid-electric vehicles being sold, they have to provide a vehicle that appeals to the widest number of consumers possible,” he said. And that means offering an array of features consumers expect, even if that means not everyone wants every one...
Near as I can tell, SouthEast Toyota seems committed to maximizing "Port" charges out of Jacksonville. Bob Wilson
First off, the early buyers of hybrids are wealthier and more educated, they want and can pay for additional features. Second, stripping off equipment to get a base-model hybrid would reduce some cost, but of course there is still a hybrid premium. But that model is a PURE economics play. The only people who will buy it will be those who can make the math work... which it often won't. That said, someday we'll get these models, but it will take time. Doug Coleman Prius Product Manager Toyota Motor Sales, USA
It's more affluent buyers who are buying hybrids. And more affluent buyers want more stuff in their cars. These are people moving from higher-end cars to a hybrid. People in the market for a $15k car are still not the market that is going to buy a hybrid. Even if it was stripped to reach that $15 price point. The Honda Insight II tells us that (ok, $20k price point).
I think everyone who posted already is explaining it: 1) many Prius buyers can afford more than the base model. 2) dealers and Toyota make more from options than from the base model. 3) some people would like to buy a "stripped down" Prius, but not enough of them. 4) Toyota will be releasing a "I" model with minimal accessories in the near future.
The Union of Concerned Scientists singled out two cars it says illustrate the problem of “forced features,†which it defines as features as options on the gasoline model but standard equipment on the hybrid. Those cars are the Ford Fusion Hybrid (pictured) and the Honda Civic Hybrid. For the Fusion, which gets 39 mpg combined, that comes to almost $4,000. The extra cash buys you things like 17-inch aluminum wheels, power heated mirrors, an eight-way power adjustable driver’s seat, a back-up camera, a leather-wrapped steering wheel with integrated audio controls and, of course, the Sync in-car infotainment system. The Civic Hybrid (42 mpg combined) includes more than $3,000 in goodies including a security system, a deck-lid spoiler, power windows and locks, steering wheel mounted audio controls and a six-speaker audio system. The union also called the 2010 Toyota Prius a great value, noting that it gets 50 mpg (combined) and includes just $1,600 in “forced features†like heated mirrors, remote keyless entry and 15-inch alloy wheels.
I would have to say that a $15,000 prius is a non starter. Toyota does much to force features and has some preditory practices. Only more competition will stop some of these practices. Honda seems to have added the most on to the civic hybrid, but I'm expecting a less costly fit hybrid to drive out some of these costs. Lets look at features on the $17,000 honda fit sport. The toyota has sks key and autoclimate control (mine doesn't work all that well). The fit sport has fog lights and 16" wheels and tires. The unnecessary features are requiring a $2800 radio and nav upgrade (that stops you from doing better cheaper aftermarket) to put in a sun roof. Requiring heated seats, leather, and a bad stereo upgrade to be able to have fog lights and upgraded wheels. This bundling and the port add ons give the prius a bigger price premium. Note people think my car is more expensive than it was, but I have had to go through upgrading the wheels/tires sound system on my own on my prius II. Come on toyota, how much would it have cost to allow fog lights and auto on head lights on american priuses as an option? Why do you have crazy speaker installs so that it costs us more to upgrade. Get rid of the gm attitude, or you might follow in gm's footsteps.
This ^^^ is precisely it. It's only a matter of supply and demand here. For the limited supply of hybrid components the weathier in this market are pricing out the less wealthy. The young and struggling are being outbid....capitalism. Soon though with the announcement by Toyota of the new compact hybrid these two under-supplied groups will have their opportunity to buy in their price ranges.
This is a business. The only reason to be in business is to maximize profits for the shareholders. In this first year it makes more sense to load up the vehicles with as many options as possible if that's what the market is willing to buy. Next year there will be more availability, then more the following year. At that point the 'option mix' may very well become a lot more vanilla and basic. But as long as the market is willing to pay for the vehicles as they're configured it would be bad business not to satisfy that demand. The market will make its voice known soon enough and then the 'option mix' will change. It always does.
"young and struggling" .... a-a-aw, I'm so sad! When I was "young and struggling" my hybrid means of locomotion was a bike! Cheap, versatile and an infinite number of miles to a gallon of gas, which wasn't needed. A great way to keep fit and good for the environment too.
