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Toyota's hybrid SUVs to carry premium price; automaker improves hybrid system

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Old Mar 30, 2005 | 03:43 PM
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Default Toyota's hybrid SUVs to carry premium price; automaker improves hybrid system

http://www.autoweek.com/news.cms?newsId=102066

Toyota's hybrid SUVs to carry premium price; automaker improves hybrid system
JAMES B. TREECE | Automotive News
Posted Date: 3/30/05
TOKYO -- Toyota Motor Corp. expects to charge hefty premiums - about $5,000 to $8,000 - for its gasoline-electric hybrid SUVs compared with the gasoline-powered versions of the same vehicles.

Lexus dealers in the United States already are taking orders for the RX 400h hybrid, derived from the popular RX 330. The RX 400h goes on sale April 15. A hybrid version of the Toyota Highlander goes on sale in June.

Jim Press, COO of Toyota Motor Sales U.S.A. Inc., justified the premium prices in a Detroit interview two weeks ago. He said that many automakers charge premiums for large, powerful V-8s. Press said he believes a growing number of people will pay premiums for fuel-efficient Toyota hybrids, which offer V-8 performance and four-cylinder fuel economy in a V-6 package. Moreover, Press said, the smooth and quiet operation of hybrid powertrains matches the luxury image of Lexus.

In the United States, Lexus will charge $49,185 for the RX 400h, including destination. That is $11,360 more than the all-wheel-drive RX 330, but the RX 400h includes as standard equipment about $6,000 worth of RX 330 optional equipment. So the hybrid premium is about $5,360.

The RX 400h also has equipment not available on the RX 330, such as advanced traction control.

On Tuesday, March 22, Toyota put the Harrier Hybrid and Kluger Hybrid SUVs on sale in Japan. The Harrier is the equivalent of the RX 400h. The Kluger is the Japan-market version of the Toyota Highlander.

In Japan, the top-of-the-line Harrier Hybrid carries a whopping $14,950 price premium compared with the top-of-the-line standard Harrier. But different engines and trim levels exaggerate the premium.

The top Harrier Hybrid starts at ¥4,620,000, or about $43,998 at current exchange rates. The top-of-the-line standard Harrier costs $29,048. The Harrier Hybrid comes with a 3.3-liter V-6 gasoline engine, plus front and rear electric motors, compared with the standard Harrier's 3.0-liter V-6 gasoline engine.

$8,100 more

Kyoji Sasazu, Toyota's senior managing director in charge of the domestic sales operations group, says that a Japan-market hybrid version of either the Harrier or Kluger is likely to cost the consumer about $8,100 more than a typical nonhybrid version. He says that about $4,760 of that is directly the result of the parts and production costs of the hybrid powertrain.

K.G. Duleep, managing director of transportation for Energy and Environmental Analysis Inc. in Arlington, Va., estimates that a hybrid system costs about $3,500 more than a traditional powertrain. In projecting consumer demand for hybrids, J.D. Power and Associates has assumed a $4,000 price premium for hybrids compared with traditional vehicles.

Toyota expects to sell about 62,000 of the two hybrid SUVs globally this year. It aims to sell 10,000 in Japan, split evenly between the two models, and the rest in the United States, Europe and Australia. Lexus officials in the United States have indicated they expect to sell 27,000 RX 400h models in 2005.

Meanwhile, Toyota Motor improved the THS II hybrid system used in the current Toyota Prius in a number of ways for use in the two SUVs.

But Toyota declines to call the system a next-generation hybrid. "The point is the adaptability of the THS II system for use in cars or SUVs," says Yukihiro Okane, chief engineer of the hybrid SUVs.

A hybrid powertrain gets propulsion from two sources: an internal combustion engine and electric motor. The electric motor can be the sole source of propulsion at low speeds with the engine turned off and can give a short-term boost for acceleration. Adding that motor enables an automaker to use a smaller internal combustion engine to reduce fuel consumption. Also, special brakes generate electricity to help recharge the onboard battery that powers the electric motor.

Prius, improved

Among the improvements to the hybrid system for the SUVs:

>>> The batteries are 22 percent more compact and offer 30 percent greater power density than those in the Prius.
>>> The front motor is smaller but more powerful than that of the Prius.
>>> The air conditioner compressor and inverter fit in the same size space as the Prius' compressor alone.
>>> A new variable voltage system in the power control unit uses a booster circuit to increase the battery voltage from 288 volts to 650 volts, thus increasing power output from front and rear motors.

The generator's power output and its revolutions per minute have been increased to ensure an ample power supply and smooth engine startup.

Toyota has added an information display within the speedometer, so that the driver can monitor the energy flow among the engine and front and rear motors even when the main information screen is used for the navigation system.

Unlike electric cars that used to skimp on energy-thirsty accessories, the Harrier Hybrid offers all of the standard luxury features. They include heated front leather seats, an electric outlet in the luggage area and an air conditioner that can operate even when the engine has been turned off.
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Old Mar 31, 2005 | 06:42 AM
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This all reminds me of health foods. The cost to eat healthy is so exspensive most just stick with junk food.
Just get a prius and call it the day already, its cheaper and you get more gas milage.
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Old Mar 31, 2005 | 01:43 PM
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what autoweek doesnt account is that some of the options in the SUVs are now standard
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Old Mar 31, 2005 | 08:31 PM
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Yeah, this was posted before. Basically the Lexus "h" cars will be the top of the line cars, so they will be loaded and the most expensive.
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