06/22/2004 Torrance, CA

While hybrid vehicles are making history, they're also sparking a lot of mystery. As the public discovers and investigates hybrids, many questions are being asked about the new technology.

Below are some of the questions that have been raised about hybrid vehicles, as well as the answers.

Do hybrids meet their EPA fuel ratings?

The EPA's laboratory fuel mileage tests were initiated more than 25 years ago to provide a means for consumers to make valid fuel-mileage comparisons between vehicles. Posting of mileage numbers on the window sticker is required by law. Auto industry practice has consistently been to use the EPA-provided numbers to assure a level playing field.

However, many things have changed over the past 20 years - speed limits have increased, congestion has increased, and vehicles have more power-hungry accessory equipment, such as automatic climate control, to name a few. The EPA tests are conducted in controlled laboratory conditions, at average speeds of no more than 48 mph, without air conditioning and at moderate temperatures. Test values are then adjusted down using adjustment factors developed by the EPA in the mid-80s. While this provides consistent and valid comparison data, it is widely accepted that many drivers of all types of vehicles experience lower results than the labels.

Toyota has met with EPA on these issues, and we will work with them to help gather the data needed to evaluate whether revised label adjustments are necessary.

At Toyota, we hear from early Prius customers that many of them average well over 45 miles per gallon in their cars. This is more than double the national average of 20.8 mpg for conventional vehicles. Prius owners are very happy spending less time and less money at the pumps, especially as prices continue to rise, while driving the cleanest gas-powered vehicle on the road.

Do hybrids need to be plugged in?

There is no need to plug in hybrid vehicles. They have electric motors and gasoline engines which work together to provide power. The batteries for the electric motor are re-charged by energy captured as the driver brakes or coasts in the car and also by a separate engine-driven generator.

Why doesn't Prius offer a plug-in option so it can run in electric-only mode?

Great efforts went into making hybrid cars so they DON'T have to be plugged in. If a car is converted, it will have a negative effect on the life of the batteries and the reality is that it's likely the grid electricity being used is derived from coal, so there's not much, if any, savings to the environment. Additionally, the electric-only mode would be good for less than a mile at low speed, so the practicality of it is very limited.

Can emergency workers get shocked by a hybrid that's been involved in an accident?

In the Prius, there are numerous safeguards to help ensure safe operation for drivers and protection of emergency response professionals in the event of an accident. High-voltage cables are located away from areas that workers might access, are painted orange, are shrouded in metal and have specific automatic disablement mechanisms to ensure the lines would have no voltage in them if an accident occurs.

Additionally, beginning with the first-generation Prius, Toyota has developed manuals and assisted in training exercises to ensure correct information is disseminated. These manuals are available on-line to all emergency response personnel. Most importantly, Prius hybrids have been on U.S. roads for five years and Toyota is not aware of any personal injury in the U.S. related to hybrid or EV electrical systems.

Aren't diesels just as fuel efficient as hybrids?

While some diesel vehicles get high fuel mileage, it's important to look at emissions when considering a vehicle's impact on the environment. The best diesels on US roads today are allowed more than 17 times more smog-formning emissions than Prius and they emit fine particulates identified by air quality regulators as cancer-causing. Diesel cars are not available for sale in California, New York, Maine, Vermont and Massachusetts because they do not comply with even the most lenient emissions requirements in those states. Hybrids can achieve outstanding mileage and have far less emissions at the same time.

Is Ford using the Toyota hybrid system?

Although the Ford hybrid system is very similar to Toyota's, Toyota is not directly supplying any components to Ford. Toyota and Ford have entered into a licensing agreement allowing Ford to use technology that had been patented by Toyota. Toyota welcomes the introduction of the Escape hybrid and Ford's effort to demonstrate and gain acceptance of this important environmental technology.

Have hybrid sales increased because of high fuel prices?

Fuel economy is the No. 1 purchase reason for the Prius, so it's safe to say that rising fuel prices are putting a spotlight on hybrid vehicles. However, it's difficult to conclude that high fuel prices are directly responsible for Prius sales, because there was strong demand and waiting lists well before the rise in gas prices. But awareness of the benefits of hybrids has dramatically increased.

Can you get a Prius?

Toyota's initial production estimates for the Prius for the 2004 calendar year were 36,000 vehicles for the U.S. That number was increased to 47,000 vehicles shortly after the Prius went on sale. The Prius plant and component sources are at maximum capacity, and we regret that waiting lists at dealerships can be several months or longer. The current backorder remains about 22,000 and we're working with the factory in Japan to see if the U.S. can receive more allocation of vehicles.

Are dealers charging a premium over MSRP for the Prius?

Reports of significant markups over MSRP are isolated and not typical. Although the Prius is in high demand, and some buyers are willing to offer more to get faster delivery, our dealers have been respectful of their customers. The MSRP for the Prius runs from the low $20,000s to about $26,000. Our information indicates that the average transaction price for a Prius is about $24,000. In a survey on Yahoo, 7 percent of the owners reported paying more than MSRP and 68 percent paid no more than MSRP. Additionally, only 2 percent of the customers calling Toyota regarding the Prius reported complained about dealer mark ups of the car.

Is Toyota making money on the Prius?

At Toyota, we believe environmental issues are the most important challenges for auto manufacturers. It is our mission to undertake all efforts to develop and expand the use of environmentally friendly cars and hybrid technology is the key to this effort.

The Prius is profitable and Toyota is further trying to reduce costs while continuously improving the quality. We expect this generation Prius to be profitable more quickly than the first generation Prius, thanks to volume and improving economies of scale.

Do hybrids hold their resale value?

Prius resale values are as high if not higher than other Toyota sedans.

How do Prius residual values compare with those of other Toyota sedans?

Prius residual values have done very well compared to other models including Camry. In fact, during the last two months the wholesale average has increased by about $1,000, which is more than other models.

How long does the Prius battery last and what is the replacement cost?

The Prius battery (and the battery-power management system) has been designed to maximize battery life. In part this is done by keeping the battery at an optimum charge level - never fully draining it and never fully recharging it. As a result, the Prius battery leads a pretty easy life. We have lab data showing the equivalent of 180,000 miles with no deterioration and expect it to last the life of the vehicle. We also expect battery technology to continue to improve: the second-generation model battery is 15% smaller, 25% lighter, and has 35% more specific power than the first. This is true of price as well. Between the 2003 and 2004 models, service battery costs came down 36% and we expect them to continue to drop so that by the time replacements may be needed it won't be a much of an issue. Since the car went on sale in 2000, Toyota has not replaced a single battery for wear and tear.

Is there a recycling plan in place for nickel-metal hydride batteries?

Toyota has a comprehensive battery recycling program in place and has been recycling nickel-metal hydride batteries since the RAV4 Electric Vehicle was introduced in 1998. Every part of the battery, from the precious metals to the plastic, plates, steel case and the wiring, is recycled. To ensure that batteries come back to Toyota, each battery has a phone number on it to call for recycling information and dealers are paid a $200 "bounty" for each battery.

Does driving a Prius really lower your cholesterol?

No, but wouldn't it be wonderful? However, it could help lower your blood pressure each time you fill it up.