Toyota Cuts Price of Prius In Response to Drop in Federal Tax Credit

The new 'standard' Prius starts at $20,950, a drop of $1,225 from the lowest-cost 2007 model's $22,175 base price.

Published: 31-Jul-2007

Toyota Motor Corp. is adding a 2008 model of its Prius gasoline-electric car priced 5.5 percent less than the current base version, as U.S. tax credits for the hybrid decline and regulators reduce its fuel-economy rating.

The new ``standard' Prius starts at $20,950, a drop of $1,225 from the lowest-cost 2007 model's $22,175 base price, Toyota said today in a statement. The new model doesn't include features such as cruise control and heated rearview mirrors that are standard on this year's base version, said Bill Kwong, a spokesman at the company's U.S. unit in Torrance, California.

``They've had a tremendous run with Prius and don't want to jeopardize that,' said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan. ``This kind of pricing change is a smart adjustment on their part. It's also a bit of a marketing ploy because it's good to advertise a cheaper Prius.'


Mark Phelan tests three different fuel efficiency technologies and concludes that hybrids are the past. Pictured are first Chrysler 300s to come off of European assembly line. Diesel is offered as an option in Europe on this model, but not in North America.

The PML Mini QED supports an all-electric range of 200-250 miles and has a total range of about 932 miles (1,500 km).

C-Metisse concept coupe powered by diesel and electric wheel motors, resulting in combined fuel consumption of 6.5l/100km (36.1mpg).


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