Toyota Motor Corp. is preparing to launch at least two new hybrid models in the U.S. that it will market under the Prius name, according to people briefed by the company.
The move, which would turn Prius into a sub-brand offered under the Toyota name, is an effort to leverage both the strong customer following for the Prius and the positive glow the fuel-saving vehicle has cast on Toyota.
The new versions include a subcompact that is smaller than the current Prius hatchback, and about the same size as Toyota's Yaris, these people said. The other is a roomy, sport-utility-type vehicle, they said. Both are due in the market in 2012, according to these people.
Using the Prius name on a range of vehicles "is probably the most intelligent way to expand their hybrid offerings," said Mickey Anderson, president of Performance Automotive Group in Omaha, Neb., which owns three Toyota stores. "It's an incredible opportunity to leverage the equity they have built up in the name."
Toyota said in January it would expand the Prius line. Toyota spokesman Mike Michels declined to comment on any new-model plans.
Toyota previously said it plans to launch a plug-in Prius in 2012. Owners will be able to recharge its battery from an electricity source and drive up to 13 miles before its gasoline engine kicks in.
At a meeting this week in Las Vegas of over 1,000 dealers, Chief Executive Officer Akio Toyoda said Toyota would try to be the world leader in building environmentally conscious vehicles and touted the company's cooperation with Tesla Motors Inc. Toyota is building a RAV4 electric car using Tesla battery technology, the people briefed by Toyota said.
Toyota needs to burnish its image after suffering a safety and quality crisis that resulted in the Japanese company recalling eight million vehicles world-wide to fix sticky accelerator pedals and slipping floor mats that could lead to unintended acceleration.
Toyota has lost more than a percentage point of market share in 2010 so far, mainly as a result of the fallout from the sudden-acceleration reports.
Prius's allure has long been the envy of other auto makers. At General Motors Co., executives have openly acknowledged they hope GM's battery-powered Chevrolet Volt, due out later this year, will have a "Prius effect" on the company.
The new Prius models are part of a push by Toyota to return to growth. Toyota executives challenged the dealers at the meeting to boost annual U.S. sales to two million vehicles by 2013, up 30% over the current level, said the people briefed by the company.
There are dangers in creating sub-brands, however. Toyota itself has had ups and downs with Scion, the youth-oriented make it sells along side Toyotas. Scion took off at first but its sales have slumped in the last few years and this year its sales were down 30% through September.
