Next-Gen Toyota Prius Isn't Just About Fuel Economy Anymore

The fourth generation Prius, built on a new standard architecture, should be popular with fuel savers.
By Doron Levin ,

Toyota's (TM) - Get Report new Prius gas-electric hybrid, set to reach U.S. dealerships within months, achieves fuel efficiency that will gladden the hearts of environmentalists and fossil-fuel skeptics. 

For shareholders, the importance of the new model is manifold: It's the first Toyota to be built on the Toyota New Global Architecture, which becomes the common platform for scores of future models. The automaker said cost savings thus will be substantial and profits improved. 

Prius also represents the latest step in Toyota's overall strategy of developing emission-free vehicles eventually powered by hydrogen. The automaker recently rolled out the hydrogen-powered Mirai in limited numbers and is pushing for creation of a fuel infrastructure that can accommodate the fuel-cell vehicle. 

Toyota executives like to remind naysayers of hydrogen that many, if not most, doubted Prius's potential when the first-generation model was introduced in 1997. 

Bill Fay, head of Toyota's U.S. sales operations, explained that the first three generations of Prius deliberately appealed to a narrow audience. The new model has been redesigned and improved from a ride and handling standpoint to compete with conventional gasoline-powered vehicles. 

"Early buyers were environmentalists, trend setters and techies. But the new Prius is not just about fuel economy anymore," Fay said. 

Year to date, Toyota shares are flat compared to a 12.6% increase in the Nikkei 225 Index of major Japanese stocks. 

From a fuel-efficiency perspective, the new model is claiming 54 miles per gallon in the city, 50 mpg highway and 52 combined. Toyota also will offer an Eco model with an average 58 mpg, accomplished by removing the spare tire and power seats, which drops the vehicle's weight slightly. 

During a test drive, a Detroit Free Press writer reported 44.8 mpg. over a 50-mile course of highways and stop-and-go driving. Consumers frequently notice that fuel mileage under real-world conditions is lower than standards measured by manufacturers under controlled conditions and certified by the government. 

The exterior of the new Prius will mark a noticeable departure from earlier generations, which were styled with more utilitarian than artistic expression. Ride and handling also will feel different for those who drove earlier models: A double-wishbone rear suspension represents a way to make the car more stable at higher speeds and on uneven pavement. 

Most Prius vehicles will sell for between $24,200 and $30,000, depending on equipment and features. The latest generation will offer, as Toyota earlier promised, the chance to purchase advanced safety features such as adaptive cruise control, which uses sensors to keep the vehicle at a safe distance from vehicles ahead. 

Prius owners may specify automatic emergency braking, which will warn a driver if approaching a vehicle or obstacle too quickly and can bring the vehicle safely to a stop before it hits another vehicle or pedestrian at speeds up to 25 mph. 

Automatic emergency braking, which is becoming more common as an option or standard feature in the latest vehicles, holds the potential to reduce rear-end collisions and pedestrian accidents, which are often caused by distractions.

Doron Levin is host of "In the Driver Seat," broadcast on SiriusXM Insight 121, Saturday at noon, encore Sunday at 9 a.m.

The writer has no financial interest in the aforementioned companies.

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