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Toyota Prius Case Study

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Toyota Prius Case Study
Toyota Prius: green or geek machine?

There are many reasons why people want a revolutionary car. Some enthusiasts enthuse about scientific and technological advances and want the latest gizmos. Others rebel against fuel price increases, even though fuel is cheaper than it has been for decades. Finally, people are ‘concerned about the environment’.
Hoping that all the above was true and looking to grab a technological advantage over other car manufacturers; in 2000 Toyota introduced Prius, their first hybrid car.
Prius means ‘to go before’, so is a name that may be very prophetic. The Prius and the Honda Insight are the first in a wave of hybrid family cars coming out ahead of similar vehicles from GM, Ford and Daimler Chrysler.
At first glance, the Prius seems to have a lot going for it. It combines a 1.5 litre, four cylinder petrol engine and a 33-kilowatt electric motor. It comfortably seats five, if the three in the back aren’t too tall or too big and has 0,34 cubic meters of luggage space. The electric motor starts the car and operates at low speeds, using a nickel metal-hydride battery. At higher speeds, the Prius automatically switches to the internal combustion engine. Under normal motorway conditions, it should get 28 km per liter.
The downside is that the Prius is no muscle car. It also costs about 4,000 euros more than the Toyota Echo, although they are nearly the same car. Of course, getting twice as many kilometers per liter of petrol will help to offset the price differential. Assuming the range and a typical 2002 price of one euro per liter, the Prius owner would have to buy 4,000 liters of petrol, enough fuel for 112,000 km, which could take years. Of course, if prices were to rise drastically, that could change. But even if prices doubled-which is not likely-you’d have to drive more than 50,000 km to make up the initial price difference.
The picture gets even gloomier when you realize that no one is going to get the estimated fuel consumption

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