Filed under: Products and services, Industry, Consumer experience, Competitive strategy, Toyota Motor Corp. (TM)
All of those green people in all of those green cars. The Toyota (NYSE: TM) Prius was a gamble when the auto company first designed and built it. The price was more than its “all gas” counterparts because the electric component of the engine was pricey to build. The Japanese firm had to bet that buyers would want to save the environment by purchasing an automobile aimed at slicing emissions.
All of that planning by Toyota worked. The Prius has now sold one million units worldwide. Reuters says that the automobile company said “Toyota believes that Prius vehicles worldwide have contributed to a reduction in carbon dioxide emissions by producing approximately 4.5 million tonnes less CO2 when compared with gasoline-powered cars in the same class and of similar size and driving performance.”
And who is to say that the calculation is wrong, at least by much.
Toyota has once again put its competition in a situation where they have to catch up. When the company began to produce nearly flawless vehicles 20 years ago, Detroit and Europe had to up their quality to stay in the game. Now they’ll need to aggressively follow Toyota into the hybrid market.
Being first to market sometimes has its advantages.
Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.
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