Industry Report: Toyota USA Lobbying Japan for Multi-Model Prius Brand

If you were a major CEO trying to sell cars into today's automotive market would you be considering starting an all-new brand?

Could Toyota build a new brand on the back of its best-selling Prius? (Photo: Toyota)

Sounds crazy, for sure, until factoring in that “Prius” would be the new brand's name.

There isn't a hotter nameplate in the auto industry thanks to high fuel prices and tightening financial belts, and Toyota has experienced so much success with the standalone hybrid-electric vehicle (HEV) that it's contemplating whether a business case can be made for a separate Prius brand selling multiple models. How much success has the Prius had? It makes up 75-percent of HEVs sold in the US, and that includes its own Toyota and Lexus hybrid offerings.

Yes, Toyota already offers a number of HEVs covering a broad spectrum of market segments, such as the Camry Hybrid in the midsize sedan class and Toyota Highlander in the mid- to full-size crossover category. While these models would probably continue forward under the Toyota nameplate, as would the RX 400h, GS 450h and LS 600h L under the Lexus brand, with potentially more HEV models added, a separate Prius brand would allow Toyota to create unique hybrid-only offerings in segments it doesn't yet offer HEVs,

Toyota's Lexus brand offers three hybrid models. (Photo: Lexus)

such as the subcompact and compact sedan and hatchback classes (the current Prius hatchback is EPA certified as a midsize car), plus the compact crossover category and others, or even compete directly with its Toyota branded models in segments the automaker already occupies. It also would allow for separate plug-in and series hybrid models, such as Saturn's upcoming Vue plug-in hybrid and the much talked about Chevrolet Volt series hybrid or possibly even hydrogen-fueled cars in the future.

While rumors about a separate Prius brand have been floating out in cyberspace for some time, an interview between Micheline Maynard of The New York Times and James E. Lentz, president of Toyota Motor Sales U.S.A., lends some credence to this particular bit of internet gossip than mere speculation, innuendo and hearsay. To be fair, Lentz first made mention of his idea for a separate Prius brand at the Detroit auto show last January, but in the Times interview he has offered more details, saying that he is in the process of “lobbying Toyota officials in Japan” for the spinoff Prius brand and that his US operations were steadily working on future hybrid models to fill out the range.

One of those models could be an ultra-efficient Yaris-sized subcompact model while another might be a Prius on “steroids,” Lentz obviously referring to the potential for a larger and/or more powerful model than the current Prius. Lentz didn't offer any hints about other prospective models within a Prius range, but did go on to say that if he got the go-ahead Prius models would be retailed from within Toyota dealerships similarly to how it sells its US-only Scion brand, and not separately like the automaker's Lexus luxury nameplate.

Lentz is

Toyota's next Prius will be easily recognizable as an alternatively powered vehicle. (Photo: Toyota)

off to Toyota HQ next month to get approval, and feels bullish about his prospects. Should he? The NY Times interviewer thinks so.

“Having covered Toyota for years, I can say that executives rarely talk this much about an idea unless it is under active discussion, so the chances of a Prius brand are probably pretty good,” said Maynard.

In the meantime, the all-new 2010 Prius will be unveiled at Detroit's North American International Auto Show in early January, along with a dedicated Lexus hybrid. Nothing is known about this latter model, other than the fact its very existence shows that Toyota understands the need for unique hybrid models and not just hybrid-powered versions of existing cars and crossovers.
According to Lentz, the next-generation Prius will be larger than the current model, and initially will hail from Japan just like the current car. Lentz is targeting 2010 for US Prius production in its Mississippi plant.

Whether Toyota moves forward with its Prius brand or just contents itself with an all-new Prius model, expect the “P” word to remain fixed to the rear of the global hybrid sales leader despite major headlines from GM with its upcoming plug-in Volt series hybrid and Honda with its reinvented Insight HEV.