Toyota Motor Sales U.S.A. will use the Prius name on more hybrid models in its U.S. lineup, the automakers’ top executives told dealers.
At a dealer meeting in Las Vegas on Tuesday and Wednesday, Toyota executives said the name Prius would be attached to “a family of models” using similar hybrid powertrains, says veteran Toyota dealer Earl Stewart.
“The Highlander hybrid and Camry hybrid do OK, but calling it ‘Synergy Drive’ never resonated with consumers,” Stewart says. “But they can make hay on the Prius name. It’s a magic name. If somebody says ‘I drive a Prius,’ everybody knows what he means.”
Toyota Motor Sales COO Jim Lentz has been pushing for a multi-platform Prius lineup for a year. But this was the first time it has been openly discussed in front of TMS President Yoshi Inaba and Toyota CEO Akio Toyoda.
Toyota will have a range of Prius hybrid models “but Prius won’t be a separate sub-brand like Scion,” Stewart says.
Record marketing efforts
Separately, Toyota is launching a $1 billion fourth-quarter marketing campaign, its biggest ever for that period, to boost U.S. sales.
The Wall Street Journal reported the marketing blitz in today’s editions.
The newspaper said the spending is 30 to 40 percent higher than typical fourth-quarter budgets, citing a person familiar with Toyota’s operations. Part of the marketing plan involves offering better lease rates by raising the projected resale value of Toyota’s vehicles, the Journal said, citing dealers briefed on the plan.
Companies use probable resale value to calculate monthly lease payments.
The marketing fund includes spending on U.S. advertising and incentives for the Toyota, Lexus and Scion brands, along with dealer advertising support. Toyota’s U.S. sales division has never spent that much on fourth-quarter marketing, spokesman Curt McAllister said.
Dealing with the downturn
The plan comes as Toyota is struggling with its worst downturn since it was founded in 1937 and is expecting to report a loss for the second straight fiscal year.
Still, Toyota landed three models among the top 10 sold in this summer’s cash-for-clunkers incentive program, according to government statistics. The government numbers have been disputed, as they list a vehicle’s all-wheel-drive and front-wheel-drive separately.
The blitz comes less than a week after General Motors Co. announced its own media campaign, in large part aimed at recapturing consumers who believe Toyota and other foreign automakers make better products. The ads, featuring Chairman Ed Whitacre, offer consumers 60 days to return a new GM vehicle and get their money back.
Toyota executives in Frankfurt this week said the company planned to sell 500,000 to 600,000 hybrid vehicles globally by the end of 2009.
Reuters and Chrissie Thompson contributed to this report.
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