I remember the gas wars when I was a kid. I once filled up my ’60 VW bug (I bought it used) for less than $2.00. Gas was 24.9¢. That’s right, less than a quarter a gallon. Yeah, yeah. I’m old.
The point is, when there are price wars, the consumer wins.
Toyota and Honda are going to go at it with their hybrid cars. Remember those three reasons why Honda’s New Insight Will Beat Out Toyota’s New Prius? We may have been right, eh? Honda introduced its hybrid Insight last month and it has already received 18,000 orders, more than three times its monthly sales target.
Toyota is countering by preparing to lower the price of its Prius and roll out a new hybrid less than Y2 million (Insight costs Y1.89million). But their new hybrid with an engine smaller than 1.5 litre, isn’t expected out until 2011.
In the end, however, the consumer is going to win this war.