Economies of scale have been breachedBack in 1997, Toyota lost about $10,000 on every Toyota Prius produced. Next year, thanks to economies of scale, hybrid part costs for the Toyota Prius will be cut in half, enabling Toyota to both decrease Prius prices and increase profits. Noriyuki Matsushima, analyst at NikkoCitigroup in Tokyo, told NewsWeek "the new Prius is going to be hugely profitable." And Toyota sees even greater hybrid production cost cuts throughout the next decade. Thus, by just 2010, hybrid vehicles could account for 10 percent of Toyota's operating profits according to Goldman Sachs analyst Kota Yuzawa.
Who says today's hybrids don't make financial sense? I guess only those without vision and long term thinking.
Link - Mon, 08 Sep 2008 10:09:44 GMT - Feed (1 subs)
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