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Toyota Rides 2 Prius Models Into Hybrid Fray

Automaker Aiming To Fight Back Against Honda Insight

POSTED: Thursday, March 26, 2009

Toyota will continue to sell the current Prius when the revamped version goes on sale in May in an unusual move likely to help the top-selling hybrid ride out a threat from rival Honda.

Toyota Motor Corp. President Katsuaki Watanabe said Thursday there's demand in the Japanese market for both the third-generation Prius and the smaller model that's already on sale.

He declined to give details, including overseas plans. But his comment is the first from Toyota confirming the current Prius gas-electric hybrid will continue to be on sale, partly to match the cheap price of Honda Motor Co.'s new Insight hybrid.

The Insight starts at $19,000 in Japan, and $19,800 in the U.S. The Prius now sells for $22,000 in the U.S. and $23,000 in Japan.

Prices for the 2010 model of the Prius have not yet been announced, but with the new car offering more interior space at an inch wider and longer, it will likely cost more than the 2009 model.

Toyota global vehicle production plunged 49.6 percent in February from the same month a year ago. Toyota's U.S. sales tumbled 39.8 percent in February.
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