Toyota Prius shares slump as it tries to fend off new rival, Ford
Toyota’s new Prius plug-in hybrid, the 2020 Toyota Priuses, has fallen as it battles to regain market share in the emerging electric vehicle market.
The automaker reported a quarterly loss of $5.3 million for the fourth quarter of 2017, which is nearly 20% from a year earlier.
The company said the net loss on sales of Prius vehicles was $6.6 million.
Sales were flat in the third quarter.
It is the second-biggest quarterly loss in the company’s history.
In January, Toyota announced it was launching a “plug-in” hybrid vehicle, the Prius X, in 2018.
Toyota expects the plug-ins to offer better fuel economy, greater range, and better reliability, while also contributing to a lower price tag.
Toyota said that as of July 2018, the “plug” hybrid model would be priced at about $70,000 to $80,000.
“The Prius brand is a global icon and a key pillar of the company, which has positioned itself as a leader in the plug and play vehicle revolution,” Toyota said in a statement.
“We are proud of the outstanding sales performance we have achieved in 2017 and look forward to building on that momentum and delivering our 2020 goal of a Prius in every vehicle.”
The automaking company’s results came in ahead of Ford Motor Company’s first quarterly profit of $9.9 billion in 2017.
The Ford Motor Co. reported a loss of nearly $16 billion in the first quarter of 2019, including $6 billion in impairment charges.
The impact of those losses is likely to continue to drag down the company as it works to compete with rivals.
In December, Ford announced it had signed a new agreement with Toyota for a new Priuses plug-IN hybrid vehicle.
The new Priuss vehicle, called the Prizm, will be sold in the United States, Mexico and Canada.
The vehicle is expected to have a range of roughly 40 miles on a single charge.
The Prius has a battery that is designed to last more than 30 years, but that battery will need to be replaced.
Ford has already announced it will sell a new plug-In hybrid car, the Ford Fusion, for $35,000 in 2021.