Archive for March 23rd, 2010

Move over Audi A3 and Volvo C30 – there’s a new luxury hatchback in town. It’s called the CT200h and Lexus claims that it will be the only dedicated hybrid in its class when it comes to market in early 2011.

If you’re wondering why Lexus is choosing to cram yet another vehicle into the affordable end of its lineup, you’re not alone. After all, Lexus already offers the IS250 / IS350 performance sedans, the ES350 luxury sedan, and the HS250h hybrid sedan. So why add another player?

For the answer, look to Europe where Lexus has been eager to expand its market share. The CT200h, with its spacious hatchback bodystyle and high fuel economy, is the company’s first major attempt to court buyers across the pond.

Here in the States, the CT200h makes far less sense. It has to slot into an already-crowded hybrid lineup with only a few thousand dollars to separate it from the larger HS250h sedan above and the Toyota Prius below.

In fact, the CT200h appears to share much of its equipment with its little brother. Details are still coming in, but the 1.8-liter Hybrid Synergy Drive powertrain and advanced Dynamic Radar Cruise Control system appear to have been lifted straight from the Prius.

What you do get with the CT200h, however, is a unique body and some nifty techno-tricks, like four adjustable driving modes and a new soft-touch synthetic upholstery called NuLuxe™ (traditional leather will be an option). Lexus claims that the new model will, “excite eco-conscious, young consumers and symbolize urban luxury living.”

With so little difference in price, performance, and MPG between the company’s dedicated hybrid models, the CT200h will have a difficult role to play. Will the fresh sheetmetal and eco-friendly upholstery be enough to impress American customers without cannibalizing sales from the Prius or HS250h?

The Toyota recall scandal has been shocking on many levels and we’ve been studying consumer reactions to better understand how and why people feel the way they do about this ongoing saga.

In addition to analyzing feedback and comments voiced about Toyota on Honk, we also fielded a market research survey in late February to help quantify some of the impacts.

Results of the survey confirmed that consumers are angry with Toyota over both the recalls and the company’s handling of the situation.  Interestingly, the damage seems to be affecting many different components of Toyota’s brand image.  The perception of Toyota’s eco-friendliness, which is not directly connected to safety or quality, nonetheless dropped by four percent as a result of the recalls.

Stephanie LaCrosse, a Honk founder, was recently interviewed in Detroit and San Francisco to discuss the Toyota recall scandal and our findings.  Here are clips from two of her interviews:

Has the Toyota recall scandal affected your opinion of the company?