Profitable Prius

Toyota Motor Corp. traditionally has viewed its gas-electric hybrid technology as a solid investment for the future, but officials say the '04 Prius will be profitable from the get-go.

“If we couldn't make a profit, we wouldn't be doing it,” says Ernest Bastien, corporate vehicle marketing manager, Toyota Motor Sales U.S.A. Inc.

The auto maker claims the first-generation Prius, which launched in the U.S. in 2000, was at least breaking even after its first year on the market. If it hadn't been successful, Bastien says, there may have been no second-generation of the environmentally friendly car.

The new vehicle represents significant technological investment, including an entirely new, more complex hybrid powertrain, called Hybrid Synergy Drive.

Toyota will manage to eke more out of the consumer for this new Prius. While its base price of $19,995 is the same as the last generation's, this version offers three trim levels, while the last was monospec.

The top trim level, which adds features such as Smart Start/Smart Entry, a navigation system with Bluetooth technology, side curtain airbags and a premium audio system, bases for just under $26,000.

The auto maker plans to sell 36,000 Priuses annually, up from first-generation levels of about 20,000 units.