The start of a hybrid price war?

Two days ago, we wrote about the drop in price of the Prius base model for 2008. It was interesting but not worth much more than a little mention. The Touring edition price was raised so the average pricing actually went up a little. So why did they do this? I was just watching CNET's video review of the Aura Hybrid for 2007. It says GM promoted it as the lowest cost hybrid at just over $22,000. That's no longer true with the drop in price of the base model Prius.

Starting to smell a price war? Maybe not. The MSRP for the normal 2008 Aura is already out. It's almost exactly the same price as the new base model Prius. So GM has two choices right now. Either lose the moniker of lowest-priced hybrid to Toyota or price the Aura 2008 hybrid lower than the normal hybrid. What do you think they will do? The pricing for the Aura hybrid 2008 is expected this fall. So place your bets now.


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