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| Costs have to be reduced three-fold to make the hybrid viable |
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Arguably the biggest challenge for PSA lies not with the engineering, but with the cost. Toyota is rumoured to lose money on every Prius sold and this is a luxury PSA can ill afford.
'We are a mass market manufacturer and we need a three-fold reduction in costs to make the hybrid viable,' says Peugeot, 'but we are confident this can be achieved.'
Peugeot believes that customers will be willing to pay £1,000 more for a hybrid than a standard diesel. This is roughly the same as the premium charged for a diesel engine compared with the petrol alternative and reflects a similar improvement in fuel consumption and performance.
If this analysis proves correct and Peugeot succeeds in reducing the production costs, a C4 Hybride HDi could be expected to retail for £15,995, £1,500 less than a Prius.
Our experience of the cars suggests that if this price can be met, there is little reason why a diesel-hybrid couldn't be a big success. For high mileage drivers in particular, a Hybride HDi would be a tempting proposition.
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