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Originally Posted by tjts1
Because the new Insight is a miserable failure...
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Where do you get that idea? US sales may not be all that were hoped for, but last I read it was doing very well in Japan. Besides, you're perhaps thinking like an American automaker, to whom long-term planning is anathema. The Japanese have different ideas: how long did it take for the Prius to catch on? Wait for the next big jump in gas prices before you count it a failure :-)
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...and they need to recycle the drive train components into another model in order to recoup the development cost.
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Wouldn't that be the long-term plan anyway, for any manufacturer? As costs come down, use the hybrid drive train (or fuel injection, turbochargers, air bags, etc) in more models?