QUOTE(kadajawi @ Feb 8 2013, 01:19 PM)
Yes. Toyota is in a difficult position. On one hand RV is very important too them. Especially the Vios may not lose value too much. If it does, that would be bad for sales. So people can't look at the Vios and think... wow, this is so great, there is no way I'll buy the Dugong anymore. It has to be bad enough that there is still interest in the old one.
However yes, we have seen on the Camry that a too basic spec will also do bad things to sales. Too much competition these days, and the superiority of contis and to a certain degree even Koreans is just too great. They need to improve a lot to be competitive again.
But if they replace engine etc., people may say: Oh, all new, wonder how reliable it is. At the same time, other brands are already a few generations into their new engines, gearboxes etc., so they are by now proven. First gen DSG horrible, but new ones are fine. etc. The Prius C isn't doing as good as it should, right? Perhaps because it is too modern?
Basically they may have already losts the game, and there is nothing they can do about it. Either way they will lose, the question will be if they can minimize the damage.
I'd try to go a middle way. Full safety spec, you won't want a PR disaster at ASEAN NCAP. They are in a very fortunate position to phase out the current Vios before side impacts happen, something that would hurt Dugong RV very bad (I do hope ASEAN NCAP doesn't care and will test the Dugong anyway). So 6 airbags and ESP is important, you'll want a 5 star rating. Engine stay the same, but replace the gearbox with a 6 speeder. Rest stays the same. 1 year down the road introduce an improved Vios, new, smaller engine, more features inside. Perhaps keep introducing features to reach the competition over time. First as option, then make them standard.
Nah, they won't lose. With the new Vios pending, they can easily claim it is a new generation with many new exciting features such as
1. 2 more airbags - that's 2 more from the current model
2. VSC - There's an extra safety feature! Only problem would be they having a harder time explaining why such a feature is omitted from the new Camry.
3. If they do use a new engine, it would probably be the new 1NR-FE engine. The 1NZ-FE has been a solid performer for many years, I can only imagine the 1NR or 2NR-FE to be even better. "New" engine also proven reliability and spots dual VVT-i, can charge premium somemore!

I suspect the Prius C not doing very well largely due to the car being a hybrid. But it's not exactly a poor seller either, on average I see at least 2 or 3 Prius C on the road everyday.
As long as the car is as good or slightly better than the current Honda City, they will sell.