This year marks a major milestone for the world’s most popular hybrid. Toyota has offered the Prius in North America for a decade now, where it remains the top selling hybrid on the market.

Since its launch in Japan back in 1997, the Toyota Prius has sold more than 1.8 million units. About half of those sales were attributed to car buyers in the U.S.

“Toyota recognized in the 1990s that sustainable transportation would become a huge challenge in the coming decades,” said Jim Lentz, president and COO of Toyota Motor Sales, USA, Inc. “Those realizations proved accurate, and if anything, even more profound considering what we know today.”

Plenty has changed in the past decade. The Prius started out as a gawky and somewhat awkward-looking sedan that didn’t quite deliver the fuel-economy that many consumers were looking for. The second-generation Prius brought the teardrop-shaped, hatchback body-style that has since become synonymous with the model. It was followed by the current third-gen Prius which featured improved performance and fuel-efficiency compared to the previous iteration.

Soon the Prius will have a new model, a plug-in hybrid version with lithium ion batteries. The model is already being tested in fleet applications and will see full production in 2012.

Prius Timeline: Significant Dates and Milestones

1990: Meetings begin concept work on Project G21, “a car for the 21st Century”, in Toyota City and Higashifugi Technical Center. Fuel economy target was 20 kilometers per liter, about 50% better than other passenger cars of the time.

1994 (January): Project team addresses drivetrain, chassis and packaging decisions. The team was granted the right to develop new parts from scratch “if necessary.”

1994 (July): G21 Project, Phase III begins, accelerating development for production of the Prius parallel to development of Toyota’s experimental hybrid system.

1995 (June): Toyota Hybrid System approved and code-named 890T.

1995 (October): Hybrid concept Prius displayed at Tokyo Motor Show with propulsion system described as Toyota-EMS (“Energy Management System”).

1996 (December): Anticipating the future EV and hybrid vehicle market, Panasonic EV Energy was established as a joint venture between Matsushita and Toyota.

1997 (December): Gen 1 Prius launched in Japan after a final design period of 17 months. Wins Japan Car of the Year award and Global Climate Protection Award from the U.S. EPA, among other accolades.

1998: Announced in July that Toyota would export 20,000 units annually to North America and Europe.

2000: Post-Prius era of automotive history begins. From this time on, the concept of environmental performance begins to take root, and all economy cars would be compared to the Prius.

2003: Prius sales hit 24,000 units, double the number originally planned.

2004: Second generation Prius launched, called “Car of the Year” by Motor Trend Magazine.

2007: Total U.S. Prius sales reach 500,000 units since it first launched in July 2000.

2008: National average gas prices hit $4.09 per gallon on July 7.

2009: Third generation Prius launched as 2010 model with larger 1.8-liter engine, 0.25 coefficient of drag and 51 mpg City.

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While Toyota works to move past their recent recall issues, their cars are still winning plenty of acclaim. MotorWeek, the longest running automotive series on television, has just named the Toyota Prius “Best of the Year” in its 2010 Drivers’ Choice Awards. MotorWeek cited Toyota’s commitment to improving fuel efficiency, power, and versatility, when creating the third generation Prius.

“If you can only buy one car for your family, the 2010 Prius is the one,” said MotorWeek host and executive producer John Davis. “The Prius is a no-compromise vehicle that offers impressive efficiency, cutting edge technology, smart packaging and truly iconic styling.”

MotorWeek’s award comes at a difficult time for Toyota as the company strives to maintain the trust of consumers amid sweeping recalls. Despite concerns, MotorWeek was confident that any potential issues involving the Prius will be fully addressed by Toyota.

As the longest running automotive series, the MotorWeek team has become widely respected and their Drivers’ Choice Awards have been acknowledged as one of the auto industry’s top honors. To determine the the winners, MotorWeek’s editorial team evaluates cars in a number of areas, particularly when it comes to performance, technology, practicality and value. After their extensive testing it was clear that the 2010 Toyota Prius excelled in each of those areas.

In addition to winning MotorWeek’s highest honor, the 2010 Toyota Prius also won another Drivers’ Choice Award for “Best Eco-Friendly Vehicle.” But all said, Torrance Toyota shoppers are still considering all their options. While the praise has been impressive in light of negative attention, new car shoppers have plenty of choices these days, and the media scrutiny is certainly making car buyers very aware of that. In fact, Honda and Acura are perhaps the most direct alternatives and many recent customers visiting Alexandria Acura dealers have at some point considered a Toyota or Lexus product. Hopefully for Toyota, the string of continuing praise from MotorWeek and other sources will quell concerns fast.

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When it rains, it pours.

Toyota has recalled 437,000 vehicles worldwide to update software associated with their anti-lock brake system for some and to check potentially bursting hoses for others. This comes on the heels of another recall last month over unintended acceleration issues and a halt in production and sales.

In the US, the recall will include 133,000 Prius, 14,500 Lexus models, and 7,300 4-cylinder Camrys. Prior to this announcement, Toyota was claiming losses of $2 billion through sales and recall expenses.

Last week, Toyota began offering incentives of $1,000 on new Prius Hybrids.

Toyota has begun an aggressive campaign to reacquire its image as a leader in safety and reliability, including addressing social media questions on sites like Twitter and Digg. Last Friday, Toyota President Akio Toyoda reaffirmed Toyota’s commitment to quality.

“I deeply regret that I caused concern among so many people,” Toyoda said. “We will do our utmost to regain the trust of our customers.”

The image below, made viral on social media sites Reddit and Digg, adds to the grief that Toyota is feeling with the two issues associated with stopping vehicles.

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The Toyota Prius has quickly climbed the sales charts from its inception not too long ago. Its hybrid ability has made the Prius popular all over the world, especially in the United States. In fact, the Prius is the highest selling hybrid car in the entire world! The latest generation of the Prius was released during the 2010 Delhi Auto Show and will be priced around $57,000. The features of the latest version of the Prius include the following:

• 1.8L petrol engine
• 60 kilowatt battery
• 0.25Cd aerodynamic design
• Audio and Bluetooth controls
• Touch sensor on steering wheel
• Hybrid Synergy Drive
• Enhanced fuel efficiency
• Power Mode
• Eco Mode
• Electric Vehicle Mode

Toyota also released two compressed natural gas vehicles at the Delhi auto show in 2010. Those two vehicles are known as the Altis and the Innova CNG, along with a Camry hybrid. CNG is short for compressed natural gas. While $57,000 seems like a steep price tag for a vehicle, the Prius hybrid helps the environment and saves the driver thousands of dollars in gas money.

At the 2010 Delhi Auto Show, Toyota Deputy Managing Director Sandeep Singh stated, “Through the launch of the Prius, Toyota is keen to demonstrate its commitment to offer the latest eco-friendly automotive technology to its customers in India.” With the launch of the Third Generation Prius, Toyota is hoping to make a sizeable impact in the Indian market, where the car has yet to catch on

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Not only has the Toyota Prius become the most popular hybrid car in the U.S., but the Prius also became the highest selling car overall in Japan in 2009, which marks the first time that a hybrid vehicle has clinched this top sales spot.

In 2009 three times the number of Toyota Prius models were sold compared to 2008, totally 208,876 units. About 10 percent of all new vehicles sold in Japan are hybrids, which is substantial compared to 2.8 percent of hybrids sold in the U.S. market.

As the Toyota Prius continues to be a hybrid sales leader around the world, a new generation of plug-in hybrid vehicles, such as the soon to be released Chevrolet Volt, are quickly heading to showrooms. Unfortunately, the plug-in version of the current Toyota Prius likely will not be available before the Volt.

Since the updated Toyota Prius reached showrooms in May 2009, it remained the highest selling vehicle in Japan month after month. Demand was so high that buyers found themselves on waiting lists just to get their hands on one. But the Prius’ blend of environmental and driving performance is not just what Japanese consumers crave as it continues to be the hybrid leader globally.

Although hybrids account for a smaller percentage of total auto sales here in the US, the news is no surprise to Toyota Midland dealers consistently see demand for the Prius everyday. With the improvements added for the 2010 model year, that demand is unlike to diminish anytime soon.

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Although Toyota has been slow to completely embrace plug-in hybrid technology, Executive Vice President Takeshi Uchiyamada has reiterated the automaker’s promise to sell plug-in hybrid by 2011. As the promise was made, Toyota’s Prius plug-in prototype has been making the rounds at auto shows to bolster interest in the new vehicle, which Toyota promises will be affordable.

About 350 of these plug-in hybrids will be available to select entities in Japan and Europe for testing purposes by the end of this month, while another 150 vehicles will eventually make their way to the U.S. in 2010 to broaden Toyota’s testing and demonstration of these vehicles and their capabilities.

For short distances, the plug-in Prius will be able to attain an electric-only range of about 13 miles, and Toyota claims it will still be able to reach highway speeds under electric power alone. For longer distances, the vehicle will run on hybrid only mode, and essentially perform just like a standard Prius.

Power for the Toyota Prius plug-in hybrid comes from a battery that was specially produced between Toyota and Panasonic. By the time the vehicle becomes available, it will have to compete against the Chevrolet Volt, another plug-in hybrid. But compared to the Volt’s 40 miles range on electric power alone, the Prius may be at a significant disadvantage. But with the Volt’s estimated $40K price tag, perhaps the PHV Prius can dramatically undercut the Volt to make it a bit more viable to eco-conscious buyers.

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Catch the latest on Toyota’s plug-in vehicle development here.

With the launch of the third generation Prius, we all have likely seen the advertising blitz that was destined to follow. Although Toyota is rarely singled out for advertising innovation and acclaim, this campaign is perhaps one of Saatchi and Saatchi’s best Toyota campaigns in a long time.

Launched earlier this year, the new Prius commercials are beautiful, detailed, and the imagery cleverly compliments the slogan of “Harmony between man, nature and machine.” The ads have also made it onto Nielsen’s Top 10 Most-Liked New Ads list.

Check out how the “Harmony” commercial was made and view all the latest Prius commercials below.

While there are certainly plenty of hybrids on the market these days, 2010 Toyota Prius Boston dealers continue to see steady demand for the third generation Prius. Despite increased competition, the Prius is expected to remain on top for quite a while.

If you ask Toyota dealers Acton, they’ll also attest to the Prius’ unwavering appeal. As these commercial highlight, not only does the latest model continue to offer impressive efficiency, but innovative features and more style have also been added to its award-winning formula.

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Toyota’s third generation Prius appears to add to the formula that has already made this hybrid an astounding success. Despite losing ground in some segments in recent months due to the decline in new car demand, the Toyota Prius continues to be the number one hybrid on the road.

Also competing against the recent third generation Prius is the all-new Honda Insight. Despite both cars having somewhat similar lines and both offering incredible mileage, the Toyota Prius features a more robust hybrid system that Toyota Parts Woodbridge says gives the Toyota an edge in terms of mpg. Once the electric motor is engaged, the system is also completely silent, and the transition to gasoline power is seamless.

The Toyota Prius is not without its quirks admits one Trenton used car dealer. With the gas engine starting and stopping at various points, it’s easy for any driver to recognize how different the Prius is from a conventional gas powered vehicle. Even the gearshift is more of a joystick that a traditional shifter. While the Prius is certainly different, it shouldn’t take long before drivers feel natural behind the wheel.

Powering the 2010 Toyota Prius is a 1.8-four liter engine. Combined with an electric motor, the Prius deliver 134 horsepower and scant move to 60 miles per hour in 9.8 seconds. That may not seem impressive, but Used Cars Kingston customers have found that the Prius has plenty of power. EPA fuel ratings for the Prius are 51 miles per gallon in the city and 48 miles per gallon on the highway.

What’s really impressive about the latest Prius is the styling. Toyota did a good job of making the exterior styling crisper and sportier overall. Drivers can even get 17 inch wheels as standard equipment on the Prius V model. Inside, the interior continues to look as though it was inspired by an episode of the Jetsons, but that’s not necessarily a bad thing acknowledges to car buyers at one dealer specialzing in Albuquerque used Toyota. The interior features quality materials and an array of conveniences including leather, heated seats, satellite navigation, and an available JBL sound system.

Toyota has executed the third generation Prius well by maintaining its stellar fuel economy while adding style and comfort. While it may not be as affordable as the Honda Insight, it appears that it will be holding on to its title as the hybrid segment leader.

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To Plug, or not To Plug? That will be the question in late 2010. The biggest advantage of today’s gas/electric hybrids is that they don’t need to be plugged in to a power source in order to recharge their batteries. So what’s with all the static about automakers introducing plug-in hybrids such as the Chevrolet Volt, or the Toyota Prius with a Hymotion L5 conversion kit from A123 System?

When larger or additional batteries are added to the equation, plug-in hybrids can run exclusively on electricity more of the time than conventional hybrids can. The end result is that they use less gasoline says Poughkeepsie Toyota dealers. A 42-mpg Toyota Prius Touring model was tested with a plug-in conversion and its gas mileage increased to 67 mpg overall, during the first 35 miles of test driving, after the battery depleted its charge. A Lexington Toyota dealer says this is great news for a driver with a relatively short commute because it drastically cuts gasoline consumption. Tell that to the 78% of Americans who drive less than 40 miles per day, round-trip (according to the Bureau of Transportation Statistics).

The Hymotion L5 conversion kit, by A123 Systems, was installed at a Toyota dealership in Massachusetts, one of seven U.S. service centers that do the conversion. Although the standard hybrid system including the nickel-metal battery remains intact, Toyota dealer Cheyenne warms this is not a minor addition of a few Toyota parts as the conversion adds a large, 5 Kilowatt Hour lithium battery pack and a 110 Volt charging port at the rear bumper of the vehicle. The existing energy monitor in the Prius’ dashboard is also modified to show the new battery’s amount of charge.

The Chevrolet Colt will most likely run exclusively on electric power while the on-board batteries remain charged. A Westminster Toyota dealer says that system could mean that drivers that make solely shorter trips might never use any gasoline at all. The gasoline engine will only ‘kick in’ to recharge the battery pack if and when needed. The gasoline engine does not power the vehicle directly.

The cost of converting the Prius to plug-in power was more than one could ever expect to see in actual gas savings admits Toyota dealers Olympia. Plus the actual 8 mpg achieved during testing was not quite up to par with claims of 100 mpg. However, the plug-in Prius does show that this technology will produce huge gains in fuel-economy. And we drivers are more than happy to be headed in this direction for the future of hybrid vehicles.

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As new technology becomes available, look to Toyota in the News for the updates.

While Toyota sales have dipped a bit, along with the sales of other automakers, the Toyota Prius has remained a popular model. As a result, Toyota recently decided to idle the company’s plan in Princeton Indiana, which produces the Toyota Highlander, which would free up room to produce additional Prius models. However, the economic environment may be stalling those plans as well as production plans for the Highlander.

The latest news from Japan suggests that Toyota has put Prius production in the US on hold. While the new Prius was supposed to see production begin in Mississippi in 2010, Toyota is now signaling that production may not begin until 2011.

News apparently originated from a special task force formed by Toyota executives. This task force has the single objective of ensuring the company’s finances are in order, and moving up production or expanding production of the hottest hybrid in the world evidently was seen as a poor investment, to the disappointment of Toyota dealers Olympia and other Toyota dealers.

Holding off production is not something new in this economic environment. However, this development shows just how bad the global economy is, as the Prius is one of Toyota’s strongest selling models.

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For updates on the all-new 2010 Toyota Prius, check back here.