The hack-a-hybrid kit

For ‘hybrid hackers’ selling plug-in kits for the Prius, high gas prices add up to a big opportunity.

Rising gas prices and booming sales of the Toyota Prius mean a big opportunity for Pete Nortman. A year and a half ago, the Monrovia, Calif., engineer hacked his Prius by replacing the battery with a lithium-ion version and adding a system that plugs into an ordinary 110-volt socket.

After charging in the garage overnight, the souped-up Prius gets about 100 miles per gallon–roughly twice what a regular Prius gets at best. “This is just the beginning,” Nortman says.

Now EDrive, the startup Nortman co-founded, and Hymotion, a competitor based outside Toronto, are set to turn such tinkering into cash. They’re the first two companies to market PHEV (plug-in hybrid electric vehicle) kits for Prius drivers.

The EDrive kit will debut by December with a price of $12,000, installation included. Hymotion’s kit, also due later this year, will cost $12,500, a figure that co-founder Ricardo Bazzarella plans to drop to $6,500 by this time next year. He estimates profit margins of 20 to 25 percent and says the success of his business hinges on public awareness.

Business 2.0 Magazine