Amusing, but it proves nothing. The Prius was driven "as fast as possible", which pretty much guarantees it is far from its optimum efficiency. They measured 17.something MPG, which is less than half of what a Prius usually turns in normal driving. The BMW stayed right behind it, about one or two car lengths back the whole time. That would be a bit far for drafting a normal car, but maybe not a Prius, which has unusually smooth aerodynamics. They should repeat the video with the Prius following a large delivery truck being driven "as fast as possible", the Prius would probably get 200 MPG.
I've driven the Prius. You can only get electric assist at low throttle openings, and the engine only turns off completely on deceleration. Hard braking into a corner is less effective in terms of power regeneration than coasting regeneration, also... and hard driving can deplete the batteries plenty quick. (Hell, 15 minutes in gridlock with the AC on will do it, too) While I've never personally seen less than 35 mpg from the Prius, I think 17 mpg on track is feasible. Hell, my car only gets 9 mpg on track. You are right, though... coasting behind a terribly slow car on track is definiltey cheating.
EDIT: I've never gotten better than 50 mpg from the Prius... and that was with optimum regeneration strategies and a lot of driving on the electric motor. To get into the 60s, you have to start hypermiling it. Any driving with any semblance of speed will definitely get under 40 mpg.
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