Topic: Toyota / Lexus Tidbits

[Snowman]

Many industries are experiencing escalation in major projects as a result of increased material and labour costs. 5 years ago it cost $48,000/m to sink a fully equipped 6m dia. shaft for a new mine. Now the cost has gone up to over $100,000.

[Allen]

Toyota worries about a backlash from the U.S.
YURI KAGEYAMA

Associated Press

TOKYO — A senior Toyota executive acknowledged worries Wednesday about a possible U.S. political backlash to his company's booming success that is in stark contrast to the woes facing American rivals.

In recent months, U.S. lawmakers from manufacturing states have charged that the Japanese government has kept the yen artificially low, giving exporters like Toyota an advantage, and that many vehicles Japanese auto makers sell in the U.S. are still imported.

While American consumer attitudes are generally accepting of Toyota and other Japanese manufacturers as they have expanded production in the U.S., fears of a backlash are emerging as Toyota is on pace to overtake General Motors Corp. as the world's No. 1 vehicle maker.

“We are certainly concerned,” said Toyota Senior Adviser Hiroshi Okuda, credited with successfully leading the Japanese auto maker to global growth during his tenure as president and then chairman from 1995 to 2006.

Mr. Okuda said Toyota needs to “significantly” increase the number of foreigners in its 25-member board, now at zero, and boost foreign ownership of the company from about 20 per cent today, to win greater acceptance as a global company. He did not give specific targets.

Mr. Okuda denied Toyota was making the No. 1 spot a goal, and said it was merely trying to satisfy customers.

“We have just being doing our job naturally, and the numbers merely came about as a result,” he said at an award ceremony at the American Chamber of Commerce.

The organization chose Mr. Okuda as the 2006 “Person of the Year” for contributing to U.S.-Japan relations, creating thousands of jobs in the U.S. and investing aggressively in the U.S.

“We have never said Toyota wants to be No. 1, and we do not give such orders to our employees,” Mr. Okuda told the gathering at a Tokyo hotel, which was open to the media.

Toyota's global vehicle production topped 9 million in 2006, at 9.018 million vehicles, marking the fifth year straight of growth. GM its group auto makers produced 9.18 million vehicles worldwide in 2006 — about 162,000 vehicles more than its Japanese rival.

Toyota has long beaten GM in profitability. In contrast to Toyota's robust earnings, GM has sunk into the red on massive restructuring costs, losing $3-billion through the first nine months of last year after losing $10.6 billion in 2005.

Meanwhile, criticism of Toyota has grown.

Sen. Debbie Stabenow, a Democrat representing Michigan, home to many “Big Three” autoworkers, has accused Tokyo of manipulating the yen.

“It creates big differences in what they can sell their automobiles for,” she said recently. “Most of their vehicles are still coming from Japan.”

In a letter last month to Treasury Secretary Henry Paulson, four House Democrats said the weakened yen had allowed Japanese auto makers to increase their exports to the United States by more than 30 per cent in 2006.

Last month, Toyota picked Mississippi for a new auto-assembly plant, its eighth in North America, and that's likely to give the auto maker more clout on Capitol Hill. But U.S. legislators who criticize Toyota say 46 per cent of Toyota's U.S. sales in 2006 came from vehicles imported from Japan.

Earlier this week, Jim Press, Toyota's North American president, said in Detroit that Toyota won't change its business plan despite worries about a possible political backlash.

[sirAQUAMAN64]

Toyota's growth: Not Calif.
The plan: Focus on East Coast, Northwest, Rocky Mountains

Mark Rechtin  |  Automotive News / March 19, 2007 - 1:00 am
 
LOS ANGELES - Toyota's California market share might be maxing out, and its prospects in the truck-happy heartland are still iffy. So how will the brand keep growing at a torrid pace?

Toyota is betting on the Northwest, the Eastern Seaboard, the Rocky Mountains and some big cities in the Southeast - areas in which it already does well but hasn't gone through the roof.

And, despite an ambitious growth plan of 5 to 7 percent annually, Toyota is sticking to its philosophy of not adding dealerships. So the key to growing in those regions is to upgrade existing stores.

"Those areas have the highest opportunity for growth," says Jim Lentz, executive vice president of Toyota Motor Sales U.S.A. Inc. He expects the next-tier metropolitan markets to grow at the rapid rate Toyota has achieved in California in recent years.

In terms of share, nine of Toyota and Scion's top 10 metropolitan markets in 2006 were in California. Binghamton, N.Y., was the exception.

Lentz says the next tier is led by Boston, at more than 20 percent share; Portland, Ore., which approaches 20 percent; Washington and several southeastern cities, at around 16 percent; and Denver, at about 14 percent.

Nationwide, Toyota and Scion's market share last year was 13.4 percent.

"With high market share, you have high familiarity and dealer return on investment, and that means potential growth," Lentz says.

Four years ago, most of the big California markets had the same penetration that Portland and Boston have today. They have grown sharply since then.

In San Gabriel, Calif., home of the colossal Longo Toyota dealership, the Toyota brand has grown from 19.3 percent market share in 2001 to 27.6 percent last year. Many other California areas have shown similar upswings. Now Lentz is aiming at the next group of markets.

The average Toyota dealer in California sells 3,500 new vehicles a year, Lentz says. Nationally, Toyota sales per franchise averaged about 1,700 units in 2006. By contrast, the average Ford franchise sold 645 vehicles last year.

In many areas of the state, Toyota dealers say they are at capacity in terms of inventory and service space.
 
Uptown/downtown
Toyota-Scion’s best and worst metro markets in 2006
MARKET SHARE
San Gabriel, Calif. 27.60%
San Fernando, Calif. 26.60%
Youngstown, Ohio 4.20%
Detroit 2.50%
Source: Toyota Motor Sales U.S.A. 

Steve Cornelius, a Toyota-Scion dealer in San Jose, Calif., says a large metro dealer can get only so big. Cornelius sold 7,000 new and used vehicles from a 5½-acre Toyota store in 2006. But he thinks he needs to build a larger store with more on-site parking and service bays to handle the increased customer traffic.

Given the cost of land in Silicon Valley, that expansion is a costly challenge. He'll do it, but he probably won't get started for a year or two.

"Toyota is going to grow," Cornelius says. "But where? Many of the urban areas are already built out. So the only expansion is further away from the metro."

New store, bigger allocation

To fuel growth, Toyota is giving incentives to dealers to build larger stores under its Image USA II architectural plan. The incentive is an increased allocation of hot models, such as Priuses, Camrys and FJ Cruisers. Toyota Division expects all dealers to renovate their showrooms by 2010 under Image USA II.

The Portland region includes Alaska, Washington, Oregon, Idaho and Montana. Of its 73 Toyota dealers last year, 63 had completed upgrades under Image USA II. The Portland region was Toyota's fastest-growing in 2006, with a 22 percent sales gain.

"The conversations with dealers regarding expansion are easy," says Clyde Dyson Jr., general manager of the Portland region. "They understand the future."

Michael's Toyota-Scion, of Bellevue, Wash., completed its move to a new building in July. After a flat first half of 2006 in the old store, the dealership saw 2006 full-year sales shoot up 31 percent to 3,555 units.

"It was a monster year for growth," says Erik Paulson, Michael's general manager. "We were tapped out in terms of space before. Putting more vehicles in the pipeline made a big difference."

Where Toyota rules, and doesn't Toyota’s Top 10 metro markets in 2006, by market share Share
San Gabriel, Calif. 27.60%
San Fernando, Calif. 26.6
Oakland, Calif. 26.3
San Jose, Calif. 26.1
Binghamton, N.Y. 25.6
Inland Empire, Calif. 25.3
North San Diego, Calif. 24.8
Orange County, Calif. 24.5
L.A. South Bay, Calif. 24.1
Sacramento, Calif. 23.6
 
Bottom 10 metro MARKETS in 2006, by market share Share
Corpus Christi, Texas 9.70%
El Paso, Texas 9.5
Pittsburgh 9.1
Dayton, Ohio 8.9
Omaha, Neb. 8.8
Grand Rapids, Mich. 7.8
Rio Grande Valley, Texas 7.6
Toledo, Ohio 7.6
Youngstown, Ohio 4.2
Detroit 2.5
Source: Toyota

Nationwide, Toyota Division polled 100 dealers who had upgraded their stores. Those stores reported sales growth of 26 percent, says Rick LoFaso, national manager of market planning and facilities. Nationwide, Toyota sales were up about 14 percent.

"In major metros like L.A. and New York, land is more expensive, and we have to look toward alternatives to expansion," LoFaso says.

Toyota generally doesn't do as well in areas with large union membership or a Detroit 3 manufacturing presence. It also struggles in areas where sales of full-sized pickups are strong.

Playing in Peoria

Not that Toyota writes off such regions; it is making inroads even where domestic brands are strong. In Detroit 3 strongholds such as Peoria, Ill.; Grand Rapids, Mich.; Corpus Christi, Texas; and Gary, Ind., previously moribund Toyota market share doubled in the past five years to nearly double-digit levels.

Most markets in which Toyota lags are big on full-sized pickups. For example, the Chicago region has nine major metro markets. Toyota has car market share leadership in five of them but almost no full-sized truck presence.

Still, Lentz says he thinks Toyota is making gains in those domestic bastions, with help from Image USA II makeovers.

"I went to a dealership grand opening in Pennsylvania, to a store that had been there for 20 years but now is a lot more visible," he says. "People were coming in to the dealership saying, 'I didn't even know you guys were here.' " 

[sirAQUAMAN64]

Toyota is close to building first low-cost car prototype
Model could be sold in western Europe

Luca Ciferri  |  Automotive News / March 19, 2007 - 1:00 am

GENEVA -- Toyota is building the first prototype of its low-cost car, a crucial step in deciding what the model will cost, where it will be sold and under what brand.

Toyota could sell the car in developed markets such as western Europe, Toyota President Katsuaki Watanabe told Automotive News Europe at the auto show here.

Originally, the BRIC countries were considered “most appropriate for the new model,” Watanabe said.

BRIC is an acronym for Brazil, Russia, India and China.

Depending on how well the vehicle is finished, “there may be a case where the application is not simply limited to emerging markets,” Watanabe said.

He said there is demand for a reasonably priced second or third family car in developed markets.

Toyota also is considering selling the car in Turkey and Ukraine.

Watanabe denied Japanese press reports that the model will cost ¥800,000 (about €5,200).

Such a price, he said, “is not correct.” Watanabe added that Toyota had “a clear price target,” but he declined to be more specific.

Car could cost €4,500

Industry sources told ANE that Toyota is considering offering its low-cost car in China at the equivalent of €4,500.

The Japanese press reported the prototype will be completed by April and the production car will go on sale by the end of the decade.

Watanabe said that “developing new low-cost technologies and systems was my first request to our engineers when I took the helm of the company two years ago.”

He declined to discuss specifically which new technologies and systems are under development for the low-cost car program, but he confirmed that:


The technologies will be applied across Toyota’s entire model range and not just on the low-cost car


The vehicle will have a traditional architecture, which means it will be a four-door, three-box sedan similar in size to Renault’s Logan


A decision on which brand to use for the low-cost car is still open.


“We have to see the vehicle first, then we will decide if we will market it as a Toyota or as another brand.”

Insiders say the Japanese carmaker could opt for a flexible badging solution, using Toyota in emerging markets and a new, dedicated brand elsewhere.

Toyota executives seem unconcerned by growing competition in the low-cost segment. India’s Tata Motors, for example, plans to build a basic vehicle for as little as 100,000 rupees (about €1,750).

Said Watanabe: “There may be such a possibility, but what we are aiming at is the production of a vehicle with good quality and durability and we have no intention of changing that policy.”

Many inside the auto industry are skeptical whether Tata and Chinese carmakers can build cars for prices as low as they plan.

Watanabe said: “We will observe how -– and whether -– Chinese and Indian manufacturers will come up with their own low-cost vehicles and then see how much they will cost.”

[sirAQUAMAN64]

Ritter takes helm of Toyota's U.S. ad agency

Mark Rechtin  |  Automotive News / March 20, 2007 - 4:28 pm

LOS ANGELES -- Toyota's U.S. advertising agency is seeing a change in the executive suite.

David Murphy -- president of the Saatchi & Saatchi Los Angeles office, is leaving the agency to start his own firm. The Los Angeles office oversees the Toyota account.

Taking Murphy's place is Kurt Ritter, former marketing general manager of General Motors' Chevrolet division. Ritter left GM in 2003.

Ritter's title will be CEO of Saatchi & Saatchi Los Angeles.

When Ritter left GM, he was set to oversee the Toyota account for Saatchi. But when GM accused Saatchi's holding company, Publicis Groupe, of poaching Ritter -- and unsubtly threatened to divert GM business from Publicis' other agencies -- Ritter's role was changed to that of an off-site consultant.

For the past four years, Ritter technically has not been a Saatchi employee. But his consulting firm, Against All Odds, had only Saatchi as a client. Ritter also was on Saatchi's worldwide executive board -- the only nonemployee on the board.

Ritter, 57, brings extensive truck marketing experience to Saatchi at a time when Toyota is feverishly launching its full-sized Tundra pickup. While at Chevrolet, Ritter orchestrated the successful "Like A Rock" marketing campaign.

Ritter was unavailable for comment.

[sirAQUAMAN64]

Toyota puts up to $2,000 spiff on Prius

Mark Rechtin  |  Automotive News / April 4, 2007 - 8:30 am   

Linking a push for higher hybrid vehicle sales to Earth Month, Toyota Division will place up to $2,000 in incentives on the Prius in April.

Depending on the options package chosen, the incentive can range from $600 to $2,000. Each package in the program includes features such as vehicle stability control, backup camera, SmartKey system, and an audio system upgrade with MP3 capability and auxiliary port.

Toyota had mild cash, APR and lease incentives on the Prius in February and March, with strong results. Through March, Prius sales are up 74.7 percent, to 39,682 units.

Another possible reason for the incentives: The Prius' success means that government tax breaks for buying the Prius have declined with its increased sales volume. Other hybrids with lower sales volume still carry the full weight of the federal tax break.

[ArticSteve]

In Canada Toyota might start by offering LEATHER in the Canadian Prius.  It is a 37K car loaded.     Another example of insane Toyota Canadian optioning.

Anyways, they're all leased. You'd be nuts to buy/own one. 

[Mitlov]

If Toyota's success was due to manipulation of the yen, wouldn't Nissan, Suzuki, Mitsubishi, etc also be making money hand over fist?  To my knowledge, Honda and Toyota are the only two Japanese automakers that are riding a wave of prosperity right now.

[Mitlov]

In Canada Toyota might start by offering LEATHER in the Canadian Prius.  It is a 37K car loaded.     Another example of insane Toyota Canadian optioning.

Anyways, they're all leased. You'd be nuts to buy/own one. 

There's something wrong with offering animal-skin seating in a hippie-mobile.  It's like having a New-Beetle-style vase on the dash of a Dodge Viper.  You're not really appealing to the target audience.

[ArticSteve]

There's something wrong with offering animal-skin seating in a hippie-mobile.  It's like having a New-Beetle-style vase on the dash of a Dodge Viper.  You're not really appealing to the target audience.

Without looking it up I believe leather is offered in 2 trim levels in the US.  Call any dealer in Canada and they will unanimously state that no leather in a 37K car regardless it being a hybrid is a deal killer. 

offering animal-skin seating

You assume it's actually cow hide.  I swear it's synthetic although they tell me no.  My leatherette in some of my past Bimmers looked and felt more real than the stuff in my wife's Camry.

[G35X]

Expect great improvement in quality and reliability of Chinese-made automobiles.

The police had to release the Chinese engineer in question from custody earlier today because he completely destroyed hard drives and other memory devices or encrypted and booby-trapped files he copied. It would be very difficult for the police to prove that he sold or delivered the data to a third party. Leaking of Denso’s highly classified data especially on its high-pressure fuel injection system, GPS navigation and hybrid engine components is a tremendous blow to Toyota. Denso is one of the Toyota companies.
******
Denso's management of classified data lax
The Yomiuri Shimbun
An ongoing criminal case that indicates China is seeking to acquire Japanese high technology is probably just the tip of the iceberg.
A Chinese engineer working for leading auto parts manufacturer Denso Corp. has been arrested on suspicion of embezzlement for allegedly downloading information from the company's database into a personal computer provided by the firm for company use and removing the PC from the company premises.
The engineer is alleged to have downloaded about 130,000 blueprints for items including an industrial robot and a diesel fuel injection pump. The downloaded data cover about 1,700 products, of which 280 were categorized as classified.
The engineer downloaded most of the data in the latter half of last year. Since October, he has traveled to China three times. He destroyed his own PC's hard disk in an apparent attempt to destroy evidence.
This suspicious behavior indicates he has already leaked classified information to China.
===
National interest at risk
Denso enjoys a high global reputation for its technologies and products. The downloaded blueprints are for commercial products, but they could be converted to build military hardware. Vast amounts of such data may already have been passed to China. The case must be thoroughly investigated to determine whether the data were stolen for commercial or military purposes.
Denso's data management clearly was lax. The issue is not the losses to be incurred by one company, but whether Japan's national interests will be threatened.
Before coming to Japan, the Chinese engineer worked for a state-run military company that manufactures missiles and other products. He serves as deputy chairman of an association of auto engineers in Japan whose members include Chinese nationals. We wonder why a foreigner with such a background was assigned to a section where important information was accessible.
===
Anti-espionage laws lacking
At a time when economic activities between Japan and China are intensifying, Yamaha Motor Co. has been charged with illegally exporting unmanned helicopters to China. The National Police Agency believes China is trying to obtain various advanced technologies and related information in Japan.
Following a series of revisions, the maximum penalty for leaking corporate secrets stipulated in the Unfair Competition Prevention Law has been increased to 10 years in prison--in line with punitive provisions in the U.S. Economic Espionage Act.
The Penal Code stipulates a maximum penalty of five years in prison for embezzlement. The police reportedly also plan to establish a case under the Unfair Competition Prevention Law as it provides for a heavier punishment.
Though there are some controls on spying under the Unfair Competition Prevention Law, some government officials have pointed out that no legislation has been established to deal comprehensively with espionage activities.
The issue is not limited to confidential data in the private sector. The government must quickly come up with ways to prevent foreign spies obtaining defense and diplomatic secrets.
Management of important information and employment of foreign engineers and researchers are not issues that can be left to the private sector alone.
*****
Have a nice day!

[Allen]

Toyota names American to its board
Associated Press

TOKYO — Toyota named the non-Japanese to its board of directors Thursday, appointing American James Press, the auto maker's president of North American operations, amid growing fears of a political backlash for its booming U.S. sales.

The move is the latest step in Toyota Motor Corp.'s efforts to bolster its international standing. It also comes at a time when Toyota is boosting sales in North America, grabbing market share away from Detroit auto makers.

Mr. Press, 60, president of Toyota Motor North America Inc. since May, 2006, has been responsible for overseeing Toyota's tremendous growth in the U.S. He was president of Toyota Motor Sales since 2005.

Hot on the heels of General Motors Corp., the world's biggest auto maker, Toyota has seen its U.S. market share surge recently, hitting 16 per cent in March, behind GM, with 22 per cent, and Ford, with 17 per cent.

Mr. Press, also promoted to senior managing director from managing officer, joined Toyota Motor Sales in the U.S. in 1970, after two years at Ford Motor Co. He has been the most visible Toyota executive in North America.

Last month, Mr. Press acknowledged there could be consequences to Toyota's successes over its U.S.-based competitors, who are shutting plants and cutting jobs, but stressed that the auto maker would go ahead with its business plans.

“The way the issue is played out doesn't affect the business,” Mr. Press told reporters in Detroit. “The business is you take care of customers. You make investments. Our philanthropy is up. We're doing more for the community.”

Hiroshi Okuda, former president of Toyota and now adviser, also has expressed concern about a possible backlash.

Last month, he suggested adding a foreign board member and increasing foreign ownership as ways the company could show it was international and avoid the kind of backlash seen during the 1980s when American sentiment turned against Toyota and other Japanese auto makers.

Up to now, Toyota's 25-member board has been all Japanese. The number of board members was increased to 30 as part of Thursday's changes.

The changes, announced along with eight Japanese newly appointed to the board of directors, will take effect pending shareholders approval in June, the company said in a statement.

Much of Toyota's success has come from its reputation for fuel-efficiency at a time when gas prices are surging, such as its best-seller Camry, as well as hybrids, which switch between a gasoline engine and electric motor.

Toyota exports nearly half of the vehicles it sells from Japan. Last year, that percentage was 46 per cent, up from about 38 per cent in 2005 because of a surge in U.S. demand and the inability of U.S. factories to keep up with demand.

Toyota has undergone an image campaign to emphasize its U.S. manufacturing plants. Press said the company would like two-thirds of its vehicles sold in North America to be made there by 2010, but that will depend on sales.

Toyota recently announced it's building a new vehicle-assembly plant in Mississippi, its eighth in North America.

Mr. Press replaced as top U.S. executive a Japanese, who resigned after he was accused of sexual harassment. Besides Mr. Press, Toyota has four managing officers who are foreigners, including one American who is retiring in June, two French and one Canadian.

Mr. Press' addition to the board will help send the message that Toyota is a global company, analysts said.

“There's finally some recognition that they're not just a Japanese company any more,” said Christopher Richter, a Tokyo-based analyst at CLSA Asia-Pacific Markets.

But Toyota officials are worried that their recent success could be seen as contributing to the downfall of U.S. auto companies, who are slashing jobs and shuttering plants.

U.S. Sen. Debbie Stabenow, a Democrat from Michigan, who represents thousands of Detroit-based auto workers, has said the Japanese have an unfair edge from a weak currency, which makes it easier to under-price American rivals.

General Motors lost $10.4-billion (U.S.) in 2005 but underwent massive restructuring and trimmed its losses to $2 billion in 2006. Ford lost $12.7-billion last year, while DaimlerChrysler has decided to put money-losing Chrysler up for sale.

[sirAQUAMAN64]

SAE CONGRESS

Toyota leader: Hybrid commitment will be core

Tim Moran  |  Automotive News / April 16, 2007 - 4:48 pm 
 
DETROIT -- Toyota views hybrids as a core segment of the future vehicle market, a top Toyota Motor Corp. executive told the 2007 SAE World Congress here today.

"Today's engineers are diligently working with a variety of fuel and technical innovations. And I believe hybrid technology will continue to evolve as a core technology. This will serve to create the ultimate car that is kind to us," Yasuhiko Ichihashi, Toyota's managing officer, said in keynote remarks.

Ichihashi also is executive vice president of Toyota Motor Engineering & Manufacturing North America and president of the Toyota Technical Center in Ann Arbor, Mich.

Ichihashi, who is general chairman of the SAE event this year, urged engineers to work to maximize progress toward dream vehicles for customers, using the cultural example of "ideal transportation" found in folk tales. The Toyota leader called up images of flying carpets and magic brooms.

"What is an ideal vehicle?" he asked. "It takes you wherever you want to go. It is also fully automated and moves according to the driver's thoughts. In addition, it has great safety features, which avoid collisions."

He said real-world cars need to be closer to the dream-world ideal, with increased effort to maximize the things people like about transportation, including fun and freedom. But Ichihashi also said it was engineers' responsibility to "zeronise" the bad parts of transportation. That was a term he used to discuss reducing pollution, traffic deaths and road congestion.

"Technical innovations are contributing to the improvement of traffic safety. However, we can achieve even higher goals with a total approach to safety by including the three components together - driver, vehicle, and traffic environment," he said.

When driving has advanced toward those goals, new forms of transportation such as a tiny three-wheeled "personal mobility vehicle" prototype Toyota showed at its SAE event display may become possible, Ichihashi said. New electronic and engineering interaction could make far-future vehicles, he said.

"We all know there are still many challenges facing us today," Ichihashi said. "We are gathered together as engineers to consider ways we can proactively address challenges in front of us."

[Frontier1]

Toyota overtakes GM!

http://edition.cnn.com/2007/BUSINESS/04/24/toyota.results.ap/index.html

Let's hope in sales only!!

[sirAQUAMAN64]

Seemed inevitable, but surprised it happened in the 1st quarter and not later in the year. Additional info...

Toyota overtakes GM in global sales

Reuters / April 24, 2007 - 8:00 am   

TOKYO (Reuters) -- Toyota Motor Corp. outsold General Motors by around 90,000 vehicles in the first quarter, moving a step closer to unseating its U.S. rival as the world's biggest automaker.

Toyota has been widely expected to challenge 99-year-old GM this year for the top spot in global sales -- a position the Detroit behemoth has held for 76 years -- but the milestone came surprisingly early, industry watchers said.

Both companies reported record sales for January-March, but Japan's top carmaker inched past GM as it ate into the U.S. group's market share on its home turf.

Toyota, maker of the Camry sedan -- the United States' most popular car -- said today its global vehicle sales rose 9 percent to 2.35 million units in the quarter.

The tally includes cars sold under the Lexus luxury brand and the youth-oriented Scion badge, as well as vehicles from units Daihatsu Motor Co. and Hino Motors Ltd.

GM, which sells cars and trucks under a dozen brands including Chevrolet, Buick, GMC, Cadillac, Opel and Saab, sold 2.26 million units during the same period, for a 3 percent rise.

"Toyota has had aggressive new model introductions all over the world," said Koji Endo, an auto analyst at Credit Suisse Securities in Tokyo.

"It's achieved growth everywhere in the world, whereas GM's significant growth has only been in China," he said.

Toyota has won fans around the world with affordable cars seen as reliable, durable and fuel-efficient, while GM continued to rely heavily on high-margin but gas-guzzling vehicles to pull it out of financial difficulties.

To keep up with soaring demand, Toyota is adding production capacity in almost every corner of the globe, from San Antonio, Texas, to St. Petersburg, Russia, with an internal goal of taking 15 percent of the global car market by 2010.

GM estimated its share in the first quarter at 13.0 percent, down one-tenth of a percentage point from a year ago.

This year, Toyota has plans to sell 9.34 million vehicles as a group, up 6 percent from 2006. GM does not provide a global sales forecast.

The breakneck pace of growth, however, has presented some hiccups for Toyota in recent years as vehicle recalls climbed to record levels.

Last year Toyota recalled more than a million vehicles in Japan and 760,000 in the United States, raising concerns that the company was stretching itself too thin too fast.

After a series of high-profile recalls including a legal probe into past recall practices, President Katsuaki Watanabe publicly vowed last year to step up Toyota's quality vigilance, assigning two executive vice presidents to oversee the effort.

"The number of recalls remains high," Credit Suisse's Endo said. "Toyota has managed to keep a generally high level of quality standards, but how it copes over the next few years is yet to be seen."

While sales volume is the most common yardstick for a carmaker's size, Toyota dwarfs its rival in almost every other measure. Its market capitalization, at $225 billion, is more than 12 times that of GM's.

Toyota expects to post a net profit of $13 billion (1.55 trillion yen) for the business year ended last month, probably more than any Japanese company, while GM is struggling to make money. It lost $3 billion in 2006 and $12 billion the year before.

[sirAQUAMAN64]

Newspaper reports Toyota distributor Jim Moran dead at 88

Automotive News / April 24, 2007 - 4:28 pm   

Toyota distributor and entrepreneur Jim Moran died today, according to a report posted on The Miami Herald Web site.

The report could not be immediately verified.

Moran, 88, founded JM Family Enterprises Inc., of Deerfield Beach, Fla.

JM Family Enterprises Inc. is best known for being the parent of two companies.

One is Southeast Toyota Distributors LLC, which distributes Toyota brand vehicles to 169 Toyota dealerships in the nation's Southeast region, independent of Toyota Motor Sales U.S.A. Inc.

The other is JM&A Group, a provider of a wide array of dealership insurance and warranty products.

But over the years, JM Family has been fruitful and multiplied. The diversified automotive company is made up of six business units, which acquired six companies just since 2004.

Its revenues grew from $8.2 billion in 2005 to $9.4 billion in 2006. It expects its revenues to reach $11.1 billion this year.

JM Family provides one or more services to more than 20,000 dealerships annually, said Colin Brown, CEO of JM Family, in an article published Monday, April 23, in Automotive News.

Moran also founded the AutoNation Inc. dealership group.

The newspaper report says Moran was the first U.S. auto dealer to advertise on TV. He became a Toyota distributor in 1968 and was inducted into the Automotive Hall of Fame in 1995.

[sirAQUAMAN64]

Toyota: We will slow down
Jim Press sees lower growth rate, few new dealers

Mark Rechtin  |  Automotive News / April 30, 2007 - 1:00 am /

Toyota's supercharged growth will inevitably slow as competitors roll out new, fuel-efficient vehicles, says the company's top man in America.

Of course, Toyota has regularly been blowing past its own public goals for sales in the United States.

For years, Toyota and Lexus have been gorging on the U.S. market. But they can't keep it up, said Jim Press, president of Toyota Motor North America Inc.

"The rate of growth is going to slow down," Press said in an interview with Automotive News on Thursday, April 26.

In June, Press, 60, will be promoted to senior managing director at the parent company. He will also become the first non-Japanese to sit on Toyota Motor Corp.'s board of directors. He will remain based in New York.

Press said Toyota is about to lose a huge advantage it holds over the rest of the industry in terms of fuel-efficient vehicles.

The automaker caught a market wave when it launched models such as the Prius hybrid, subcompact Yaris and compact Scion hatchbacks as consumers turned to fuel-sipping vehicles. Even the Camry benefited, helped by a perception of greater fuel economy than many other mid-sized cars.

Now other automakers are rolling out similar vehicles.

"The expansion of fuel-efficient products was really unanticipated," Press said. "Katrina, $3-a-gallon fuel, an awakening of America's understanding of the environment. These issues were all bubbling up at the same time."

And Toyota profited.

"We took advantage of an early investment in technology," Press said. "But the effect of that will be less" because competitors are catching up.

"The investments have been made in new products," he said. "A lot of the competitors are just now beginning to make that payoff come to market. As others come forward with more fuel-efficient products, we are going to have more competition.

"It's not right to figure that our current growth rate is going to continue ad infinitum. It's not."
 




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How high is up?
Toyota’s recent U.S. sales
  units % change
2007* 605,855 11.2
2006 2,542,525 12.5
2005 2,260,295 9.7
2004 2,060,049 10.4
2003 1,866,313 6.3
*1st quarter
Source: Automotive News Data Center 


 

--------------------------------------------------------------------------------

Toyota Motor North America sales have grown an average of 8.6 percent a year during the past decade - and by 10 percent annually during the past four years.

Toyota does have a habit of understating growth potential. After selling 1.6 million units in 2000, the American sales company said it aimed to crack 2 million by 2010. Instead, Toyota achieved that by 2004.

Toyota then projected 2.5 million in 2010 - but surpassed that in 2006.

Executives predicted a mild 5.5 percent gain for 2007. But through March, U.S. sales were up 11.2 percent compared with last year. March was Toyota Motor Sales Inc.'s best month ever: 242,675 units.

Press concedes that Toyota could grow faster than expected if sales of the new Tundra pickup take off. He said the full-sized truck, launched this year, is winning over traditional Detroit 3 customers.

"We are getting a lot of cross-shopping and people who in the past bought other brands," he said. "The customers we are getting are coming out of competitors."

Despite its rapid growth, Press said, Toyota won't add many more dealers in the United States.

"Our dealers have made massive investments," Press said. "Adding more dealers just dilutes their investment." It would also encourage price-cutting competition among Toyota and Lexus dealers and crimp customer service, he said.

"Dealers have got to be able to make a profit or they can't make investments for customer satisfaction," Press said.

During this decade, Toyota's U.S. dealership network has barely grown. From January 2002 to January 2007, just 25 Toyota and 25 Lexus dealerships have been added in the United States. The total today: 1,224 Toyota franchises and 221 Lexus franchises.

But in that time, combined sales for the two brands grew by more than 800,000 units.

Toyota-Scion dealers sold an average of 1,821 new units in 2006. Lexus dealers sold 1,479 new units on average.

By contrast, the average Ford division dealer sold 645 new units.

Dealer profits for the two brands are tops in the industry, according to National Automobile Dealers Association surveys.

Press said Toyota dealerships are becoming "giant corporations."

He said the giant Toyota store of today and tomorrow "is a learning organization that has great processes, training, very sophisticated operations and a lot less turnover."

"The service department has efficiencies that are driven by manufacturing concepts, as opposed

to service garage concepts," Press said.

"They are huge organizations." 

[Allen]

Strong sales continue to propel Toyota profit
YURI KAGEYAMA

Associated Press

May 9, 2007 at 6:28 AM EDT

TOKYO — Toyota's profit in the January-March quarter climbed 9 per cent as the auto maker marked its seventh straight fiscal year of record sales amid robust demand for its Corolla, Camry and Lexus models.

Toyota Motor Corp., which beat General Motors in worldwide vehicle production and sales in the first quarter for the first time ever, reported a quarterly group profit of 440.1 billion yen ($3.67-billion U.S.) from 404 billion yen the same period the previous year, the manufacturer said Wednesday.

Toyota's sales are surging as soaring gas prices boost the appeal of its models, which are reputed worldwide for fuel-efficiency, including gas-and-electric hybrids like the Prius.

Analysts say Toyota is growing so quickly it's just a matter of time before it overtakes problem-laden General Motors Corp. of the U.S. to become the world's No. 1 auto maker — a title that technically hinges on worldwide vehicle production for an entire year.

Toyota's sales in the fiscal fourth quarter rose 10 per cent to 6.3 trillion yen from 5.75 trillion yen the previous year, as strong sales in North America and Europe offset stagnant sales in Japan.

Detroit-based GM, the world's largest auto maker the last 76 years, is seeing its U.S. market share shrink, and has announced a restructuring plan to stem billions in losses it racked up in 2005 and 2006. Earlier this month, GM reported a $62-million (U.S.) profit in the first quarter.

Toyota President Katsuaki Watanabe was typically understated when asked about the prospects of beating GM.

“Rather than think about other companies, I feel that we must do our utmost to satisfy customers around the world,” he said. “There is plenty left for us to do.”

He said his company aims to boost sales in “every region” around the world, while acknowledging the auto industry remains tough, with many obstacles.

“We see them as opportunities, and we will strive to continue to achieve growth,” he told reporters at a Tokyo hotel.

Toyota sold 2.35 million vehicles worldwide in the January-March period, surpassing the 2.266 million vehicles GM sold in the quarter.

Toyota said its group production totalled 2.37 million vehicles globally in the quarter through March, slightly more than the 2.34 million vehicles that GM said it produced around the world for the same period.

When excluding joint ventures, not covered under consolidated earnings, Toyota said Wednesday it produced 2.13 million vehicles globally in the quarter.

Shinya Naruse, auto analyst with Nomura Securities in Tokyo, said toppling GM in global vehicle production is just the latest in Toyota's victories because it has already beaten GM in profits, which is more important.

“But it is a very visible step, and it's only a matter of time,” he said. “It's difficult to give one explanation for Toyota's success but it's simply its ability to come up with attractive products that sell.”

Mr. Naruse notes that Toyota is not only performing well next to U.S. auto companies, including Ford Motor Co. and the Chrysler unit of DaimlerChrysler AG, but also against Japanese rivals Honda Motor Co. and Nissan Motor Co.

Both Honda and Nissan saw a decline in profit in the latest quarter.

For the full fiscal year ended March 31, Toyota posted a 1.64 trillion yen ($13.7-billion U.S.) profit, up 20 per cent from 1.37 trillion yen the previous year. Fiscal 2006 group sales jumped 14 per cent to 23.9 trillion yen from 21 trillion yen in fiscal 2005.

For the current fiscal year through March 2008, Toyota expects even better news at 1.65 trillion yen profit on 25 trillion yen sales. It also expects to sell 8.89 million vehicles, up 4 per cent from 8.5 million sold in the fiscal year just ended.

GM sold 9.17 million vehicles in 2005, and 9.09 million last year. In 2006, Toyota's global production was about 9 million vehicles, while GM and its affiliates produced 9.18 million vehicles worldwide.

Toyota shares, which have gained about a fifth in value over the past year, fell 0.6 per cent to 7,200 yen ($60 U.S.). The market closed before the earnings were announced.

[Trainman]

Toyota rolls out luxury hybrid sedan
Last Updated: Thursday, May 17, 2007 | 10:50 AM ET
CBC News

Japanese automaker Toyota on Thursday introduced its newest hybrid vehicle — a pricey luxury sedan Lexus LS — in a bid to appeal to wealthy, green-minded consumers.

The sedan, priced at 15 million yen ($136,864 Cdn), will initially be sold only in Japan before rolling out in Europe, North America and other Asian markets.

Hybrid cars are not merely a transitional technology, Toyota executive vice-president Masatami Takimoto said at the Tokyo launch. He said the cars, which boost fuel efficiency using a combustion engine and electric motor — had considerable staying power, noting the company anticipated selling about 7,000 Lexus LS cars in 2007.

"As long as cars exist, the need for hybrid technology will remain," Takimoto said.

At the 2007 Canadian International Auto Show, the Toyota Camry hybrid was named the car of the year by the Automobile Journalists Association of Canada — the first time a hybrid vehicle has ever won the honour.

Toyota, considered a leader in the market having outsold other hybrid competitors, first introduced its Prius 10 years ago. The automaker sold about 300,000 hybrids worldwide last year.

10,000 hybrids sold in Canada in 2006

While advocates of hybrid technology praise the vehicles for offering better mileage and reduced greenhouse gas emissions, cost-conscious Canadians — many of whom already drive small cars — have been slow to adopt the technology.

The most recent figures from Desrosiers Automotive Consultants suggest that hybrids made up about 10,000 of the 1.6 million vehicles sold in Canada in 2006.

The federal government in March introduced a new program boosting fuel-efficient cars in its budget. Consumers are offered rebates for the purchase of new cars that use fewer than 6.5 litres of gasoline for every 100 kilometres driven and minivans or SUVs that consume fewer than 8.3 litres (based on 55 per cent city driving and 45 per cent highway driving).

[sirAQUAMAN64]

Lexus expects flagship to sell more in Japan, Europe than U.S.

James B. Treece
Automotive News
May 28, 2007 - 1:00 am   

TOKYO -- Until now, the United States has been the largest market for every Lexus vehicle.

No longer.

Lexus expects Japan to be the biggest market for its new flagship, the hybrid-powered LS 600h and its stretched sibling, the LS 600h L.

It is the most expensive Lexus ever, with a base price in the United States of $104,750, including shipping.

Toyota Motor Corp. foresees sales of an average 300 a month in Japan over the premium sedan's five-year life cycle, or about 3,600 a year. It went on sale in Japan on May 17.

Europe will be the second-largest market, taking an average 180 a month, or about 2,160 a year.

U.S. customers are projected to buy between 1,200 and 2,000 a year. The car is expected to go on sale in the United States in late July or early August.

The low end of that forecast is the volume that the car's development team used for planning purposes. It represents average sales of 100 a month over five years, including the last year when some buyers may be waiting for a redesigned version.

It also is the same number of LS 600h sedans that Toyota expects to sell in China.

"I was surprised by that," says Sam Sadakata.

He is the chief engineer for Lexus hybrid drive at Toyota's Lexus development center.

"I thought the hybrid market was more the United States and Japan."

Sadakata thinks Toyota may be underestimating U.S. sales for the LS 600h.

"Once the customers understand" the car's benefits, he says, "I think we can expect higher volumes."

Lexus managers in the United States agree. They foresee sales of 2,000 a year.

In 2007, Toyota expects to sell 7,000 LS 600h sedans. Of those, 4,000 will be sold in Japan.

Toyota predicts global Lexus sales will surpass 500,000 this year, up from about 475,000 in 2006.

It predicts global sales of its hybrid-powered vehicles will total 430,000 this year, including between 300,000 and 350,000 to be sold in the United States. The global total will be up from 312,000 last year.