Topic: Toyota / Lexus Tidbits

[Allen]

Toyota will top 10 million vehicles in 2009
CHANG-RAN KIM

Reuters

August 31, 2007 at 6:47 AM EDT

TOKYO — Toyota Motor Corp expects to sell 10.4 million vehicles in 2009, up 18 per cent from last year, as it taps surging demand in China and emerging economies and grabs market share in Japan, Europe and the United States.

Toyota, along with mini-vehicle unit Daihatsu Motor Co and truck maker Hino Motors Ltd, sold a record 8.81 million vehicles last year, overtaking General Motors Corp as the world's biggest auto maker — a title held by the Detroit giant for the previous 75 years.

Globally, Toyota expects group sales of 9.34 million vehicles this year and 9.8 million in 2008.

Toyota is cranking up its share of sales in mature markets in North America, Europe and at home with fuel-efficient models such as the Prius hybrid and RAV4 crossover. It is also muscling into the full-size pickup truck segment in the United States with the Tundra.

The world's most valuable car maker — even after its shares have dropped 15 per cent in two months, its market capitalization still tops $200-billion — has been growing more rapidly in China and Russia, where rising incomes are driving double-digit growth in demand.

The challenge now is to repeat that success in promising markets such as India and Brazil, where it is still a niche player due to a lack of competitive products.

“We have been growing with a well-balanced regional portfolio,” president Katsuaki Watanabe told a news conference.

“We believe that offering attractive products in new markets outside Japan, the United States and Europe is the key to future success.”

In 2009, Toyota expects to sell around 3.1 million units in North America, 2.4 million in Japan, about 1.45 million in Europe and 1.9 million cars in Asia.

It predicted its China sales would hit 1 million cars soon after 2010, in line with a previous target of 10 per cent share in the world's No. 2 autos market. Toyota expects to sell 430,000 cars in China this year, up 40 per cent from 2006.

Like rivals Volkswagen AG, Honda Motor Co, Nissan Motor Co and others, Toyota is working on a low-cost car to compete in emerging markets, but has struggled to balance cost and vehicle quality.

Mr. Watanabe said little about the car's progress on Friday, focusing instead on the need to step up vehicle quality while reducing development costs.

The world's top auto makers are targeting emerging markets, which will account for most of the industry's growth as demand sputters in the United States, Japan, and much of Europe.

Last year, Toyota sold a little over half its cars in the United States and Japan, excluding its units, and makes more than half its profits in North America.

Toyota has been racing to add production capacity around the world to meet demand, and has plans for new factories in Russia this year, Canada next year and Mississippi around 2010.

Toyota shares have been dented by investor concern over a stronger yen and worries that turmoil in the U.S. subprime mortgage market may dent U.S. demand for cars.

“The yen's a little higher and the external environment is not being that kind, so it's hard for the stock to aggressively move higher,” said Junichi Misawa, senior fund manager at STB Asset Management.

In terms of dividend yield and valuations, however, the stock looked very attractive long-term, he added.

Mr. Watanabe said Toyota aimed to increase its consolidated dividend payout ratio to 30 per cent in about three years from 23.4 per cent in the year ended March 31.

Toyota has said it should maintain its operating profit margin at around 10 per cent in the medium to long term.

[Mitlov]

If they think they can grow 18% in one year without harming their quality (their main selling point), more power to them.  But that rate of growth is awfully fast.  Seems to me that corners HAVE to be cut to sustain that level of growth.

[Allen]

Toyota eyes move into auto insurance
Company's push into new market is part of aggressive plan to expand Canadian sales
GREG KEENAN

Globe and Mail Update

September 16, 2007 at 10:44 PM EDT

Toyota Canada Inc. is considering entering the car insurance market as part of an aggressive expansion plan that includes boosting its annual vehicle sales to 250,000 by 2010.

“If everything goes well, we want to [offer insurance] within a year,” Toyota president Yoichi Tomihara said.

“If the hurdle is higher we have to spend more time.” He added.

Toyota offers vehicle insurance in several other countries, including Japan, Britain, France, Germany, Australia and Thailand.

The Canadian division of the world's richest auto maker would make sure its insurance operations match the same quality standards as the rest of its business, Mr. Tomihara emphasized. “We are studying this – very positively studying this.”

Most vehicle companies in Canada have financial services arms. Toyota would be the first to enter the auto insurance market, although its presence would probably be limited to Ontario, Alberta and Atlantic Canada, where the auto insurance market is private. Publicly run systems are in place in the other provinces, with a hybrid public-private market in Quebec.

The ability to sell insurance through an existing dealership network would give an auto maker a major advantage at the outset; however it is not clear to what extent such a move would shake up the market, said Ryan Lee, a professor in the department of risk management and insurance at the University of Calgary's Haskayne School of Business.

It depends on whether Toyota considers insurance a marketing tool to help sell vehicles or whether the company would get in it to make money, Mr. Lee said.

“A traditional insurance company is not going to be in it to lose money,” he noted.

Mr. Tomihara has been on the job eight months in Canada after heading up Toyota's operations in Germany.

He said he is not interested in sales rankings and whether Toyota surpasses Ford Motor Co. of Canada Ltd. or Chrysler Canada Inc. to take over second spot behind General Motors of Canada Ltd.

Generating sales of 250,000 vehicles annually was routine for Ford in the 1990s and Chrysler in the latter part of that decade, but since 2004, neither company has been able to exceed 230,000 in annual sales.

Toyota is on track to sell 205,000 cars and trucks in Canada this year, Mr. Tomihara said, which means a jump to 250,000 by 2010 would be a 22-per-cent increase.

He said he considers it his personal task to increase sales of hybrids so that they represent 10 per cent of the vehicle company's sales by 2010, compared with about 4 per cent this year.

He drives a hybrid version of the company's Lexus RX crossover utility vehicle.

Improving customer satisfaction, better brand communications and stronger relationships in communities will also contribute toward meeting the target, he said.

“When I arrived here, I found the Toyota image is quite good, but very much dependent on quality and durability – rational needs rather than more desirability or emotional reasons,” he said during an interview in the boardroom of the company's head office in the east of Toronto.

The target of 250,000 is aggressive, said Richard Cooper, executive director of the Canadian operations of J.D. Power and Associates in Toronto.

“The issue will be the overall growth in the Canadian market,” Mr. Cooper said. The consulting firm is not expecting rapid growth in vehicle sales in Canada over the next 21/2 years that would allow Toyota to get to 250,000 simply on the basis of an expanding market.

Power forecasts overall sales of 1.68 million vehicles in Canada in 2010, up a little less than 4 per cent from the 1.62 million forecast for 2007.

But Mr. Cooper pointed out new versions of such vehicles as the Tundra pickup truck will help boost sales. Power is forecasting sales of 17,000 Tundras for Toyota by 2010, compared with less than 3,000 last year.

Indeed, Mr. Tomihara said he hopes Toyota's sales of trucks, sport utility vehicles and minivans will equal its car sales by the next decade.

Toyota sells more than two cars in Canada for every truck it sells here.

[Allen]

Toyota cutting price of popular hybrid Prius
Auto maker also adding standard features aimed at driving up sales even as it struggles to keep up with demand
GREG KEENAN

From Tuesday's Globe and Mail

September 18, 2007 at 6:29 AM EDT

Toyota Canada Inc. is trimming the price of its Prius hybrid car by about $2,000 and adding standard features worth about $2,500 even as it struggles to keep up with demand for the car and other auto makers race to beef up their hybrid offerings.

The 2008 Prius carries a manufacturer's suggested retail price of $29,500, compared with $31,280 for the 2007 model.

That price cut, which amounts to about $4,500 once the new equipment is factored in, should make the car even more popular, said dealers, who added that both Prius and the hybrid version of the Camry mid-sized sedan are in short supply. Sales of the hybrid version of the Camry have outpaced those of the Prius so far this year in Canada.

There are more hybrid models to come, said Toyota Canada president Yoichi Tomihara. All Toyota core models, from the compact Corolla through to the Tundra full-sized pickup truck, will eventually have hybrid versions, Mr. Tomihara said.

"The strongest driver is the concern about environmental issues," he said in an interview last week.

Parent Toyota Motor Corp. in Japan is increasing capacity of the plants that manufacture hybrid vehicles, he said. Toyota wants to sell one million hybrids globally - or about 10 per cent of its worldwide sales - by early next decade.

Demand for Prius alone in North America is reaching the point where Toyota is preparing a plan to manufacture the car here, industry sources said, with the auto maker's joint-venture plant with General Motors Corp. in California earmarked as the site where Prius production will begin early in the next decade.

Toyota's decision to offer a stand-alone hybrid - versus a hybrid version of an existing vehicle - is seen by analysts as a marketing coup that stoked the original demand for the vehicle earlier this decade.

Honda Motor Co. Ltd., for example, was never able to generate similar success with a hybrid version of its mid-sized Accord and no longer offers the vehicle.

But it still offers a hybrid version of the Civic compact that is selling well in Canada, said Honda Canada Inc. senior vice-president Jim Miller.

GM is increasing its passenger car hybrid offerings with a hybrid version of its Chevrolet Malibu mid-sized car, which has been redesigned for the 2008 model year. It joins the Saturn Aura, another mid-sized car that GM began offering with a hybrid option in 2007. The 2008 Saturn Aura will be priced at $27,575.

Hybrid demand has been fuelled in Canada by the federal government's ecoAuto rebate program, which provides a $2,000 rebate to buyers of cars with that technology and others that will reduce gasoline consumption.

A hybrid version of the Saturn Vue sport utility vehicle has been one of the hot sellers for General Motors of Canada Ltd., said spokesman Stew Low.

"We didn't have any problem selling out of them," he said.

[G0dspd]

If they think they can grow 18% in one year without harming their quality (their main selling point), more power to them.  But that rate of growth is awfully fast.  Seems to me that corners HAVE to be cut to sustain that level of growth.

I wouldn't say that their overall quality as diminished but some corners have already been "cut".  People are already comparing the old Toyota with the newer and somewhat lesser one.  Maybe it's the publicized recalls they had lately (Avalon, Tundra, etc.) or maybe it's just an image thing.

[Sir Osis of Liver]

Toyota cutting price of popular hybrid Prius
Auto maker also adding standard features aimed at driving up sales even as it struggles to keep up with demand
GREG KEENAN

From Tuesday's Globe and Mail

September 18, 2007 at 6:29 AM EDT

Toyota Canada Inc. is trimming the price of its Prius hybrid car by about $2,000 and adding standard features worth about $2,500 even as it struggles to keep up with demand for the car and other auto makers race to beef up their hybrid offerings.

The 2008 Prius carries a manufacturer's suggested retail price of $29,500, compared with $31,280 for the 2007 model.

US MSRP $20,950. Yeah, such a good deal we're getting...

[Cord]

US MSRP $20,950. Yeah, such a good deal we're getting... Roll Eyes

...even as it struggles to keep up with demand for the car...

You know what they say about fools and their money. Obviously plenty of fools in Canada.

[MKII]

adding standard features worth about $2,500 .
wonder what the real cost of the added standard features, meaning "real cost.
Would help with this type of reporting to add to the article what the added standard features are.

[barrie1]

They can put any price on the smallest option they want to make it sound like you are getting a deal but the hybirds have already proven not to be worth their payback time at all. Before the cost factor of buiying the hybird part is paid for the batteries will be toast and the car will be almost worn out so wheres the savings that are supposed to be generated. This has been proven already by different magzines and car testers. 

[Mitlov]

They can put any price on the smallest option they want to make it sound like you are getting a deal but the hybirds have already proven not to be worth their payback time at all. Before the cost factor of buiying the hybird part is paid for the batteries will be toast and the car will be almost worn out so wheres the savings that are supposed to be generated. This has been proven already by different magzines and car testers. 

It's also been said, more times than I can count, that hybrids are more about saving the environment than saving money.  If all you want to save is money, buy a Yaris.  Some people are willing to pay a premium for speed; some people are willing to pay a premium for luxury; what's wrong with some people paying a premium for environmental friendliness?

[rrocket]

^^^^Absolutely correct.  I often hear "You won't get your money out of the hybrid unless you drive XXXXXX KMs a year".  It isn't about getting your money out of it.  To me, it's like an option.  Are you ever going to "get your money" out of a Hummer?  What about the super-duper stereo you clicked as an option?  Those 20" chromies?  We rarely "get our money" out of any car.  And to me, a hybrid is just another engine option, albeit one that is a cleaner option.  And as Mitlov stated, it's not about mileage (though it's a nice bonus!) it's about being cleaner.  My Echo is a U-LEV vehicle........and gets about the same mileage as a Prius.  But the Prius is cleaner still....


Oh..and Barrie...FWIW, the Prius is being used as a taxi-cab in Vancouver-area.  Everytime one reaches 400,000kms, Toyota takes it back to examine it.  Thus far, no Prius taxi has suffered ANY hybrid-related problems....which is amazing considering taxi service isn't exactly forgiving.  The only thing it needed was 2 sets of brake pads, and the speedo replaced at 280,000kms.  That's it!!  Amazing.  Oh..and I heard through the grapevine that Toyota made an extra effort to make the Prius extra-reliable to avoid any bad press and "see I told you so" from the nay-sayers...

[2JDM]

During those hot summer days, in bumper to bumper traffic...I wish i had a hybrid. With everyone idling, AC on...it makes me sick and guilty.

But on a regular basis, I don't care as much. As long as I am driving a car that is reasonably good on fuel, and don't make unnecessary trips, the guilt fades away.

[MKII]

^^^^Absolutely correct.  I often hear "You won't get your money out of the hybrid unless you drive XXXXXX KMs a year".  It isn't about getting your money out of it.  To me, it's like an option.  Are you ever going to "get your money" out of a Hummer?  What about the super-duper stereo you clicked as an option?  Those 20" chromies?  We rarely "get our money" out of any car.  And to me, a hybrid is just another engine option, albeit one that is a cleaner option.  And as Mitlov stated, it's not about mileage (though it's a nice bonus!) it's about being cleaner.  My Echo is a U-LEV vehicle........and gets about the same mileage as a Prius.  But the Prius is cleaner still....


Oh..and Barrie...FWIW, the Prius is being used as a taxi-cab in Vancouver-area.  Everytime one reaches 400,000kms, Toyota takes it back to examine it.  Thus far, no Prius taxi has suffered ANY hybrid-related problems....which is amazing considering taxi service isn't exactly forgiving.  The only thing it needed was 2 sets of brake pads, and the speedo replaced at 280,000kms.  That's it!!  Amazing.  Oh..and I heard through the grapevine that Toyota made an extra effort to make the Prius extra-reliable to avoid any bad press and "see I told you so" from the nay-sayers...

Impressive indeed, but your post makes it sound like there are numerous Prius with 400,000km running around. I believe there is one Prius with this high mileage.  One high mileage Prius does not make for statisical absolute.

Hybrid owners in the U.S. were more than twice as likely to be dissatisfied with the fuel consumption of their vehicle, according to CNW Marketing Research. They reportedly found in mid 2006 that 62% of hybrid owners were dissatisfied with their fuel economy, and CNWMR's Art Spinella said those customers were unlikely to purchase another hybrid as a replacement.[58] The figure was up from 58% in a study reported in January, 2006, and compared at that time with just 27% of conventional vehicle owners who were dissatisfied with their fuel consumption.[59] A 2003 J.D. Power and Associates survey found poor fuel economy was the top complaint among Prius buyers.

In the UK, the Advertising Standards Authority, an independent body charged with policing the rules of the advertising industry, ruled that a television advert for the Toyota Prius should not be broadcast again in the same form, having breached rules concerning misleading advertising. The advert claimed the Prius "emits up to one tonne less CO2 per year," while on-screen text included: "1 tonne of CO2 less than an equivalent family vehicle with a diesel engine. Average calculated on 20,000 km a year." Points of contention were the vehicles chosen for comparison, whether "up to one tonne less" adequately communicated that reductions could be lower, and whether the distance used was appropriate: 20,000 km per year is around a U.S. car's average annual driving distance, while a UK car's is 13,440 km.

Under the UK Department for Transport's "Best on CO2 rankings" scheme, the Prius is ranked as equal second, alongside the diesel MINI Cooper D Hatchback, and behind the diesel Volkswagen Polo 1.4 TDI 80PS, out of all the cars ranked.

Recalls
In July 2006 Toyota issued a recall totaling 34,700 units covering early model Prius and Echo cars (26,200 Echo and 8,500 Prius). This recall was not related to hybrid components of the car. The connector for the crankshaft position sensor may become disconnected.[25]
In May 2006, Toyota announced the recall of up to 170,856 Prius vehicles because of a crack which can develop in the steering shaft if the Prius is frequently steered at full lock, or if the front tires strike the curb. The fault can affect Priuses made in 2004 through to November 2005.[26][27]
On June 1, 2005, the National Highway Traffic Safety Administration of the US started an investigation on the 33 reported cases of engine stalling when the Prius travels at highway speed. The cars were still operable under battery power for a short distance with substantial loss of power when the internal combustion engine failed to run. Toyota believes it was due to a computer programming error that was fixed in a recall (SSC-40D) issued back in September, 2004. The investigation needs to verify if all the valid reported cases occurred to cars that did not receive the software fix.
In August 2004, Toyota began a Special Service Campaign (SSC 40G), affecting most previous-generation Prius cars manufactured between 2001 and mid-2003. This repair involves re-sealing terminals on the high-voltage battery to avoid minor electrolyte leakage. Repairs will be performed free of charge on affected automobiles.

[Mitlov]

One of the concerns people have about hybrid vehicles is the durability of the complex drivetrains. Ford is helping to put some of that concern to rest. Less than two years ago a fleet of eighteen Escape Hybrids joined the ranks of New York City taxis. In that short span of time each one of them has now completed over 175,000 miles of service and saved an estimated $250,000 in fuel costs. If a vehicle can survive the constant stop and go traffic of New York city streets while accumulating the same mileage as an average driver collects in 11 years, it's probably doing okay.

http://www.autoblog.com/2007/04/04/ford-escape-hybrid-taxis-demonstrate-durability-on-new-york-stre/

To survive 175,000 miles in New York City is amazing for ANY car, even the most reliable.  That says something about hybrid reliability to me.  One mile in NYC is probably worth 50 in rural Oregon.

[MKII]

CNW Marketing Research took a survey of 200 Toyota dealerships around the country and found that about 33% are still claiming that the Prius can achieve 60 mpg — many making the claim in radio or TV ads. "It's underhanded and deceptive,” said Art Spinella, general manager of CNW Marketing Research. “Toyota isn't doing it. The ads aren't in newspapers where you can cut them out and have proof they did wrong. The ads are usually on radio or TV where you don't have a copy, so that if anyone complains all the dealer has to do is stop running the ad for a while."

Consumers haven't been complaining about the ad claims — largely due to the fact that consumers aren't aware that ratings have changed yet — but many dealers using the 48/45 ratings have, calling either local dealer trade associations or their state attorney general's office to complain and force dealers to use the new rating system.

Toyota has yet to comment on the subject.

http://www.leftlanenews.com/toyota-dealers-still-using-old-fuel-mileage-ratings.html

[jcon]

CNW Marketing Research - I don't believe anything they write or 'research'.

[Mitlov]

CNW Marketing Research took a survey of 200 Toyota dealerships around the country and found that about 33% are still claiming that the Prius can achieve 60 mpg — many making the claim in radio or TV ads. "It's underhanded and deceptive,” said Art Spinella, general manager of CNW Marketing Research. “Toyota isn't doing it. The ads aren't in newspapers where you can cut them out and have proof they did wrong. The ads are usually on radio or TV where you don't have a copy, so that if anyone complains all the dealer has to do is stop running the ad for a while."

Consumers haven't been complaining about the ad claims — largely due to the fact that consumers aren't aware that ratings have changed yet — but many dealers using the 48/45 ratings have, calling either local dealer trade associations or their state attorney general's office to complain and force dealers to use the new rating system.

Toyota has yet to comment on the subject.

http://www.leftlanenews.com/toyota-dealers-still-using-old-fuel-mileage-ratings.html

If they're still selling 2007 Priuses, why aren't they allowed to advertise the 2007 fuel economy ratings?  In general, I suspect that every dealership uses 2007 fuel economy numbers for 2007 cars, even if the 2008s have started to arrive.

It's not a dealer's job to inquire as to how reliable EPA ratings are for a particular vehicle.  To the contrary, I believe the law requires (at least in the United States) that the EPA fuel economy ratings be prominently placed on the car's window sticker.  60 mpg city is an official rating by a government agency for a 2007 Prius.  If they're required to advertise the number on the car itself, I see nothing wrong with putting that number on the radio or on TV.

[Zombie]

They can put any price on the smallest option they want to make it sound like you are getting a deal but the hybirds have already proven not to be worth their payback time at all. Before the cost factor of buiying the hybird part is paid for the batteries will be toast and the car will be almost worn out so wheres the savings that are supposed to be generated. This has been proven already by different magzines and car testers. 

It's also been said, more times than I can count, that hybrids are more about saving the environment than saving money.  If all you want to save is money, buy a Yaris.  Some people are willing to pay a premium for speed; some people are willing to pay a premium for luxury; what's wrong with some people paying a premium for environmental friendliness?

The funny thing is that in the CNW's 'Dust to Dust' Automotive Energy Report. Hybrids were determined to be worse of the environment then non-hybrids when considering the energy required to build, use and disposes of the vehicle.

I like this quot from some blog on edmonds:
"As you can see, the non-hybrid vehicles scored much better than their hybrid counterparts. It sort of makes sense when you take into account energy usage during production and distribution, fuel economy (small factor, so it seems), energy required to dismantle and dispose of the vehicle, etc., and consider that driving a hybrid may reduce greenhouse gases in the area you drive it, but essentially export pollution to other areas (ie. where the vehicle is built, shipped or disposed of)."
http://townhall-talk.edmunds.com/WebX?14@@.f1207ff/0

CNW's 'Dust to Dust' Automotive Energy Report:
http://www.cnwmr.com/nss-folder/automotiveenergy

Mind you that there are allot of people dismissing the report as false. I've yet to read anyone make a good argument that actually proves the report wrong.

[sailor723]

Interesting....I've read similar arguements about how producing ethenol (sp?) uses more energy than it saves.

[inco]

To sum it all up: Too many people trading today for tomorrow!  The IG's have it and you can call them green if you like. Down the road we might be using other names and wonder how dumb we were in letting this happen.