When Toyota built the first generation of its Vitz subcompact in 1998, the firm had no plans to sell it in the US under the Yaris nameplate (as it was called in Europe). Instead it sold a four-door and two-door version of the Platz, which was mechanically identical but had unique sheetmetal (except for the front doors), as the Echo. The Echo fell into a pattern that seems to have repeated itself several times in Toyota’s recent subcompact past: a year of growth, and then a drop. Eventually, Toyota brought the Yaris nameplate to the US, with a hatchback option in tow, and found its strongest performer in this class since the Tercel.

Now, with the hatchback bodystyle back in vogue, Toyota’s dropping the Yaris sedan altogether for the new generation, debuting later this year. It’s not the JDM/Euro Yaris/Vitz which Bertel showed us back in December, but it is being built at the revolutionary Sendai plant he visited in Fbruary. And without a sedan counterpoint, it will definitely mark an entirely new approach for Toyota’s US-market subcompact strategy.

Among the many new SKYACTIV technologies that Mazda plans on introducing to its global lineup, a unique start-stop system is one of the most important. Initially Mazda had decided not to bring its idle-stop system to the US as the EPA system didn’t measure a major improvement in efficiency, but ultimately the decision was made to make all of its vehicles idle-free by 2015. But an early test of a SKYACTIV idle-stop-equipped Mazda2 by Automotive News [sub]’s Hans Greimel reveals an interesting characteristic:

a funny thing happened when I paused for a red in Tokyo’s harbor district.

After a few moments of silence, the engine clicked on, as designed, to help keep the air conditioner going. OK, that’s normal. But as the engine jumped to life, so did the steering wheel. To my surprise, I found the engine’s start-up vibrations turning the wheel to-and-fro in my loose grip.
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Around the time of the founding of the United States, the Mexican state of Guanajuato became home to of the one of the biggest silver mines in the world, which produced as much as 2/3rds of the world’s supply of silver at its peak. Today it’s not precious metal that’s driving Guanajuato’s booming economy, but cars, as the world’s automakers flock to Central Mexico. Between 2005 and 2008, GM, Ford and Michelin dumped $1.8b into production in the state, and the expansion is still picking up steam. In the last year, Volkswagen invested $800m in engine production capacity in Silao, Pirelli built a $210m facility and Mazda just revealed it would build a new compact car plant there in June. Toyota is said to be the next to set up shop in Guanajuato, but for the moment Honda is the latest automaker to announce new operations in Guanajuato, as Automotive News [sub] reports the Japanese automaker will spend $800m on an assembly plant there. Honda, which is fleeing a strong yen which has battered Japanese exports, will start building 200k subcompacts per year in 2014. Clearly Guanajuato’s got it’s automotive mojo flowing… but are the days of new Japanese transplant factories in the US over? Is it only a matter of time before the coyotes start smuggling Detroiters into Silao, Celaya, and the Puerto Interior??

Welcome back to ongoing coverage of the latest transcontinental tale of romance and betrayal, in which Volkswagen and Suzuki’s young-but-troubled relationship is put to the test while the world watches. Last time we checked in, a piece of pricey gossip suggested what the rumors had been saying for weeks: VW and Suzuki were headed for Splitsville. But despite the angry blogging outbursts and talk of “reviewing the relationship,” Volkswagen is standing by its Japanese bride, telling Automotive News Europe [sub] that the latest gossip that the “relationship is headed for dissolution” is “nonsense.” Suzuki joined the show of support, saying it had no plans to leave. But all the while, an Italian temptress is putting even more pressure on this relationship, as Bertel reported last month: Read More >

Someone is fanning the flames between Volkswagen and Suzuki, and we aren’t talking flames of love. Today, the German Platow Brief reported a bit belatedly that the German-Nipponese alliance is on the ropes. Something that the attentive reader of TTAC has known for quite a while and as always free of charge. The expensive subscription to the German financial newsletter is not in our editorial budget. A friend of TTAC sent us today’s Platow missive, which can’t be found on-line. After going through the usual blah-blah, the letter drops a high explosive bomb: Read More >

Following strong rhetoric of Japan’s automakers against the strong yen, Nissan appears to take action. According to Reuters, Nissan will “reduce exports by as much as a third and reduce the impact of the yen’s crippling strength.” The move is couched into socially acceptable terms. Read More >

Japan’s automakers face a problem not seen for a long time: Unfilled job openings. “Automakers and other manufacturers are struggling to fill positions at their domestic factories as they ramp up output to make up for production lost since the March 11 disaster,” says The Nikkei [sub]. Read More >

Here comes a possible explanation for yesterday’s Wild-Ass Rumor Of The Day: Toyota says that “a jointly-developed RAV4 electric vehicle will be built at Toyota Motor Manufacturing Canada, Inc. (TMMC) in Woodstock, Ontario beginning in 2012.”  Now what about that billion dollar deal? Read More >

Toyota’s Prius defended its title as best selling car in Japan, which it had re-gained from Honda’s Fit in June. Production at Toyota is getting back in gear, and pre-ordered Prius Alpha wagons are finding their way to their owners. Table provided by the Japan Automobile Dealer Association JADA after the jump … Read More >

Toshihiro Suzuki, executive vice president of Suzuki said Volkswagen conducting a review of their troubled marriage is “a step forward.” He quickly added  that Suzuki had not heard any details, says Dow Jones via The Nikkei [sub].

“Our cooperation is based on the premise of being equal partners,” said Suzuki. “We’ll wait to hear from Volkswagen to confirm that the review under way is being carried out with this idea in mind.”

This doesn’t sound like the remarks of a partner who is ready to kiss and make up & out. Read More >

Last week, we brought you the news that the Nissan-Dongfeng joint venture will build an EV in China, that it will be ready by 2015, and that it will not be the Nissan Leaf. The Made-in-China plug-in will be offered by Nissan-Dongfeng’s “Chinese” brand, Venucia. This most likely in compliance with yet-to-be-released, but much-rumored regulations which will shower Chinese EV subsidies only on indigenous vehicles.

Barely a week after the news, there already are pictures of the future Chinese EV. Read More >

The race for bragging rights amongst the top three promises to stay interesting throughout the year. Toyota just issued new forecasts which pegs global production across all Toyota Motor Corp. brands at 8.04 million. This should worry Wolfsburg. Volkswagen was seen as the clear number 2 after GM in the 2011 race. Now matters are not so sure. Read More >

New car sales in Japan, excluding minivehicles, were down 27.6 percent on the year to 241,472 in July, while Japan slowly recovers from the effect of the March 11 tsunami, but continues to suffer from a contracting market. Data released today by the Japan Automobile Dealers Association shows that this is the 11^th month straight down. Gory details after the jump … Read More >

Ever since the power went out in large parts of Japan after a massive Tsunami slammed into the country on March 11, the big question no longer is “will I be able to charge my EV at home.” It is: “Will I be able to power my house with my car?” This may seem alien to you, but a Tsunami has certain effects, and this is one of them. At a press conference in Yokohama, reporters asked Nissan’s CEO Carlos Ghosn: “When will it discharge?” Meaning the Leaf into the house. A few days later, Toyota showed a house that can be powered by a plug-in Prius should the lights go out. Now Nissan finally shows its great chargeback solution. Read More >

Mazda will show its all-new Mazda CX-5 compact crossover SUV at the 2011 Frankfurt Motor Show, which is from September 13 through 25, 2011. According to Mazda’s press release, “the CX-5 is the first of a new generation of Mazda products that will adopt the full range of Mazda’s breakthrough SKYACTIV TECHNOLOGY and new design theme, ‘KODO – Soul of Motion’. Pictures after the jump … Read More >