Toyota Motor Co., the world’s largest automaker, has been producing cars for more than 70 years. It wasn’t until after World War II, however, that production started to pick up. Toyota went from making 8,500 cars a year in 1955 to 600,000 in 1965. Models like the Toyopet and Land Cruiser hit the United States in 1957. Today Toyota is among the leaders when it comes to hybrid technology.
In the grand old days of the European auto industry, rival houses would battle for supremacy in endurance, road, rally and formula racing, the results of which were treated as far more important than (or, at least the basis for) such prosaic concerns as sales volume or profitability. In the modern era, this fierce competition slacked, as racing became about brand-building and competition moved into the arenas of sales and profits. Now, however, a new competition has erupted between every brand with a presence in the European market, only this time participation is compulsory and the stakes are survival in a super-competitive, mature market. And neither speed nor endurance will win this race against time: only reaching an EU-mandated carbon emissions goal by 2015 will do.
Lexus’s GS-series of sports sedans has been a perennial sales dog for years now, winning Toyota’s luxury brand few converts from its 5-Series, E-Class and A6 competition. In fact, it’s a testament to Lexus’s successes in building unconventional luxury niches with the RX and ES lines that it’s been able to become a major US market luxury brand without a popular full-sized luxury sedan. But with luxury sales competition heating up under pressure from BMW and Audi, it’s clear that Lexus isn’t willing to let the GS’s underachievement continue unaddressed.
Three companies, each alike in dignity. Or not. Don’t look at the numbers just yet. Instead, consider the following. One of these companies is Japan’s largest automaker and relies heavily on that country for its production and its profit. Another one, although Japanese, produces the bulk of its vehicles overseas. The third company is American and relies very little on Japan for production.
Baseline their stock at Jan 1, 2011. When an earthquake, a tsunami, and an authentic nuclear disaster strike, which of the three end up with the same stock price as the baseline afterwards, and which take a big dive?
In a memo that surprises no-one that has followed TTAC’s extended coverage of the March 11 earthquake and tsunami, Toyota’s U.S. chief Bob Carter warns dealers that deliveries of parts and cars could be severely restricted for months to come. “What we don’t know are vehicle production levels for May through July,” Bob Carter wrote in a memo. “The potential exists that supply of new vehicles could be significantly impacted this summer.” You have seen this coming. Read More >
Chevrolet do Brasil has shown pictures of its updated S10. In what has become somewhat of a norm for this market, the truck will be debuted at the Thailand Auto Show (according to Brazilian ehthusiast site webmotors.com.br). Once in Brazil, the new S10 will substitute both the South American and the Asian model (known as Colorado).
GM targets its more expensive rivals this time. Read More >
New Jersey Motorsports Park has a very fast road course that lets most LeMons drivers keep the hammer down much of the time… and that means stuff is going to break. Lots of stuff. Read More >
When we come to LeMons races in the Northeast, we can count on seeing plenty of rusty race cars, and on seeing numerous dudes in maybe-not-so-ironic wifebeater shirts. Never before, however, have we seen so many ridiculous engine swaps in one race. During the BS Inspection, which serves to punish cars deemed to have blown past the $500 spending limit, we saw a (very) poor man’s TR8, a supercharged GM 3800 in a Bradley GT, a couple of Camry V6-powered MR2s, and much more! Read More >
Better get used to this: Barely had Toyota announced that it will reopen its Japanese plants, then Toyota U.S.A. chimes in and says: “We are shutting down.” Welcome to the supply chain gang. Toyota is running its N.A. vehicle plants on what they call “a reduced schedule.”
When we worked on the Phaeton launch in 2001, we said it had “more computers than a small company.” It had 56. Today’s cars have anywhere between 30 and 100 computers on board. They are small microcontrollers that typically chat with each other via a CAN bus. You don’t take just any microcontroller for the job. They need to hold up to the harsh environment inside of a car. Their makers need to hold up to the harsh environment presented by the purchasing departments of automakers that squeeze them for every penny. As a result of both, there are only a few players in this field. This is the story of one of them. Read More >
“I know some of these big guys, they’re all still driving their big SUVs. You know, they got their big monster trucks and everything. You’re one of them? Well, now, here’s my point. If you’re complaining about the price of gas and you’re only getting eight miles a gallon–(laughter)–you may have a big family, but it’s probably not that big. How many you have? Ten kids, you say? Ten kids? (Laughter.) Well, you definitely need a hybrid van then. “ — President Obama, speaking at a wind farm to a worker.
In what’s been called “a modern equivalent to ‘let them eat cake’,” the President instructed Americans with large families to buy a hybrid van during a speech yesterday.
It is the morning after a 7.4 magnitude tremor,the strongest aftershock so far, located in approximately the same area as the devastating March 11 quake, rattled northern Japan. Most of the increasingly quake-blasé Japan shrugged it off.
Then in the late Japanese morning, a bit of good news from and for the automotive sector. Toyota Japan will re-open for business on April 18. Read More >
We’ve already asked the cui bono question about Japan’s post-tsunami parts paralysis, and though opinions vary about precisely cui will be doing the bonoing, it’s clear that some are already doing better than others. For more clarity on the developing picture, hit the jump for TTAC’s roundup of the latest parts paralysis news. Read More >
How things change in a few years! Just a few short orbits of the sun ago, automakers like GM were some of the biggest boosters of ethanol subsidies. Now, the Detroit News reports
The Alliance of Automobile Manufacturers – the trade association representing General Motors Co., Ford Motor Co., Chrysler Group LLC, Toyota Motor Corp. and eight others – opposes a bill sponsored by Sen. Tom Harkin, D-Iowa, that would require 90 percent of all vehicles to run on E85 – a blend of 85 percent ethanol – by the 2016 model year.
Shane Karr, vice president for government affairs, said the mandate “would cost consumers more than $2 billion per year” for flex fuel vehicles if automakers passed on the full cost “even though consumers will have little or no access to alternative fuels. Therefore, such a mandate is essentially a tax with little consumer benefit.”
Nobody dares to say it aloud, but parts of the “Buy American” contingent are secretly high-fifing when bad news from Japan is on TV or on the net. U.S. car companies themselves aren’t so sure, one missing chip, or an absent acceleration sensor can bring a whole line down. And of course they won’t be caught saying something reprehensible. Leave it to the Deutsche Bank and The Nikkei to end the (dis)grace period and to come out with their analysis of which carmaker might gain from the Tohoku tsunami. Read More >
Everybody thinks the Japanese auto industry will re-open for business next week, and will happily produce away. This is clearly not the case. What will be opened will proceed very carefully through the minefields of missing parts and cut power. A lot will not be re-opened at all.
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