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.
So when you thought things at Toyota are getting back to normal, what with NHTSA backpedaling on their ghost in the machine busting attempts, here comes a biggie: A federal grand jury in New York served Toyota with a subpoena, seeking information relating to defects in its steering relay rods. Fancy lawyers call that a subpoena duces tecum, and charge more. The Washington Post reckons this might “potentially widen an investigation that began with reports of sudden unintended acceleration.” Read More >
17 year-old Steven Ortiz is the envy of his friends at Charter Oak High School. The reason? He drives a Porsche Boxster S to school. And before you say it, it doesn’t belong to his parents. It’s legally his. Now I know what you’re thinking at this stage, “How does this punk drive a Porsche to school and I had to make do with a Ford Pinto?” Well, the answer lies with 3 things, an old mobile phone, a little time and Craigslist. Read More >
What’s that? We still haven’t plumbed the depths of our bag-o-automotive-sales-data thoroughly enough to have published annual sales for the Toyota Prius? Well, here it is, my truth-starved friends: ten years of Prius sales, culminating in two consecutive years of falling sales. And granted, most nameplates are down over the last two years because the market has been down for a solid two years now. Also, if you think the downturn is due to gas prices, you’ve got a surprise waiting for you after the jump. So has the Prius lost its luster? Could the most culturally significant passenger car of the last ten years be running out of steam (or whatever it runs on), or is this just a natural drop in demand in line with a weak market?
On Friday Ford announced [via Automotive News [sub]] that it had reached an amicable resolution to a long-standing dispute over hybrid drivetrain technology with Paice, a company that claims to have invented technology crucial to the operation of hybrid powerplants. Ford uses the disputed technology in its Fusion Hybrid and Escape Hybrid vehicles, and it will likely pay royalties to Paice as a result of the settlement, although Ford refuses to give any details on the agreement. Toyota is also locked in a legal dispute with Paice, after a judge ordered Toyota to pay Paice royalties for hybrid models it sells in the US. Toyota continues to litigate an International Trade Commission complaint by Paice aimed at barring the sale of Toyota hybrids in the US. [UPDATE: Toyota has just announced [via BusinessWeek that it has settled with Paice as well, effectively bringing years of controversy to a close. Details of the settlement have not been made clear, but Paice’s Alex Severinsky says that this vindicates his long-standing claim to being the inventor of modern hybrid drivetrains.
Finally something tangible out of the Toyota/Tesla-hookup: Tesla and Toyota will build an electric version of Toyota’s RAV4 compact crossover. According to a communiqué by Toyota, the two companies signed an agreement to that effect. The E-RAV4 is supposed to be available in the United States in 2012. So fast? Well, it’s as simple as combining the Toyota RAV4 model with a Tesla electric powertrain, says Toyota. The first prototype has already been built and is now undergoing testing. Tesla will “produce and deliver a fleet of prototypes to Toyota for evaluation within this year.” Read More >
We didn’t make it down to the first meeting of the NHTSA-National Research Council panel tasked with studying unintended acceleration, but apparently we weren’t the only ones. A scan of the MSM confirms that a number of “more study is needed” stories were filed for the occasion, a good two weeks ago now, but we’ve been pointed towards the presentations for that meeting [available for download here, all 128 slides in PDF format here], and we feel comfortable drawing a few conclusions from them. In fact, we’d even argue that this data puts a lot of the controversy over unintended acceleration in Toyotas to rest.
Welcome to amateur hour. As reported yesterday, The Wall Street Journal claimed in a story that Toyota’s “data recorders can lose their information if disconnected from the car’s battery or if the battery dies—as could happen after a crash.” Their source was “a person familiar with the situation.” Commentator Carquestions concluded that the source doesn’t know what he or she is talking about. After we wrote about it, Carquestions fingered the not so knowledgeable source as “a secretary within Media Relations at the DOT.”
Instead of talking to a secretary, the WSJ could have done what we did: Call Toyota headquarters in Tokyo. Read More >
Just in time for today’s tour of Michigan’s “battery belt,” the Obama Administration has released a study [full PDF here] of its electric vehicle stimulus efforts which concludes that the money was all well spent. Though the report covers a number of programs, from the ATVM “retooling loan” program which is backing companies like Nissan, Tesla and Fisker, to charging station subsidies, the major accomplishment of these billions of dollars is encapsulated in a single claim:
By 2012, thanks in part to the Recovery Act, 30 factories will be online and the U.S. will have the capacity to produce 20 percent of the world’s advanced vehicle batteries. By 2015, this share will be 40 percent.
As you can see from one of the report’s graphs (above) the US will achieve this 40 percent share of the world’s EV battery production just as two-thirds of the cost is beaten out of the things. And because batteries don’t follow Moore’s Law, it’s all diminishing returns from there. So what happens come 2015?
Carquestions noticed a troubling issue with the latest Wall Street Journal report on the investigation of Toyota’s black-box data: the report cites its anonymous source as saying that “black box” event data recorders (EDRs) can lose their data if disconnected from the battery. Carquestions points out that this is not the case, cites the appropriate regulations and concludes that it sounds like this source doesn’t know what he or she is talking about. Meanwhile, Jalopnik is running with the story that Toyota planted the story… but then, why would Toyota imply that its own black boxes don’t meet regulatory standards? Especially when Toyota’s official comment is that it has yet to draw any conclusions from the investigation. For a story with such a logical conclusion (yes, most people are bad drivers) this is all getting a bit complicated.
After ending the first quarter of this year with $35.7b in cash and equivalents, GM was in the best position it’s enjoyed in decades. And yet, with an IPO prospectus looming, The General is seeking a $5b line of credit and trotting out EBITDAPRO as its in-house measure of financial success. Both of these tactics are hallmarks of companies that are doing poorly, and GM has already learned how problematic loading up on debt and sliced-and-diced financials can be. So why is The General inviting criticism from outlets like Edmunds Autoobserver, which characterizes GM’s push towards an IPO as the rebirth of old bad habits? The simple answer: “business execution.” In other words, GM may have a lot of cash, but it’s got nearly as many demands on its resources as well… and these cash drains hardly add up to a coherent strategy.
Reuters reports that Honda has canceled plans to build a new minicar and diesel engine plant north of Tokyo, as the company focuses its product offerings ahead of worldwide emissions standards ramp-ups. Honda’s move away from diesel has been slowly building for years, and the strategy was all but confirmed by the cancellation of a US-market Acura TSX diesel, which was replaced by the V6 TSX. Instead of developing new oil-burners, Honda is focusing on a new hybrid drivetrain capable of powering its larger vehicles. Thus far Honda has kept a conservative approach to hybrids, refining its “mild hybrid” IMA system over several generations. As Honda seeks to improve its fleetwide emissions, this new system (which could be Honda’s first “full hybrid”) has taken on new importance. Honda will officially announce its medium-range plans next Tuesday… and don’t be surprised if it involves a new full hybrid system capable of going toe-to-toe with Toyota’s Synergy Drive.
Now,the Financial Times writes for the first time that “US government officials have acknowledged that they have so far found no fault with the carmaker’s electronic throttle controls. They have suggested that many complaints of unintended acceleration that have dogged Toyota stem from driver error rather than defective equipment.” Read More >
If you want to play the commodities, forget pork bellies, soybeans or gold. Get into lithium. Not to treat the bipolar disorder exposure to the commodities market could trigger. Lithium to power cars. The Japanese Ministry of Economy, Trade and Industry figures that global lithium demand will more than triple from about 92,000 tons in 2010 to 310,000 tons in 2020. Who’s gobbling up the stuff? The automobile industry is expected to use 60 percent of the global lithium supply in 2020, up from less than 5 percent this year. No wonder there is a run on the material. Read More >
The ACEA has released their European new car statistics for the month of June. One look at the picture tells you what is happening: With the cash for clunkers effects slowly working their way out of the system, Europe is settling into a new normal. In June, the market was down 6.9 percent, but for the first six months, with 7,285,487 new cars registered, the market in the EU27 is pretty much what it was in the same period last year. Compared with the first six months of 2008, the market decreased by 10.3 percent, but those were the good old pre-carmageddon days. Read More >
On the back of the news from the NHTSA that they can’t find evidence of Sudden Unintended Acceleration (SUA) electronic gremlins, you’d think that Toyota would be feeling smug about themselves. You’d want to shout this from the rooftops, wouldn’t you? “It’s the drivers, stupid!” If I were Akio Toyoda, I’d show this to Bob Lutz, a bloke who took great delight in knocking Toyota throughout this affair. But what was Toyota’s European division’s reaction to all of this? Humility. Read More >
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