Today, Toyota finally delivered its delayed outlook for this fiscal year. It usually is delivered at the annual results conference, but the tsunami had muddled the waters, so to speak. Now, Toyota has a bit more visibility. Today, Toyota did forecast a 35 percent fall in profit for the fiscal year ending March 31, 2012. Toyota expects to end the fiscal with a net income of 280 billion yen ($3.5 billion).

According to Reuters, that’s “well short of the consensus for a 434 billion yen profit in a poll of 23 forecasts by Thomson Reuters I/B/E/S.” I am proud of the optimism of the forecasters. Personally, after looking at the disaster in Japan, I hadn’t expected any profits. (Read More…)

The Chinese government appears to be dead-set on electrifying its car fleet. And if any government usually gets what it wants, then it’s the Chinese. Generous subsidies beckon: Some cities in China match a central government subsidy of 60,000 yuan with their own 60,000 yuan largesse. That’s 120,000 yuan, or in today’s greenbacks (forget the rumor that the yuan is pegged to the $, no more) that’s $18,515. Even more intriguing: Beijing promises to do away with its license plate lottery for EVs.

Two problems: No EVs to buy, and no charging stations. (Read More…)

I’m just beginning to figure out that Twitter thing, and there it was:

“ToyotaPR Scott Brownlee RT @YouTubeLMAO: @ToyotaPR Made this Hybrid Music Video for Toyota. http://youtu.be/8H-yUQZ9uqM < Reminds me of http://youtu.be/RksFDe6nkaY”

Say what? (Read More…)

Mazda will stop making cars in the U.S. at around 2013, The Nikkei [sub] heard from unnamed sources inside of the Japanese company. It’s not that Mazda is leaving America. It’s more a continuing process of its divorce from Ford. Mazda wants to sell its share in AutoAlliance International Inc., a 50-50 U.S. joint venture with Ford, back to Ford. (Read More…)

Fresh indications that the Japanese auto industry is getting back on is feet faster than thought. Honda and Toyota were – in numbers of cars not produced – hardest hit by the ripple-effect of the March 11 tsunami. Both originally thought they would not be back to normal before year’s end.  Today, The Nikkei [sub] writes that Honda “will likely have its domestic production nearly back to normal in July, sooner than expected, as autoparts manufacturers quickly get output back on track.” Yesterday, Toyota had confirmed, that the company will be back to 90 percent in June in Japan. Nissan is also near normal and wants to increase production capacity from September. (Read More…)

No, this is not another installment of Steve Lang’s “Lease, Rent, Sell or Keep?” series. Wards Auto is reporting that Toyota facing a decision over whether to kill its Matrix hatchback when a new version of the Corolla on which it is based debuts sometime “before 2013.” Toyota’s Bob Carter tells Wards that

There’s no change right now on the car, (but) we haven’t made the decision yet

So, what to do? Toyota doesn’t break sales of the Matrix out from the Corolla, but according to Wards:

The hatchback reached its pinnacle in 2002, selling 66,836 units, Ward’s data shows.

Annual deliveries have declined since then, except for 2008, the second-generation model’s first full year.

However, Matrix volume plunged 47.3% to 26,121 in 2009, from 2008’s 49,567, and last year slid 44.5%, with only 14,492 deliveries.

Toyota’s Carter insists that the forthcoming “Prius C” compact hatch “attracts a different type of buyer,”  an argument he’d probably also apply to the Scion xB, another Corolla-based hatchback. So, should Toyota develop a new Matrix along the lines of its predecessors in hopes that the third iteration brings back some magic to the nameplate? Or, would a re-styled xB make a better Toyota than Scion, opening up Scion’s lineup for a version of the Verso-S? Or perhaps Toyota could offer its European Auris as a Hyundai Elantra Touring-style contrast to the very American Corolla. Or, Toyota could look to the Verso for a larger, more utilitarian alternative to a traditional Matrix.

In any case, with so many possible options, it’s no wonder Toyota hasn’t made a decision yet…

Amazing quote in today’s Nikkei [sub]:

“Shares in Toyota Motor Corp. gained further ground Tuesday afternoon, after Moody’s Investors Service Inc. said during the lunch break it may downgrade Japan’s sovereign debt ratings.”

Welcome to the wicked world of global economics. (Read More…)

Once upon a time Japanese cars came to our shores promising high fuel economy and despite feeling small and cheap, buyers flocked to the dealers. Over time however, the Japanese auto industry grew up. “Small and flimsy” are qualities that modern Japanese imports do not possess but as is the way with the world, better quality came with a price: lower fuel economy. The first generation Prius proved that good fuel economy did not mean jamming yourself into a two-seater light-weight vehicle full of compromises a family of four just couldn’t make. Still, it was far from perfect; it was dreadfully boring, felt small and cheap and was not large enough for many families.

In an era when ginormous SUVs were all the rage, the Prius’ mileage was nothing short of show-stopping and they sold like hotcakes once the Hollywood set made them the latest fashion accessory. When the third generation Prius saw the light of the automotive press, it was obvious that the upstart had grown up. Unlike the other Toyota family members however, the Prius becomes more efficient and larger with every revision. One complaint however has stuck: the Prius is just too small for some.

(Read More…)

A lengthy Automotive News [sub] story on Scion concludes with Scion VP Jack Hollis restating the brand’s basic myth:

Scion was not created for Scion’s sake. Scion was created for Toyota’s sake. It is an investment in Toyota’s collective future.

Hollis’s argument is bolstered by the scenario in which a youngster is attracted to a Scion store by the brand’s youth-oriented marketing, only to leave in a Corolla. Hollis argues that this model means Scion doesn’t have to worry about its sales volume… which is a good thing, considering the brand’s steady sales decline over the past four years. Hollis explains:

We still don’t go with a set [volume] number. Scion wants to be more influential. We want to talk to more people. We’re getting the right people, so the real question is: How do we get more of them?

I don’t know about you, but creating a brand to be “influential” and to “talk to more people” sounds like some vintage, dry-aged, old-school GM branding nonsense. And given that Scion’s sales decline coincided with the rollout of less-distinctive, more Toyota-like products, Scion’s apparent comfort with its recent declines smack of Old GM-style apathy as well (Scion execs respond with the old “but we gave customers what they wanted” chestnut). But don’t worry… Scion has a plan!

(Read More…)

SB Medien may call the forthcoming FT-86 a “Celica replacement,” but in this first video of the latest near-production prototype, the budget rear-drive coupe nearly runs into a Supra which apparently belongs to the development team. The Supra shows up once more in the video’s ‘ring testing footage (about 1:55 in), suggesting again that it’s somehow involved in the testing or benchmarking process. How and why? Your speculation is as good as mine…

Come June, Toyota “plans to bring domestic auto production back to as much as 90 percent of targets set before the March earthquake hit, thanks to faster-than-expected improvements in parts supplies,” The Nikkei [sub] writes today. At the annual results conference in Tokyo, Akio Toyoda had said Toyota Toyoda would be on its way back to normal beginning in June, with hopefully 70 percent of production reinstated in summer. This was already a two month improvement over previous plans. Two weeks later, the outlook seems to be even better. If The Nikkei heard correctly. (Read More…)

Last January, Toyota’s Prez Akio Toyoda visited Salesforce.com CEO and cloud computing proselytizer extraordinaire Mark Benioff in Benioff’s sprawling compound on the Big Island of Hawaii.

(Read More…)

The ripple effects of the March 11 tsunami keep bouncing around the globe. The is good news and bad news. (Or bad news and good news, depending on the side you are on.) (Read More…)

“How will you sync the engines?” whined the naysayers when they heard about the plan to weld an ’89 Corolla front half to an ’87 MR2 rear half. “How will you cool it? The handling will be terrible! It’ll never work!” If there’s one thing that 24 Hours of LeMons racing has taught the automotive world, it’s that the experts’ preconceptions can be thrown right out the window when it comes time to drop a cheap race car into the crucible of an all-weekend-long road race. For example, who would have imagined that Chevy small-block and Honda B engines would turn out to be among the most fragile in the crapcan endurance racing world? And who would have imagined that the DoubleSuck MR2olla would do so well at the notoriously car-killing Reno-Fernley Raceway?
(Read More…)

“If you have no cars, you will lose market share,” said double-CEO Carlos Ghosn at last week’s annual results conference of Nissan. He said openly what other carmakers on the other side of the Pacific only dare to whisper into the ears of sympathetic reporters, or via analysts at banks and brokerages: The March 11 tsunami will cost Japanese makers big chunks of market share. The questions is: For how long? (Read More…)