CBS’ Marketwatch reports from Tokyo (or more accurately, blogs the Japanese Business Daily Nikkei’s reporting) that Toyota is going to change out accelerator pedals in US market vehicles in hopes of putting the issue behind them. “Toyota Motor Corp. will make changes to gas pedals in certain U.S. models under an agreement with the U.S. National Highway Traffic Safety Administration, according to a published report, in response to accidents blamed on the accelerators getting stuck to the floor mats. Toyota still maintains that the vehicles are not actually defective. But to settle the potentially image-damaging issue, it will change the gas pedals so they are less likely to get stuck. The work will be handled through dealerships, Japanese business daily Nikkei reported Saturday.” Interestingly enough, nothing is said about non-US market vehicles. (Read More…)
We weren’t the only outlet to note Volkswagen’s apparent 2010 production volume win over Toyota a few days ago. Not so fast, Toyota tells Automotive News [sub]. Volkswagen’s total included production by joint ventures in which it does not hold a majority stake, Toyota’s didn’t. On an apples-to-apples basis (with minority stake affiliates included) Toyota built 4.9m vehicles in the first three quarters of 2009, to Volkswagen’s 4.4m. And because Toyota cut so much production early this year, while VW rode the European (particularly the German) cash-for-clunker wave, Toyota will continue to gain ground over the rest of the year. And the gap could widen in 2010: VW should see a certain amount of downturn in its core German market now that the abwrackprämie has expired, while improvements in the US and Asian markets should help Toyota. Not that Toyota cares about being number one. “Toyota’s goal is to focus on the customer, so we’re not focused on being No. 1,” ooze the spokesfolks. Well thanks for correcting us anyway.
Reuters reports that Japanese manufacturers are running scared from Hyundai-Kia. A combination of a rising Yen and South Korea sealing more and more free trade agreements with other countries has helped Hyundai-Kia immensely. Of course, copying Toyota’s business model of building reliable cars at affordable prices has helped greatly, too. All this momentum from South Korea is getting Japanese car executives a little bit nervous. “I think there’s a sense of crisis in the whole (Japanese) industry,” Toshiyuki Shiga, chief operating officer at Nissan Motor. “Whether you take the Free Trade Agreements or foreign exchange policy, I get the impression that South Korea is tackling things well.”
Although Toyota was a 50% stakeholder in the NUMMI facility in Freemont, California, it may end up carrying 100% of the closure costs. The LA Times reports that Liquidation Motors, the company which took over GM’s assets won’t fund any of the severance pay or other expenses to the closure of NUMMI. “Motors Liquidation is not contributing at all” (to the closure costs), said Tim Yost, a spokesman for Detroit-based Motors Liquidation Corp., “We don’t believe there will be a requirement for us to do so.” Paul Nolasco, a Toyota spokesperson in Tokyo said that “Although we cannot provide any figures at this time, it is something for which we plan to make allowance in our earnings report.” Toyota was planning for a smaller-than-expected loss for this financial year, and the addition of these extra costs (should they happen) will affect the company and its stock price. On the other hand, it also puts Toyota in the exact same boat as the American taxpayers.
Intellectual property warriors, get your guns: Following GM, its arch nemesis Toyota will plant a brand new R & D center smack into the alleged intellectual property jungle called China. Toyota plans to spend between $330 and $440 million for the center. Building will commence next year. Compared to Toyota, the one GM built in 2008 was the lite version at a price of only $250 million.
The Toyota R&D center, complete with a full-scale test course, will be located not far from the GM center, in the outskirts of Shanghai, Gasgoo reports. (Read More…)
Go to any auto auction. Chances are you’ll see 2001 Accords and Camrys go for higher prices than 2003 Tauruses and Grand Prixs. Is that premium justified? Well, I’ll put it to you this way.
A brand is a promise to the consumer. It’s the umbrella under which all products must shelter. All the people responsible for a brand must ensure that it meets that promise. The Toyota Prius is a promise of reliable transportation that achieve high-mileage with low emissions. So it’s no wonder that Toyota has decided to stretch the brand to other vehicles. Oh, wait, the Prius isn’t a brand. It’s a model within a brand, which contains other examples of reliable transportation that achieves high-mileage with low emissions. Is that confusing? Well if it isn’t now, it soon will be. “The Highlander hybrid and Camry hybrid do OK, but calling it ‘Synergy Drive’ never resonated with consumers,” veteran Toyota dealer Earl Stewart told Automotive News [sub]. “But they can make hay on the Prius name. It’s a magic name. If somebody says ‘I drive a Prius,’ everybody knows what he means.” But for how long? The truth about a brand is that its products must fulfill the brand’s promise, or the brand dies. Confusing that brand diminishes it and alienates the people who gave birth to it in the first place. Maybe not straight away, but eventually. And forever.
Sitting in the new Toyota Prius, I suddenly blurted out, “Open the pod bay doors, Hal,” half expecting something to happen. Alas, I was still entombed in the resin chamber that passes for an automobile interior. If Ralph Nader had been an engineer, this is the car he would have designed, a vehicle for people who loathe automobiles.
A year ago, TTAC published a story about out-of-control Toyota Tacomas. Since then, reports continue to surface of “unintended acceleration” events in Lexus ES and IS and Toyota Camry and Camry Solara vehicles. Toyota insists that all-weather floor mats are causing the problem; the accelerator becomes stuck under the rubber. Autocoverup.com alleges, well, you know. “This is a known problem with over 432 complaints,” the site’s author insists. According to NHTSA’s Defect Investigation’s database, reports of unintended acceleration in Lexus ES models first surfaced around 2004 and continued until late 2008. One report (ODI-NHTSA Complaint Number 10252860) describes the problem:
Toyota will end their fiscal year ending in March badly bruised. Financial Times reports that ToMoCo’s losses will be three times larger than previously forecast. The worst industry slump in decades has put a painful crimp in an amazing run. Last year, Toyota earned a record operating profit of $30b. In the same year, they became officially the world’s largest automaker, a title many had said should have been given to Toyota a year before. In November 2008, Toyota still projected a profit of $6.6b. Then, carmageddon caught up with them.
Toyota sold 117,287 vehicles this January, falling 34.4 percent compared to January 2008. Losses were split relatively evenly between the Toyota/Scion division (down 34.9 percent) and Lexus brand (down 30.3 percent). Toyota doesn’t break out Scion brand sales for its press release, but all of its models are down between 41.8 percent (xD) and 59.5 percent (tC). Corolla (down 10.8 percent), Lexus RX (down 7.2 percent) and FJ Cruiser (down 18.7 percent) were the best performers in the ToMoCo lineup. Elswhere, sales drops by model were as bad as 67.2 Percent (Land Cruiser), 61.6 percent (Lexus SC) and 63.6 percent (Lexus GX). Hybrid sales hit 11,876 in January.
It’s the hottest road race of the year. Who are the champs and who are the chumps of the global auto industry? Everybody who’s somebody wants to become a statistic in “world motor vehicle production by manufacturer.” Officially, that race is not over until the fat lady at OICA, the “Organisation Internationale des Constructeurs d’Automobiles” or International Organization of Motor Vehicle Manufacturers, sings. OICA still has the 2007 numbers on their website. Yet, General Motors has already conceded the top post to Toyota. All other manufacturers have already announced their numbers. While OICA is taking their good old time counting, the Nikkei [sub] performed its own tally.
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