Toyota: Sales, Marketing, and Financial News
04-28-2014, 02:46 PM
#121
Team Owner
sriracha is apparently gonna move to Texas too.
Irwindale asked them to move to Irwindale from Rosemead, and 4 household complained about the smell.
Now City of Irwindale might shut them down...
so the city did not know what Sriracha is BEFORE you asked them to move to Irwindale????
Irwindale asked them to move to Irwindale from Rosemead, and 4 household complained about the smell.
Now City of Irwindale might shut them down...
so the city did not know what Sriracha is BEFORE you asked them to move to Irwindale????
06-21-2015, 06:26 PM
#122
Senior Moderator
Heartwarming ad issued by Toyota today for Father's Day... 
02-03-2016, 10:28 AM
#123
Toyota Ending Scion Brand - WSJ
Toyota Ending Scion Brand
The brand will cease in August and Toyota will fold most Scion-branded vehicles into Toyota lineup
Feb. 3, 2016 11:04 a.m. ET
Toyota Motor Corp. is killing its Scion brand, folding the vehicles back into the Toyota brand portfolio, 13 years after the brand made its debut and helped the company capture young buyers.
The brand will cease in August and Toyota will fold most of the Scion branded vehicles into its Toyota lineup. There were only 22 “Scion” specific Toyota employees, and they will be offered positions inside the Toyota brand.
Scion, which began with the 2003 model year, aimed to attract younger buyers into the Toyota brand and give the company way to try out experimental sales techniques and other promotions. Toyota initially launched the brand with two vehicles, the subcompact hatchback xA and XB, the latter becoming a big hit with its quirky boxlike shape. Soon after, Toyota sold the tC sports coupe, which rapidly became its top selling model.
Sales topped out in 2006 at just over 173,000 and have tailed off since then, dipping to 56,167 in 2015 for its seven models. For comparison, with only three models in 2004 it had about 100,000 in U.S. sales.
Scion’s fate could be tied to the falling interest in cars, particularly small cars, as low gasoline prices in the U.S. have pushed people into crossovers and trucks. It shares a lot in common with the former Saturn brand, which General Motors Co. launched in the early 1990s to attract younger buyers and try out new sales techniques. Over time, it became too expensive to try to fill Saturn’s product portfolio for the amount of sales it produced and it was killed off during GM’s plunge through bankruptcy in 2009.
“I was there when we established Scion and our goal was to make Toyota and our dealers stronger by learning how to better attract and engage young customers,“ said Jim Lentz, who founded the Scion brand for Toyota and is now the CEO of North America. ”I’m very proud because that’s exactly what we have accomplished.”
The average age of a Scion buyer was 36 years old, nearly two decades younger than the industry average for buyers of all new cars.
“I think they realized that they have two brands that heavily overlap. Toyota is fully capable of satisfying all the things Scion could offer,” said Karl Brauer, an analyst with Kelley Blue Book. “Hardly any brand sold fewer cars in 2015 than in 2014, but Scion did.”
Toyota attempted to re-energize the brand with an influx of new models, including the F-RS sports car built in conjunction with Fuji Heavy Industries Ltd’s Subaru, which sells a very similar BRZ model. It restyled its tC coupe and introduced two new models, the iA and iM in 2015.
Scion even made its debut a funky looking two-door crossover vehicle concept at the Los Angeles Auto Show called the C-HR. Toyota said that will become part of the Toyota lineup.
Since all Scions are sold at Toyota dealerships, killing off the brand shouldn’t result in the closure of a Toyota store.
The brand will cease in August and Toyota will fold most Scion-branded vehicles into Toyota lineup
Feb. 3, 2016 11:04 a.m. ET
Toyota Motor Corp. is killing its Scion brand, folding the vehicles back into the Toyota brand portfolio, 13 years after the brand made its debut and helped the company capture young buyers.
The brand will cease in August and Toyota will fold most of the Scion branded vehicles into its Toyota lineup. There were only 22 “Scion” specific Toyota employees, and they will be offered positions inside the Toyota brand.
Scion, which began with the 2003 model year, aimed to attract younger buyers into the Toyota brand and give the company way to try out experimental sales techniques and other promotions. Toyota initially launched the brand with two vehicles, the subcompact hatchback xA and XB, the latter becoming a big hit with its quirky boxlike shape. Soon after, Toyota sold the tC sports coupe, which rapidly became its top selling model.
Sales topped out in 2006 at just over 173,000 and have tailed off since then, dipping to 56,167 in 2015 for its seven models. For comparison, with only three models in 2004 it had about 100,000 in U.S. sales.
Scion’s fate could be tied to the falling interest in cars, particularly small cars, as low gasoline prices in the U.S. have pushed people into crossovers and trucks. It shares a lot in common with the former Saturn brand, which General Motors Co. launched in the early 1990s to attract younger buyers and try out new sales techniques. Over time, it became too expensive to try to fill Saturn’s product portfolio for the amount of sales it produced and it was killed off during GM’s plunge through bankruptcy in 2009.
“I was there when we established Scion and our goal was to make Toyota and our dealers stronger by learning how to better attract and engage young customers,“ said Jim Lentz, who founded the Scion brand for Toyota and is now the CEO of North America. ”I’m very proud because that’s exactly what we have accomplished.”
The average age of a Scion buyer was 36 years old, nearly two decades younger than the industry average for buyers of all new cars.
“I think they realized that they have two brands that heavily overlap. Toyota is fully capable of satisfying all the things Scion could offer,” said Karl Brauer, an analyst with Kelley Blue Book. “Hardly any brand sold fewer cars in 2015 than in 2014, but Scion did.”
Toyota attempted to re-energize the brand with an influx of new models, including the F-RS sports car built in conjunction with Fuji Heavy Industries Ltd’s Subaru, which sells a very similar BRZ model. It restyled its tC coupe and introduced two new models, the iA and iM in 2015.
Scion even made its debut a funky looking two-door crossover vehicle concept at the Los Angeles Auto Show called the C-HR. Toyota said that will become part of the Toyota lineup.
Since all Scions are sold at Toyota dealerships, killing off the brand shouldn’t result in the closure of a Toyota store.
02-03-2016, 01:36 PM
#124
Senior Moderator
R.I.P Scion brand, we won't miss you..
Toyota has killed its ailing Scion brand after its quirky designs failed to catch on and low gasoline prices made small cars a tougher sell.
The brand's vehicles will be re-badged as Toyota models beginning with the 2017 model-year.
"Clearly we don’t take the discontinuation of a brand lightly — something that we’ve invested enormous amount of personal resources in for 13 years," Bob Carter, senior vice president of automotive operations for Toyota Motor Sales, told reporters in a conference call.
Toyota envisioned Scion as an entry point for cost-conscious, young buyers. In that respect, the strategy worked. The average age of a Scion buyer was 36 years old, and 70% of the brand's buyer's had never purchased a Toyota before.
But critically panned design choices — such as the cramped iQ mini car — set the brand on a path toward irrelevancy for the average new-vehicle shopper. Carter acknowledged that the company failed to reach Millennial buyers through marketing.
The last straw, you could say, was plunging gasoline prices, which have crushed sales of the type of small cars Scion sells.
"It just never got traction and it has been on life support for at least five years, if not longer," said Peter De Lorenzo, a former auto marketing executive and editor of Autoextremist.com, in an interview. "But kudos to Toyota for admitting that it was superfluous and they were wasting a lot of money trying to make the brand survive."
The brand's vehicles will be re-badged as Toyota models beginning with the 2017 model-year.
"Clearly we don’t take the discontinuation of a brand lightly — something that we’ve invested enormous amount of personal resources in for 13 years," Bob Carter, senior vice president of automotive operations for Toyota Motor Sales, told reporters in a conference call.
Toyota envisioned Scion as an entry point for cost-conscious, young buyers. In that respect, the strategy worked. The average age of a Scion buyer was 36 years old, and 70% of the brand's buyer's had never purchased a Toyota before.
But critically panned design choices — such as the cramped iQ mini car — set the brand on a path toward irrelevancy for the average new-vehicle shopper. Carter acknowledged that the company failed to reach Millennial buyers through marketing.
The last straw, you could say, was plunging gasoline prices, which have crushed sales of the type of small cars Scion sells.
"It just never got traction and it has been on life support for at least five years, if not longer," said Peter De Lorenzo, a former auto marketing executive and editor of Autoextremist.com, in an interview. "But kudos to Toyota for admitting that it was superfluous and they were wasting a lot of money trying to make the brand survive."
Source: Toyota kills ailing Scion brand
Good riddance if you ask me... Also maybe aligned with the potential new "Prius" line that some of us were hypothesizing in the General Car Talk Discussion thread
02-03-2016, 01:41 PM
#125
I find it odd they say they were targeting young buyers then drop the age 36. That's not young to me. I'm only 28 and I personally thought Scions were for 18 year olds... though I do like the FRS but that's a fun little go kart and not for a brand new driver IMO.
I assume the FRS will just be rebadged along with the Tc and Xb.
I assume the FRS will just be rebadged along with the Tc and Xb.
02-03-2016, 01:47 PM
#126
Senior Moderator
I find it odd they say they were targeting young buyers then drop the age 36. That's not young to me. I'm only 28 and I personally thought Scions were for 18 year olds... though I do like the FRS but that's a fun little go kart and not for a brand new driver IMO.
I assume the FRS will just be rebadged along with the Tc and Xb.
I assume the FRS will just be rebadged along with the Tc and Xb.
The FRS was always a "Toyota GT86" in JDM land and so many people go and put a Toyota emblem on it anyway so I don't think that target demographic would be disheartened by this news
02-03-2016, 02:18 PM
#127
Ex-OEM King
I find it odd they say they were targeting young buyers then drop the age 36. That's not young to me. I'm only 28 and I personally thought Scions were for 18 year olds... though I do like the FRS but that's a fun little go kart and not for a brand new driver IMO.
I assume the FRS will just be rebadged along with the Tc and Xb.
I assume the FRS will just be rebadged along with the Tc and Xb.
I wonder why they won't just swap over to the GT86 badges for the FRS...? Most owners do that anyway.
02-03-2016, 02:35 PM
#128
Stay Out Of the Left Lane
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Here is another article from Motor Trend
02-03-2016, 03:25 PM
#130
Compare that to the average age of Toyota buyers (56), and you will see that Scion was a success in that regard.
Does Toyota Really Need Younger Buyers? - Driver's Seat - WSJ
The graying of its customers is an issue for Toyota. With a median age of 56, its U.S. buyers are older than those at rivals like Volkswagen (51) and Honda Motor (55), according to J.D. Power & Associates.
02-03-2016, 03:29 PM
#131
02-03-2016, 03:31 PM
#132
Senior Moderator
Originally Posted by AZuser
That's like posting Honda news in the Acura thread
02-03-2016, 04:08 PM
#133
They should just rename the Scion FR-S as Corolla AE86
Then put out a new Celica and Supra to continue to attract young buyers.
Then put out a new Celica and Supra to continue to attract young buyers.
02-03-2016, 08:48 PM
#134
02-04-2016, 08:18 AM
#135
Moderator
So it'll be the Toyota FR-S? Or are they going to change it to the GT86?
02-04-2016, 12:39 PM
#136
GT86 
iM = Matrix? Auris?
iA = ???
iM = Matrix? Auris?
iA = ???
02-04-2016, 01:21 PM
#137
Moderator
02-04-2016, 02:16 PM
#138
02-04-2016, 02:32 PM
#139
Moderator
Join Date: Aug 2014
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I'm not sure they're changing the names. Just the S to T badge.
Which is a shame because it'd be the perfect chance to bring back the Corolla Wagon name, and then reintroduce the Turdcel name.
Which is a shame because it'd be the perfect chance to bring back the Corolla Wagon name, and then reintroduce the Turdcel name.
02-04-2016, 02:36 PM
#140
Moderator
02-04-2016, 02:37 PM
#141
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02-04-2016, 02:38 PM
#142
Moderator
02-04-2016, 02:59 PM
#143
iA
Sep 2015: 2,035
Oct 2015: 1,977
Nov 2015: 1,785
Dec 2015: 1,808
Jan 2016: 1,840
ILX
Sep 2015: 1,614
Oct 2015: 1,860
Nov 2015: 1,353
Dec 2015: 1,960
Jan 2016: 1,233
The following 3 users liked this post by AZuser:
02-04-2016, 03:07 PM
#144
2016 Scion iA First Drive ? Review ? Car and Driver
2016 Scion iA
It's not a Scion, but it is a really great small car.
First Drive Review
The 2016 Scion iA is a great little car, but there are two things we’re all going to have to get over in regard to the new subcompact. First, Scion rebadged a Mazda 2 to bring the iA to life. And second: its awkward nose.
Those may or may not be insurmountable hurdles, depending on your aesthetic sensibilities and/or your loyalty to the scrappy zoom-zoom brand from Hiroshima. The iA is, after all, merely the sedan version of the sassy Mazda 2, which until just last month was expected to arrive in U.S. Mazda dealerships by the beginning of 2016 in handsome hatchback form. But Mazda has decided to pull the plug on the 2 for the U.S. and Canadian markets at least in the near term—the car had already received EPA fuel-economy estimates and everything—ostensibly to focus on its more profitable models. So the Scion iA is our only access to the new Mazda 2 in any form. And it’s a car that, as it turns out, is every bit as sweet to drive as we could have hoped.
As for the Scion’s schnoz, we’re told it was designed by Toyota stylists in Japan for this car, which will be sold not just as the Scion iA in the United States but also as the Toyota Yaris sedan in Mexico and Canada. (Incidentally, Toyota will continue selling us the French-built Yaris for now in hatchback form only, although the next-gen model eventually moves to the Mazda 2 platform, as well.) The headlamps and hood are Mazda pieces, as is everything aft of them; only the “soft parts” (bumper, grille, etc.) of the front end are unique to the iA. This means that from pretty much every angle, it looks like a shrunken Mazda 3, not a Toyota/Scion anything, and it felt rather unnatural to force ourselves to see the car as a Scion when we encountered the little sedans coming and going during the press drive in Malibu, California. Then again, we’re car people; few folks shopping in this segment are likely to notice and even fewer will care.
Look Beyond the Nose
What they will (and should) care about is the car’s compelling packaging, high level of equipment, and outstanding dynamics. The interior is essentially unchanged from the Mazda 2, which squeezes most of the Mazda 3’s style and technology into subcompact dimensions. While it looks and feels utterly incongruous to all other Scions, including the new iM hatchback (which also arrives in dealerships in September), that doesn’t take away from the cabin’s overall excellence. We like its motorcycle-inspired gauge cluster, seven-inch stand-up infotainment screen, iDrive-type control dial in the center console, and the sweet, three-spoke Mazda steering wheel. Essentially, Scion merely selected the upholstery colors (black with blue accents) and equipment—much of which probably would have been optional on the Mazda 2, by the way—that will come standard in its “mono spec” model.
For a more complete list of those items, check out our coverage of the iA reveal, but the high points include cruise control, air conditioning, push-button ignition, a rear camera, 16-inch alloys, two years of free maintenance, and even a low-speed collision-mitigation system. That’s quite a lot of goodies for $16,495 with a manual or $17,595 with an automatic. Any add-ons are considered accessories, including navigation, which is expected to cost about $400. Sadly, nowhere on the accessories list is the Mazda 2 nose, although it would probably be an easy-ish swap for someone so inclined.
A Wee Athlete
The best news by far is how well the iA drives thanks to the Mazda 2 mechanicals. Those include its 106-hp 1.5-liter Skyactiv four-cylinder, which we wouldn’t consider muscular, yet it makes easy work of scooting the roughly 2400-pound iA through traffic. The engine feels sinewy and smooth, making revving to the 6000-rpm horsepower peak a real joy. Full torque, all 103 lb-ft of it, is available at 4000 rpm. Unsurprisingly, we prefer the six-speed manual on account of its short throws, precise gates, and light clutch. But we can’t fault those who choose the excellent six-speed automatic, which allows the torque converter to do its thing at launch to smooth takeoff before locking it for crisp, direct shifts. There’s also a Sport shift mode, activated via a toggle switch at the base of the shifter.
The meandering ribbons of pavement that connect Malibu to the San Fernando Valley gave us ample opportunities to savor the sublime handling and the suspension’s ability to manage body motions. Feedback pours through the iA’s small-diameter steering wheel, and turn-in is crisp but never darty. The brakes, too, bite with supreme confidence. We noticed none of the noise or harshness that can sometimes accompany twist-beam rear axles like the one in this Scion. And speaking of noise, the iA’s interior counts as practically monastic in a class where raucous is the norm.
It’s a bit sad that Mazda declined to offer a car this good to us under its own banner. But we should be grateful it’s available here at all, even if it means you have to go to the Scion store to find it.
It's not a Scion, but it is a really great small car.
First Drive Review
The 2016 Scion iA is a great little car, but there are two things we’re all going to have to get over in regard to the new subcompact. First, Scion rebadged a Mazda 2 to bring the iA to life. And second: its awkward nose.
Those may or may not be insurmountable hurdles, depending on your aesthetic sensibilities and/or your loyalty to the scrappy zoom-zoom brand from Hiroshima. The iA is, after all, merely the sedan version of the sassy Mazda 2, which until just last month was expected to arrive in U.S. Mazda dealerships by the beginning of 2016 in handsome hatchback form. But Mazda has decided to pull the plug on the 2 for the U.S. and Canadian markets at least in the near term—the car had already received EPA fuel-economy estimates and everything—ostensibly to focus on its more profitable models. So the Scion iA is our only access to the new Mazda 2 in any form. And it’s a car that, as it turns out, is every bit as sweet to drive as we could have hoped.
As for the Scion’s schnoz, we’re told it was designed by Toyota stylists in Japan for this car, which will be sold not just as the Scion iA in the United States but also as the Toyota Yaris sedan in Mexico and Canada. (Incidentally, Toyota will continue selling us the French-built Yaris for now in hatchback form only, although the next-gen model eventually moves to the Mazda 2 platform, as well.) The headlamps and hood are Mazda pieces, as is everything aft of them; only the “soft parts” (bumper, grille, etc.) of the front end are unique to the iA. This means that from pretty much every angle, it looks like a shrunken Mazda 3, not a Toyota/Scion anything, and it felt rather unnatural to force ourselves to see the car as a Scion when we encountered the little sedans coming and going during the press drive in Malibu, California. Then again, we’re car people; few folks shopping in this segment are likely to notice and even fewer will care.
Look Beyond the Nose
What they will (and should) care about is the car’s compelling packaging, high level of equipment, and outstanding dynamics. The interior is essentially unchanged from the Mazda 2, which squeezes most of the Mazda 3’s style and technology into subcompact dimensions. While it looks and feels utterly incongruous to all other Scions, including the new iM hatchback (which also arrives in dealerships in September), that doesn’t take away from the cabin’s overall excellence. We like its motorcycle-inspired gauge cluster, seven-inch stand-up infotainment screen, iDrive-type control dial in the center console, and the sweet, three-spoke Mazda steering wheel. Essentially, Scion merely selected the upholstery colors (black with blue accents) and equipment—much of which probably would have been optional on the Mazda 2, by the way—that will come standard in its “mono spec” model.
For a more complete list of those items, check out our coverage of the iA reveal, but the high points include cruise control, air conditioning, push-button ignition, a rear camera, 16-inch alloys, two years of free maintenance, and even a low-speed collision-mitigation system. That’s quite a lot of goodies for $16,495 with a manual or $17,595 with an automatic. Any add-ons are considered accessories, including navigation, which is expected to cost about $400. Sadly, nowhere on the accessories list is the Mazda 2 nose, although it would probably be an easy-ish swap for someone so inclined.
A Wee Athlete
The best news by far is how well the iA drives thanks to the Mazda 2 mechanicals. Those include its 106-hp 1.5-liter Skyactiv four-cylinder, which we wouldn’t consider muscular, yet it makes easy work of scooting the roughly 2400-pound iA through traffic. The engine feels sinewy and smooth, making revving to the 6000-rpm horsepower peak a real joy. Full torque, all 103 lb-ft of it, is available at 4000 rpm. Unsurprisingly, we prefer the six-speed manual on account of its short throws, precise gates, and light clutch. But we can’t fault those who choose the excellent six-speed automatic, which allows the torque converter to do its thing at launch to smooth takeoff before locking it for crisp, direct shifts. There’s also a Sport shift mode, activated via a toggle switch at the base of the shifter.
The meandering ribbons of pavement that connect Malibu to the San Fernando Valley gave us ample opportunities to savor the sublime handling and the suspension’s ability to manage body motions. Feedback pours through the iA’s small-diameter steering wheel, and turn-in is crisp but never darty. The brakes, too, bite with supreme confidence. We noticed none of the noise or harshness that can sometimes accompany twist-beam rear axles like the one in this Scion. And speaking of noise, the iA’s interior counts as practically monastic in a class where raucous is the norm.
It’s a bit sad that Mazda declined to offer a car this good to us under its own banner. But we should be grateful it’s available here at all, even if it means you have to go to the Scion store to find it.
02-07-2016, 05:00 PM
#146
The iM was just a rebadged Toyota Auris hatch to begin w/ and the iA is a rebadged Mazda so it just gets rebadged again.
Really difficult for the Asian automakers to compete against the American pony cars when it comes to the combination of price/value, space and HP when it comes to RWD coupes - which is why they have been better off competing in the RWD luxury coupe segment - such as w/ the G/Q60.
Last edited by YEH; 02-07-2016 at 05:06 PM.
01-06-2017, 08:00 AM
#147
Safety Car
Trump
Trump Says ?No Way? to Toyota Plant in Mexico - WSJ
Trump Says ‘No Way’ to Toyota Plant in Mexico
President-elect’s tweet comes hours after head of the Japanese auto maker signaled willingness to work with new administration
President-elect Donald Trump threatened to impose a tax on Corolla cars imported from Mexico. Photo: Evan Vucci/Associated Press By
Updated Jan. 5, 2017 8:44 p.m. ET Adrienne Roberts andChester Dawson
In a tweet, Mr. Trump said “no way” to Toyota’s plans for its proposal to manufacture its Corolla sedan in Mexico and threatened to impose a tariff on imported Corollas.
The tweet broadens the president-elect’s criticism of the auto industry to include a foreign car maker with extensive operations in the U.S.
Earlier this week, Mr. Trump hammered General Motors Co. for importing some production from Mexico. He also welcomed an announcement by Ford Motor Co.—a Trump campaign target—to cancel a planned new plant in Mexico.
Toyota has invested heavily in manufacturing operations on both sides of the U.S. and Mexican border as part of a multidecade effort to produce more cars closer to where it sells them.Earlier this week, Mr. Trump hammered General Motors Co. for importing some production from Mexico. He also welcomed an announcement by Ford Motor Co.—a Trump campaign target—to cancel a planned new plant in Mexico.
After Mr. Trump’s comment on Twitter, Toyota said in a statement that its U.S. production and employment levels won't be reduced as a result of the new plant in Mexico and pledged to work closely with the Trump administration.
“Toyota looks forward to collaborating with the Trump Administration to serve in the best interests of consumers and the automotive industry,” the company said.
Earlier Thursday at a New Year’s gathering, Toyota President Akio Toyoda said his company is aligned with the incoming administration in that it wants to be a good corporate citizen and expand employment in countries where it operates plants, including the U.S. “If you look over the long term, we are oriented in the same direction,” he told reporters.
On Friday, Japan’s top government spokesman defended Toyota’s role as an important contributor to the U.S. economy.
Chief Cabinet Secretary Yoshihide Suga called Toyota “a good corporate citizen” in the U.S. He declined to comment on Mr. Trump’s tweet, but said he believes the president-elect has a solid understanding of the importance of international trade from his experience as a businessman.
Toyota broke ground on the $1 billion Corolla plant in the central-Mexican city of Guanajuato in November. Mr. Trump’s tweet appeared to be off target, as it referred to “a new plant in Baja, Mexico, to build Corolla cars.” Toyota said in September it planned to increase capacity at an existing plant in Baja that makes pickup trucks, but no sedans.
The new plant, announced in April 2015, will produce around 200,000 Corolla compact cars a year for the North American market starting in 2019. Production of the Corolla will move from Cambridge, Ontario, to the new plant in Mexico, although Corolla cars will continue to be built at Toyota’s plant in Mississippi. The Corolla is the 2nd-best-selling compact car in the U.S. behind the Honda Civic, with Toyota delivering 360,000 in 2016.
Mr. Trump went after GM this week after largely excluding the nation’s largest auto maker from his campaign-trail rhetoric. He criticized GM imports of Chevrolet Cruze compact cars from Mexico, although GM said afterward that 98% of Cruzes sold in the U.S. last year were made in Ohio.
Ford, in a surprising reversal Tuesday, said it was scrapping plans for a new assembly factory in Mexico, following months of harsh criticism from Mr. Trump that the company was moving work out of the U.S. at the expense of American manufacturing jobs.
The No. 2 U.S. auto maker had planned to move production of its Focus small car from Michigan to a new $1.6 billion factory in San Luis Potosi, Mexico, in an effort to build more higher-priced trucks and SUVs in the U.S. Ford said instead it will now move that car’s assembly to its plant in Hermosillo, Mexico, and reinvest in U.S. manufacturing, expanding a plant in Flat Rock, Mich., to build electrified and autonomous cars.
With his tweet attacks this week, Mr. Trump has taken direct aim at the Mexican automotive sector, one of the brightest spots in the country’s economy over the past 2 decades. Production of cars and light trucks in Mexico rose from roughly 1.1 million in 1994—the year the North American Free Trade Agreement was enacted—to a record 3.4 million vehicles in 2015.
For November, light-vehicle production jumped 7.4% and exports rose 10% from a year earlier, with the industry’s output totaling 3.2 million vehicles through the 1st 11 months of 2016.
Those numbers are expected to increase in coming years, barring changes that could make the country’s industry less competitive. Toyota, Ford, BMW AG, Kia Motor Corp. and others had committed to spending a combined $15.8 billion to build or expand assembly plants in Mexico—though that tally now shrinks with Ford’s cancellation this week.
Mexico’s share of North American auto production has nearly doubled, to roughly 20% in 2016, according to LMC Automotive, and auto-parts suppliers employ more than 700,000 workers in Mexico. Meanwhile, Mexico’s automotive supply chain has become closely intertwined with that of the U.S., making cross-border trade a key part of North American auto production.
“Car factories in the U.S. could not survive without integration with Mexico, because of competition from China, from India, from Europe, from Korea,” said José Maria Zas, general director of the American Chamber of Commerce of Mexico, a trade group. “But these types of actions change the whole structure of the relationship between the U.S. and Mexico.”
01-16-2017, 06:49 AM
#148
Safety Car
Response
http://www.autonews.com/article/20170116/GLOBAL/301169980/toyotas-lentz-tariff-would-depress-industry
Toyota's Lentz: Tariff would depress industry
Cost increases would slash sales, production
January 16, 2017 @ 12:01 am
Laurence Iliff
6Shares
Lentz: "A difficult thing"
Send us a LetterHave an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.
DETROIT -- President-elect Donald Trump's threatened border tax on autos and auto parts coming into the U.S. would not only hurt individual automakers but also depress the entire industry, said Jim Lentz, CEO of Toyota Motor North America.
"If you look at a border tax, there are some industries that benefit and some industries that it will cause pain," he said in an interview at the Detroit auto show. "So retail industry, the automotive sector, possibly the energy sector, it's going to be a difficult thing."
Lentz said that he came up with a rough estimate for the impact of a border tax on the price of a U.S.-built Toyota Camry, which has the highest local content of any car sold in the U.S. at about 75 percent.
If the Camry's 25 percent of imported parts were subject to a border tax, Lentz said, it could add $1,000 to the cost, which would be passed on to consumers.
"If that's the watermark for the car with the most content, you can imagine what happens to other vehicles, and the fear is customers aren't going to be able to pay it," he said.
"It's going to reduce the overall buying in the industry; we're all going to adjust our production schedules" to reflect lower sales, Lentz said. "I don't think that's the intention, but that unfortunately is what may happen to this industry."
Trump took a shot at Toyota in an early January posting on Twitter, suggesting the Corollas the company plans to build at a new plant in Mexico should be built in the U.S. or face a border tax if they're imported to the U.S.
"I understand the comment about Mexico," Lentz said, "but it's really one piece of a much larger picture and does not mean that we are no longer investing in the U.S. We're investing big in the U.S."
Toyota said it will spend about $10 billion over 5 years in the U.S., including $1 billion for its move from California to a new headquarters near Dallas and another $1 billion at the Toyota Research Institute, which is working on things like autonomous cars and artificial intelligence.
01-26-2017, 06:39 AM
#149
Safety Car
BloomBerg
https://www.bloomberg.com/news/artic...ore-u-s-plants
Shortly after president met Tuesday with the U.S. auto CEOs, Toyota said it would add 400 jobs and spend $600 million retooling and updating an Indiana plant.Wanting More
“Everybody in Mississippi wants more Toyota,” said Haley Barbour, the former state governor who in 2007 offered a $293.9 million incentive package to lure investment from the company. “I suspect you’ll find the same thing in Indiana, Kentucky, Texas and every other state where they operate.”
Toyota is in the process of completing a new North American headquarters in Plano, a suburb of Dallas, Texas. The campus will use as much glass as nearly 50,000 Tacoma truck windshields and house about 4,000 employees, including 1,000 new hires.
Hoosiers working at plants including Toyota’s in the state of Indiana could use reassurance their jobs won’t be put at risk by Trump-proposed tariffs that may interrupt global supply chains, Senator Todd Young told Ross during a confirmation hearing last week.
“The best way to deal with the trade deficit is increased exports. I think that’s a No. 1 priority,” Ross responded. “No. 2 is to get the Toyotas and other companies like that to build their factories here.”Iaccoca’s Criticism
Trump’s anti-import rhetoric is reminiscent of the days then-Chrysler CEO Lee Iacocca urged former President Ronald Reagan to limit incoming shipments of Japanese cars. Models like the Corolla and Honda Civic gained recognition for reliable quality and superior fuel economy during the 1970s energy crisis.
Toyota and its Japanese peers voluntarily agreed to quotas and sought political cover as laid-off Ford workers in Detroit smashed imported cars with sledgehammers. Toyota followed its American competitors to southern states to dodge the United Auto Workers union, positioning the company in red states, where the Republican Party reigns supreme.
1 option for Toyota to further reduce its flow of imports could be to add an assembly line at the plant Barbour championed in Blue Springs, Mississippi. That factory already makes Corollas and the company could increase output of the compact car there instead of the yet-to-be-opened Mexico facility Trump has criticized.More Time
The Blue Springs plant opened in 2011 and may need more time to show it can maintain quality and productivity as it grows, Jim Lentz, chief executive of Toyota Motor North America, said in an interview this month. The company is actively studying a Blue Springs expansion as well as other options, he said.
Toyota is “100 percent in support” of Trump’s push to create more good-paying jobs in the U.S., Lentz said. But he also said Trump’s proposed border tax would add $1,000 to the cost of a Kentucky-built Camry.
Toyota has built goodwill over the years by avoiding layoffs even when idling plants, and by helping rebuild New Orleans after Hurricane Katrina. Still, Liker said company officials haven’t been this jittery about they’re perceived in the U.S. since 2010, when some felt unfairly singled out while the carmaker recalled millions of vehicles over unintended acceleration concerns.
Toyota's 'Made in America' Strategy Isn't Enough to Shield It From Trump
by
by
John LippertJanuary 25, 2017, 4:00 PM EST January 26, 2017, 6:57 AM EST
- Japanese carmaker built series of plants in Republican states
- Studying options for expansions, including in Mississippi
When Trump administration appointee Wilbur Ross sat for a hearing on his commerce secretary nomination, 1 name kept coming up: Toyota. A senator from Vice President Mike Pence’s home state asked to be reassured trade reforms wouldn’t compromise Indiana jobs. Another from Mississippi said he was “tickled to death” Corollas are built in his state.
Call this the Japanese automaker’s Red Wall. Toyota Motor Corp. started building it 30 years ago with its 1st assembly plant in Georgetown, Kentucky, in part to appease Washington during an era of icy U.S.-Japan trade ties. 1 after another, more factories sprang up in politically conservative states, including Alabama, Texas and West Virginia.
The questions put to Ross underscore concerns the White House is likely to hear if President Donald Trump keeps up his attacks on Toyota and its peers. After criticizing Toyota’s plans to build a Corolla plant in Mexico, Trump this week rebuked Japan for sending the U.S. hundreds of thousands of cars from what he said were “the biggest ships I’ve ever seen.” General Motors Co. and its peers, meanwhile, struggle to sell their vehicles in Japan.
“For years, Toyota was extremely paranoid about being a foreign company, and about the possibility of tariffs,” said Jeff Liker, a University of Michigan professor who’s written nine books on the company. “They just try to be Boy Scouts, perfect corporate citizens, to hedge against a possible backlash.”
Top-4 Producer
Toyota built more than 1.38 million cars and trucks in the U.S. last year, behind only GM, Ford Motor Co. and Fiat Chrysler Automobiles NV. Still, Toyota’s production fell about 1 million vehicles short of its sales in the country. Imported models include Japan-built Prius hybrids, Canada-assembled RAV4 and Lexus RX sport utility vehicles, and some Tacoma midsize pickups manufactured in Mexico.
The $10 billion question for Toyota -- it’s vowed to invest this much in the U.S. over the next 5 years -- is whether all the roots it’s put down in America will be enough to mollify Trump. The carmaker’s shares have dropped 4 percent since Trump called out its Mexico plans, following an 8 percent decline last year.
“I want new plants to be built here for cars sold here!” the president tweeted on Tuesday, ahead of a meeting with the chief executives of GM, Ford and Fiat Chrysler.
Toyota is scrambling to find something more to offer Trump than the factory expansion and modernization plan revealed Jan. 9, according to two people familiar with the discussions. The search gained urgency after Trump thanked Ford and Fiat Chrysler for their U.S. investments and made no mention of Toyota’s plans announced the same day, said the people, who asked not to be identified because the deliberations are private.Call this the Japanese automaker’s Red Wall. Toyota Motor Corp. started building it 30 years ago with its 1st assembly plant in Georgetown, Kentucky, in part to appease Washington during an era of icy U.S.-Japan trade ties. 1 after another, more factories sprang up in politically conservative states, including Alabama, Texas and West Virginia.
The questions put to Ross underscore concerns the White House is likely to hear if President Donald Trump keeps up his attacks on Toyota and its peers. After criticizing Toyota’s plans to build a Corolla plant in Mexico, Trump this week rebuked Japan for sending the U.S. hundreds of thousands of cars from what he said were “the biggest ships I’ve ever seen.” General Motors Co. and its peers, meanwhile, struggle to sell their vehicles in Japan.
“For years, Toyota was extremely paranoid about being a foreign company, and about the possibility of tariffs,” said Jeff Liker, a University of Michigan professor who’s written nine books on the company. “They just try to be Boy Scouts, perfect corporate citizens, to hedge against a possible backlash.”
Toyota built more than 1.38 million cars and trucks in the U.S. last year, behind only GM, Ford Motor Co. and Fiat Chrysler Automobiles NV. Still, Toyota’s production fell about 1 million vehicles short of its sales in the country. Imported models include Japan-built Prius hybrids, Canada-assembled RAV4 and Lexus RX sport utility vehicles, and some Tacoma midsize pickups manufactured in Mexico.
The $10 billion question for Toyota -- it’s vowed to invest this much in the U.S. over the next 5 years -- is whether all the roots it’s put down in America will be enough to mollify Trump. The carmaker’s shares have dropped 4 percent since Trump called out its Mexico plans, following an 8 percent decline last year.
“I want new plants to be built here for cars sold here!” the president tweeted on Tuesday, ahead of a meeting with the chief executives of GM, Ford and Fiat Chrysler.
Shortly after president met Tuesday with the U.S. auto CEOs, Toyota said it would add 400 jobs and spend $600 million retooling and updating an Indiana plant.Wanting More
“Everybody in Mississippi wants more Toyota,” said Haley Barbour, the former state governor who in 2007 offered a $293.9 million incentive package to lure investment from the company. “I suspect you’ll find the same thing in Indiana, Kentucky, Texas and every other state where they operate.”
Toyota is in the process of completing a new North American headquarters in Plano, a suburb of Dallas, Texas. The campus will use as much glass as nearly 50,000 Tacoma truck windshields and house about 4,000 employees, including 1,000 new hires.
Hoosiers working at plants including Toyota’s in the state of Indiana could use reassurance their jobs won’t be put at risk by Trump-proposed tariffs that may interrupt global supply chains, Senator Todd Young told Ross during a confirmation hearing last week.
“The best way to deal with the trade deficit is increased exports. I think that’s a No. 1 priority,” Ross responded. “No. 2 is to get the Toyotas and other companies like that to build their factories here.”Iaccoca’s Criticism
Trump’s anti-import rhetoric is reminiscent of the days then-Chrysler CEO Lee Iacocca urged former President Ronald Reagan to limit incoming shipments of Japanese cars. Models like the Corolla and Honda Civic gained recognition for reliable quality and superior fuel economy during the 1970s energy crisis.
Toyota and its Japanese peers voluntarily agreed to quotas and sought political cover as laid-off Ford workers in Detroit smashed imported cars with sledgehammers. Toyota followed its American competitors to southern states to dodge the United Auto Workers union, positioning the company in red states, where the Republican Party reigns supreme.
1 option for Toyota to further reduce its flow of imports could be to add an assembly line at the plant Barbour championed in Blue Springs, Mississippi. That factory already makes Corollas and the company could increase output of the compact car there instead of the yet-to-be-opened Mexico facility Trump has criticized.More Time
The Blue Springs plant opened in 2011 and may need more time to show it can maintain quality and productivity as it grows, Jim Lentz, chief executive of Toyota Motor North America, said in an interview this month. The company is actively studying a Blue Springs expansion as well as other options, he said.
Toyota is “100 percent in support” of Trump’s push to create more good-paying jobs in the U.S., Lentz said. But he also said Trump’s proposed border tax would add $1,000 to the cost of a Kentucky-built Camry.
Toyota has built goodwill over the years by avoiding layoffs even when idling plants, and by helping rebuild New Orleans after Hurricane Katrina. Still, Liker said company officials haven’t been this jittery about they’re perceived in the U.S. since 2010, when some felt unfairly singled out while the carmaker recalled millions of vehicles over unintended acceleration concerns.
Last edited by TSX69; 01-26-2017 at 06:44 AM.
01-30-2017, 11:29 AM
#150
Toyota Loses Global-Sales Title to Volkswagen - WSJ
Toyota Loses Global-Sales Title to Volkswagen
Japanese car maker, No. 1 since 2012, sold 10.2 million vehicles last year—up a bare 0.2%—to VW’s 10.3 million
Jan. 30, 2017
TOKYO— Toyota Motor Corp. is no longer the world’s largest car maker by vehicle sales, relinquishing a title held since 2012.
The company said Monday it sold 10.2 million vehicles world-wide in 2016, up 0.2% from the year before. Rival Volkswagen AG sold 10.3 million, riding strong sales in China—its second-largest market after Europe.
Toyota, by contrast, relies heavily on Japan and the U.S. Growth is slow in the former—it sold 2.2 million vehicles there last year, up just 2.8%—and the U.S. market is hot for trucks and sport-utility vehicles. Toyota’s core strength is sedans like the Camry, which dominates that shrinking slice of the market. Both its North American truck factories are already at capacity, and its RAV-4 SUV isn’t as popular as some rivals.
Toyota is looking to jump-start growth this year. In a nod to emissions regulations that favor battery power, it is making a move to build an electric car—belatedly, after years of dismissing battery-powered cars as inferior to gas-electric hybrids and those powered by hydrogen fuel cells.
Toyota is also continuing efforts to draw younger buyers. The Camry was refreshed with more aggressive styling that Chief Executive Akio Toyoda called “sexy” at its unveiling in Detroit earlier this month. Toyota calls its new C-HR crossover a vehicle for people who dislike Toyotas.
General Motors Co., the world’s third-largest car maker in 2015, has yet to report its global sales figures for 2016.
Japanese car maker, No. 1 since 2012, sold 10.2 million vehicles last year—up a bare 0.2%—to VW’s 10.3 million
Jan. 30, 2017
TOKYO— Toyota Motor Corp. is no longer the world’s largest car maker by vehicle sales, relinquishing a title held since 2012.
The company said Monday it sold 10.2 million vehicles world-wide in 2016, up 0.2% from the year before. Rival Volkswagen AG sold 10.3 million, riding strong sales in China—its second-largest market after Europe.
Toyota, by contrast, relies heavily on Japan and the U.S. Growth is slow in the former—it sold 2.2 million vehicles there last year, up just 2.8%—and the U.S. market is hot for trucks and sport-utility vehicles. Toyota’s core strength is sedans like the Camry, which dominates that shrinking slice of the market. Both its North American truck factories are already at capacity, and its RAV-4 SUV isn’t as popular as some rivals.
Toyota is looking to jump-start growth this year. In a nod to emissions regulations that favor battery power, it is making a move to build an electric car—belatedly, after years of dismissing battery-powered cars as inferior to gas-electric hybrids and those powered by hydrogen fuel cells.
Toyota is also continuing efforts to draw younger buyers. The Camry was refreshed with more aggressive styling that Chief Executive Akio Toyoda called “sexy” at its unveiling in Detroit earlier this month. Toyota calls its new C-HR crossover a vehicle for people who dislike Toyotas.
General Motors Co., the world’s third-largest car maker in 2015, has yet to report its global sales figures for 2016.
05-05-2017, 05:23 PM
#152
Team Owner
How is this related to Toyota Financial News?
05-05-2017, 09:42 PM
#153
05-10-2017, 06:14 AM
#154
Safety Car
AutoNews
http://www.autonews.com/article/2017...profits-tumble
Toyota president feels 'sense of crisis' as profits tumble
May 10, 2017 @ 3:22 am
TOKYO – Foreign exchange rates and spiraling costs hammered profits at Toyota Motor Corp., derailing Japan’s largest carmaker from a third-straight year of record results and spurring President Akio Toyoda to warn of an impending "sense of crisis."
Operating profit tumbled 20 percent to 438.9 billion yen ($3.94 billion) in the carmaker’s fiscal fourth quarter ended March 31. Net income slid 6.6 percent to 398.4 billion yen ($3.58 billion), the company said Wednesday while announcing full-year earnings results.
Revenue increased 6.8 percent to 7.44 trillion yen ($66.87 billion).
Global retail sales advanced 3.1 percent to 2.5 million vehicles in the January-March period, including results from its Daihatsu small-car subsidiary and truck-making affiliate Hino.
The 4th-quarter slump sealed a retreat in full-year profits, with both 12-month operating profit and net income falling from the previous year.
The reversal cut short a run in which Toyota had notched two-straight years of across-the-board records in full-year revenue, net income and operating profit. It also put Toyota on the path toward another decline in operating profit and net income in the current fiscal year.
'Sense of crisis'
Toyoda said he felt a sense of crisis as the company braced for 2 consecutive years of falling profits and said that Toyota would streamline operations to bolster margins.
“I feel a strong sense of crisis about whether or not we are actually executing car-making from the perspective of the customer in all Toyota workplaces, from development, production, procurement and sales, all the way to administrative divisions,” Toyoda said.
“In the case of sports, booking 2 consecutive years of losses would mean you are failing,” said Toyoda, grandson of the company’s founder. “I hate to be beaten.”
For the full fiscal year ended March 31, operating profit fell 30 percent to 2.85 trillion yen ($25.62 billion), while net income dropped 21 percent to 2.31 trillion yen ($20.76 billion).
Revenue declined 2.8 percent to 18.40 trillion yen ($165.38 billion).
Global retail unit sales inched ahead 1.6 percent to 10.3 million vehicles, for the full fiscal year. Worldwide wholesale deliveries advanced 3.3 percent to 9.0 million units.
Toyota lost its title as the world’s biggest automaker to German rival Volkswagen Group in calendar year 2016, with worldwide volume inching ahead just 0.2 percent to 10.2 million vehicles. But that fell short of the 10.3 million vehicles VW reported selling for a 3.8 percent bump.
Gloomy outlook
Toyoda warned that profits will fall again in the current fiscal year ending March 31, 2018.
Operating profit is expected to slide 20 percent to 1.60 trillion yen ($14.38 billion), while net income is forecast to decline 18 percent to 1.50 trillion yen ($13.48 billion).
Global retail unit sales are seen essentially flat at 10.25 million vehicles, while worldwide wholesale deliveries are forecast to dip 0.8 percent to 8.9 million units.
The reversal is exacerbated partly by spiraling outlays for such things as higher incentives, increased labor costs and ramped up investments in manufacturing sites.
Toyoda said his company has made big advances in developing better vehicles with its new modularized platform. Called the Toyota New Global Architecture, or TNGA, it underpins such nameplates as the redesigned Camry sedan and CH-R compact crossover arriving stateside this year. But the company needs to improve the way it makes vehicles to be more competitive.
“When it comes to making ever-better cars in a smart way, it is becoming apparent that there is still room for improvement,” Toyoda said, adding that the company will focus on streamlining operations in the current fiscal year. Last year, Toyoda recently reorganized the company to create internal sub-companies that are freed to act more independently and nimbly.
It will take time for results of that overhaul to show, he said.
Higher costs
In the just-ended fiscal year, exchange rate losses lopped 940.0 billion yen ($8.45 billion) off Toyota’s operating profit. Higher incentives, labor costs, r&d spending and investments depressed operating profits by another 530.0 billion yen ($4.76 billion), erasing cost cutting efforts.
The company is spending more partly to retool factories for its new TNGA vehicle platform. Toyota embarked on a new era of expansion 2 years ago after taking a 3-year pause on new factories. The offensive began with the introduction of TNGA in the fourth-generation Prius hybrid. The campaign will continue through 2020 with a new factory in Mexico.
Japan anchored full-year earnings as Toyota’s biggest profit center and top-volume markets.
Operating profit in Japan surged 56 percent to 508.2 billion yen ($4.57 billion) in the fiscal 4th quarter ended March 31. For the full year, regional operating profit actually fell, but Japan still generated more profits than the rest of the world combined for the 12-month period.
North America and Europe swung to regional operating losses in the January-March period.
But for the full year, North American finished in the black, with operating profit dropping to 311.1 billion yen ($2.80 billion), from 528.8 billion ($4.75 billion) the year before.
Europe slumped to a fiscal full-year operating loss of 12.2 billion yen ($109.7 million), from a regional operating profit of 72.4 billion yen ($650.7 million) a year earlier.
Regional wholesale volume in North America was flat at 2.8 million vehicles for the full fiscal year, but North America kept its position as Toyota’s biggest market.
European sales advanced 9.6 percent to 925,000 units in the year ended March 3.
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Akio Toyoda: "In sport booking two consecutive years of losses would mean you are failing." Photo credit: Bloomberg
Send us a LetterTOKYO – Foreign exchange rates and spiraling costs hammered profits at Toyota Motor Corp., derailing Japan’s largest carmaker from a third-straight year of record results and spurring President Akio Toyoda to warn of an impending "sense of crisis."
Operating profit tumbled 20 percent to 438.9 billion yen ($3.94 billion) in the carmaker’s fiscal fourth quarter ended March 31. Net income slid 6.6 percent to 398.4 billion yen ($3.58 billion), the company said Wednesday while announcing full-year earnings results.
Revenue increased 6.8 percent to 7.44 trillion yen ($66.87 billion).
Global retail sales advanced 3.1 percent to 2.5 million vehicles in the January-March period, including results from its Daihatsu small-car subsidiary and truck-making affiliate Hino.
The 4th-quarter slump sealed a retreat in full-year profits, with both 12-month operating profit and net income falling from the previous year.
The reversal cut short a run in which Toyota had notched two-straight years of across-the-board records in full-year revenue, net income and operating profit. It also put Toyota on the path toward another decline in operating profit and net income in the current fiscal year.
'Sense of crisis'
Toyoda said he felt a sense of crisis as the company braced for 2 consecutive years of falling profits and said that Toyota would streamline operations to bolster margins.
“I feel a strong sense of crisis about whether or not we are actually executing car-making from the perspective of the customer in all Toyota workplaces, from development, production, procurement and sales, all the way to administrative divisions,” Toyoda said.
“In the case of sports, booking 2 consecutive years of losses would mean you are failing,” said Toyoda, grandson of the company’s founder. “I hate to be beaten.”
For the full fiscal year ended March 31, operating profit fell 30 percent to 2.85 trillion yen ($25.62 billion), while net income dropped 21 percent to 2.31 trillion yen ($20.76 billion).
Revenue declined 2.8 percent to 18.40 trillion yen ($165.38 billion).
Global retail unit sales inched ahead 1.6 percent to 10.3 million vehicles, for the full fiscal year. Worldwide wholesale deliveries advanced 3.3 percent to 9.0 million units.
Toyota lost its title as the world’s biggest automaker to German rival Volkswagen Group in calendar year 2016, with worldwide volume inching ahead just 0.2 percent to 10.2 million vehicles. But that fell short of the 10.3 million vehicles VW reported selling for a 3.8 percent bump.
Gloomy outlook
Toyoda warned that profits will fall again in the current fiscal year ending March 31, 2018.
Operating profit is expected to slide 20 percent to 1.60 trillion yen ($14.38 billion), while net income is forecast to decline 18 percent to 1.50 trillion yen ($13.48 billion).
Global retail unit sales are seen essentially flat at 10.25 million vehicles, while worldwide wholesale deliveries are forecast to dip 0.8 percent to 8.9 million units.
The reversal is exacerbated partly by spiraling outlays for such things as higher incentives, increased labor costs and ramped up investments in manufacturing sites.
Toyoda said his company has made big advances in developing better vehicles with its new modularized platform. Called the Toyota New Global Architecture, or TNGA, it underpins such nameplates as the redesigned Camry sedan and CH-R compact crossover arriving stateside this year. But the company needs to improve the way it makes vehicles to be more competitive.
“When it comes to making ever-better cars in a smart way, it is becoming apparent that there is still room for improvement,” Toyoda said, adding that the company will focus on streamlining operations in the current fiscal year. Last year, Toyoda recently reorganized the company to create internal sub-companies that are freed to act more independently and nimbly.
It will take time for results of that overhaul to show, he said.
Higher costs
In the just-ended fiscal year, exchange rate losses lopped 940.0 billion yen ($8.45 billion) off Toyota’s operating profit. Higher incentives, labor costs, r&d spending and investments depressed operating profits by another 530.0 billion yen ($4.76 billion), erasing cost cutting efforts.
The company is spending more partly to retool factories for its new TNGA vehicle platform. Toyota embarked on a new era of expansion 2 years ago after taking a 3-year pause on new factories. The offensive began with the introduction of TNGA in the fourth-generation Prius hybrid. The campaign will continue through 2020 with a new factory in Mexico.
Japan anchored full-year earnings as Toyota’s biggest profit center and top-volume markets.
Operating profit in Japan surged 56 percent to 508.2 billion yen ($4.57 billion) in the fiscal 4th quarter ended March 31. For the full year, regional operating profit actually fell, but Japan still generated more profits than the rest of the world combined for the 12-month period.
North America and Europe swung to regional operating losses in the January-March period.
But for the full year, North American finished in the black, with operating profit dropping to 311.1 billion yen ($2.80 billion), from 528.8 billion ($4.75 billion) the year before.
Europe slumped to a fiscal full-year operating loss of 12.2 billion yen ($109.7 million), from a regional operating profit of 72.4 billion yen ($650.7 million) a year earlier.
Regional wholesale volume in North America was flat at 2.8 million vehicles for the full fiscal year, but North America kept its position as Toyota’s biggest market.
European sales advanced 9.6 percent to 925,000 units in the year ended March 3.
01-10-2018, 06:37 AM
#155
Race Director
http://www.autonews.com/article/2018...nt-report-says
Alabama will be the site of a new $1.6 billion Toyota Motor Corp. and Mazda Motor Corp. auto plant, a victory for President Donald Trump who has prodded manufacturers to build new U.S. factories and threatened tariffs on foreign production, sources said on Tuesday.
The plant, which will employ up to 4,000 people and produce about 300,000 vehicles a year, will be located in the Huntsville, Ala., region and is a boon for the state, where Toyota has a large engine plant and an existing network of automotive suppliers.
A formal announcement by company and state officials is expected on Wednesday in Montgomery, sources briefed on the matter said.
The new plant -- in a state Trump won by 28 points in 2016 -- could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs.
Trump tweeted in March he wanted "new plants to be built here for cars sold here."
The announcement also comes at a time of declining U.S. auto industry sales, so it could exacerbate overcapacity and add pressure to cut prices. U.S. new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018.
Details of an anticipated tax and incentive package for the investment were not yet known. It has been reported the companies sought at least $1 billion in incentives.
Few factors have changed the auto industry as much as globalization has. Here are three areas where immediate change will be most noticeable.
A Toyota spokesman declined to comment, except to say an announcement was expected soon. A Mazda spokeswoman also declined to comment.
In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina.
Local media last month said the leading site under consideration was in northern Alabama's Limestone County, near Toyota's large engine plant in Huntsville. In September Toyota announced a $106 million technology upgrade for the Huntsville plant.
A Chamber of Commerce of Huntsville website for the "Huntsville Mega Site" touts the fact it has been "certified as development-ready." The commerce chamber, local and state officials declined to comment on Tuesday on plans for the plant.
The new factory will be located in Limestone County north of Birmingham, Bloomberg also reported, citing a source. The Birmingham Business Journal reported the selection earlier Tuesday.
North America accounted for about a quarter of Toyota’s total vehicle sales in 2017, and about 36 percent of revenue.
Mazda, which gets a third of its revenue from North America, currently imports all of the models it sells in the U.S. It plans to produce crossovers alongside Toyota Corolla compact cars at the joint plant.
A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the U.S. market in Mexico.
"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax," Trump posted on Twitter in early 2017.
Toyota and Mazda announced plans for a new plant in August. Toyota said it would shift production of Corollas from Canada to the new venture rather than in Guanajuato, and would build Tacoma pickups in Mexico instead. Mazda plans to build new crossover SUVs at the plant.
Trump praised the joint venture announcement, saying in August on Twitter: "Toyota & Mazda to build a new $1.6B plant here in the U.S.A. and create 4K new American jobs. A great investment in American manufacturing!"
In October, Toyota said it would scale back investment in a planned plant in Mexico by 30 percent to $700 million and cut planned annual capacity in half to 100,000 vehicles as it shuffles its production plans to meet market demands.
Toyota has 10 U.S. plants in eight states in an arc running from West Virginia through Kentucky, Indiana, Alabama, Mississippi and Texas.
Toyota and Mazda announced a capital alliance in August and are exploring joint development of technologies for the basic structure of competitive electric vehicles.
Over the last 30 years Toyota, along with German and Asian automakers, has built a second auto industry in the United States, rivaling the operations of the Detroit 3 automakers in size and employment, but with newer, and fewer unionized, plants.
States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies. Southern U.S. states have the advantage of good transportation infrastructure, business-friendly regulators and generally anti-union politicians.
The Alabama Department of Commerce shows 150 of the large automotive suppliers operate in the state, providing the logistical strength that Kristin Dziczek, a researcher at the Center for Automotive Research in Michigan, said helped land the plant.
Dziczek said that Alabama in 2017 was tied for fifth among U.S. states in auto production, at 9 percent with Tennessee. It was behind Michigan at 19 percent; Indiana at 12 percent, Kentucky at 11 percent; and Ohio at 10 percent.
"The impact of an auto assembly plant extends beyond its immediate economic impact, and that's why states offer robust incentives," said Dennis Cuneo, a site-selection consultant and former Toyota executive. "It creates a halo effect that in turn helps attract other projects."
Alabama spent an estimated $250 million to woo Daimler AG's Mercedes-Benz to put an auto plant in Tuscaloosa two decades ago.
Alabama will be the site of a new $1.6 billion Toyota Motor Corp. and Mazda Motor Corp. auto plant, a victory for President Donald Trump who has prodded manufacturers to build new U.S. factories and threatened tariffs on foreign production, sources said on Tuesday.
The plant, which will employ up to 4,000 people and produce about 300,000 vehicles a year, will be located in the Huntsville, Ala., region and is a boon for the state, where Toyota has a large engine plant and an existing network of automotive suppliers.
A formal announcement by company and state officials is expected on Wednesday in Montgomery, sources briefed on the matter said.
The new plant -- in a state Trump won by 28 points in 2016 -- could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs.
Trump tweeted in March he wanted "new plants to be built here for cars sold here."
The announcement also comes at a time of declining U.S. auto industry sales, so it could exacerbate overcapacity and add pressure to cut prices. U.S. new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018.
Details of an anticipated tax and incentive package for the investment were not yet known. It has been reported the companies sought at least $1 billion in incentives.
Few factors have changed the auto industry as much as globalization has. Here are three areas where immediate change will be most noticeable.
A Toyota spokesman declined to comment, except to say an announcement was expected soon. A Mazda spokeswoman also declined to comment.
In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina.
Local media last month said the leading site under consideration was in northern Alabama's Limestone County, near Toyota's large engine plant in Huntsville. In September Toyota announced a $106 million technology upgrade for the Huntsville plant.
A Chamber of Commerce of Huntsville website for the "Huntsville Mega Site" touts the fact it has been "certified as development-ready." The commerce chamber, local and state officials declined to comment on Tuesday on plans for the plant.
The new factory will be located in Limestone County north of Birmingham, Bloomberg also reported, citing a source. The Birmingham Business Journal reported the selection earlier Tuesday.
North America accounted for about a quarter of Toyota’s total vehicle sales in 2017, and about 36 percent of revenue.
Mazda, which gets a third of its revenue from North America, currently imports all of the models it sells in the U.S. It plans to produce crossovers alongside Toyota Corolla compact cars at the joint plant.
A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the U.S. market in Mexico.
"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax," Trump posted on Twitter in early 2017.
Toyota and Mazda announced plans for a new plant in August. Toyota said it would shift production of Corollas from Canada to the new venture rather than in Guanajuato, and would build Tacoma pickups in Mexico instead. Mazda plans to build new crossover SUVs at the plant.
Trump praised the joint venture announcement, saying in August on Twitter: "Toyota & Mazda to build a new $1.6B plant here in the U.S.A. and create 4K new American jobs. A great investment in American manufacturing!"
In October, Toyota said it would scale back investment in a planned plant in Mexico by 30 percent to $700 million and cut planned annual capacity in half to 100,000 vehicles as it shuffles its production plans to meet market demands.
Toyota has 10 U.S. plants in eight states in an arc running from West Virginia through Kentucky, Indiana, Alabama, Mississippi and Texas.
Toyota and Mazda announced a capital alliance in August and are exploring joint development of technologies for the basic structure of competitive electric vehicles.
Over the last 30 years Toyota, along with German and Asian automakers, has built a second auto industry in the United States, rivaling the operations of the Detroit 3 automakers in size and employment, but with newer, and fewer unionized, plants.
States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies. Southern U.S. states have the advantage of good transportation infrastructure, business-friendly regulators and generally anti-union politicians.
The Alabama Department of Commerce shows 150 of the large automotive suppliers operate in the state, providing the logistical strength that Kristin Dziczek, a researcher at the Center for Automotive Research in Michigan, said helped land the plant.
Dziczek said that Alabama in 2017 was tied for fifth among U.S. states in auto production, at 9 percent with Tennessee. It was behind Michigan at 19 percent; Indiana at 12 percent, Kentucky at 11 percent; and Ohio at 10 percent.
"The impact of an auto assembly plant extends beyond its immediate economic impact, and that's why states offer robust incentives," said Dennis Cuneo, a site-selection consultant and former Toyota executive. "It creates a halo effect that in turn helps attract other projects."
Alabama spent an estimated $250 million to woo Daimler AG's Mercedes-Benz to put an auto plant in Tuscaloosa two decades ago.
11-06-2018, 02:16 PM
#156
Race Director
Few automakers were immune to the nationwide glut of cars for much of 2018, and it's most visible among the largest automakers with a relatively static lineup of vehicles. Toyota's sales in the U.S. have remained fairly steady year over year, as demand for new vehicles in the post-recovery years has largely been filled. The result is that sales of major automakers arrived at a plateau in early 2017, one that has necessitated heavier than usual incentives to keep vehicles moving off dealership lots.
Toyota has not been immune to this plateau even though sales have grown slightly year over year, and the automaker has indicated that it could cut nameplates from its lineup -- a move that will address expected vehicle demand several years in the future.
"We are taking a hard look at all of the segments that we compete in to make sure we are competing in profitable segments and that products we sell have strategic value," Jim Lentz, Toyota North America CEO, told Automotive News.
Toyota's lineup has remained fairly static for the past several years, with a number of models dating back decades. Here are four nameplates that the automaker may wish to cut from its lineup or redesign entirely as demand continues to shift.
1. Toyota Sequoia
Despite the fact that the Sequoia rests in a segment that is hot at the moment, Sequoia sales are not. The current model has been on the market since the 2008 model year (yes, really) and even though it has received updates, including a facelift just this year, the model's sales have been flat for a while and have ranged from about 11,000 units to 16,000 units for every year except for 2008. Sequoia sales in 2017 amounted to 12,156 vehicles, after a similar performance in 2016. The reason, besides the fact that the vehicle is basically a decade old, is that the much more popular (and much more recent) Highlander and 4Runner enjoy 10 times the sales while offering very similar everything. The Highlander and 4Runner also have lower starting prices. Sooner or later the Sequoia has to receive a complete redesign, or it has to go.
2. Toyota Land Cruiser
Facing similar issues as the Sequoia, the current Land Cruiser debuted all the way back in 2007, going on sale as a 2008 model-year vehicle. Despite being a strong seller globally, U.S. sales of the Land Cruiser amounted to just 3,100 units in 2017. These are boutique Italian automaker numbers, and the expense and thirst of the Land Cruiser is not exactly keeping pace with the current tastes of the market. This is a bit of a paradox since large SUVs are doing very well, but the limited appeal of the Land Cruiser, along with a Lexus price tag, doesn't make it particularly attractive to those wishing for something merely larger than a 4Runner. We believe there is a space in the lineup for a large SUV, but something more akin to a Volkswagen Atlas needs to fill this niche because Land Cruiser sales (and its mpg ratings) aren't going to spontaneously improve.
3. Toyota Mirai
If you haven't seen the Mirai on the streets lately, that's because it's a hydrogen car that is sold only by a handful of dealerships in California. Requiring close proximity to a hydrogen fuel station is one of the things keeping the Mirai within a relatively small geographic area, and when it comes to expensive experiments by a major automaker the Mirai really has no rivals. The model recorded 1,838 sales in 2017, which is actually pretty amazing for something that takes neither electricity, nor gasoline, nor diesel. Let's face it: Toyota is not making money on this model, and no money is pending. The development and production costs of the Mirai must be pretty substantial on a per-unit basis, ignoring for a moment the nearly $60,000 starting price, all while electric cars are inching along into the mainstream. At some point Toyota has to be realistic about hydrogen cars and electric cars: You'll notice that Toyota does not have a battery-electric model in the lineup, despite offering several PHEVs. That's an expensive choice, strategically, and a state of affairs that will become more difficult to ignore as more of its rivals field battery EVs.
4. Toyota Yaris hatchback
Yaris sedan sales have been pretty solid in recent years, having clocked in 35,727 units in 2017. That's still just a fraction of Corolla sales but it absolutely dwarfs Yaris hatchback sales, which recorded 8,653 units in 2017. Perhaps we have the economic recovery and a general shift away from small hatches to thank for this, but it's also true that the segment is not particularly hot to begin with. The Yaris isn't old, but it's difficult to ignore the fact that sales of this model were, at one point, over 100,000 units in the U.S. alone, and have been shrinking by huge chunks for the past decade. It's not difficult to imagine Yaris hatch sales recording just 6,000 units in 2018 -- we'll find out soon enough -- at which point it will become a bit of a niche offering -- that's how much this segment has cratered over the years.
Read more: https://autoweek.com/article/car-new...#ixzz5W6j5OmxO
Toyota has not been immune to this plateau even though sales have grown slightly year over year, and the automaker has indicated that it could cut nameplates from its lineup -- a move that will address expected vehicle demand several years in the future.
"We are taking a hard look at all of the segments that we compete in to make sure we are competing in profitable segments and that products we sell have strategic value," Jim Lentz, Toyota North America CEO, told Automotive News.
Toyota's lineup has remained fairly static for the past several years, with a number of models dating back decades. Here are four nameplates that the automaker may wish to cut from its lineup or redesign entirely as demand continues to shift.
1. Toyota Sequoia
Despite the fact that the Sequoia rests in a segment that is hot at the moment, Sequoia sales are not. The current model has been on the market since the 2008 model year (yes, really) and even though it has received updates, including a facelift just this year, the model's sales have been flat for a while and have ranged from about 11,000 units to 16,000 units for every year except for 2008. Sequoia sales in 2017 amounted to 12,156 vehicles, after a similar performance in 2016. The reason, besides the fact that the vehicle is basically a decade old, is that the much more popular (and much more recent) Highlander and 4Runner enjoy 10 times the sales while offering very similar everything. The Highlander and 4Runner also have lower starting prices. Sooner or later the Sequoia has to receive a complete redesign, or it has to go.
2. Toyota Land Cruiser
Facing similar issues as the Sequoia, the current Land Cruiser debuted all the way back in 2007, going on sale as a 2008 model-year vehicle. Despite being a strong seller globally, U.S. sales of the Land Cruiser amounted to just 3,100 units in 2017. These are boutique Italian automaker numbers, and the expense and thirst of the Land Cruiser is not exactly keeping pace with the current tastes of the market. This is a bit of a paradox since large SUVs are doing very well, but the limited appeal of the Land Cruiser, along with a Lexus price tag, doesn't make it particularly attractive to those wishing for something merely larger than a 4Runner. We believe there is a space in the lineup for a large SUV, but something more akin to a Volkswagen Atlas needs to fill this niche because Land Cruiser sales (and its mpg ratings) aren't going to spontaneously improve.
3. Toyota Mirai
If you haven't seen the Mirai on the streets lately, that's because it's a hydrogen car that is sold only by a handful of dealerships in California. Requiring close proximity to a hydrogen fuel station is one of the things keeping the Mirai within a relatively small geographic area, and when it comes to expensive experiments by a major automaker the Mirai really has no rivals. The model recorded 1,838 sales in 2017, which is actually pretty amazing for something that takes neither electricity, nor gasoline, nor diesel. Let's face it: Toyota is not making money on this model, and no money is pending. The development and production costs of the Mirai must be pretty substantial on a per-unit basis, ignoring for a moment the nearly $60,000 starting price, all while electric cars are inching along into the mainstream. At some point Toyota has to be realistic about hydrogen cars and electric cars: You'll notice that Toyota does not have a battery-electric model in the lineup, despite offering several PHEVs. That's an expensive choice, strategically, and a state of affairs that will become more difficult to ignore as more of its rivals field battery EVs.
4. Toyota Yaris hatchback
Yaris sedan sales have been pretty solid in recent years, having clocked in 35,727 units in 2017. That's still just a fraction of Corolla sales but it absolutely dwarfs Yaris hatchback sales, which recorded 8,653 units in 2017. Perhaps we have the economic recovery and a general shift away from small hatches to thank for this, but it's also true that the segment is not particularly hot to begin with. The Yaris isn't old, but it's difficult to ignore the fact that sales of this model were, at one point, over 100,000 units in the U.S. alone, and have been shrinking by huge chunks for the past decade. It's not difficult to imagine Yaris hatch sales recording just 6,000 units in 2018 -- we'll find out soon enough -- at which point it will become a bit of a niche offering -- that's how much this segment has cratered over the years.
Read more: https://autoweek.com/article/car-new...#ixzz5W6j5OmxO
03-12-2019, 09:43 AM
#157
Moderator
https://www.motor1.com/news/308937/t...rts-car-price/
While Toyota has plans for a third sports car to complement the 86 and the Supra, there's no chance that it will slot in below the 86 price-wise. That comes straight from Toyota Gazoo Racing head Tetsuya Tada, according to Evo.
While there are still plans at Toyota to bring its "three brothers" sports car concept to fruition, engineers and product planners have to remain realistic about the sports car market. For one thing, development costs don't scale down – a car is a car, and whether it's a three-row, seven-passenger SUV or a two-seat sports coupe, development costs will be similar. That can quickly kill a niche product (a sports car, for example) if the car isn't built at a price point that will allow Toyota to make a profit.
Speaking to Evo at the 2019 Geneva Motor Show, Tada said "I believe most people are looking forward to the smallest of the “three brothers," and when people say the smallest, they expect it would be the most affordable. But in reality, coming up with a compact small sports car is quite difficult."
Interestingly enough, the 86, Toyota's current entry-level sports car offering, is having an impact on the development in ways we wouldn't necessarily expect. With early, used examples of those cars now priced in the low teens, the new sports car would be competing with its own stablemates at that price point.
Instead, it's more likely that the new car – which may, according to Evo, be a mid-engine sports car along the lines of the beloved MR2 – will be priced somewhere between the 86 and the Supra. If this possible MR2 successor manages to offer more power than the 86 with the sort of handling the MR2s of yesteryear are known and loved for, Toyota will have a winner on their hands, especially if it manages to come in well below $40,000.
While there are still plans at Toyota to bring its "three brothers" sports car concept to fruition, engineers and product planners have to remain realistic about the sports car market. For one thing, development costs don't scale down – a car is a car, and whether it's a three-row, seven-passenger SUV or a two-seat sports coupe, development costs will be similar. That can quickly kill a niche product (a sports car, for example) if the car isn't built at a price point that will allow Toyota to make a profit.
Speaking to Evo at the 2019 Geneva Motor Show, Tada said "I believe most people are looking forward to the smallest of the “three brothers," and when people say the smallest, they expect it would be the most affordable. But in reality, coming up with a compact small sports car is quite difficult."
Interestingly enough, the 86, Toyota's current entry-level sports car offering, is having an impact on the development in ways we wouldn't necessarily expect. With early, used examples of those cars now priced in the low teens, the new sports car would be competing with its own stablemates at that price point.
Instead, it's more likely that the new car – which may, according to Evo, be a mid-engine sports car along the lines of the beloved MR2 – will be priced somewhere between the 86 and the Supra. If this possible MR2 successor manages to offer more power than the 86 with the sort of handling the MR2s of yesteryear are known and loved for, Toyota will have a winner on their hands, especially if it manages to come in well below $40,000.
03-12-2019, 09:43 AM
#158
Moderator
Toyota's Miata fighter?
03-12-2019, 10:31 AM
#159
I would love an MR2. If they can make it roughly the same weight as the Miata, damn.
The 86 is already about as cheap as it gets for a 2+2 sports car. Any cheaper and you'll be making serious compromises
The 86 is already about as cheap as it gets for a 2+2 sports car. Any cheaper and you'll be making serious compromises
03-12-2019, 12:41 PM
#160
New Toyota Paseo? 