Toyota Motor Corp., the world's biggest seller of gasoline-electric cars, said today the rechargeable version of its Prius hybrid will cost $32,760, including transportation costs, when it goes on sale early next year.
The car goes as far as 15 miles solely on electricity, after which it runs as a standard 49 mpg Prius, Bob Carter, Toyota's group vice president for U.S. sales, told reporters here today. Toyota dealers will start selling the car in 14 states on the West and East coasts in March, he said.
The plug-in Prius' lithium-ion batteries recharge from a standard wall outlet and don't require installation of costly charging equipment. It will qualify for a $2,500 federal tax credit, Carter said.
"This will be the most affordable plug-in in the market," Carter said.
GM has said its 2012 model Chevrolet Volt will cost $39,145, before a $7,500 federal tax credit. That rechargeable model goes about 35 miles on electricity per charge, before a gasoline engine engages to power the vehicle.
Toyota plans to offer four Prius models, including the Prius v wagon that goes on sale next month and a compact version next year. Prius will outsell Camry, the nation's top-selling car line, to become Toyota's most popular models by the end of the decade, Carter said.
U.S. sales of the rechargeable Prius should be about 15,000 units in its first 12 months on the market, he said. It can average more than 80 mpg, based on company tests, he said.
The Prius v wagon will have a $27,160 starting price, including transportation. It gets an average of 42 mpg, Carter said.
Showing posts with label Toyota. Show all posts
Showing posts with label Toyota. Show all posts
Monday, September 19, 2011
Thursday, September 15, 2011
Toyota makes Prius a priority as automaker faces a 'turning point'
Hybrids, fuel economy key to comeback
Two weeks after Japan's March 11 earthquake knocked out more than 650 of Toyota Motor Corp.'s suppliers, halting worldwide production, the automaker had to decide where to focus its resources. It picked the Prius.
"We were rapidly burning through cash," said Atsushi Niimi, head of production. "We decided we had to get things going bit by bit to survive through this, so we prioritized the cars our customers wanted most."
The carmaker started calling suppliers across the country to find parts for the Prius and luxury-brand Lexus hybrids.
By March 28, Toyota's Tsutsumi and Kyushu factories were producing the models again at 30 to 40 percent of capacity, Niimi said.
By choosing the Prius ahead of the Corolla and Camry sedans that enabled Toyota to become the No. 1 automaker by 2008, President Akio Toyoda is staking the future of Japan Inc. on hybrid technology as the solution to the nation's worst disaster since World War II and the company's initial indifference to customer complaints that prompted its biggest recall.
General Motors Co. supplanted Toyota as the world's largest automaker in the first half of this year, as Japan's last remaining company in the world's top 50 by market value lost customers to GM, Ford Motor Co. and Hyundai Motor Co. in the U.S. market, which is recovering from its deepest postwar slump.
"The last several years have been a triple shock for Toyota," said Masatoshi Nishimoto, a Tokyo-based automotive analyst for global consulting company IHS Inc. "It's now at a major turning point."
Lost share
The fallout from the earthquake and the unprecedented recalls devastated Toyota sales, which are down 7.8 percent in 2011 through August in the U.S., while GM, Ford, Hyundai and Chrysler increased shipments by 16, 12, 21 and 21 percent respectively, according to Autodata Corp.
Toyota was outsold in the U.S. by GM, Ford and the Fiat-Chrysler group in August, according to data compiled by Bloomberg.
While GM's share of the U.S. market in the first eight months increased 1 percentage point to 20 percent and Hyundai's rose a half percentage point to 5.2 percent, Toyota lost 2.5 percentage points to 12.7 percent.
The 74-year-old company that Ford Chief Executive Officer Alan Mullaly once praised for "the finest production system in the world," plans to regain market share with at least 11 new models over the next two years.
Analysts including IHS's Nishimoto say Toyota's advances in fuel economy will underscore its recovery even as rivals narrow the gap in quality and outsell the Japanese company in emerging markets such as China.
New Prius cars
Toyoda's effort to win back market share, which includes three new versions of the Prius, the world's top-selling hybrid, and electric or dual-power versions of other models, is as much about the company's strategy to regain its lead as it is about the Japanese economy's failure to return to prosperity after two decades of anemic growth.
The revamped lineup begins this week with the release of the 2012 model of the Camry, the best-selling car in the U.S. for 13 of the past 14 years.
Toyota has promised another four releases this year and at least six in 2012.
"Back in the 80s, if someone said Toyota, the first thing that popped in your mind was Corolla," said Jim Lentz, president of Toyota's U.S. sales. "Through the 90s, it was probably Camry. If you ask someone middle of this decade and beyond, it will be Prius."
Toyota is focusing on fuel technology to gain sales in developed markets like North America -- where the company earned about 70 percent of its operating profit last fiscal year -- even as the quake dented its efforts to catch up in expanding markets such as China, which overtook the U.S. in 2009 as the world's biggest car market and where growth is still dominated by all-gasoline powered vehicles.
China sales
The production hiatus after the disaster relegated Toyota to No. 5 in China by sales of passenger vehicles in the first seven months of this year, trailing Volkswagen AG, GM, Nissan and Hyundai, according to an August report on the country by consumer ratings company J. D. Power & Associates.
"Chinese consumers prefer luxury over fuel-efficiency," said John Zeng, a Shanghai-based analyst at J.D. Power. "For the price of a Prius, you can buy an entry-level BMW 5-series."
With limited government subsidies for hybrids, Toyota's strength in China is in mid-size sedans such as the Corolla and Camry, and large SUVs like the Land Cruiser, where demand will continue to grow, he said.
Toyota sold 2,261 Prius cars in China in the last four years, compared with 632,000 Camrys and 809,000 Corollas.
Yen pain
Toyota's comeback will be burdened by Toyoda's commitment to keeping jobs in Japan as the strongest yen against the dollar in six decades and looming power shortages make it harder for the automaker to escape the same fate as Japan's economy: sliding competitiveness and stagnant growth.
Toyota makes more vehicles domestically than rivals Honda Motor Co., Nissan Motor Co. and Suzuki Motor Corp. combined, making it the most-affected Japanese automaker when the earthquake struck.
Suppliers of 1,260 parts and materials used in Toyota cars were crippled by the magnitude-9 temblor and tsunami, leading officials initially to predict a production loss of 2 million vehicles, or a quarter of the company's global output last year.
A failure to reverse the decline could add Toyota to the list of Japanese corporations that once dominated markets from autos to electronics before losing out to overseas competitors.
Rising competition from companies including Apple Inc., Samsung Electronics Co. and Hyundai eroded the leads of manufacturers like Sony Corp. and Toshiba Inc.
Last survivor
In 1990, when Japan's asset bubble burst, six of the world's 10 biggest companies by market value were Japanese and Toyota was No. 9, according to a ranking by Businessweek.
Toyota now ranks 35th, the sole Japanese survivor in the top 50.
"The world has changed dramatically since Toyota became the top carmaker," said Yuuki Sakurai, Tokyo-based president of Fukoku Capital Management Inc., which manages 600 billion yen ($7.8 billion) in assets.
"Japan became known for producing high-quality products sold cheaply. With the Koreans and Chinese catching up, Japan's position has become ambiguous."
Toyota's troubles came to the fore in 2009 and 2010, when floor mat and gas pedal design flaws led to recalls of millions of vehicles, undermining the company's reputation for quality.
U.S. sales of the Camry dropped 8.1 percent in 2010 and 7 percent in the first eight months of this year. Sales of Hyundai's competing Sonata sedan surged 64 percent last year and 22 percent in the January-August period.
Maximum fine
Toyota was fined a maximum $16.4 million in April 2010 by the U.S. National Highway Traffic Safety Administration after recalling cars in Europe months before doing so in the U.S.
In February, Toyota's Lentz had told a U.S. Congress committee investigating the defects that the company "failed to promptly analyze and respond to information" about the sticking pedals.
Toyota "permanently lost some ground," said Ed Kim, an analyst at AutoPacific Inc. in Tustin, Calif. "Formerly second-tier players like Hyundai now directly challenge them in key product segments."
In June 2009, three months before the recall crisis began, Toyoda took over as president from Katsuaki Watanabe. By February 2010, the grandson of Kiichiro Toyoda, the motor company's founder, was summoned to appear before the U.S. Congress committee.
Toyoda vowed to fix the problem, establishing a global committee to oversee quality, from suppliers through to customers.
Flooded factories
The complexity of that task was revealed when the earthquake hit this year, shifting Japan's northeast coastline by 3.6 meters and triggering the wave that destroyed more than 100,000 buildings and left more than 15,700 people dead.
Factories around the industrial center of Sendai were flooded or destroyed, including a Sony plant and hundreds of small subcontractors for Japan's manufacturers.
It took Toyota three days to set up the first video link between headquarters and the company's newest plant, a factory near the disaster zone that produced Yaris compact cars.
"The first image we saw was of everyone in helmets in darkness, standing very still," production chief Niimi said in an interview in Toyota City, about 600 kilometers (400 miles) from the quake's epicenter.
Toyota's parts system relies on thousands of companies -- suppliers of suppliers of suppliers. So when the quake struck, the company didn't know how badly it was affected.
Employees spent days calling suppliers and searching the Internet to try to find out where all its part-makers were, marking them with push pins on a map, said Niimi, 64.
Head spinning
"My head was spinning," he said.
By contrast, the 1995 Kobe earthquake, which killed more than 6,000 people, damaged 14 Toyota suppliers producing 30 parts.
The lack of components cut Toyota's output by 23 percent in the first half, to 3.38 million units, allowing it to be overtaken by both GM and Volkswagen AG in global sales.
Toyota's stock closed at 2,680 yen on Sept. 9, down 27 percent from the day before the earthquake and a 68 percent drop from the peak in February 2007.
Goldman Sachs Group Inc. lowered its 12-month target price to 3,600 yen from 4,000 yen on Aug. 18, citing higher incentive spending in the U.S. and possible excess inventories next year.
Of 23 analysts surveyed by Bloomberg, 10 recommend Toyota as a "buy," while 13 rate it a "hold."
Toyota's slump recalls the decline in competitive edge of other Japanese brands that once dominated.
In the 1980s, Sony's Walkman music player and Trinitron TV were leaders, capturing the imagination of a young Steve Jobs, co-founder of Apple, who was given an early Walkman by Sony co-founder Akio Morita.
Jobs's Walkman
"Steve was fascinated by it," said former Apple CEO John Sculley in an interview in December. "The first thing he did with his was take it apart, and he looked at every single part. He didn't want to be Microsoft. He wanted to be Sony."
In the mid 1990s, Sony's PlayStation games console helped it sit atop the video-games industry. Then, as Japan's economy stagnated over two "lost decades" Sony's reputation in consumer innovation waned.
Apple is now the biggest maker of smartphones and has 61 percent of the tablet computer market. Sony begins selling its tablet this month, more than a year after the iPad went on sale.
Last year, South Korea's Samsung Electronics made twice as many TVs as Sony. Others suffered a similar fate.
In the 1990s Toshiba owned almost 100 percent of the market for the flash memory chips it invented. Sharp Corp. pioneered liquid-crystal displays. Samsung overtook both by outspending them each year on more advanced manufacturing plants.
'Long time ago'
"The iPod/iPad set of products is something that a long time ago, one might have expected a Japanese firm to come up with," said Robert Feldman, head of Japan economic research at Morgan Stanley MUFG Securities Co. in Tokyo, who used to work at the Federal Reserve Bank of New York and the International Monetary Fund.
"Some of Japan's competitors, particularly the Koreans, are becoming very good at many of the things Japan used to be best at. Japan's competitiveness has worsened."
Sony in May posted its widest annual net loss in 16 years, the first time the company has had three straight full-year losses since it listed in 1958.
While Apple's profit more than doubled in the three months ended June, Toyota's fell 99 percent. In the weeks following the earthquake on March 11 -- known as "san ten ichi ichi" or 3/11 in Japanese -- Toyota worked to rebuild its manufacturing network.
While its darkened plant near Sendai, in Miyagi prefecture, suffered little damage, many suppliers had plants destroyed.
Navigation lost
Among the biggest challenges was semiconductor maker Renesas Electronics Corp., which makes chips that run dashboard meters, navigation and audio systems.
Toyota and other customers sent 2,500 workers to help repair Renesas's Naka building, water and electricity systems.
It took 2 1/2 months before the plant resumed operation. Japan's national effort to recover from the quake helped bring factories back on line quicker than expected.
Toyota now estimates a shortfall of only 150,000 units this fiscal year. Even without the damage from the quake, Japanese companies have had to cope with a domestic economy that has grown at an average 1.2 percent annually in the past 21 years.
More than two decades of government spending to revive growth have saddled the country with the world's highest level of public debt.
Japan has had deflation for more than a decade, and has the world's oldest society with a median age of 44, according to the United Nations.
Downward pressure on wages has sapped consumer spending on cars, televisions and appliances.
Growth downgraded
Japan's economy contracted at an annualized 2.1 percent rate in the three months ended June, its third consecutive quarter of decline.
The government downgraded its growth forecast to 0.5 percent in the year started April, from 1.5 percent, to reflect the quake's effect. The stronger yen has sapped exporters' profits.
Following the 2008 global financial crisis, investors treated the Japanese currency as a haven, sending it to a post-World War II high of 75.95 to the dollar on Aug. 19, from almost 95 in May last year.
A 15-yen change in the rate over the past year has "blown off" 300,000 yen, or $3,900, in profit on a $20,000 car, Takahiko Ijichi, Toyota's senior managing officer, said on Aug. 2.
That cut Toyota's fiscal first-quarter operating profit by 50 billion yen, he said.
Japan's former finance minister, Yoshihiko Noda unveiled a $100 billion effort on Aug. 24 to help companies cope with the yen's rise, releasing foreign-exchange reserves to the state-run Japan Bank for International Cooperation to aid exporters, hours after Moody's Investors Service lowered the nation's debt rating for the first time since 2002.
Noda was elected to succeed Naoto Kan as prime minister on Aug. 30.
Idled reactors
Worse still for Japan's manufacturers may be the long-term effect of the earthquake on power supplies.
When the sea surge knocked out cooling systems at Tokyo Electric Power Co.'s plant in northern Japan, three reactors went into meltdown, plunging the nation into the world's worst nuclear crisis since the 1986 accident in Chernobyl, Ukraine.
Forty-three of Japan's 54 atomic reactors were offline as of Sept. 5, according to data compiled by Bloomberg News.
Before the Fukushima failure, nuclear energy provided 30 percent of Japan's electricity, a number Kan had promised to reduce in a shift to renewable energy.
Industries in parts of Japan were ordered to cut consumption by 15 percent from July 1 to help mitigate shortages. Toyota, Honda and Nissan began closing plants on Thursdays and Fridays and operating during weekends.
LCD-maker Sharp and Mitsui Mining & Smelting Co., Japan's biggest zinc smelter, said they plan to move production abroad because of concern that nuclear plants will remain closed, extending power shortages.
'Endless obstacles'
"Manufacturers here have faced endless obstacles such as foreign exchange rates, corporate tax and environmental and labor regulations," Sharp Chairman Katsuhiko Machida said at a briefing in Osaka on July 15. "This issue over power supply could be the end of manufacturing in Japan."
Japan's effective corporate tax rate is 41 percent, compared with 25 percent in China and 24 percent in South Korea, according to KPMG LLP's 114-nation survey in 2010.
"We've seen pressure for more and more Japanese manufacturing to move offshore," said Feldman at Morgan Stanley. "Then we have the earthquake. Then we have the power problem. And now we have the yen at 76. Japanese companies have a lot of trouble competing at that level."
While a manufacturing exodus might benefit companies moving production to countries with higher growth, it would further undermine Japan's recovery, he said. "The companies will just shift the jobs somewhere else. This is extremely serious."
Japanese jobs
Even Toyoda's stated aim of preserving Japanese jobs has come under strain. Toyoda has pledged to make small hybrid cars in quake-hit Iwate prefecture and spend 2 billion yen on a new engine factory in Miyagi.
"How much longer should we insist on producing in Japan?" said Chief Financial Officer Satoshi Ozawa, seated next to Toyoda at a press conference in May. "Our efforts may have exceeded the limits of what is possible in dealing with the yen's impact."
Even Toyota's overseas plants like the Camry factory in Georgetown, Kentucky, still rely for some parts, particularly electronics, on Toyota's vast supplier network in Japan.
That plant is crucial because Toyota's recovery in its biggest market will be measured by a rebound in market share, which fell to 15 percent last year from 17 percent in 2009, production manager Niimi said.
Toyoda was at the Kentucky factory on Aug. 23 to drive the first of the new Camrys off the production line in an event relayed to a ceremony at Paramount Studio's "New York City" backlot in Hollywood, with 200 actors, dancers and musicians.
Japanese crown
"In the two short years I have been president of Toyota, my focus has never wavered from one goal: product, product and product," Toyoda, 55, told workers. "This vehicle has become a symbol of Toyota's success over the years. This is an opportunity to show the world again what Toyota is all about."
The Camry -- an Anglicized spelling of "kanmuri," or "crown" in Japanese -- is the first of 20 new and refreshed Toyota, Lexus and Scion models arriving in the U.S. between now and 2013.
"The cadence comes faster than I've seen in 30 years with Toyota," Bob Carter, group vice president of U.S. sales, said in an interview. Under Toyoda "there is a renewed focus on products themselves that we haven't seen in years."
Toyota plans to add the hybrid Prius v wagon, revamped Yaris subcompact, Scion iQ minicar and modified Tacoma pickup this year.
Releases in 2012 include a plug-in version of the Prius and compact Prius c hybrid, new Lexus GS sport sedan, battery-powered RAV4 sport-utility vehicle and electric version of the iQ, as well as the rear-wheel drive Scion FR-S sport coupe, Carter said.
Running overtime
As Toyota's plants run overtime to build the new models, Toyota may reclaim some ground, with its global market share rebounding to 11 percent in 2012, from 9.7 percent this year, and its U.S. share rising to 14 percent, from 13 percent, according to IHS's Automotive division in Englewood, Colorado.
Still, the company will struggle to recapture the lead it enjoyed before the financial crisis, said Tokyo-based IHS analyst Nishimoto.
The automaker told suppliers that the new models are expected to cause global production to rebound in 2012 to 8.9 million units, an all-time high, from 8.04 million vehicles forecast for this year, according to Nobuaki Katoh, president of Denso Corp., Toyota's biggest supplier.
In parallel, Japan's economy will get a boost next fiscal year from reconstruction, with the Bank of Japan forecasting GDP to rise 2.9 percent compared with 0.4 percent this year.
Falling birthrate
That won't be sustained because the falling birthrate means the economy's losing a key driver of growth, according to Yoshimasa Maruyama, a senior economist at Itochu Corp. in Tokyo.
"The country can no longer expect the kind of high-speed growth it once had," said Maruyama. "We can't change that."
The Bank of Japan estimates growth in the long run will be around 0.5 percent. Japan still has examples of leading companies, including Canon Inc., the world's largest camera maker; and Fanuc Corp., which makes controls that run more than half the world's computerized tools.
To rejoin them, Toyota may need to reduce its dependence on production in Japan and sales in the U.S., said Fukoku Capital's Sakurai. "Toyota's future success will depend on just how global a company it can be," he said. "It needs to diversify its operations and risks more."
Etios in India
Toyota has said it plans to get half of its global sales from emerging markets by 2015 with models such as the Etios sedan, its cheapest car, which began selling in India in December.
The company aims to introduce a similar vehicle in China, Brazil and Thailand, said Yoshinori Noritake, chief engineer of the Etios.
"We need to introduce entry-level vehicles there as soon as possible," he said.
Toyota entered the Chinese market after rivals, setting up its first assembly plant in 2000, 16 years after Volkswagen.
Still, Toyota's edge in its biggest market in North America is the Prius and hybrids that allow drivers to cut fuel consumption, said Jesse Toprak at TrueCar.com, an auto pricing and data service in Santa Monica, California.
Regular gasoline retailed in the U.S. for an average $3.655 on Sept. 7, up 97.5 cents from a year earlier, according to the American Automobile Association.
Backbone engine
"Prius is going to be the backbone of our powertrain philosophy going forward," said Toyota's U.S. sales chief Lentz. "The vast majority of vehicle sales we're going to have are going to be hybrids."
The new $25,900 Camry Hybrid's 41 miles per gallon average tops the Hyundai Sonata Hybrid's 37 mpg and Ford Fusion Hybrid's 39 mpg, according to U.S. Environmental Protection Agency data.
"Having the biggest number of fuel-efficient vehicles does differentiate Toyota," said Toprak. "The Prius line expansion should generate sales, particularly if fuel prices rise again."
Competition is tougher in quality and technology than it was in the first quarter of 2007, when Toyota ended GM's seven- decade reign as the world's biggest automaker.
Hyundai's new Equus came fourth in this year's U.S. new-car quality survey by Westlake Village, California-based J.D. Power, which has been conducting customer research since 1968.
Only two of Toyota's Luxury brand Lexus models and Porsche Automobil Holding SE's 911 beat the South Korean car.
"For Toyota to get back to where it was in 2007, you'd have to beat Hyundai back to where they had been, beat Nissan and Ford back to where they had been," AutoPacific's Kim said. "I just don't see that happening."
Two weeks after Japan's March 11 earthquake knocked out more than 650 of Toyota Motor Corp.'s suppliers, halting worldwide production, the automaker had to decide where to focus its resources. It picked the Prius.
"We were rapidly burning through cash," said Atsushi Niimi, head of production. "We decided we had to get things going bit by bit to survive through this, so we prioritized the cars our customers wanted most."
The carmaker started calling suppliers across the country to find parts for the Prius and luxury-brand Lexus hybrids.
By March 28, Toyota's Tsutsumi and Kyushu factories were producing the models again at 30 to 40 percent of capacity, Niimi said.
By choosing the Prius ahead of the Corolla and Camry sedans that enabled Toyota to become the No. 1 automaker by 2008, President Akio Toyoda is staking the future of Japan Inc. on hybrid technology as the solution to the nation's worst disaster since World War II and the company's initial indifference to customer complaints that prompted its biggest recall.
General Motors Co. supplanted Toyota as the world's largest automaker in the first half of this year, as Japan's last remaining company in the world's top 50 by market value lost customers to GM, Ford Motor Co. and Hyundai Motor Co. in the U.S. market, which is recovering from its deepest postwar slump.
"The last several years have been a triple shock for Toyota," said Masatoshi Nishimoto, a Tokyo-based automotive analyst for global consulting company IHS Inc. "It's now at a major turning point."
Lost share
The fallout from the earthquake and the unprecedented recalls devastated Toyota sales, which are down 7.8 percent in 2011 through August in the U.S., while GM, Ford, Hyundai and Chrysler increased shipments by 16, 12, 21 and 21 percent respectively, according to Autodata Corp.
Toyota was outsold in the U.S. by GM, Ford and the Fiat-Chrysler group in August, according to data compiled by Bloomberg.
While GM's share of the U.S. market in the first eight months increased 1 percentage point to 20 percent and Hyundai's rose a half percentage point to 5.2 percent, Toyota lost 2.5 percentage points to 12.7 percent.
The 74-year-old company that Ford Chief Executive Officer Alan Mullaly once praised for "the finest production system in the world," plans to regain market share with at least 11 new models over the next two years.
Analysts including IHS's Nishimoto say Toyota's advances in fuel economy will underscore its recovery even as rivals narrow the gap in quality and outsell the Japanese company in emerging markets such as China.
New Prius cars
Toyoda's effort to win back market share, which includes three new versions of the Prius, the world's top-selling hybrid, and electric or dual-power versions of other models, is as much about the company's strategy to regain its lead as it is about the Japanese economy's failure to return to prosperity after two decades of anemic growth.
The revamped lineup begins this week with the release of the 2012 model of the Camry, the best-selling car in the U.S. for 13 of the past 14 years.
Toyota has promised another four releases this year and at least six in 2012.
"Back in the 80s, if someone said Toyota, the first thing that popped in your mind was Corolla," said Jim Lentz, president of Toyota's U.S. sales. "Through the 90s, it was probably Camry. If you ask someone middle of this decade and beyond, it will be Prius."
Toyota is focusing on fuel technology to gain sales in developed markets like North America -- where the company earned about 70 percent of its operating profit last fiscal year -- even as the quake dented its efforts to catch up in expanding markets such as China, which overtook the U.S. in 2009 as the world's biggest car market and where growth is still dominated by all-gasoline powered vehicles.
China sales
The production hiatus after the disaster relegated Toyota to No. 5 in China by sales of passenger vehicles in the first seven months of this year, trailing Volkswagen AG, GM, Nissan and Hyundai, according to an August report on the country by consumer ratings company J. D. Power & Associates.
"Chinese consumers prefer luxury over fuel-efficiency," said John Zeng, a Shanghai-based analyst at J.D. Power. "For the price of a Prius, you can buy an entry-level BMW 5-series."
With limited government subsidies for hybrids, Toyota's strength in China is in mid-size sedans such as the Corolla and Camry, and large SUVs like the Land Cruiser, where demand will continue to grow, he said.
Toyota sold 2,261 Prius cars in China in the last four years, compared with 632,000 Camrys and 809,000 Corollas.
Yen pain
Toyota's comeback will be burdened by Toyoda's commitment to keeping jobs in Japan as the strongest yen against the dollar in six decades and looming power shortages make it harder for the automaker to escape the same fate as Japan's economy: sliding competitiveness and stagnant growth.
Toyota makes more vehicles domestically than rivals Honda Motor Co., Nissan Motor Co. and Suzuki Motor Corp. combined, making it the most-affected Japanese automaker when the earthquake struck.
Suppliers of 1,260 parts and materials used in Toyota cars were crippled by the magnitude-9 temblor and tsunami, leading officials initially to predict a production loss of 2 million vehicles, or a quarter of the company's global output last year.
A failure to reverse the decline could add Toyota to the list of Japanese corporations that once dominated markets from autos to electronics before losing out to overseas competitors.
Rising competition from companies including Apple Inc., Samsung Electronics Co. and Hyundai eroded the leads of manufacturers like Sony Corp. and Toshiba Inc.
Last survivor
In 1990, when Japan's asset bubble burst, six of the world's 10 biggest companies by market value were Japanese and Toyota was No. 9, according to a ranking by Businessweek.
Toyota now ranks 35th, the sole Japanese survivor in the top 50.
"The world has changed dramatically since Toyota became the top carmaker," said Yuuki Sakurai, Tokyo-based president of Fukoku Capital Management Inc., which manages 600 billion yen ($7.8 billion) in assets.
"Japan became known for producing high-quality products sold cheaply. With the Koreans and Chinese catching up, Japan's position has become ambiguous."
Toyota's troubles came to the fore in 2009 and 2010, when floor mat and gas pedal design flaws led to recalls of millions of vehicles, undermining the company's reputation for quality.
U.S. sales of the Camry dropped 8.1 percent in 2010 and 7 percent in the first eight months of this year. Sales of Hyundai's competing Sonata sedan surged 64 percent last year and 22 percent in the January-August period.
Maximum fine
Toyota was fined a maximum $16.4 million in April 2010 by the U.S. National Highway Traffic Safety Administration after recalling cars in Europe months before doing so in the U.S.
In February, Toyota's Lentz had told a U.S. Congress committee investigating the defects that the company "failed to promptly analyze and respond to information" about the sticking pedals.
Toyota "permanently lost some ground," said Ed Kim, an analyst at AutoPacific Inc. in Tustin, Calif. "Formerly second-tier players like Hyundai now directly challenge them in key product segments."
In June 2009, three months before the recall crisis began, Toyoda took over as president from Katsuaki Watanabe. By February 2010, the grandson of Kiichiro Toyoda, the motor company's founder, was summoned to appear before the U.S. Congress committee.
Toyoda vowed to fix the problem, establishing a global committee to oversee quality, from suppliers through to customers.
Flooded factories
The complexity of that task was revealed when the earthquake hit this year, shifting Japan's northeast coastline by 3.6 meters and triggering the wave that destroyed more than 100,000 buildings and left more than 15,700 people dead.
Factories around the industrial center of Sendai were flooded or destroyed, including a Sony plant and hundreds of small subcontractors for Japan's manufacturers.
It took Toyota three days to set up the first video link between headquarters and the company's newest plant, a factory near the disaster zone that produced Yaris compact cars.
"The first image we saw was of everyone in helmets in darkness, standing very still," production chief Niimi said in an interview in Toyota City, about 600 kilometers (400 miles) from the quake's epicenter.
Toyota's parts system relies on thousands of companies -- suppliers of suppliers of suppliers. So when the quake struck, the company didn't know how badly it was affected.
Employees spent days calling suppliers and searching the Internet to try to find out where all its part-makers were, marking them with push pins on a map, said Niimi, 64.
Head spinning
"My head was spinning," he said.
By contrast, the 1995 Kobe earthquake, which killed more than 6,000 people, damaged 14 Toyota suppliers producing 30 parts.
The lack of components cut Toyota's output by 23 percent in the first half, to 3.38 million units, allowing it to be overtaken by both GM and Volkswagen AG in global sales.
Toyota's stock closed at 2,680 yen on Sept. 9, down 27 percent from the day before the earthquake and a 68 percent drop from the peak in February 2007.
Goldman Sachs Group Inc. lowered its 12-month target price to 3,600 yen from 4,000 yen on Aug. 18, citing higher incentive spending in the U.S. and possible excess inventories next year.
Of 23 analysts surveyed by Bloomberg, 10 recommend Toyota as a "buy," while 13 rate it a "hold."
Toyota's slump recalls the decline in competitive edge of other Japanese brands that once dominated.
In the 1980s, Sony's Walkman music player and Trinitron TV were leaders, capturing the imagination of a young Steve Jobs, co-founder of Apple, who was given an early Walkman by Sony co-founder Akio Morita.
Jobs's Walkman
"Steve was fascinated by it," said former Apple CEO John Sculley in an interview in December. "The first thing he did with his was take it apart, and he looked at every single part. He didn't want to be Microsoft. He wanted to be Sony."
In the mid 1990s, Sony's PlayStation games console helped it sit atop the video-games industry. Then, as Japan's economy stagnated over two "lost decades" Sony's reputation in consumer innovation waned.
Apple is now the biggest maker of smartphones and has 61 percent of the tablet computer market. Sony begins selling its tablet this month, more than a year after the iPad went on sale.
Last year, South Korea's Samsung Electronics made twice as many TVs as Sony. Others suffered a similar fate.
In the 1990s Toshiba owned almost 100 percent of the market for the flash memory chips it invented. Sharp Corp. pioneered liquid-crystal displays. Samsung overtook both by outspending them each year on more advanced manufacturing plants.
'Long time ago'
"The iPod/iPad set of products is something that a long time ago, one might have expected a Japanese firm to come up with," said Robert Feldman, head of Japan economic research at Morgan Stanley MUFG Securities Co. in Tokyo, who used to work at the Federal Reserve Bank of New York and the International Monetary Fund.
"Some of Japan's competitors, particularly the Koreans, are becoming very good at many of the things Japan used to be best at. Japan's competitiveness has worsened."
Sony in May posted its widest annual net loss in 16 years, the first time the company has had three straight full-year losses since it listed in 1958.
While Apple's profit more than doubled in the three months ended June, Toyota's fell 99 percent. In the weeks following the earthquake on March 11 -- known as "san ten ichi ichi" or 3/11 in Japanese -- Toyota worked to rebuild its manufacturing network.
While its darkened plant near Sendai, in Miyagi prefecture, suffered little damage, many suppliers had plants destroyed.
Navigation lost
Among the biggest challenges was semiconductor maker Renesas Electronics Corp., which makes chips that run dashboard meters, navigation and audio systems.
Toyota and other customers sent 2,500 workers to help repair Renesas's Naka building, water and electricity systems.
It took 2 1/2 months before the plant resumed operation. Japan's national effort to recover from the quake helped bring factories back on line quicker than expected.
Toyota now estimates a shortfall of only 150,000 units this fiscal year. Even without the damage from the quake, Japanese companies have had to cope with a domestic economy that has grown at an average 1.2 percent annually in the past 21 years.
More than two decades of government spending to revive growth have saddled the country with the world's highest level of public debt.
Japan has had deflation for more than a decade, and has the world's oldest society with a median age of 44, according to the United Nations.
Downward pressure on wages has sapped consumer spending on cars, televisions and appliances.
Growth downgraded
Japan's economy contracted at an annualized 2.1 percent rate in the three months ended June, its third consecutive quarter of decline.
The government downgraded its growth forecast to 0.5 percent in the year started April, from 1.5 percent, to reflect the quake's effect. The stronger yen has sapped exporters' profits.
Following the 2008 global financial crisis, investors treated the Japanese currency as a haven, sending it to a post-World War II high of 75.95 to the dollar on Aug. 19, from almost 95 in May last year.
A 15-yen change in the rate over the past year has "blown off" 300,000 yen, or $3,900, in profit on a $20,000 car, Takahiko Ijichi, Toyota's senior managing officer, said on Aug. 2.
That cut Toyota's fiscal first-quarter operating profit by 50 billion yen, he said.
Japan's former finance minister, Yoshihiko Noda unveiled a $100 billion effort on Aug. 24 to help companies cope with the yen's rise, releasing foreign-exchange reserves to the state-run Japan Bank for International Cooperation to aid exporters, hours after Moody's Investors Service lowered the nation's debt rating for the first time since 2002.
Noda was elected to succeed Naoto Kan as prime minister on Aug. 30.
Idled reactors
Worse still for Japan's manufacturers may be the long-term effect of the earthquake on power supplies.
When the sea surge knocked out cooling systems at Tokyo Electric Power Co.'s plant in northern Japan, three reactors went into meltdown, plunging the nation into the world's worst nuclear crisis since the 1986 accident in Chernobyl, Ukraine.
Forty-three of Japan's 54 atomic reactors were offline as of Sept. 5, according to data compiled by Bloomberg News.
Before the Fukushima failure, nuclear energy provided 30 percent of Japan's electricity, a number Kan had promised to reduce in a shift to renewable energy.
Industries in parts of Japan were ordered to cut consumption by 15 percent from July 1 to help mitigate shortages. Toyota, Honda and Nissan began closing plants on Thursdays and Fridays and operating during weekends.
LCD-maker Sharp and Mitsui Mining & Smelting Co., Japan's biggest zinc smelter, said they plan to move production abroad because of concern that nuclear plants will remain closed, extending power shortages.
'Endless obstacles'
"Manufacturers here have faced endless obstacles such as foreign exchange rates, corporate tax and environmental and labor regulations," Sharp Chairman Katsuhiko Machida said at a briefing in Osaka on July 15. "This issue over power supply could be the end of manufacturing in Japan."
Japan's effective corporate tax rate is 41 percent, compared with 25 percent in China and 24 percent in South Korea, according to KPMG LLP's 114-nation survey in 2010.
"We've seen pressure for more and more Japanese manufacturing to move offshore," said Feldman at Morgan Stanley. "Then we have the earthquake. Then we have the power problem. And now we have the yen at 76. Japanese companies have a lot of trouble competing at that level."
While a manufacturing exodus might benefit companies moving production to countries with higher growth, it would further undermine Japan's recovery, he said. "The companies will just shift the jobs somewhere else. This is extremely serious."
Japanese jobs
Even Toyoda's stated aim of preserving Japanese jobs has come under strain. Toyoda has pledged to make small hybrid cars in quake-hit Iwate prefecture and spend 2 billion yen on a new engine factory in Miyagi.
"How much longer should we insist on producing in Japan?" said Chief Financial Officer Satoshi Ozawa, seated next to Toyoda at a press conference in May. "Our efforts may have exceeded the limits of what is possible in dealing with the yen's impact."
Even Toyota's overseas plants like the Camry factory in Georgetown, Kentucky, still rely for some parts, particularly electronics, on Toyota's vast supplier network in Japan.
That plant is crucial because Toyota's recovery in its biggest market will be measured by a rebound in market share, which fell to 15 percent last year from 17 percent in 2009, production manager Niimi said.
Toyoda was at the Kentucky factory on Aug. 23 to drive the first of the new Camrys off the production line in an event relayed to a ceremony at Paramount Studio's "New York City" backlot in Hollywood, with 200 actors, dancers and musicians.
Japanese crown
"In the two short years I have been president of Toyota, my focus has never wavered from one goal: product, product and product," Toyoda, 55, told workers. "This vehicle has become a symbol of Toyota's success over the years. This is an opportunity to show the world again what Toyota is all about."
The Camry -- an Anglicized spelling of "kanmuri," or "crown" in Japanese -- is the first of 20 new and refreshed Toyota, Lexus and Scion models arriving in the U.S. between now and 2013.
"The cadence comes faster than I've seen in 30 years with Toyota," Bob Carter, group vice president of U.S. sales, said in an interview. Under Toyoda "there is a renewed focus on products themselves that we haven't seen in years."
Toyota plans to add the hybrid Prius v wagon, revamped Yaris subcompact, Scion iQ minicar and modified Tacoma pickup this year.
Releases in 2012 include a plug-in version of the Prius and compact Prius c hybrid, new Lexus GS sport sedan, battery-powered RAV4 sport-utility vehicle and electric version of the iQ, as well as the rear-wheel drive Scion FR-S sport coupe, Carter said.
Running overtime
As Toyota's plants run overtime to build the new models, Toyota may reclaim some ground, with its global market share rebounding to 11 percent in 2012, from 9.7 percent this year, and its U.S. share rising to 14 percent, from 13 percent, according to IHS's Automotive division in Englewood, Colorado.
Still, the company will struggle to recapture the lead it enjoyed before the financial crisis, said Tokyo-based IHS analyst Nishimoto.
The automaker told suppliers that the new models are expected to cause global production to rebound in 2012 to 8.9 million units, an all-time high, from 8.04 million vehicles forecast for this year, according to Nobuaki Katoh, president of Denso Corp., Toyota's biggest supplier.
In parallel, Japan's economy will get a boost next fiscal year from reconstruction, with the Bank of Japan forecasting GDP to rise 2.9 percent compared with 0.4 percent this year.
Falling birthrate
That won't be sustained because the falling birthrate means the economy's losing a key driver of growth, according to Yoshimasa Maruyama, a senior economist at Itochu Corp. in Tokyo.
"The country can no longer expect the kind of high-speed growth it once had," said Maruyama. "We can't change that."
The Bank of Japan estimates growth in the long run will be around 0.5 percent. Japan still has examples of leading companies, including Canon Inc., the world's largest camera maker; and Fanuc Corp., which makes controls that run more than half the world's computerized tools.
To rejoin them, Toyota may need to reduce its dependence on production in Japan and sales in the U.S., said Fukoku Capital's Sakurai. "Toyota's future success will depend on just how global a company it can be," he said. "It needs to diversify its operations and risks more."
Etios in India
Toyota has said it plans to get half of its global sales from emerging markets by 2015 with models such as the Etios sedan, its cheapest car, which began selling in India in December.
The company aims to introduce a similar vehicle in China, Brazil and Thailand, said Yoshinori Noritake, chief engineer of the Etios.
"We need to introduce entry-level vehicles there as soon as possible," he said.
Toyota entered the Chinese market after rivals, setting up its first assembly plant in 2000, 16 years after Volkswagen.
Still, Toyota's edge in its biggest market in North America is the Prius and hybrids that allow drivers to cut fuel consumption, said Jesse Toprak at TrueCar.com, an auto pricing and data service in Santa Monica, California.
Regular gasoline retailed in the U.S. for an average $3.655 on Sept. 7, up 97.5 cents from a year earlier, according to the American Automobile Association.
Backbone engine
"Prius is going to be the backbone of our powertrain philosophy going forward," said Toyota's U.S. sales chief Lentz. "The vast majority of vehicle sales we're going to have are going to be hybrids."
The new $25,900 Camry Hybrid's 41 miles per gallon average tops the Hyundai Sonata Hybrid's 37 mpg and Ford Fusion Hybrid's 39 mpg, according to U.S. Environmental Protection Agency data.
"Having the biggest number of fuel-efficient vehicles does differentiate Toyota," said Toprak. "The Prius line expansion should generate sales, particularly if fuel prices rise again."
Competition is tougher in quality and technology than it was in the first quarter of 2007, when Toyota ended GM's seven- decade reign as the world's biggest automaker.
Hyundai's new Equus came fourth in this year's U.S. new-car quality survey by Westlake Village, California-based J.D. Power, which has been conducting customer research since 1968.
Only two of Toyota's Luxury brand Lexus models and Porsche Automobil Holding SE's 911 beat the South Korean car.
"For Toyota to get back to where it was in 2007, you'd have to beat Hyundai back to where they had been, beat Nissan and Ford back to where they had been," AutoPacific's Kim said. "I just don't see that happening."
Saturday, August 27, 2011
Toyota Camry Power Lock problems.
The power locks in my Camry will only unlock the driver’s side door. They lock every door in the car, but only unlock the driver’s. I checked the fuses underneath the front dash, (edit: all the fuses I checked are fine) and after reading information online, bought and replaced the rear, passenger’s side lock actuator. (It was expensive, so I wanted to tackle one door first to make sure I could do it.) Unfortunately, the exact same problem persists, even with the new actuator. Power locks lock it, but not unlock it. All the door handles and manual locks work fine. Suggestions? 2004 Toyota Camry 4 cylinder.
Monday, August 22, 2011
Ford, Toyota to jointly develop hybrids for light trucks
Ford Motor Co. and Toyota Motor Corp., by partnering to build a hybrid system for light trucks, hope to cross one of the auto industry’s biggest hurdles – significantly boosting the fuel economy of large pickups and SUVs.
The two automakers plan to jointly develop hybrid technology for light trucks as U.S. regulators finalize plans to toughen fuel economy requirements for pickups later this decade.
Ford sells the nation’s best-selling large pickup – the F series. Toyota is the world’s biggest marketer of gasoline-electric hybrid vehicles for front-wheel based light vehicles, with sales of 3.3 million since introducing the Prius in 1997.
"We expect to create exciting and socially beneficial technologies with Ford, and we can do so because our two companies have enough experience to create a synergy effect in hybrid technology," said Takeshi Uchiyamada, a Toyota executive vice president.
The new hybrid system will be introduced in Ford and Toyota rear-wheel drive SUVs and light trucks later this decade.
It's the first time the automakers have collaborated on product development.
The companies have signed a memorandum of understanding and expect a formal agreement to be signed next year.
By that time, it should be clear how the Obama administration will formalize a proposal to hike corporate average fuel-economy standards to 54.5 mpg by the 2025 model year -- doubling the current requirement.
The new standard requires a 5 percent annual increase in fuel economy for cars starting with the 2017 model year through the 2025 model year. Under current law, automakers’ fleets must improve to 35.5 mpg in the 2016 model year, up from 27.3 mpg now.
Pickups exempt
The plan for 5 percent annual increases could be changed if a midcourse review, planned to begin in 2018, determines that it would adversely affect industry costs and vehicle sales.
The Obama administration's current CAFE proposal, details of which still must be worked out, will exclude full-sized pickups from any increases from the 2017 model year through the 2019 model year.
Beyond 2019, annual increases would begin at a rate still to be determined, until they reach an annual rate of 5 percent a year in the 2022-2025 model years.
Light trucks other than full-sized pickups would have to achieve 3.5 percent annual increases in mileage standards in the 2017-21 model years and 5 percent increases in the 2022-25 model years.
The sharp hike in fleet mpg will force automakers to make vehicles smaller and lighter, offer more hybrids and enhance powertrains to include such technologies as turbochargers and direct injection.
Detroit automakers dominate the full-sized pickup market, with the F series and General Motors' Chevrolet Silverado ranking as the top-selling vehicles in the nation.
Some Toyota Tundra and Nissan Titan models also might be considered full-sized pickups under federal criteria to be determined.
Credits for hybrids
Under the current White House plan, which is to be proposed formally in September and become final in July 2012, Detroit automakers would receive credits for meeting CAFE targets by increasing the use of hybrid technology in pickups.
The exemption for full-sized pickups was opposed by some overseas automakers -- notably Volkswagen AG and Daimler AG -- that make SUVs and crossovers that are classified as light trucks but would not be treated the same.
Administration official say one reason for the special treatment of full-sized pickups is that they were "significantly challenged" to meet the 2012-16 mileage targets.
Because of the wide choice of engines, transmissions, drivetrains, bed sizes and towing capacity available, automakers have struggled to meet higher fuel-economy requirements for large pickups without sacrificing consumer preferences.
That challenge is the primary reason Ford and Toyota have decided to pair up, analysts say.
GM has marketed mild-hybrid full-sized pickups and SUVs for several years under a technology partnership with BMW and Chrysler, but sales have been lackluster because of higher sticker prices and reduced performance, such as limited towing capacity.
“To some extent, this agreement allows Ford to cost-effectively catch up and potentially surpass GM, who arguably has a head start on light-truck hybrids and mild hybrids,” Barclays Capital analyst Brian Johnson said in a report today.
Global challenges
Ford and Toyota expect the partnership to reduce costs and bring hybrid technology to the marketplace sooner and at a lower price. The companies plan to develop components as equal partners but integrate the new hybrid system in future trucks and SUVs separately.
"By working together we will be able to serve our customers with the very best affordable, advanced powertrains, delivering even better fuel economy," Ford CEO Alan Mulally said in a statement. "This is the kind of collaborative effort that is required to address the big global challenges of energy independence and environmental sustainability."
The two automakers also agreed to work together on developing next-generation telematics and other in-vehicle Internet-based services.
"This agreement brings together the capability of two global leaders in hybrid vehicles and hybrid technology to develop a better solution more quickly and affordably for our customers," said Derrick Kuzak, Ford's vice president of product development.
The companies did not release financial details or identify which vehicles will be involved.
But investors seemed to welcome the news, pushing Ford shares higher in New York Stock Exchange trading today while shares in other automakers slumped. Ford shares closed up 1 cent at 10.01. GM shares fell 44 cents, or 2 percent, to close at $21.72.
The Ford and Toyota product development teams first met in April, Kuzak said.
The next step of the project is a feasibility study, which will begin soon, to determine the scope of the collaboration, he said.
Uchiyamada, speaking through a translator, said both companies are eager to start. While they "would like to know the timing now," they must take the appropriate steps before full development can begin.
They play to begin development work next year.
Ford and Toyota previously collaborated in 2004 when the two companies agreed to a patent-sharing deal where Toyota licensed some of its hybrid technology to Ford.
Ford used the licensed technology in the Escape Hybrid and the now-defunct Mercury Mariner Hybrid. In return, Toyota obtained the use of Ford's diesel and direct-injection engine technology.
The two automakers plan to jointly develop hybrid technology for light trucks as U.S. regulators finalize plans to toughen fuel economy requirements for pickups later this decade.
Ford sells the nation’s best-selling large pickup – the F series. Toyota is the world’s biggest marketer of gasoline-electric hybrid vehicles for front-wheel based light vehicles, with sales of 3.3 million since introducing the Prius in 1997.
"We expect to create exciting and socially beneficial technologies with Ford, and we can do so because our two companies have enough experience to create a synergy effect in hybrid technology," said Takeshi Uchiyamada, a Toyota executive vice president.
The new hybrid system will be introduced in Ford and Toyota rear-wheel drive SUVs and light trucks later this decade.
It's the first time the automakers have collaborated on product development.
The companies have signed a memorandum of understanding and expect a formal agreement to be signed next year.
By that time, it should be clear how the Obama administration will formalize a proposal to hike corporate average fuel-economy standards to 54.5 mpg by the 2025 model year -- doubling the current requirement.
The new standard requires a 5 percent annual increase in fuel economy for cars starting with the 2017 model year through the 2025 model year. Under current law, automakers’ fleets must improve to 35.5 mpg in the 2016 model year, up from 27.3 mpg now.
Pickups exempt
The plan for 5 percent annual increases could be changed if a midcourse review, planned to begin in 2018, determines that it would adversely affect industry costs and vehicle sales.
The Obama administration's current CAFE proposal, details of which still must be worked out, will exclude full-sized pickups from any increases from the 2017 model year through the 2019 model year.
Beyond 2019, annual increases would begin at a rate still to be determined, until they reach an annual rate of 5 percent a year in the 2022-2025 model years.
Light trucks other than full-sized pickups would have to achieve 3.5 percent annual increases in mileage standards in the 2017-21 model years and 5 percent increases in the 2022-25 model years.
The sharp hike in fleet mpg will force automakers to make vehicles smaller and lighter, offer more hybrids and enhance powertrains to include such technologies as turbochargers and direct injection.
Detroit automakers dominate the full-sized pickup market, with the F series and General Motors' Chevrolet Silverado ranking as the top-selling vehicles in the nation.
Some Toyota Tundra and Nissan Titan models also might be considered full-sized pickups under federal criteria to be determined.
Credits for hybrids
Under the current White House plan, which is to be proposed formally in September and become final in July 2012, Detroit automakers would receive credits for meeting CAFE targets by increasing the use of hybrid technology in pickups.
The exemption for full-sized pickups was opposed by some overseas automakers -- notably Volkswagen AG and Daimler AG -- that make SUVs and crossovers that are classified as light trucks but would not be treated the same.
Administration official say one reason for the special treatment of full-sized pickups is that they were "significantly challenged" to meet the 2012-16 mileage targets.
Because of the wide choice of engines, transmissions, drivetrains, bed sizes and towing capacity available, automakers have struggled to meet higher fuel-economy requirements for large pickups without sacrificing consumer preferences.
That challenge is the primary reason Ford and Toyota have decided to pair up, analysts say.
GM has marketed mild-hybrid full-sized pickups and SUVs for several years under a technology partnership with BMW and Chrysler, but sales have been lackluster because of higher sticker prices and reduced performance, such as limited towing capacity.
“To some extent, this agreement allows Ford to cost-effectively catch up and potentially surpass GM, who arguably has a head start on light-truck hybrids and mild hybrids,” Barclays Capital analyst Brian Johnson said in a report today.
Global challenges
Ford and Toyota expect the partnership to reduce costs and bring hybrid technology to the marketplace sooner and at a lower price. The companies plan to develop components as equal partners but integrate the new hybrid system in future trucks and SUVs separately.
"By working together we will be able to serve our customers with the very best affordable, advanced powertrains, delivering even better fuel economy," Ford CEO Alan Mulally said in a statement. "This is the kind of collaborative effort that is required to address the big global challenges of energy independence and environmental sustainability."
The two automakers also agreed to work together on developing next-generation telematics and other in-vehicle Internet-based services.
"This agreement brings together the capability of two global leaders in hybrid vehicles and hybrid technology to develop a better solution more quickly and affordably for our customers," said Derrick Kuzak, Ford's vice president of product development.
The companies did not release financial details or identify which vehicles will be involved.
But investors seemed to welcome the news, pushing Ford shares higher in New York Stock Exchange trading today while shares in other automakers slumped. Ford shares closed up 1 cent at 10.01. GM shares fell 44 cents, or 2 percent, to close at $21.72.
The Ford and Toyota product development teams first met in April, Kuzak said.
The next step of the project is a feasibility study, which will begin soon, to determine the scope of the collaboration, he said.
Uchiyamada, speaking through a translator, said both companies are eager to start. While they "would like to know the timing now," they must take the appropriate steps before full development can begin.
They play to begin development work next year.
Ford and Toyota previously collaborated in 2004 when the two companies agreed to a patent-sharing deal where Toyota licensed some of its hybrid technology to Ford.
Ford used the licensed technology in the Escape Hybrid and the now-defunct Mercury Mariner Hybrid. In return, Toyota obtained the use of Ford's diesel and direct-injection engine technology.
Tuesday, August 16, 2011
Toyota will debut ultra-frugal plug-in Prius
Toyota Motor Corp. will unveil an ultra-frugal, plug-in hybrid version of its Prius compact car at the IAA in Frankfurt next month.
The car will be the cleanest and most technically advanced Prius built to date, Toyota said on Monday.
According to the automaker, the plug-in Prius has a fuel consumption rating of 2.2 liters/100km (106.9 mpg US/128.4 mpg UK).
It will have CO2 emissions of 49 grams per kilometer, almost half the emissions of the standard Prius, and will be the first Toyota EV to use a new compact lithium-ion battery that offers a driving range of 20km in electric mode, a significant improvement over the 2km range offered by the current model.
Previous Toyota electric vehicles have used nickel-metal hydride batteries.
The Prius plug-in hybrid has the same 1.8-liter gasoline engine and electric motor setup as the hybrid Prius. Toyota said the battery can be charged in 90 minutes using a domestic mains connection.
Next summer, the Prius will join an expanded Toyota hybrid range in Europe that will include the Auris hybrid, the new seven-seat Prius+ and the Yaris hybrid.
The car will be the cleanest and most technically advanced Prius built to date, Toyota said on Monday.
According to the automaker, the plug-in Prius has a fuel consumption rating of 2.2 liters/100km (106.9 mpg US/128.4 mpg UK).
It will have CO2 emissions of 49 grams per kilometer, almost half the emissions of the standard Prius, and will be the first Toyota EV to use a new compact lithium-ion battery that offers a driving range of 20km in electric mode, a significant improvement over the 2km range offered by the current model.
Previous Toyota electric vehicles have used nickel-metal hydride batteries.
The Prius plug-in hybrid has the same 1.8-liter gasoline engine and electric motor setup as the hybrid Prius. Toyota said the battery can be charged in 90 minutes using a domestic mains connection.
Next summer, the Prius will join an expanded Toyota hybrid range in Europe that will include the Auris hybrid, the new seven-seat Prius+ and the Yaris hybrid.
Sunday, July 10, 2011
Toyota sees Prius beating 2010 U.S. sales as supply grows
Toyota Motor Corp., with as little as one day's worth of Prius cars on dealers' lots after the March earthquake, says sales of the hybrid will still beat 2010.
Asia's largest automaker is racing to replenish supply after the lack of inventory led to a 61 percent drop in Prius deliveries in the U.S. in June, to the lowest level since September 2004. Almost half of Prius models are sold in the U.S., where the car accounts for more than 60 percent of hybrids sold since 1999, according to data supplied by automakers.
Prius, the company's No. 3 selling car after the Corolla and Camry, is the fastest-growing Toyota nameplate this year, even with the quake-depleted inventories. Demand for efficient cars has increased this year with higher fuel prices.
General Motors Co.'s Chevrolet Cruze was June's top-selling car in the U.S., while deliveries of Ford Motor Co.'s Focus rose 41 percent.
"Dealers simply cannot get their hands on them quick enough," said Ivan Drury, an analyst for Edmunds.com, an industry pricing and data Web site. The model "is easily the poster child for inventory issues."
Prior to the quake, Toyota targeted Prius sales in 2011 that would top the car's 2007 peak of 181,221. While that level may be out of reach for now, Toyota can still exceed 2010's deliveries of 140,928, said Donald Esmond, Toyota's senior vice president for U.S. sales.
Output increasing
Production of Prius and two Lexus hybrids is rebounding faster than Toyota first estimated after the 9-magnitude quake in March. The company expects to be back at full output by September, rather than its earlier target of late 2011.
The lack of available hybrids from Toyota has held the segment to 2.1 percent of industrywide U.S. sales so far this year. Even though Prius isn't among the automaker's most profitable lines, Toyota sees it as the best opportunity to win new customers in the next few years, said Jim Lentz, president of Toyota's U.S. sales unit.
The nameplate will be expanded to include the Prius v wagon, Prius c subcompact and plug-in Prius.
"By the end of this decade, the Prius nameplate will be the No. 1 passenger car nameplate in the industry," Lentz said in a July 6 phone interview. Boosting Prius supply, along with the introduction of the wagon version and a revamped Camry sedan later this year, gives the automaker a shot at making up for some sales lost in May and June.
Toyota also wants to ease a backlog for Prius that's pushed the wait time for consumers to as long as three months in some parts of the U.S. from none at the start of the year, said Jesse Toprak, an industry analyst.
'Least-available'
"At the moment, it's the least available of any mass- produced vehicle," said Toprak, with Truecar.com, an industry pricing and data company.
U.S. demand for fuel economy is up this year as gasoline prices approach 2008's record of $4.114 a gallon. While the fuel cost an average of $3.569 per gallon on July 5, down from $3.985 on May 4, the price is up 30 percent from a year ago, according to AAA's Daily Fuel Gauge Web site.
Higher prices at the pump buoyed sales of subcompacts and small cars, with such vehicles rising 21 percent this year through June, according to Autodata Corp. That compares with an 11 percent gain for midsize cars and a 4.7 percent drop for the large sedans, Autodata said.
High appeal
Prius' fuel-economy appeal has never been higher, said Bob Carter, Toyota's group vice president for U.S. sales. Interest in the car was up 36 percent in June from a year ago, based on consumer visits to Toyota's Prius Web site, according to Edmunds.com.
"I have extremely high demand, and the outlook is continuing to improve," Carter said in a June 22 interview. Failure to ramp up supply quick enough may blunt Toyota's goal to notch its first U.S. annual sales gain since 2007.
It also risks driving some buyers to models such as Ford's hybrid Fusion sedan and Hyundai Motor Co.'s new Sonata Hybrid, said Toprak. The growing selection of highly fuel-efficient, gasoline- engine small cars also threatens to lure away potential Prius buyers, said Edmunds.com's Drury.
"Some consumers might be willing to wait, but as time goes on and awareness of the many redesigned compact cars becomes higher, Toyota could suffer," Drury said.
Sales of the Prius in the first half were 66,520, little changed from 66,039 a year ago, when recalls of Toyota and Lexus models temporarily damped demand. Prius accounted for 8.2 percent of the company's U.S. sales during the period, while Camry deliveries were 18 percent and Corolla sales were 16.8 percent.
Prius inventory
Toyota's U.S. sales in the second quarter "slowed as inventories dropped and as a result, we find ourselves at virtually the same position we were a year ago on July 1," Esmond said on a July 1 conference call.
"We won't finish the year that way." While Toyota's Tsutsumi, Japan, plant that makes Prius and its Kyushu factory that builds hybrid Lexus CT200 hatchbacks and HS250 sedans weren't damaged by the March 11 disaster, parts needed for the cars grew scarce because of damages to suppliers' operation.
The automaker prioritized production of the three gasoline- electric cars after determining they were in the highest demand, said Shiori Hashimoto, a spokeswoman for the company.
"We worked hard to find out which components were critical, conditions of the supply chain, and how the limited car parts should be delivered to which assembly lines," said Hashimoto.
Speeding production
To restore Prius production as fast as possible after the quake, Toyota began sending about 150 workers from other factories in Japan to the Tsutsumi plant in late March, said Tomotaka Yagai, a spokesman at Toyota Motor Workers' Union in Toyota City.
Hashimoto declined to confirm the figure. So far, Toyota has only confirmed the U.S. will get a shipment of 36,000 Priuses that will arrive this month, with more on the way, Carter said.
"I can't give you a specific number, but it will improve significantly," he said, without elaborating.
Billy Rinker, general sales manager at Toyota Santa Monica, said a fresh supply of the cars has been arriving since late June. The Los Angeles-area dealership claims to be the largest seller of Prius in the U.S., with average monthly sales of 100 to 150 of the hybrids, he said.
Waiting list
"We only had 30 to sell last month, but July looks like we'll be back to about 80 percent of normal," Rinker said.
He estimates the dealership will sell about 100 this month. That won't eliminate the dealership's backlog. "We're still keeping a list and taking deposits for the car," Rinker said.
With the Prius v wagon, followed in 2012 by the subcompact Prius c and plug-in Prius, Toyota expects its "Prius family" to become its top-selling line within the decade, Carter said.
"A lot of our future plans are centered around the Prius and that goes into vehicle launches next fall," he said. Toyota said July 1 a new Camry and Camry Hybrid, Scion iQ minicar and revamped Yaris subcompact will arrive this year along with the v wagon.
The company is counting on those models, together with the jump in Prius supply and rebounding inventory of all its Toyota, Lexus and Scion products, to reverse a 4 percent slide in U.S. sales through June.
"It's coming back quicker than any of us expected," said Atkinson, who spoke by phone after attending Toyota's annual dealer meeting in Las Vegas last week. "Now it's time to go out and sell like hell."
Asia's largest automaker is racing to replenish supply after the lack of inventory led to a 61 percent drop in Prius deliveries in the U.S. in June, to the lowest level since September 2004. Almost half of Prius models are sold in the U.S., where the car accounts for more than 60 percent of hybrids sold since 1999, according to data supplied by automakers.
Prius, the company's No. 3 selling car after the Corolla and Camry, is the fastest-growing Toyota nameplate this year, even with the quake-depleted inventories. Demand for efficient cars has increased this year with higher fuel prices.
General Motors Co.'s Chevrolet Cruze was June's top-selling car in the U.S., while deliveries of Ford Motor Co.'s Focus rose 41 percent.
"Dealers simply cannot get their hands on them quick enough," said Ivan Drury, an analyst for Edmunds.com, an industry pricing and data Web site. The model "is easily the poster child for inventory issues."
Prior to the quake, Toyota targeted Prius sales in 2011 that would top the car's 2007 peak of 181,221. While that level may be out of reach for now, Toyota can still exceed 2010's deliveries of 140,928, said Donald Esmond, Toyota's senior vice president for U.S. sales.
Output increasing
Production of Prius and two Lexus hybrids is rebounding faster than Toyota first estimated after the 9-magnitude quake in March. The company expects to be back at full output by September, rather than its earlier target of late 2011.
The lack of available hybrids from Toyota has held the segment to 2.1 percent of industrywide U.S. sales so far this year. Even though Prius isn't among the automaker's most profitable lines, Toyota sees it as the best opportunity to win new customers in the next few years, said Jim Lentz, president of Toyota's U.S. sales unit.
The nameplate will be expanded to include the Prius v wagon, Prius c subcompact and plug-in Prius.
"By the end of this decade, the Prius nameplate will be the No. 1 passenger car nameplate in the industry," Lentz said in a July 6 phone interview. Boosting Prius supply, along with the introduction of the wagon version and a revamped Camry sedan later this year, gives the automaker a shot at making up for some sales lost in May and June.
Toyota also wants to ease a backlog for Prius that's pushed the wait time for consumers to as long as three months in some parts of the U.S. from none at the start of the year, said Jesse Toprak, an industry analyst.
'Least-available'
"At the moment, it's the least available of any mass- produced vehicle," said Toprak, with Truecar.com, an industry pricing and data company.
U.S. demand for fuel economy is up this year as gasoline prices approach 2008's record of $4.114 a gallon. While the fuel cost an average of $3.569 per gallon on July 5, down from $3.985 on May 4, the price is up 30 percent from a year ago, according to AAA's Daily Fuel Gauge Web site.
Higher prices at the pump buoyed sales of subcompacts and small cars, with such vehicles rising 21 percent this year through June, according to Autodata Corp. That compares with an 11 percent gain for midsize cars and a 4.7 percent drop for the large sedans, Autodata said.
High appeal
Prius' fuel-economy appeal has never been higher, said Bob Carter, Toyota's group vice president for U.S. sales. Interest in the car was up 36 percent in June from a year ago, based on consumer visits to Toyota's Prius Web site, according to Edmunds.com.
"I have extremely high demand, and the outlook is continuing to improve," Carter said in a June 22 interview. Failure to ramp up supply quick enough may blunt Toyota's goal to notch its first U.S. annual sales gain since 2007.
It also risks driving some buyers to models such as Ford's hybrid Fusion sedan and Hyundai Motor Co.'s new Sonata Hybrid, said Toprak. The growing selection of highly fuel-efficient, gasoline- engine small cars also threatens to lure away potential Prius buyers, said Edmunds.com's Drury.
"Some consumers might be willing to wait, but as time goes on and awareness of the many redesigned compact cars becomes higher, Toyota could suffer," Drury said.
Sales of the Prius in the first half were 66,520, little changed from 66,039 a year ago, when recalls of Toyota and Lexus models temporarily damped demand. Prius accounted for 8.2 percent of the company's U.S. sales during the period, while Camry deliveries were 18 percent and Corolla sales were 16.8 percent.
Prius inventory
Toyota's U.S. sales in the second quarter "slowed as inventories dropped and as a result, we find ourselves at virtually the same position we were a year ago on July 1," Esmond said on a July 1 conference call.
"We won't finish the year that way." While Toyota's Tsutsumi, Japan, plant that makes Prius and its Kyushu factory that builds hybrid Lexus CT200 hatchbacks and HS250 sedans weren't damaged by the March 11 disaster, parts needed for the cars grew scarce because of damages to suppliers' operation.
The automaker prioritized production of the three gasoline- electric cars after determining they were in the highest demand, said Shiori Hashimoto, a spokeswoman for the company.
"We worked hard to find out which components were critical, conditions of the supply chain, and how the limited car parts should be delivered to which assembly lines," said Hashimoto.
Speeding production
To restore Prius production as fast as possible after the quake, Toyota began sending about 150 workers from other factories in Japan to the Tsutsumi plant in late March, said Tomotaka Yagai, a spokesman at Toyota Motor Workers' Union in Toyota City.
Hashimoto declined to confirm the figure. So far, Toyota has only confirmed the U.S. will get a shipment of 36,000 Priuses that will arrive this month, with more on the way, Carter said.
"I can't give you a specific number, but it will improve significantly," he said, without elaborating.
Billy Rinker, general sales manager at Toyota Santa Monica, said a fresh supply of the cars has been arriving since late June. The Los Angeles-area dealership claims to be the largest seller of Prius in the U.S., with average monthly sales of 100 to 150 of the hybrids, he said.
Waiting list
"We only had 30 to sell last month, but July looks like we'll be back to about 80 percent of normal," Rinker said.
He estimates the dealership will sell about 100 this month. That won't eliminate the dealership's backlog. "We're still keeping a list and taking deposits for the car," Rinker said.
With the Prius v wagon, followed in 2012 by the subcompact Prius c and plug-in Prius, Toyota expects its "Prius family" to become its top-selling line within the decade, Carter said.
"A lot of our future plans are centered around the Prius and that goes into vehicle launches next fall," he said. Toyota said July 1 a new Camry and Camry Hybrid, Scion iQ minicar and revamped Yaris subcompact will arrive this year along with the v wagon.
The company is counting on those models, together with the jump in Prius supply and rebounding inventory of all its Toyota, Lexus and Scion products, to reverse a 4 percent slide in U.S. sales through June.
"It's coming back quicker than any of us expected," said Atkinson, who spoke by phone after attending Toyota's annual dealer meeting in Las Vegas last week. "Now it's time to go out and sell like hell."
Wednesday, June 29, 2011
Toyota Camry tops Cars.com American-made index for 3rd straight year
For the third straight year, the Toyota Camry mid-sized sedan tops the 10 vehicles in Cars.com's annual American-Made Index.
The index ranks U.S.-assembled vehicles based on the percentage of their parts made in the United States and the number of vehicles sold to domestic consumers. At least 75 percent of the parts in every vehicle on the list were made in the United States.
"The Camry remains an incredibly popular vehicle, and higher total sales require a higher number of U.S. factory workers and a larger number of U.S. suppliers -- all of which contribute to Toyota's ranking," Cars.com's editor-in-chief, Patrick Olsen, said in a statement.
Most Camrys are assembled at Toyota's Georgetown, Ky., plant, which employs 6,429 people.
About 25 percent of Camrys are made at Subaru's plant in Lafayette, Ind., Toyota spokesman Jim Wiseman said. Toyota contracts with Subaru to make the vehicles, Wiseman said.
Through May 31, Toyota sold 125,218 domestically made Camrys in the United States and about 80 percent of the parts in the Camry are made domestically, Olsen said.
Wiseman said today that the company was committed to using locally made parts.
"Part of Toyota's guiding principles is to support the communities where we're based," Wiseman said. "The best way we can do that is by using locally made parts."
While it's advantageous for foreign automakers to use U.S.-made parts, Olsen said the Detroit 3 use fewer locally made parts to cut costs and better compete globally.
"They've lessened their domestic parts content but strengthened their bottom line," Olsen said in a telephone interview.
Two other Toyota vehicles cracked the top 10: the Sienna minivan at No. 6 and the Tundra full-sized pickup at No. 9 . With three vehicles in the rankings, Toyota tied General Motors for the most vehicles in the top 10.
GM's Chevrolet Malibu mid-sized sedan ranked third, up from fifth last year. The Chevrolet Traverse crossover was No. 8 and the GMC Acadia crossover rounded out the list at No. 10. Neither the Traverse nor the Acadia was on the list last year.
For the second straight year, the Honda Accord claimed the second spot in the rankings. The Accord is built at the automaker's Marysville, Ohio, plant and 120,035 American made units were sold in the first five months of 2011.
Honda's Odyssey minivan also made the list, coming in at No. 5.
The Chicago-made Ford Explorer made its debut on this year's list at No. 4 and is the only Ford Motor Co. vehicle to make the rankings. According to Olsen, 85 percent of the Explorer's parts are made in the United States.
The Jeep Wrangler, ranked No. 7, is the only Chrysler vehicle on the list.
The index ranks U.S.-assembled vehicles based on the percentage of their parts made in the United States and the number of vehicles sold to domestic consumers. At least 75 percent of the parts in every vehicle on the list were made in the United States.
"The Camry remains an incredibly popular vehicle, and higher total sales require a higher number of U.S. factory workers and a larger number of U.S. suppliers -- all of which contribute to Toyota's ranking," Cars.com's editor-in-chief, Patrick Olsen, said in a statement.
Most Camrys are assembled at Toyota's Georgetown, Ky., plant, which employs 6,429 people.
About 25 percent of Camrys are made at Subaru's plant in Lafayette, Ind., Toyota spokesman Jim Wiseman said. Toyota contracts with Subaru to make the vehicles, Wiseman said.
Through May 31, Toyota sold 125,218 domestically made Camrys in the United States and about 80 percent of the parts in the Camry are made domestically, Olsen said.
Wiseman said today that the company was committed to using locally made parts.
"Part of Toyota's guiding principles is to support the communities where we're based," Wiseman said. "The best way we can do that is by using locally made parts."
While it's advantageous for foreign automakers to use U.S.-made parts, Olsen said the Detroit 3 use fewer locally made parts to cut costs and better compete globally.
"They've lessened their domestic parts content but strengthened their bottom line," Olsen said in a telephone interview.
Two other Toyota vehicles cracked the top 10: the Sienna minivan at No. 6 and the Tundra full-sized pickup at No. 9 . With three vehicles in the rankings, Toyota tied General Motors for the most vehicles in the top 10.
GM's Chevrolet Malibu mid-sized sedan ranked third, up from fifth last year. The Chevrolet Traverse crossover was No. 8 and the GMC Acadia crossover rounded out the list at No. 10. Neither the Traverse nor the Acadia was on the list last year.
For the second straight year, the Honda Accord claimed the second spot in the rankings. The Accord is built at the automaker's Marysville, Ohio, plant and 120,035 American made units were sold in the first five months of 2011.
Honda's Odyssey minivan also made the list, coming in at No. 5.
The Chicago-made Ford Explorer made its debut on this year's list at No. 4 and is the only Ford Motor Co. vehicle to make the rankings. According to Olsen, 85 percent of the Explorer's parts are made in the United States.
The Jeep Wrangler, ranked No. 7, is the only Chrysler vehicle on the list.
Wednesday, June 15, 2011
2002 Toyota Camry Check Engine Light On Code P0136
My Toyota camry has had the check engine light on for some time. I finally took it and had the codes pulled and was told it was code p0136 and that I needed a new Oxygen Senser. Which one do I need to replace?
Code P0136 - o2 Sensor circuit malfunction B1 S1.
This means the downstream o2 sensor has an issue and is not sending a signal to the computer. The Downstream o2 sensor is located after the catalytic converter assembly in the exhaust pipe.
The Fix: Replace the failed o2 Sensor
Code P0136 - o2 Sensor circuit malfunction B1 S1.
This means the downstream o2 sensor has an issue and is not sending a signal to the computer. The Downstream o2 sensor is located after the catalytic converter assembly in the exhaust pipe.
The Fix: Replace the failed o2 Sensor
Sunday, March 13, 2011
Quake paralyzes Japan's auto industry; Toyota shutters factories
Toyota Motor Corp. suspended production at all of its plants in Japan at least through Monday following the massive earthquake and tsunami that devastated coastal areas in the northern part of the country.
Mitsubishi Motors Corp. said Sunday it would halt production at its three domestic assembly plants through Tuesday. The move follows similar suspensions at Honda Motor Co. and Nissan Motor Co.
At least 2,300 Nissan and Infiniti brand vehicles awaiting shipment to U.S. and Japan showrooms were damaged and some later caught fire when Friday's tsunami swept through the Port of Hitachi. They included nearly 1,300 Infiniti M, EX and FX models headed for North America.
At Toyota, more than a dozen assembly plants and parts factories will be idled. Virtually every model exported to the United States from Japan, from the Prius and Corolla to models in the Lexus and Scion lineups, could be affected.
Toyota's body-making subsidiaries in the quake zone, Kanto Auto Works Ltd. and Central Motors Co., will also keep plants closed.
The shuttered plants account for about 45 percent of Toyota's global production.
Toyota will decide when to restart production after reassessing damage and the condition of its supply chain on Monday, spokesman Keisuke Kirimoto said.
"It's first things first. And that's safety," Kirimoto said.
Toyota was still trying to get a grip on damage at plants in the disaster area, he added.
No Toyota employees were injured when the deadly March 11 tremblor struck off Japan's northeast Pacific coast.
Wiped out
Authorities were still trying to reach towns wiped out by tsunamis or blocked off by impassable roads.
But the death toll was expected to exceed the figure of 1,800 cited in media accounts. Nearly 10,000 people are unaccounted for in the port town of Minamisanriku alone, news reports say.
Toyota was suspending operations partly so employees could regroup with relatives. Many people have gone missing and phone service in the disaster area is almost nonexistent.
Toyota had planned to produce 3.89 million vehicles in Japan this calendar year, including output from its Hino truck-making and Daihatsu minicar subsidiaries. That's down 4 percent from 2010, but still represents nearly half of its global production forecast of 8.69 million vehicles.
Automakers are also concerned about damage to plants and the possibility of aftershocks. In addition, they have to ensure that suppliers are intact and ready to keep delivering parts.
Nuclear concerns
A new concern was the possibility of a meltdown at a nuclear power plant damaged by the quake and tsunami. Authorities are rushing to prevent that but have expanded the evacuation zone to a 12 mile radius around the site. Small amounts of radiation are already leaking, reports say.
The killer 8.9-magnitude earthquake and the tsunami waves it triggered ruptured gas lines, wiped out villages, devastated ports and turned coastal areas into swampy morasses.
Aftershocks, many strong, continued rocking the region through Sunday.
Fuji Heavy Industries Ltd., the maker of Subaru cars, closed five factories after the quake. It was unclear if it would resume operations on Monday.
Automakers including Mazda and Suzuki were largely spared from the quake's effects initially because they have assembly plants in other areas of the country.
But the companies are still gathering information about the impact on suppliers and distribution systems.
Mitsubishi had intended to resume work on Monday. But a spokesman said Sunday that its assembly plants would rest through Tuesday while the company coordinated parts shipments and distribution with suppliers, some of whom are in the quake zone.
Mitsubishi Motors Corp. said Sunday it would halt production at its three domestic assembly plants through Tuesday. The move follows similar suspensions at Honda Motor Co. and Nissan Motor Co.
At least 2,300 Nissan and Infiniti brand vehicles awaiting shipment to U.S. and Japan showrooms were damaged and some later caught fire when Friday's tsunami swept through the Port of Hitachi. They included nearly 1,300 Infiniti M, EX and FX models headed for North America.
At Toyota, more than a dozen assembly plants and parts factories will be idled. Virtually every model exported to the United States from Japan, from the Prius and Corolla to models in the Lexus and Scion lineups, could be affected.
Toyota's body-making subsidiaries in the quake zone, Kanto Auto Works Ltd. and Central Motors Co., will also keep plants closed.
The shuttered plants account for about 45 percent of Toyota's global production.
Toyota will decide when to restart production after reassessing damage and the condition of its supply chain on Monday, spokesman Keisuke Kirimoto said.
"It's first things first. And that's safety," Kirimoto said.
Toyota was still trying to get a grip on damage at plants in the disaster area, he added.
No Toyota employees were injured when the deadly March 11 tremblor struck off Japan's northeast Pacific coast.
Wiped out
Authorities were still trying to reach towns wiped out by tsunamis or blocked off by impassable roads.
But the death toll was expected to exceed the figure of 1,800 cited in media accounts. Nearly 10,000 people are unaccounted for in the port town of Minamisanriku alone, news reports say.
Toyota was suspending operations partly so employees could regroup with relatives. Many people have gone missing and phone service in the disaster area is almost nonexistent.
Toyota had planned to produce 3.89 million vehicles in Japan this calendar year, including output from its Hino truck-making and Daihatsu minicar subsidiaries. That's down 4 percent from 2010, but still represents nearly half of its global production forecast of 8.69 million vehicles.
Automakers are also concerned about damage to plants and the possibility of aftershocks. In addition, they have to ensure that suppliers are intact and ready to keep delivering parts.
Nuclear concerns
A new concern was the possibility of a meltdown at a nuclear power plant damaged by the quake and tsunami. Authorities are rushing to prevent that but have expanded the evacuation zone to a 12 mile radius around the site. Small amounts of radiation are already leaking, reports say.
The killer 8.9-magnitude earthquake and the tsunami waves it triggered ruptured gas lines, wiped out villages, devastated ports and turned coastal areas into swampy morasses.
Aftershocks, many strong, continued rocking the region through Sunday.
Fuji Heavy Industries Ltd., the maker of Subaru cars, closed five factories after the quake. It was unclear if it would resume operations on Monday.
Automakers including Mazda and Suzuki were largely spared from the quake's effects initially because they have assembly plants in other areas of the country.
But the companies are still gathering information about the impact on suppliers and distribution systems.
Mitsubishi had intended to resume work on Monday. But a spokesman said Sunday that its assembly plants would rest through Tuesday while the company coordinated parts shipments and distribution with suppliers, some of whom are in the quake zone.
Thursday, March 10, 2011
Toyota, Honda, Chrysler recalling nearly 80,000 vehicles
Toyota Motor Corp., Honda Motor Co. and Chrysler Group LLC are recalling nearly 80,000 vehicles over safety concerns, according to documents filed with the National Highway Traffic Safety Administration.
Toyota is recalling about 22,000 SUVs and pickups because of tire-deflation monitoring systems that may fail, U.S. regulators said.
Toyota Sequoia, FJ Cruiser, Land Cruiser, Tacoma and Tundra vehicles from the 2008 through 2011 model years may have tire deflation monitoring systems that fail to warn drivers, raising the risk of a crash, NHTSA said in a report.
The affected vehicles were shipped from assembly plants with working monitoring systems, but when accessory wheels were installed, the systems were not recalibrated and now lights to warn drivers of low tire pressure may fail, the report said.
Affected vehicles will be repaired at Toyota dealerships for free, Toyota Motor Sales U.S.A. Inc., the automaker's U.S. sales branch, told NHTSA.
Honda, meanwhile, has called back 36,656 Civic hybrids from the 2006 and 2007 model years after complaints that a faulty voltage converter could interrupt electrical signals to the headlights and engine. The problem could cause the vehicles to stall and fail to restart, a report filed with NHTSA said.
Owners of affected vehicles can have the voltage converter replaced for free at dealerships. The recall notice is expected to go out on March 18.
Finally, Chrysler is recalling 20,459 Jeep Wranglers built in 2010 and 2011. Certain Wranglers manufactured from July 12, 2010, through Sept. 10, 2010, may experience loosened fasteners on the front and rear axle attachments to the chassis, a report filed with NHTSA said. This could result in excessive noise and ultimately impaired steering and handling, increasing the risk of a crash, the agency said.
Dealers will retorque all 19 fasteners for free. The recall is expected to begin in March.
Toyota is recalling about 22,000 SUVs and pickups because of tire-deflation monitoring systems that may fail, U.S. regulators said.
Toyota Sequoia, FJ Cruiser, Land Cruiser, Tacoma and Tundra vehicles from the 2008 through 2011 model years may have tire deflation monitoring systems that fail to warn drivers, raising the risk of a crash, NHTSA said in a report.
The affected vehicles were shipped from assembly plants with working monitoring systems, but when accessory wheels were installed, the systems were not recalibrated and now lights to warn drivers of low tire pressure may fail, the report said.
Affected vehicles will be repaired at Toyota dealerships for free, Toyota Motor Sales U.S.A. Inc., the automaker's U.S. sales branch, told NHTSA.
Honda, meanwhile, has called back 36,656 Civic hybrids from the 2006 and 2007 model years after complaints that a faulty voltage converter could interrupt electrical signals to the headlights and engine. The problem could cause the vehicles to stall and fail to restart, a report filed with NHTSA said.
Owners of affected vehicles can have the voltage converter replaced for free at dealerships. The recall notice is expected to go out on March 18.
Finally, Chrysler is recalling 20,459 Jeep Wranglers built in 2010 and 2011. Certain Wranglers manufactured from July 12, 2010, through Sept. 10, 2010, may experience loosened fasteners on the front and rear axle attachments to the chassis, a report filed with NHTSA said. This could result in excessive noise and ultimately impaired steering and handling, increasing the risk of a crash, the agency said.
Dealers will retorque all 19 fasteners for free. The recall is expected to begin in March.
Monday, March 7, 2011
Toyota recalls 22,000 vehicles over tire monitors
DETROIT (Reuters) – Toyota Motor Corp on Saturday recalled about 22,000 sport utility vehicles and pickup trucks because of tire-deflation monitoring systems that may fail, regulators said.
Toyota Sequoia, FJ Cruiser, Land Cruiser, Tacoma and Tundra vehicles from model years 2008-2011 may have tire deflation monitoring systems that fail to warn drivers, raising the risk of a crash, the National Highway Traffic Safety Administration said in a report.
The vehicles affected left their assembly plants with working monitoring systems, but when accessory wheels were installed, the systems were not recalibrated and now lights to warn drivers of low tire pressure may fail, the report said.
The models affected will be repaired at Toyota dealerships at no cost, Toyota Motor Sales, the automaker's U.S. sales branch, told the NHTSA.
Toyota has been plagued by a series of recalls since late 2009 that now total 19 million vehicles worldwide. Two weeks ago, the automaker recalled 2.2 million vehicles for a defect that may cause gas pedals to stick, widening one of the recalls from late 2009.
The recalls have cut into Toyota sales, particularly in the United States, where most of the recalls have taken place.
Toyota Sequoia, FJ Cruiser, Land Cruiser, Tacoma and Tundra vehicles from model years 2008-2011 may have tire deflation monitoring systems that fail to warn drivers, raising the risk of a crash, the National Highway Traffic Safety Administration said in a report.
The vehicles affected left their assembly plants with working monitoring systems, but when accessory wheels were installed, the systems were not recalibrated and now lights to warn drivers of low tire pressure may fail, the report said.
The models affected will be repaired at Toyota dealerships at no cost, Toyota Motor Sales, the automaker's U.S. sales branch, told the NHTSA.
Toyota has been plagued by a series of recalls since late 2009 that now total 19 million vehicles worldwide. Two weeks ago, the automaker recalled 2.2 million vehicles for a defect that may cause gas pedals to stick, widening one of the recalls from late 2009.
The recalls have cut into Toyota sales, particularly in the United States, where most of the recalls have taken place.
Thursday, February 24, 2011
Toyota recalls another 2.17 million U.S. vehicles
DETROIT -- Toyota Motor Corp. said today it will recall 2.17 million Toyota and Lexus vehicles in the United States to inspect and repair accelerator pedals that may get trapped in floor mats or carpeting.
The automaker said more than half of the recalled vehicles -- 1.54 million units -- are being added to a giant 2009 recall to inspect and repair accelerator pedals that may get trapped in floor mats.
A 10-month investigation by NASA engineers determined that electronic flaws were not to blame for widespread consumer complaints of unintended acceleration in Toyota and Lexus models, the U.S. Department of Transportation said this month.
The Japanese automaker has now recalled 19.2 million Toyota and Lexus vehicles worldwide and more than 13.7 million in the United States to address safety problems since the fall of 2009.
Toyota said 20,000 2006 and early 2007 Lexus GS 300 and GS 350 all-wheel-drive sedans will be recalled to modify the shape of the plastic pad embedded in the driver's side floor carpet.
If the floor carpet around the accelerator pedal is not properly replaced after service, Toyota said there is a possibility that the plastic pad embedded into the floor carpet may interfere with operation of the accelerator pedal.
If this occurs, the accelerator pedal may become temporarily stuck in a partially depressed position rather than returning to the idle position.
Toyota said it had received two complaints about the issue. Owners of the GS 300 and GS 350 vehicles will be notified in early March, Toyota said.
Driver's floor carpet cover
The automaker also is recalling 372,000 2004 through 2006 and early 2007 Lexus RX 330, RX 350, and RX 400h units, and about 397,000 Toyota Highlander and Highlander HV vehicles sold from the 2004 through 2006 model years to replace the driver's side floor carpet cover and its two retention clips.
Toyota said if the forward retention clip used to secure the floor carpet cover -- located in front of the center console -- is not installed properly, the cover may lean toward the accelerator pedal and interfere with the accelerator pedal arm.
If this occurs, Toyota said the accelerator pedal may become temporarily stuck in a partially depressed position rather than returning to the idle position.
RX and Highlander owners will be notified soon how to inspect the condition or how to contact a dealer to perform the inspection. Toyota said owners will receive a second notification once the replacement covers are available.
Expanded recall
Toyota also is expanding a recall announced in November 2009 to address possible floor mat entrapment of the accelerator pedal.
The affected 1.5 million vehicles include about 603,000 Toyota 4Runner SUVs sold from the 2003 through 2009 model years; about 17,000 Lexus LX 570 SUVS sold from the 2008 through 2011 models years; and about 761,000 Toyota RAV4 vehicles sold from the 2006 through 2010 models years.
Toyota said owners of the 4Runner, LX 570, and RAV4 vehicles will be notified soon, and receive a second notification once the recall preparations are complete.
Toyota and Lexus dealers will perform the recalls at no charge, Toyota said.
PRESS RELEASE: Toyota Announces Two Voluntary Recalls and Amends Potential Floor Mat Interference Recall Announced in 2009
Driver's Side Floor Carpet Plastic Pad Modification on Lexus GS
Driver's Side Floor Carpet Cover Replacement on Lexus RX and Toyota Highlander
Models Added to the Potential Floor Mat Interference with Accelerator Pedal Recall
TORRANCE, Calif., [February 24], 2011 -- Toyota Motor Sales (TMS), U.S.A., Inc., today announced that it will conduct a voluntary safety recall of approximately 20,000 2006 and early 2007 Model Year GS 300 and GS 350 All-Wheel Drive vehicles to modify the shape of the plastic pad embedded in the driver's side floor carpet. In the event that the floor carpet around the accelerator pedal is not properly replaced in the correct position after a service operation, there is a possibility that the plastic pad embedded into the floor carpet may interfere with the operation of the accelerator pedal. If this occurs, the accelerator pedal may become temporarily stuck in a partially depressed position rather than returning to the idle position.
Owners of the involved GS 300 and GS 350 All-Wheel Drive vehicles will receive a notification by first class mail beginning in early March 2011.
Toyota will also voluntarily recall approximately 372,000 2004 through 2006 and early 2007 RX 330, RX 350, and RX 400h vehicles, and approximately 397,000 2004 through 2006 Highlander and Highlander HV vehicles to replace the driver's side floor carpet cover and its two retention clips. If the forward retention clip used to secure the floor carpet cover, which is located in front of the center console, is not installed properly, the cover may lean toward the accelerator pedal and interfere with the accelerator pedal arm. If this occurs, the accelerator pedal may become temporarily stuck in a partially depressed position rather than returning to the idle position.
Owners of the involved RX and Highlander vehicles will receive an interim notification by first class mail beginning in the near future, explaining how to inspect for this condition or that they may contact their local dealer to perform the inspection.
Owners will receive a second notification once the replacement covers are available.
Separately, Toyota has amended its recall from November 2009, adding three models to address the potential for unsecured or incompatible floor mat entrapment of the accelerator pedal. The models added include:
• Approximately 603,000 2003 through 2009 4Runner
• Approximately 17,000 2008 through 2011 Lexus LX 570; and
• Approximately 761,000 2006 through 2010 RAV4
Owners of the involved 4Runner, LX 570, and RAV4 vehicles will receive an interim notification by first class mail beginning in the near future, informing them of the condition. Owners will receive a second notification once the recall preparations are complete.
Toyota and Lexus dealers will implement the newly announced and amended recall remedies at no charge to the vehicle owners.
Detailed information and answers to questions are available to customers at www.toyota.com/recall or www.lexus.com/recall and the Toyota Customer Experience Center at 1-800-331-4331 or Lexus Customer Satisfaction at 1-800-25 LEXUS or 1-800-255-3987.
The automaker said more than half of the recalled vehicles -- 1.54 million units -- are being added to a giant 2009 recall to inspect and repair accelerator pedals that may get trapped in floor mats.
A 10-month investigation by NASA engineers determined that electronic flaws were not to blame for widespread consumer complaints of unintended acceleration in Toyota and Lexus models, the U.S. Department of Transportation said this month.
The Japanese automaker has now recalled 19.2 million Toyota and Lexus vehicles worldwide and more than 13.7 million in the United States to address safety problems since the fall of 2009.
Toyota said 20,000 2006 and early 2007 Lexus GS 300 and GS 350 all-wheel-drive sedans will be recalled to modify the shape of the plastic pad embedded in the driver's side floor carpet.
If the floor carpet around the accelerator pedal is not properly replaced after service, Toyota said there is a possibility that the plastic pad embedded into the floor carpet may interfere with operation of the accelerator pedal.
If this occurs, the accelerator pedal may become temporarily stuck in a partially depressed position rather than returning to the idle position.
Toyota said it had received two complaints about the issue. Owners of the GS 300 and GS 350 vehicles will be notified in early March, Toyota said.
Driver's floor carpet cover
The automaker also is recalling 372,000 2004 through 2006 and early 2007 Lexus RX 330, RX 350, and RX 400h units, and about 397,000 Toyota Highlander and Highlander HV vehicles sold from the 2004 through 2006 model years to replace the driver's side floor carpet cover and its two retention clips.
Toyota said if the forward retention clip used to secure the floor carpet cover -- located in front of the center console -- is not installed properly, the cover may lean toward the accelerator pedal and interfere with the accelerator pedal arm.
If this occurs, Toyota said the accelerator pedal may become temporarily stuck in a partially depressed position rather than returning to the idle position.
RX and Highlander owners will be notified soon how to inspect the condition or how to contact a dealer to perform the inspection. Toyota said owners will receive a second notification once the replacement covers are available.
Expanded recall
Toyota also is expanding a recall announced in November 2009 to address possible floor mat entrapment of the accelerator pedal.
The affected 1.5 million vehicles include about 603,000 Toyota 4Runner SUVs sold from the 2003 through 2009 model years; about 17,000 Lexus LX 570 SUVS sold from the 2008 through 2011 models years; and about 761,000 Toyota RAV4 vehicles sold from the 2006 through 2010 models years.
Toyota said owners of the 4Runner, LX 570, and RAV4 vehicles will be notified soon, and receive a second notification once the recall preparations are complete.
Toyota and Lexus dealers will perform the recalls at no charge, Toyota said.
PRESS RELEASE: Toyota Announces Two Voluntary Recalls and Amends Potential Floor Mat Interference Recall Announced in 2009
Driver's Side Floor Carpet Plastic Pad Modification on Lexus GS
Driver's Side Floor Carpet Cover Replacement on Lexus RX and Toyota Highlander
Models Added to the Potential Floor Mat Interference with Accelerator Pedal Recall
TORRANCE, Calif., [February 24], 2011 -- Toyota Motor Sales (TMS), U.S.A., Inc., today announced that it will conduct a voluntary safety recall of approximately 20,000 2006 and early 2007 Model Year GS 300 and GS 350 All-Wheel Drive vehicles to modify the shape of the plastic pad embedded in the driver's side floor carpet. In the event that the floor carpet around the accelerator pedal is not properly replaced in the correct position after a service operation, there is a possibility that the plastic pad embedded into the floor carpet may interfere with the operation of the accelerator pedal. If this occurs, the accelerator pedal may become temporarily stuck in a partially depressed position rather than returning to the idle position.
Owners of the involved GS 300 and GS 350 All-Wheel Drive vehicles will receive a notification by first class mail beginning in early March 2011.
Toyota will also voluntarily recall approximately 372,000 2004 through 2006 and early 2007 RX 330, RX 350, and RX 400h vehicles, and approximately 397,000 2004 through 2006 Highlander and Highlander HV vehicles to replace the driver's side floor carpet cover and its two retention clips. If the forward retention clip used to secure the floor carpet cover, which is located in front of the center console, is not installed properly, the cover may lean toward the accelerator pedal and interfere with the accelerator pedal arm. If this occurs, the accelerator pedal may become temporarily stuck in a partially depressed position rather than returning to the idle position.
Owners of the involved RX and Highlander vehicles will receive an interim notification by first class mail beginning in the near future, explaining how to inspect for this condition or that they may contact their local dealer to perform the inspection.
Owners will receive a second notification once the replacement covers are available.
Separately, Toyota has amended its recall from November 2009, adding three models to address the potential for unsecured or incompatible floor mat entrapment of the accelerator pedal. The models added include:
• Approximately 603,000 2003 through 2009 4Runner
• Approximately 17,000 2008 through 2011 Lexus LX 570; and
• Approximately 761,000 2006 through 2010 RAV4
Owners of the involved 4Runner, LX 570, and RAV4 vehicles will receive an interim notification by first class mail beginning in the near future, informing them of the condition. Owners will receive a second notification once the recall preparations are complete.
Toyota and Lexus dealers will implement the newly announced and amended recall remedies at no charge to the vehicle owners.
Detailed information and answers to questions are available to customers at www.toyota.com/recall or www.lexus.com/recall and the Toyota Customer Experience Center at 1-800-331-4331 or Lexus Customer Satisfaction at 1-800-25 LEXUS or 1-800-255-3987.
Wednesday, January 26, 2011
Toyota recalls 1.7 million cars globally, including 245,000 Lexus sedans in U.S.
TOKYO -- Toyota Motor Corp., struggling to restore its reputation for top quality, today recalled nearly 1.7 million vehicles globally for a variety of fuel system related problems, including 245,000 Lexus IS and Lexus GS sedans in the United States.
The North American vehicles are being called back to inspect for possibly faulty installation of fuel pressure sensors. In cases where the sensor is not fastened tightly enough, fuel can leak between the gasket that connects the sensor to the fuel delivery pipes, Toyota said.
Lexus dealers in the United States will inspect vehicles for fuel leaks. If none is found, they will tighten the sensor. If leaks are confirmed, the gasket will be replaced and the sensor tightened.
The move affects the following vehicles in the United States: 2006-2007 model year Lexus GS300/350; 2006-early 2009 Lexus IS250; and 2006-early 2008 Lexus IS350.
Today's actions bring the total number of Toyota recalls since fall of 2009 to 18 million vehicles.
“After Toyota's recalls last year, the company is more sensitive to recall issues and conducting them as early as possible,” Satoru Takada, a Tokyo-based analyst at TIW Inc., told Bloomberg.
The move covering the fuel-pressure sensor covers 354,524 vehicles worldwide, including the Toyota Crown and Mark X sedans in Japan.
Also today, Toyota conducted a global recall targeting faulty fuel pipes and fuel check valves. That action affects 1.34 million vehicles, but none in North America.
Toyota said there have been no accidents related to any of the recall-related problems.
About 1.2 million of the vehicles in the second recall were sold in Japan, including the RAV4 SUV and the Voxy and Noah minivans. About 135,000 vehicles are in Europe, mostly the Avensis sedan and wagon manufactured at Toyota's plant in Britain.
A design flaw in those vehicles means that fuel pipes may develop cracks and leak. Some of the vehicles also have faulty check valves meant to prevent the reverse flow of fuel.
PRESS RELEASE: Toyota Announces Voluntary Recall of Certain 2006-2007 Lexus GS 300/350, 2006-2009 IS 250 and 2006-2008 IS 350 Vehicles to Inspect the Fuel Pressure Sensor Installation Click here for Customer FAQ for Lexus IS and GS Fuel Pressure Sensor Re
Toyota Motor Corporation announces separate recall involving certain vehicles not sold in North America.
TORRANCE, Calif., January 26, 2011 – Toyota Motor Sales (TMS), U.S.A., Inc., today announced that it will conduct a voluntary Safety Recall involving approximately 245,000 2006 through 2007 Lexus GS300/350, 2006 through early 2009 Lexus IS250, and 2006 through early 2008 Lexus IS350 vehicles sold in the U.S. to inspect the fuel pressure sensor installation.
Due to insufficient tightening of the fuel pressure sensor connected to certain engine fuel delivery pipes (those with Nickel Phosphorus plating), there is a possibility that the pressure sensor could loosen over time. If loosening occurs, fuel could leak past a gasket used in the connection between the sensor and the delivery pipe and through the threaded portion of the sensor.
Lexus dealers will inspect the vehicle for fuel leakage and if no leakage is found, will tighten the fuel pressure sensor with the proper torque. If a fuel leak is confirmed, the gasket between the sensor and the delivery pipe will be replaced and the sensor will be tightened with the proper torque. The inspection and possible gasket replacement will be conducted at no charge to the vehicle owner.
Owners of the involved vehicles will receive a safety recall notification by first class mail once the parts that may be needed have been obtained. Lexus will also post this information on its website. Detailed information about this recall is available through Lexus Customer Satisfaction at 1-800-25 LEXUS or 1-800-255-3987 or at www.lexus.com/recall.
Toyota Motor Corporation (TMC) today announced a separate recall involving 1.3 million vehicles worldwide to remedy a different condition on a different fuel delivery pipe and a high pressure fuel pump check valve. TMC's recall announcement does not involve vehicles sold in North America.
The North American vehicles are being called back to inspect for possibly faulty installation of fuel pressure sensors. In cases where the sensor is not fastened tightly enough, fuel can leak between the gasket that connects the sensor to the fuel delivery pipes, Toyota said.
Lexus dealers in the United States will inspect vehicles for fuel leaks. If none is found, they will tighten the sensor. If leaks are confirmed, the gasket will be replaced and the sensor tightened.
The move affects the following vehicles in the United States: 2006-2007 model year Lexus GS300/350; 2006-early 2009 Lexus IS250; and 2006-early 2008 Lexus IS350.
Today's actions bring the total number of Toyota recalls since fall of 2009 to 18 million vehicles.
“After Toyota's recalls last year, the company is more sensitive to recall issues and conducting them as early as possible,” Satoru Takada, a Tokyo-based analyst at TIW Inc., told Bloomberg.
The move covering the fuel-pressure sensor covers 354,524 vehicles worldwide, including the Toyota Crown and Mark X sedans in Japan.
Also today, Toyota conducted a global recall targeting faulty fuel pipes and fuel check valves. That action affects 1.34 million vehicles, but none in North America.
Toyota said there have been no accidents related to any of the recall-related problems.
About 1.2 million of the vehicles in the second recall were sold in Japan, including the RAV4 SUV and the Voxy and Noah minivans. About 135,000 vehicles are in Europe, mostly the Avensis sedan and wagon manufactured at Toyota's plant in Britain.
A design flaw in those vehicles means that fuel pipes may develop cracks and leak. Some of the vehicles also have faulty check valves meant to prevent the reverse flow of fuel.
PRESS RELEASE: Toyota Announces Voluntary Recall of Certain 2006-2007 Lexus GS 300/350, 2006-2009 IS 250 and 2006-2008 IS 350 Vehicles to Inspect the Fuel Pressure Sensor Installation Click here for Customer FAQ for Lexus IS and GS Fuel Pressure Sensor Re
Toyota Motor Corporation announces separate recall involving certain vehicles not sold in North America.
TORRANCE, Calif., January 26, 2011 – Toyota Motor Sales (TMS), U.S.A., Inc., today announced that it will conduct a voluntary Safety Recall involving approximately 245,000 2006 through 2007 Lexus GS300/350, 2006 through early 2009 Lexus IS250, and 2006 through early 2008 Lexus IS350 vehicles sold in the U.S. to inspect the fuel pressure sensor installation.
Due to insufficient tightening of the fuel pressure sensor connected to certain engine fuel delivery pipes (those with Nickel Phosphorus plating), there is a possibility that the pressure sensor could loosen over time. If loosening occurs, fuel could leak past a gasket used in the connection between the sensor and the delivery pipe and through the threaded portion of the sensor.
Lexus dealers will inspect the vehicle for fuel leakage and if no leakage is found, will tighten the fuel pressure sensor with the proper torque. If a fuel leak is confirmed, the gasket between the sensor and the delivery pipe will be replaced and the sensor will be tightened with the proper torque. The inspection and possible gasket replacement will be conducted at no charge to the vehicle owner.
Owners of the involved vehicles will receive a safety recall notification by first class mail once the parts that may be needed have been obtained. Lexus will also post this information on its website. Detailed information about this recall is available through Lexus Customer Satisfaction at 1-800-25 LEXUS or 1-800-255-3987 or at www.lexus.com/recall.
Toyota Motor Corporation (TMC) today announced a separate recall involving 1.3 million vehicles worldwide to remedy a different condition on a different fuel delivery pipe and a high pressure fuel pump check valve. TMC's recall announcement does not involve vehicles sold in North America.
Thursday, January 20, 2011
Miniaturas de Carros Brasileiros #14
É comum lermos em revistas especializadas que os carros produzidos na Argentina ou demais países do Mercosul são considerados "nacionais", talvez pela isenção de impostos... ou pela grande quantidade de peças e módulos que são fabricados no Brasil e enviados para a Argentina para a montagem final. Um ótimo exemplo, é a pickup Toyota Hilux, montada na Argentina mas que é objeto de desejo de muitos brasileiros. Para quem não pode comprar uma em tamanho natural, como eu, pode ficar feliz da vida com uma miniatura dela, em escala 1:43 (cerca de 12cm). A miniatura é feita pela Minichamps e é bastante fiel à Hilux 1:1! A miniatura pode ser encontrada por algo em torno dos R$ 100,00 ou R$ 150,00... Um pouco cara mas, vale a pena!
Tuesday, November 2, 2010
Toyota seeks dismissal of class-action suit over unintended acceleration
WASHINGTON -- Toyota Motor Corp. is asking a federal judge in California to dismiss a class-action lawsuit over alleged safety defects on grounds that plaintiffs have not identified an electronic defect and many of them don't claim to have experienced unintended acceleration.
The company's filing contends plaintiffs are making claims on behalf of all Toyota owners with electronic throttle control systems while asserting “only a tiny fraction of the vehicles in question” have accelerated out of control, Toyota said in a statement today.
Toyota's own technical reviews have found no evidence of any electronic defects that might lead to unintended acceleration, the statement said.
“More than a year after filing their first complaint, plaintiffs have not identified a defect and are grasping at straws to make their case,” Toyota lawyer Cari Dawson said in the statement.
An amended class-action complaint filed last week in federal court in Santa Ana, Calif., cited internal company records documenting instances in which Toyota technicians or service managers re-created acceleration problems like those reported by customers.
“We believe the evidence clearly shows that Toyota recognized -- and could replicate -- sudden, unintended accelerations with their vehicles for nearly a decade,” Steve Berman, an attorney representing plaintiffs, said in a statement. “We also believe Toyota knew how to fix the problem using a brake-override system -- standard equipment with other carmakers. We are confident the case will move forward, and the jury will be the ultimate arbiter.”
The 725-page filing last week also alleges Toyota secretly repurchased from customers some vehicles it found with safety defects linked to unintended-acceleration problems.
The suit attempts to consolidate dozens of consumers and businesses claiming economic losses stemming from complaints that Toyota vehicles raced out of control.
Toyota said last week it had indeed repurchased vehicles from customers who complained of unintended acceleration but did so to conduct “further engineering analysis” on the cars.
The company said its technicians were unable to replicate those acceleration concerns.
The company's filing contends plaintiffs are making claims on behalf of all Toyota owners with electronic throttle control systems while asserting “only a tiny fraction of the vehicles in question” have accelerated out of control, Toyota said in a statement today.
Toyota's own technical reviews have found no evidence of any electronic defects that might lead to unintended acceleration, the statement said.
“More than a year after filing their first complaint, plaintiffs have not identified a defect and are grasping at straws to make their case,” Toyota lawyer Cari Dawson said in the statement.
An amended class-action complaint filed last week in federal court in Santa Ana, Calif., cited internal company records documenting instances in which Toyota technicians or service managers re-created acceleration problems like those reported by customers.
“We believe the evidence clearly shows that Toyota recognized -- and could replicate -- sudden, unintended accelerations with their vehicles for nearly a decade,” Steve Berman, an attorney representing plaintiffs, said in a statement. “We also believe Toyota knew how to fix the problem using a brake-override system -- standard equipment with other carmakers. We are confident the case will move forward, and the jury will be the ultimate arbiter.”
The 725-page filing last week also alleges Toyota secretly repurchased from customers some vehicles it found with safety defects linked to unintended-acceleration problems.
The suit attempts to consolidate dozens of consumers and businesses claiming economic losses stemming from complaints that Toyota vehicles raced out of control.
Toyota said last week it had indeed repurchased vehicles from customers who complained of unintended acceleration but did so to conduct “further engineering analysis” on the cars.
The company said its technicians were unable to replicate those acceleration concerns.
Friday, July 30, 2010
Toyota to recall 412,000 cars in U.S.
TOKYO (Reuters) -- Toyota Motor Corp. said today it would recall 412,000 high-end passenger cars in the United States to fix steering problems.
Toyota, which has conducted a string of recalls this year, will recall 373,000 of its 2000-2004 model year Avalon sedans because the steering lock bar in the vehicles could break under certain conditions, it said in a statement.
It will also recall 39,000 of its 2003-2007 model year LX470 sports utility vehicles to eliminate the risk of steering shaft disengagement, the automaker said.
Toyota has received reports of three accidents involving the Avalon models subject to the recall, though there have been no injuries reported, a Toyota spokesman said.
It is not clear if the three accidents are related to the possible defect Toyota is now trying to fix, he said.
There have been no reports of accidents involving the LX470 models subject to the recall, Toyota said.
Prior to the latest recall, the Japanese automaker has recalled 10.8 million vehicles worldwide since late last year.
Wednesday, July 7, 2010
Toyota received complaints about Lexus engine defect in 2007
Toyota Motor Corp. received complaints more than three years ago about engine problems that sparked recalls this week of more than 270,000 Lexus and Toyota vehicles in Asia and North America.
The National Highway Traffic Safety Administration today released Toyota's "Defect Information Report" on the vehicles affected by the recall.
In the report, Toyota said it monitored U.S. field technical reports from March 2007 to August 2008.
"The number of reports of broken valve springs was relatively small, and the vast majority reported abnormal engine noise, rough engine performance, and no start conditions readily noticeable to vehicle operators," Toyota said in the four-page report.
Toyota said it received no reports of any crashes or injuries. But beginning in October 2009, the automaker received an increasing number of reports of "total engine failure" and of broken 3.3 mm diameter valve springs, according to the report.
On July 1, Toyota said it decided to recall the Lexus vehicles following an investigation that found "a possibility that the strength of valve springs with a wire diameter of 3.3 mm may be degraded by a micro-foreign object in the material of the valve spring, causing the spring to break."
NHTSA had no comment.
About 138,000 vehicles in the United States may be affected, according to the Toyota City, Japan-based company.
In Japan, the carmaker received the first customer complaints in March 2007 in Japan regarding defective valve springs that may cause engines to stall, Toyota spokeswoman Ririko Takeuchi said today. The recall in Japan covers cars built between July 2005 and August 2008.
The problem occurs when foreign substances enter the material used to make the part, causing the spring to weaken and break, Tokyo-based spokeswoman Monika Saito said. While Toyota decided to address the problem in August 2008 by altering the design of the valve spring and making it thicker, the company didn't feel that a recall was necessary given the rarity of the problem at the time, she said.
Toyota is working to restore its reputation for quality after recalling about 10.8 million vehicles globally since November. The company recalled about 13,000 Lexus GX 460 sport-utility vehicles in April after Consumer Reports labeled the model a “safety risk” because it could roll over. The designation was removed in May.
The company will recall 91,903 Lexus GS 350, GS 450h, GS 460, IS 350, LS 460, LS 600h and LS 600hL models and some Toyota Crown cars in Japan, the nation's transportation ministry said in a statement on its website yesterday. Recalls have been announced in China and South Korea, and the problem may affect as many as 270,000 vehicles worldwide, Toyota has said.
Toyota received 220 complaints in Japan and 210 from overseas, Saito said. The company decided to initiate a recall after acknowledging a rising trend in the complaints, she said.
U.S. regulators
Toyota, which paid a record U.S. fine of $16.4 million this year for not complying with auto-safety regulations, said last month it will recall the Lexus HS 250h sedan after too much gasoline spilled in U.S. government crash tests, posing a fire risk.
The National Highway Traffic Safety Administration today released Toyota's "Defect Information Report" on the vehicles affected by the recall.
In the report, Toyota said it monitored U.S. field technical reports from March 2007 to August 2008.
"The number of reports of broken valve springs was relatively small, and the vast majority reported abnormal engine noise, rough engine performance, and no start conditions readily noticeable to vehicle operators," Toyota said in the four-page report.
Toyota said it received no reports of any crashes or injuries. But beginning in October 2009, the automaker received an increasing number of reports of "total engine failure" and of broken 3.3 mm diameter valve springs, according to the report.
On July 1, Toyota said it decided to recall the Lexus vehicles following an investigation that found "a possibility that the strength of valve springs with a wire diameter of 3.3 mm may be degraded by a micro-foreign object in the material of the valve spring, causing the spring to break."
NHTSA had no comment.
About 138,000 vehicles in the United States may be affected, according to the Toyota City, Japan-based company.
In Japan, the carmaker received the first customer complaints in March 2007 in Japan regarding defective valve springs that may cause engines to stall, Toyota spokeswoman Ririko Takeuchi said today. The recall in Japan covers cars built between July 2005 and August 2008.
The problem occurs when foreign substances enter the material used to make the part, causing the spring to weaken and break, Tokyo-based spokeswoman Monika Saito said. While Toyota decided to address the problem in August 2008 by altering the design of the valve spring and making it thicker, the company didn't feel that a recall was necessary given the rarity of the problem at the time, she said.
Toyota is working to restore its reputation for quality after recalling about 10.8 million vehicles globally since November. The company recalled about 13,000 Lexus GX 460 sport-utility vehicles in April after Consumer Reports labeled the model a “safety risk” because it could roll over. The designation was removed in May.
The company will recall 91,903 Lexus GS 350, GS 450h, GS 460, IS 350, LS 460, LS 600h and LS 600hL models and some Toyota Crown cars in Japan, the nation's transportation ministry said in a statement on its website yesterday. Recalls have been announced in China and South Korea, and the problem may affect as many as 270,000 vehicles worldwide, Toyota has said.
Toyota received 220 complaints in Japan and 210 from overseas, Saito said. The company decided to initiate a recall after acknowledging a rising trend in the complaints, she said.
U.S. regulators
Toyota, which paid a record U.S. fine of $16.4 million this year for not complying with auto-safety regulations, said last month it will recall the Lexus HS 250h sedan after too much gasoline spilled in U.S. government crash tests, posing a fire risk.
Thursday, May 20, 2010
Tesla to make EVs with Toyota, buy NUMMI
Toyota Motor Corp. and Tesla Motors Inc. will become partners to produce electric vehicles at New United Motor Manufacturing Inc. in Fremont, Calif., a plant that Toyota last year ruled too inefficient to keep open.
Tesla will acquire the now-closed NUMMI property and employ 1,000 people building unspecified electric vehicles in a partnership with the world's largest automaker, the companies announced today in Palo Alto, Calif.
Toyota will invest $50 million in the small California-based electric sports maker in exchange for Tesla's common stock when the EV company completes its planned initial public offering.
Speaking at the announcement, Toyota President Akio Toyoda said he admired the entrepreneurial spirit at Tesla and hoped the venture will teach Toyota about quick decision-making and flexibility.
“Decades ago,” Toyoda said, “Toyota was also born as a venture business. By partnering with Tesla, my hope is that all Toyota employees will recall that venture business spirit, and take on the challenges of the future.”
Tesla CEO Elon Musk said his company would spend “a couple of hundred million dollars” preparing NUMMI for the project.
NUMMI, a former joint venture between Toyota and General Motors, closed earlier this year amid a storm of criticism from the plant's UAW work force.
Musk said the negotiations to acquire the closed plant concluded yesterday.
He said that Tesla's next model, a Model S that will debut in 2012, will only account for about 20,000 units a year, but said other models will follow off of the Model S platform.
“We're going to be occupying a little corner,” Musk said.
He said that eventually the project would account for 10,000 jobs, including supplier jobs.
Tesla's Model S is being made possible thanks to a $465 million low-interest loan from the U.S. Department of Energy. Until that product appears, Tesla is marketing a two-seat electric sports car that retails for more than $100,000.
Tesla has said that the Model S will sell for closer to $40,000.
Until now, Toyota has expressed little interest in electric cars. The Japanese automaker has staked considerable research and marketing investment on its popular hybrid-drive vehicles, including the Prius and hybrid Camry
Tesla will acquire the now-closed NUMMI property and employ 1,000 people building unspecified electric vehicles in a partnership with the world's largest automaker, the companies announced today in Palo Alto, Calif.
Toyota will invest $50 million in the small California-based electric sports maker in exchange for Tesla's common stock when the EV company completes its planned initial public offering.
Speaking at the announcement, Toyota President Akio Toyoda said he admired the entrepreneurial spirit at Tesla and hoped the venture will teach Toyota about quick decision-making and flexibility.
“Decades ago,” Toyoda said, “Toyota was also born as a venture business. By partnering with Tesla, my hope is that all Toyota employees will recall that venture business spirit, and take on the challenges of the future.”
Tesla CEO Elon Musk said his company would spend “a couple of hundred million dollars” preparing NUMMI for the project.
NUMMI, a former joint venture between Toyota and General Motors, closed earlier this year amid a storm of criticism from the plant's UAW work force.
Musk said the negotiations to acquire the closed plant concluded yesterday.
He said that Tesla's next model, a Model S that will debut in 2012, will only account for about 20,000 units a year, but said other models will follow off of the Model S platform.
“We're going to be occupying a little corner,” Musk said.
He said that eventually the project would account for 10,000 jobs, including supplier jobs.
Tesla's Model S is being made possible thanks to a $465 million low-interest loan from the U.S. Department of Energy. Until that product appears, Tesla is marketing a two-seat electric sports car that retails for more than $100,000.
Tesla has said that the Model S will sell for closer to $40,000.
Until now, Toyota has expressed little interest in electric cars. The Japanese automaker has staked considerable research and marketing investment on its popular hybrid-drive vehicles, including the Prius and hybrid Camry
Wednesday, May 5, 2010
Toyota wonders whether owners are misreading acceleration
Toyota's chief quality officer for North America thinks that some of the automaker's recall troubles come from doing a poor job of teaching customers about its cars at the dealership.
Steve St. Angelo -- tapped in March to head the task of repairing Toyota's image in the United States for quality -- thinks some Toyota owners may misunderstand their car's performance features.
“We're realizing that we haven't done a good job of educating our customers about our cars,” St. Angelo said in a phone conversation with Automotive News. “We must do a better job of educating them about the features, especially if they have anything to do with unintended acceleration.”
He said Toyota's radar cruise control system automatically slows down the vehicle if another car comes too close. But after the distance is clear, the car automatically returns to its previous speed -- a feature that could be confused with unintended acceleration, St. Angelo said.
Involve retailers
He said improving customer education will require the involvement of Toyota's U.S. retailers.
St. Angelo, also executive vice president of Toyota Motor Engineering & Manufacturing North America, has assigned 200 engineers to travel the United States responding to problems associated with the automaker's safety recalls over unintended acceleration. Those problems resulted in the global recall of 8.5 million vehicles and have damaged Toyota's brand reputation.
Company officials have apologized for the safety problems but originally resisted recalling the vehicles.
St. Angelo said the teams so far have inspected 500 Toyota vehicles in the field that are thought to have related problems. He did not reveal the specific results of the inspections.
He said the task force will continue after the recall problems are resolved.
‘Other issues'
“Once we stabilize these problems, the teams will begin looking at other issues out in the field,” St. Angelo said, without specifying what they would be.
He also said his task force has obtained 150 readout tools for Toyota's event data recorder -- the so-called black box -- for use around the United States and has given 10 to the National Highway Traffic Safety Administration.
Toyota was publicly chided late last year when it revealed that, while many of its vehicles are equipped with event data recorders that could shine light on why the vehicles might accelerate unintentionally, the company kept only one readout tool in the United States. Readout tools for other automakers' vehicles could not be used on Toyotas.
Critics pointed to the absence of the readout tools as evidence that Toyota's U.S. safety issues were managed in Japan, where managers were unresponsive to U.S. consumer concerns.
St. Angelo said its 150 U.S. readout tools are now more than adequate to analyze vehicle data locally.
Steve St. Angelo -- tapped in March to head the task of repairing Toyota's image in the United States for quality -- thinks some Toyota owners may misunderstand their car's performance features.
“We're realizing that we haven't done a good job of educating our customers about our cars,” St. Angelo said in a phone conversation with Automotive News. “We must do a better job of educating them about the features, especially if they have anything to do with unintended acceleration.”
He said Toyota's radar cruise control system automatically slows down the vehicle if another car comes too close. But after the distance is clear, the car automatically returns to its previous speed -- a feature that could be confused with unintended acceleration, St. Angelo said.
Involve retailers
He said improving customer education will require the involvement of Toyota's U.S. retailers.
St. Angelo, also executive vice president of Toyota Motor Engineering & Manufacturing North America, has assigned 200 engineers to travel the United States responding to problems associated with the automaker's safety recalls over unintended acceleration. Those problems resulted in the global recall of 8.5 million vehicles and have damaged Toyota's brand reputation.
Company officials have apologized for the safety problems but originally resisted recalling the vehicles.
St. Angelo said the teams so far have inspected 500 Toyota vehicles in the field that are thought to have related problems. He did not reveal the specific results of the inspections.
He said the task force will continue after the recall problems are resolved.
‘Other issues'
“Once we stabilize these problems, the teams will begin looking at other issues out in the field,” St. Angelo said, without specifying what they would be.
He also said his task force has obtained 150 readout tools for Toyota's event data recorder -- the so-called black box -- for use around the United States and has given 10 to the National Highway Traffic Safety Administration.
Toyota was publicly chided late last year when it revealed that, while many of its vehicles are equipped with event data recorders that could shine light on why the vehicles might accelerate unintentionally, the company kept only one readout tool in the United States. Readout tools for other automakers' vehicles could not be used on Toyotas.
Critics pointed to the absence of the readout tools as evidence that Toyota's U.S. safety issues were managed in Japan, where managers were unresponsive to U.S. consumer concerns.
St. Angelo said its 150 U.S. readout tools are now more than adequate to analyze vehicle data locally.
Tuesday, May 4, 2010
Dodge Caliber being probed for sticky pedal issue, U.S. says
Chrysler Group's 2007 Dodge Caliber cars are under federal investigation for unintended acceleration caused by a sticky pedal -- the same type of problem that led to a large Toyota recall this year.
The National Highway Traffic Safety Administration said it is investigating as many as 161,000 Calibers for an accelerator pedal that “can stick or bind and not return to the idle position when it is released.”
The safety agency has received five customer complaints but no reports of deaths, injuries or crashes.
Chrysler's own investigation has narrowed the population of suspect vehicles to 10,000 that were made during five weeks in March and April 2006, a company spokesman said.
Supplier issue?
The problem appears to be a mechanical one caused by parts made by CTS Corp., of Elkhart, Ind., Chrysler spokesman Nick Cappa said.
A NHTSA official said the automaker had been cooperative.
“The manufacturer is responsible for the performance of the car, and that's who we're investigating,” a NHTSA official said. “Chrysler has been cooperative.”
CTS also was blamed by Toyota Motor Corp. for its sticky gas pedals, which led to a January recall of 2.1 million vehicles.
The supplier denied the Toyota charge, noting that the automaker has recalled millions of other vehicles for unintended acceleration that were not equipped with CTS pedals.
CTS did not immediately respond today to a request for comment.
Electronic defects probed
In the wake of Toyota's worldwide recall of 9 million vehicles for unintended acceleration, NHTSA has been investigating the possible role played by electronic defects in triggering speed control problems across the auto industry.
Toyota's problems have been far more extensive -- and far more severe, with reports of dozens of deaths and injuries -- than the possible defects under investigation at Chrysler.
Chrysler said today that the sticky-pedal problem “is mechanical in nature and not a design or electronic issue.”
Cappa said Chrysler was able to narrow the problem population to 10,000 vehicles after being alerted to customer complaints by NHTSA on April 23 and then comparing complaints to warranty data.
On April 29, NHTSA opened a preliminary evaluation, the first stage of a formal investigation, the agency said on its Web site. This review can lead to an engineering analysis and, ultimately, a recall.
Four of the five complainants reported that they had found bushings -- bearings made of brass to allow the pedal to pivot -- on the driver's side floor, NHTSA said.
Without the bushings, the pedal arm “can become misaligned” and be prevented from returning to the idle position, the agency said.
Dodge vs. Toyota
The CTS pedals used in the Dodge Calibers are different from those used in the recalled Toyotas, a NHTSA official said.
Chrysler said that since 2003, the Caliber has been equipped with a brake override system that reduces power when both the brake and the gas pedal are depressed.
Most Toyota vehicles have not had a brake override system, which would be mandated under legislation to be discussed at a congressional committee hearing Thursday.
But some consumer complaints to NHTSA raise questions about the effectiveness of the Chrysler brake override system.
One complainant reported that while traveling at 65 mph, the Dodge Caliber accelerated suddenly to over 90 mph, a report on NHTSA's site said. Neither the brakes nor emergency brake could stop the car. It slowed only when the car was put in neutral, the driver said.
Another complainant said that while driving his Caliber at 15 mph, it “abnormally accelerated” to 75 mph. The driver reached over and lifted the pedal with his hand, he said.
One complainant expressed frustration with Chrysler's response to his reports and appealed to NHTSA to investigate.
“I am not getting any satisfaction from Chrysler; they continue to blow me off,” he said. “Please respond; no one else does.”
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