Toyota to Face ‘Two More Difficult Years’ Toyoda Says (Update3)Share | Email | Print | A A ABy Kae Inoue and Tetsuya KomatsuJune 25 (Bloomberg) -- Toyota Motor Corp., the world’s biggest automaker, will “face two more difficult years,” said President Akio Toyoda, who took the reins at the company this week.Toyoda’s appointment marks the return of the founding family to the helm for the first time in 14 years. Toyoda, 53, called back former Toyota executives to help the company return to profit, after the automaker posted a record 436.9 billion yen ($4.5 billion) loss in the year ended in March. The company expects to post a loss of 550 billion yen this fiscal year.The carmaker is “in the middle of a storm,” Toyoda told reporters today in Tokyo. “I will do my best to avoid a third consecutive year of losses.”Toyoda will be in charge of reviving sales and cutting costs amid rising unemployment and falling wages in the U.S., Europe and Japan. The company’s vehicle sales in the U.S., its biggest market, have dropped 39 percent to 638,795 units this year through May, compared with a year earlier, according to Autodata.“We can expect Toyota to go through a tough time,” said Yoshihiro Okumura, who helps oversee the equivalent of $365 million at Tokyo-based Chiba-gin Asset Management Co. “With the new management team, some changes will start to take place.”Toyota rose 2.1 percent to 3,700 yen, at the 3 p.m. close of Tokyo Stock Exchange trading.Slashing CostsThe automaker is slashing costs by at least 800 billion yen this year as it expects global sales to plummet by 1.07 million vehicles to 6.5 million units this fiscal year. Toyota doesn’t plan to close any factories, said Executive Vice President Atsushi Niimi, in charge of global manufacturing.Toyoda said he hopes to cut beyond that target calling the goal “only a starting line.” He added that his salary will be reduced by 30 percent for one year starting next month and board members will also return part of their salaries.“The global market will probably recover in the next two to three years and we want to make sure we have the capacity to meet the demand,” Niimi said.Toyota will also set up more independent operations in North America, where the market may undergo a change in full- size segment, Toyoda said. The automaker plans to offer a vehicle lineup necessary to meet the needs of every region from a full line up.Toyota is likely to begin cutting costs in Japan first, analysts said. Toyoda may slash the automaker’s domestic capacity and workforce by at least 10 percent, reducing its 20 platforms and 70 model types by 10 percent and consolidating its rural dealer network in Japan, according to Koji Endo, an analyst at Credit Suisse Securities (Japan) Ltd.PriusToyota, which introduced a new version of its Prius hybrid on May 18, is reviewing its product line up to focus on regional offerings, Toyoda said.Toyota will form a market research, planning and advertising unit that will report to Toyoda.Toyota said it has now booked 200,000 domestic orders for the new Prius gasoline-electric hybrid.The company had set a sales target of 10,000 units a month in Japan. The tally includes 80,000 orders placed before the car went on sale.The third-generation Prius was Japan’s bestselling car last month, surpassing Honda Motor Co.’s Insight. Hybrid sales have surged on the introduction of new models and government incentives.To contact the reporter on this story: Kae Inoue in Tokyo at kinoue@bloomberg.netTetsuya Komatsu in Tokyo at tekomatsu@bloomberg.netLast Updated: June 25, 2009 05:54 EDT
Toyota' Worldwide Production Down 39% In MayPublished:25-June-2009By Staff ReporterDomestic production plunged 41.9%, whereas production in the US declined by 48.2%Japanese auto major, Toyota Motor has reported a fall in its global output in May. The company said that its worldwide output dropped 38.8% from a year earlier, to 442,621 vehicles.Toyota' global production declined for the 10th straight month. Its domestic production slipped 41.9% to 192,637 units. The company’s production in the US plunged 48.2%, to around 56,000 units. Toyota operates five auto plants in the US.The total production of Toyota has been adversely affected by the global slump in auto demand and due to the strong Yen, which eroded its overseas profits.The company told shareholders that it has seen only a scattered recovery, and expected its business environment to remain tough in the near term.Japanese automakers had cut production in North America in May to reduce inventories, as overall sales in the US plunged significantly.
Cash-for-clunkers boost Japanese car salesBy Bernard Simon in TorontoPublished: August 17 2009 22:45 | Last updated: August 17 2009 22:45The US’s cash-for-clunkers scheme, designed to bolster Detroit’s embattled carmakers, is turning out to be an even bigger boon for their Japanese rivals.According to data published by the National Highway Traffic Safety Administration on Monday, Americans are using the scrappage incentives to buy more vehicles from Toyota than any of the three Detroit carmakers.Toyota has an 18.9 per cent share of vehicles bought so far, putting it ahead of General Motors with 17.6 per cent and Ford with 15.4 per cent. Chrysler is in fifth place, after Honda.GM had a 19.6 per cent share of the overall US light-vehicle market in the first seven months of this year, compared with Toyota’s 16.3 per cent, according to Autodata, a New Jersey-based market research firm.The top models bought since the scheme began on July 24 are the Toyota Corolla, Honda Civic and Ford Focus, all small sedans. Three of the top five are Toyotas.The popularity of smaller models underlines the price paid by the Detroit companies for their strategy to all but cede the passenger car market to their foreign rivals during the 1990s as they concentrated on bigger and more profitable sport-utility vehicles, pick-up trucks and minivans.All ten of the most traded-in clunkers are Detroit-made vehicles in these three segments.GM and Chrysler are battling to regain market share following their court-supervised restructurings earlier this month. Furthermore, they have struggled to keep dealers stocked with the usual variety of models and options, having shut down much of their North American operations during their journeys through bankruptcy protection.Credit Suisse estimates that Chrysler’s car inventories tumbled to 34 days supply at the end of July from 60 a month earlier. Its small Dodge Caliber is virtually sold out. A stock of 55-60 days supply is considered normal.Under the cash-for-clunkers scheme, modeled on similar incentives in Europe, buyers who trade in old vehicles for those with lower fuel consumption receive a rebate of $3,500 or $4,500, depending on the fuel consumption of the replacement vehicle.Congress initially earmarked $1bn for the incentives, but rushed to add another $2bn within a fortnight of the scheme’s introduction.Analysts expect that the funds will last until early September, supporting the purchase of 700-750,000 new vehicles.Toyota and its Asian rivals have sought to allay some politicians’ concern at the benefits they are reaping from the scheme by noting that a sizeable chunk of their vehicles are built in North America.
Toyota Will Shut California Plant in First Closure (Update1)Share | Email | Print | A A ABy Alan Ohnsman and Makiko KitamuraAug. 28 (Bloomberg) -- Toyota Motor Corp. said it will shut a California auto-assembly plant that operated as a joint venture with General Motors Corp. for 25 years, the first time Japan’s largest carmaker has closed a factory at home or abroad.New United Motor Manufacturing Inc. in Fremont, California, will end production of Corolla cars and Tacoma pickups in March 2010, Toyota said in a statement. GM in June said it would end assembly of Pontiac Vibes at the plant, known as Nummi, and quit the venture as part of its bankruptcy reorganization.A collapse in U.S. auto sales to the lowest level since 1976 has left Toyota, the world’s largest automaker, struggling to keep North American plants running at capacity. Closing the San Francisco Bay area plant, where Toyota President Akio Toyoda spent two years, compounds economic woes in California, suffering from an 11.9 percent unemployment rate.“Toyota wouldn’t be able to sustain the plant by itself,” said Yuuki Sakurai, chief executive officer of Fukoku Capital Management Inc. in Tokyo, which manages about 800 billion yen ($8.5 billion) in assets. “Nummi is unionized and expensive to operate. It’s a good decision.”Nummi employs 5,400 people, including 4,550 United Auto Workers union positions. More than 1,000 suppliers work with the factory, which has annual payroll and benefits of $523 million, according to a plant publication. Possible severance packages for the workers have not been decided on, according to Toyota spokesman Yuta Kaga. Nummi, set up as a joint venture, will make the decision, he said.Toyota gained 0.3 percent to 4,050 yen as of 9:15 a.m. in Tokyo. The shares have risen 39 percent so far this year, outpacing the 19 percent gain in the Nikkei 225 Stock Average.Texas, OntarioToyota will shift production of Tacoma pickups to San Antonio and Corollas to its factory in Ontario, Canada.“It just would not be economically viable to continue the production contract with NUMMI,” Toyota Executive Vice President Atsushi Niimi said in a statement.In the U.S., the carmaker’s largest source of revenue, the Toyota City, Japan-based company’s sales fell 38 percent in the first half, following a 15 percent decline last year. Toyota had a record 436.9 billion yen loss in the fiscal year that ended in March, its first in six decades, and forecasts an even bigger 450 billion yen loss in the current business year.Unprofitable PlantNummi has the capacity to make 420,000 cars and pickups each year. It only made money in 1992, the result of California’s taxes and labor and pollution rules, as well as the plant’s UAW contracts, according to an estimate by Tokyo-based Credit Suisse Group AG analyst Koji Endo.Shared by GM and Toyota since 1984, Nummi was Toyota’s first U.S. auto-assembly factory. It’s the only large auto- assembly plant on the U.S. West Coast.“We continue work already in progress with the U.S. Departments of Labor and Commerce, local government officials, Toyota, GM and the Japanese government to ensure appropriate employee severance, proper environmental remediation and assistance in transforming the site to alternative uses,” California Governor Arnold Schwarzenegger said in a statement.GM was the factory’s sole owner from 1963 until 1982, when it closed the Fremont Assembly plant owing to escalating costs and labor conflicts with union workers. Toyota initially invested about $150 million to renovate the plant and GM contributed the property and original factory building to create the joint venture.To contact the reporters on this story: Alan Ohnsman in Tokyo at aohnsman@bloomberg.net; Makiko Kitamura in Tokyo atLast Updated: August 27, 2009 20:28 EDT
Carmaker Toyota eyes smaller lossToyota showroom in Tokyo, Japan - 19/12/2008Japanese carmakers have been showing signs of recoveryToyota, the world's biggest carmaker, has cut its operating loss forecast for the financial year to 350bn yen ($3.9bn; £2.36bn) from 750bn yen.It comes as the maker of the Prius hybrid revealed quarterly net profits of 21.8bn yen for the three months to October, against 139.8bn yen in 2008.In August, it revealed plans to close a production line in Japan for a year.And on Wednesday it announced it was pulling out of Formula 1, citing "the current severe economic realities".Cost cuttingIn May, Toyota had reported its worst annual loss, of 436.94bn yen, in the year to 31 March.The global economic downturn and strong yen, which make it expensive for exporters such as Toyota, have hit the Japanese carmaking sector in the past year.However, Toyota's latest figures - showing a return to profit - are the latest in a series of recoveries seen at Japanese carmakers, including Honda and Nissan, which have also reported healthier earnings."Next year will basically see a focus on cost cutting," said Koichi Ogawa, at Daiwa SB Investments in Tokyo."They really have to go back into the black next year."The previously announced closure of production at a plant in Aichi prefecture in Japan - from the first quarter of 2010 to mid-2011 - will reduce output by 220,000 vehicles.
LOS ANGELES (Reuters) - Over 1,000 Toyota and Lexus owners have reported sudden, spontaneous acceleration of their vehicles since 2001, including crashes blamed for 19 deaths, far more than earlier disclosed, the Los Angeles Times reported on Sunday.The National Highway Traffic Safety Administration previously has said it had received reports of 100 such incidents, including 17 crashes and five fatalities.Toyota Motor Corp announced in September that it would recall some 3.8 million vehicles in the United States because of the risk of improper-fitting floormats jamming accelerator pedals in several models.The recall includes the hot-selling Prius hybrid and would be the largest ever for Toyota, which has built a reputation for safety and quality that had helped it surpass General Motors Co as the world's leading automaker last year.But the Times said it had uncovered a problem much bigger in scope from its own examination of thousands of federal defect investigation records, NHTSA complaints filed by car owners, lawsuits against Toyota and reports by independent safety experts and local police agencies.Owner complaints of runaway Toyota and Lexus vehicles helped trigger at least eight investigations of the problem by NHTSA in the last seven years, but the agency closed six of those cases without finding a defect, the Times reported.According to the newspaper, federal officials eliminated broad categories of sudden-acceleration complaints, including cases in which drivers said they were unable to stop runaway cars using their brakes; incidents of unintended acceleration lasting more than a few seconds; and reports in which owners did not identify the possible causes of the problem.By its own count, the newspaper said it found more than 1,000 reports from motorists that their Toyota or Lexus vehicles had suddenly sped up on their own, and records of 19 fatalities in which unintended acceleration may have been a factor in vehicles going back to the 2002 model year.Independent safety expert Sean Kane, president of Safety Research and Strategies, told the Times he has identified nearly 2,000 such cases.Most runaway vehicle incidents did not result in a crash. But notable exceptions have included the case of a Lexus ES 350 that sped up to more than 100 mph and crashed near San Diego on August 28, killing an off-duty California Highway Patrol officer who was driving and three members of his family.In a written statement, the Times said, NHTSA said its records now show that a total of 15 people died in crashes related to possible sudden acceleration in Toyota vehicles from the 2002 model year or newer, compared with 11 such deaths in vehicles made by all other automakers."The NHTSA takes every allegation of safety problems seriously," the agency said in a statement to the Times. "In the case of complaints about sudden acceleration in Toyota vehicles NHTSA moved very quickly to respond to them."Toyota defended its vehicles and the validity of prior NHTSA investigations as "exhaustive.""In each case, the agency closed the investigation without finding any electronic engine control system malfunction to be the cause of unintended acceleration," the company said in a statement to the Times.(Editing by Eric Beech)
Toyota to recall 2.3 million more vehicles as its troubles continuePosted by: David Welch on January 22Tundra.jpgThe bad news just keeps rolling in for Toyota. Even with some $29.6 billion in cash (as of Sept. 30) the company can’t seem to buy a break. On Jan. 21, the company said it is voluntarily recalling 2.3 million Toyota brand vehicles to correct a sticking accelerator pedal. This recall is in addition to the 4.2 million Toyota and Lexus vehicles that are being recalled to correct problems with floor mats sticking on the accelerator, the company said in a statement. The recalls came amid claims from some vehicle owners that either floor mats or the accelerator pedals were causing the car to lurch forward unexpectedly, causing accidents.Plaintiffs’ attorneys have already been lining up. But for Toyota, the bigger damage could be done in the court of public opinion. Even though problems with the recalled models are not common, according to Toyota’s statement, this is just the latest in a series of large and embarrassing recalls. For its part, Toyota explained in its press release that, “the condition is rare, but can occur when the pedal mechanism becomes worn and, in certain conditions, the accelerator pedal may become harder to depress, slower to return or, in the worst case, stuck in a partially depressed position. Toyota is working quickly to prepare the correction remedy.” Here is the list of cars being recalled: 2009-2010 RAV4, 2009-2010 Corolla, 2009-2010 Matrix, 2005-2010 Avalon, 2007-2010 Camry, 2010 Highlander, 2007-2010 Tundra, 2008-2010 Sequoia.Toyota is voluntarily recalling those cars to head off major problems or potential accidents. The company is known for handling recalls well. But the more pressing problem for Toyota is that these recalls and quality snafus can threaten the company’s reputation for quality. That image for great reliability is the foundation of the company’s sales success. For all of its prowess, Toyota is simply not known for having great styling or grin-inducing performance. Toyotaphiles appreciate the company’s quality, engineering and fuel-efficient technology.Quality was supposed to be a given. And when problems started to appear, Toyota vowed it would make quick amends. Back in July 2006, former Toyota President Katsuaki Watanabe bowed deeply in apology at a press conference, according to a report in the New York Times. The company launched an initiative to solve quality problems, examine customer service and look at costs. After Toyota’s headlong expansion in the ‘90s and most of this decade, it seems they had lost control of some of the basic principles that made it such a great company. Watanabe was trying to reaffirm the company’s commitment to quality.New CEO Akio Toyoda has redouble those efforts. If Toyota doesn’t get a handle on this issue, the company could make the same kind of missteps that Detroit’s automakers did when quality problems started cropping up in the ‘70s. Those problems gave consumers a reason to look elsewhere, creating opportunity for Toyota, Honda and Datsun—which became Nissan in the early ‘80s—to get a foothold in the U.S. market. It’s far too early to count Toyota out. The company isn’t near where Detroit’s carmakers were in the ’80s. But if the recalls continue, Toyota could be exposed to a resurgent Ford or to ambitious players like Hyundai-Kia and Volkswagen. Even General Motors is showing some signs of stability. All of those companies are on the march just when Toyota is stalling.TrackBack URL for this entry: http://blogs.businessweek.com/mt/mt-tb.cgi/16366.1233712853
Toyota suspends sales of 8 models in recallTue Jan 26, 2010 8:13pm ESTPeople looking at a Toyota Motor's vehicle are reflected on a black vehicle at its showroom in Tokyo November 5, 2009. REUTERS/Toru HanaiDETROIT/TOKYO (Reuters) - Toyota Motor Corp said on Tuesday it will suspend sales of eight models involved in a recall announced last week for potentially faulty accelerator pedals.Hot StocksToyota also said it would halt production at plants in the United States and Canada in the first week of February.In Tokyo shares of Toyota fell 2.7 percent by midmorning on Wednesday, compared with a 0.2 percent fall in the Nikkei average."The recall itself won't be a big problem for Toyota's earnings, but suspending production and sales could have a big impact depending on how long it lasts," said Koji Endo, an auto analyst at Advanced Research Japan.The sales suspension and recall includes Toyota's top-selling vehicle in North America, the Camry, for model years since 2007.Also included are the 2009-2010 model year RAV4, Corolla and Matrix, the 2008-2010 model year Sequoia, the 2007-2010 model year Tundra, the 2005-2010 model year Avalon and the 2010 model year Highlander.Annual combined sales of these models are 1 million cars in North America, more than half of Toyota's annual sales there last year, according to Advance Research's Endo.Toyota is suspending production of the models for the first week of February at plants in North America. The plants are located in Indiana, Texas, Kentucky, and in Ontario.Bob Carter, Toyota U.S. group vice president, said the world's No.1 automaker is taking the actions to ensure safety and restore confidence in Toyota among consumers."This action is necessary until a remedy is finalized," Carter said in a statement. "We're making every effort to address this situation for our customers as quickly as possible."Toyota said last week it would recall 2.3 million vehicles in the United States to fix potentially faulty accelerator pedals, its second massive recall in four months in the U.S. (Reporting by Bernie Woodall in Detroit and Nobuhiro Kubo in Tokyo, editing by Matthew Lewis and Michael Watson)
Toyota loses $21B in market share in one week, plans media blitz this weekby Chris Shunk (RSS feed) on Jan 31st 2010 at 11:00PMAfter a long spell as the apple of the media's eye, Toyota is now officially in the bad news barrel. So far the Japanese automaker has announced the recall of 5.3 million vehicles for floor mat issues that may lead to unintended acceleration and a separate recall of 2.3 million vehicles for sticking gas pedals (watch the explanatory video). The entire ordeal has been a public relations nightmare, and as you'd expect, Toyota's stock is taking a hit.Last week alone shares in the automaker plunged by a jaw-dropping 14 percent. That's a drop of $21 billion (with a B) in market value. The lion's share of the losses are likely due to investors' unease at how the the mounting recalls are playing out, but we suspect that part of the issue has to do with Toyota's handling of the recalls to date.Last fall Toyota appeared to be calling the original recall of 3.8 million vehicles for floor mat issues a voluntary matter, only to be rebuked by the National Highway Traffic Safety Administration (NHTSA), which insisted that the recall was mandatory. More recently Toyota announced that it was shipping new pedals to factories, only to change its mind and send the parts to dealerships after an angry response from dealers and the public. Mizuno Credit Advisory director Tatsuya Mizuno reportedly told Business Week that Toyota has "wasted too much time without doing anything," adding that the automaker used to have foresight for taking action but is now, "very far behind the curve."Other than a 75 second television interview by Toyota president Akio Toyoda in Davos, Switzerland, Toyota hasn't said much of anything about the recalls. That will reportedly change this week as the Japanese automaker hits the news circuit in an attempt to allay customer fear about the recalls. Toyota U.S.A president Jim Lentz will appear on the Today Show Monday morning, followed by a conference call with other media outlets. BusinessWeek reports that Toyota may also be close to announcing a fix for at least one of the recalls, which should help investors feel a bit more comfortable that the situation is being handled.Toyota also took out full-page ads in 20 major markets to explain why it has temporarily suspended production at several plants. Oddly, the full page ad didn't focus on the recalls. The ad (shown above, click to enlarge) says "A temporary pause. To put you first," in very big letters, followed by an explanation as to why the plants were temporarily shut down in comparatively tiny letters. The ad doesn't give any specifics about the recall, but it directs customers to the automaker's website for information about the Toyota recall.While Toyota's ad blitz will no doubt be crucial to winning back its very faithful customers and the company's considerable reputation for quality and reliability, still more hurdles lie ahead. The next major step will be the announcement of a fix, followed by a potentially embarrassing February 25 meeting with the House Energy and Commerce Committee to discuss the unintended acceleration claims and the NHTSA's handling of the matter. Beyond that Toyota will need to absolutely nail the execution of the recall and get as many vehicles repaired as quickly as possible. Lets just hope dealers can fix this problem fast than Toyota can explain it.[Source: Business Week]
TOKYO (Reuters) - Toyota Motor Corp said on Wednesday its North American and Japanese dealers had received several dozen complaints concerning what drivers characterized as insufficient braking on its new Prius hybrid car when driving over bumpy or frozen roads.Hot Stockshttp://www.reuters.com/finance/markets/hotStocksToyota received the first reports of the Prius complaints last December, a spokeswoman in Tokyo said, adding that it was investigating the issue. She said there had been no reports to Toyota about any accidents related to the matter.The third-generation Prius has become a core volume-seller for the world's biggest automaker, and is now Japan's top-selling model. Including second-generation models, Toyota sold 404,000 Prius cars globally last year.In Europe, where the automaker has sold 29,000 new generation Prius cars since its launch last summer, Toyota Motor Europe has not had any complaints, a spokeswoman for Toyota Motor Europe said.(Reporting by Chang-Ran Kim; Additional Reporting by Helen Massy-Beresford)
New interview with Jim Lentz, President and Chief Operating Officer of Toyota Motor Sales, USA, is answering the Digg communitys top questions for a very timely and topical Live Digg Dialogg. He sat down with Digg for a special LIVE Dialogg broadcast to provide perspective on what happened, what theyre doing about it and what consumers need to know about the recall.
(http://l.yimg.com/a/i/ww/news/2010/03/09/030910prius.jpg)EL CAJON, Calif. – A California Highway Patrol officer helped slow a runaway Toyota Prius from 94 mph to a safe stop on Monday after the car's accelerator became stuck on a San Diego County freeway, the CHP said.Prius driver James Sikes called 911 about 1:30 p.m. after accelerating to pass another vehicle on Interstate 8 near La Posta and finding that he could not control his car, the CHP said."I pushed the gas pedal to pass a car and it did something kind of funny... it jumped and it just stuck there," the 61-year-old driver said at a news conference. "As it was going, I was trying the brakes...it wasn't stopping, it wasn't doing anything and it just kept speeding up," Sikes said, adding he could smell the brakes burning he was pressing the pedal so hard.A patrol car pulled alongside the Prius and officers told Sikes over a loudspeaker to push the brake pedal to the floor and apply the emergency brake."They also got it going on a steep upgrade," said Officer Jesse Udovich. "Between those three things, they got it to slow down."After the car decelerated to about 50 mph, Sikes turned off the engine and coasted to a halt.The officer then maneuvered his car in front of the Prius as a precautionary block, Udovich said.In a statement, Toyota said it has dispatched a field technical specialist to San Diego to investigate the incident.Toyota has recalled some 8.5 million vehicles worldwide — more than 6 million in the United States — since last fall because of acceleration problems in multiple models and braking issues in the Prius.Toyota owners have complained of their vehicles speeding out of control despite efforts to slow down, sometimes resulting in deadly crashes. The government has received complaints of 34 deaths linked to sudden acceleration of Toyota vehicles since 2000.One of the crashes claimed the life of a CHP officer last August.Off-duty CHP Officer Mark Saylor was killed along with his wife, her brother and the couple's daughter after their Lexus' accelerator got stuck in La Mesa.The Toyota-manufactured loaner vehicle slammed into a sport utility vehicle at about 100 mph, careened off the freeway, hit an embankment, overturned and burst into flames.___japs being buying USA debts and bonds, now they will help USA once again, by paying them through the courts , thanks to toyota. i can see the elite of USA dump prius.
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