Toyota To Recall 3.8 Million Vehicles

BREAKING NEWS! BREAKING NEWS!

In what I can say unequivocally would happen three years ago, I told you so, well not to this magnitude, but sooner or later in Toyota's quest to become the worlds leading auto maker, the teflon shield would start to crumble.

The perils that dogged General Motors for the better part of the last 2 1/2 decades, "QUALITY" would come to inflict pain on Toyota Motor Company. When you become as large as General Motors and now Toyota, quality issues will rear it's ugly head and cause havoc on consumers perception and viewpoint on a manufacturer and becomes even more difficult to change. Audi could do it as it was much smaller and although nearly out for the count, the sample size of vehicles were minimal in comparison to the millions of vehicles that GM and Toyota sell. To many opinions and misconceptions will abound and becomes a public relations nightmare, were talking 3.8 million vehicles and the families that are associated with those vehicles, you do the math.

The recall effects 3.8 million Toyota and Lexus vehicles mostly from a 2-3 year period and is associated with the deaths of 5 people. The problem is mostly linked to a loose fitting floor mat jamming the accelerator and is recommended that the vehicles in the recall should come into a local Toyota or Lexus dealership and have the non fitting floor mat replaced. Until then it is recommended to remove the driver side floor mat until the owner can get to the nearest dealership for replacement.

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Kevin Kimbrough

That Car Guy

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Ford and General Motors Sales Slide Slows Down While Toyota and Honda Grows...

BREAKING NEWS! BREAKING NEWS!

The Ford Motor Company and General Motors posted smaller monthly sales declines last month, while Toyota and Honda sales slipped more than 40 percent while the overall North American auto industry showed signs of improvement.

Although Chrysler saw sales slide more than 46.9 percent

This is a positive sign for the North American car market and most certainly for Ford and GM.

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That Car Guy

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Toyota losses big... and it's not going to get any better!

Toyota Motor Corporation, the newly crowned king of the hill, the world's largest auto manufacturer announced it's first annual (calender) net loss since 1950. With worldwide demand for automobiles plummeting and the strength of the yen doomed the automakers earnings for 2008.

Toyota announced a quarterly loss of 164.7 billion yen ($1.8 billion US) for the October-December 2008 period, down from 458.6 billion yen profit for the same period in 2007, quarterly sales had dropped 28.4 percent in the period from year over year sales.

Toyota expects to announce an even wider loss for its fiscal year ending in March 2009, which it expects to be a net loss of 350 billion yen ($3.85 billion US), which is a dramatic turn of events from its record 1.72 trillion yen profit it had posted the previous year.

In dramatic fashion the company is announcing wide ranging cost cutting measures including, shutting down 11 plants in Japan for 14 days with other plant shutdowns expected, plans are being made to reduce contract workers. The company also is introducing new gas electric hybrid models as part of its turn around strategy and other model changes to strengthen its brand.

One of the biggest steps announced is that Akio Toyoda, a member of the founding family has been tapped as the incoming President of Toyota. Mr. Toyoda who has been a executive Vice President and who at 52 is widely considered young by Japanese standards for heading a major corporation. The move, as indicated by Toyota officials should bring employee ranks, dealerships and other group companies together during the tough times because of the nature of his families heritage with the company.

The outlook as I have reported does not look great for Toyota as the market is changing and they are suffering the same effects of being such a large player in a crowded field, it will take some time to right size the company to meet the slowing demand for automobiles. In addition with every major automaker bringing product to market to challenge Toyota's presence, they will be hard pressed to make the changes necessary over the course of 2009.

When you have a lowered worldwide demand for automobiles and you are the largest player, your business model was geared to producing a lot of vehicles. The product line up for Toyota has been geared towards Trucks and SUV's, and a whining demand for its perpetually popular Prius Hybrid makes for a disastrous recipe for the coming year.

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That Car Guy

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Toyota is Number 1 in Global Auto Sales Race, overtaking General Motors after GM's 77 year reign as the global sales leader...

BREAKING NEWS! BREAKING NEWS!

Toyota Motor has overtaken General Motors as the global sales leader, after a 77 year dominance by General Motors as the top automaker in the world. GM fell by 616,000 vehicles a huge number considering its market dominance over the last 77 years even after declining sales have hit automakers across the globe.

Although Toyota posted its first operating loss in over 70 years as it has been hit by the global financial crisis effecting all automakers. General Motors is reeling from spiraling cost associated with bloated capacity and other legacy issues that have reeked havoc on the company balance sheet. General Motors announced that it is expecting its next round of Federal Bailout money ($5.4 Billion) and stated at the Automotive World Congress in Detroit today that if it doesn't receive the second installment in the next few days that the company is in danger of running out of cash ( GM has been promised to loan the company $13.4 Billion for 3 years).

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That Car Guy

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Toyota Profit drops 73.6 % for the fiscal year ending March 31, 2008... I said it before and I will say it again Toyota is headed for a big fall...

Katsuaki Watanabe

President, Toyota

Toyota is facing a current profit crisis that they have never seen before, as sales fall in North America and a rising yen.

Toyota has now reduced there year end outlook as the company headed by Katsuaki Watanabe looks to find solutions. Mr. Watanabe who was picked to continue to lead the company in continued profitability has more than his hands full. Mr. Watanabe is the Chairman of a select committee in charge of making sure that the company is stays in the black over the course of the next two years.

Toyota North American sales fell 9.4 percent between the periods of April - September 2008 and the entire company has slashed there full year global sales outlook 7.6 percent to 8.24 million vehicles for there fiscal year.

I have predicted for quite some time that the meteoric rise of this manufacturer over the last few years as the overall retail auto industry has slowed cautioned me to look at how Toyota was prepared to handle there success especially as it related to selling and marketing there product lineup. Consumers love there vehicles, however the product mix is all wrong for the current climate, we all new that the Domestic manufacturers mix was wrong, but as the love fest with Toyota has been reaching the crescendo, I saw chinks in the armour.

The market has not been keen to retailing trucks and SUV's over the last few years and with the fluctuating gasoline prices and tightened credit markets people are not buying these vehicles.

And Toyota has to sell a lot of them to remain profitable, in addition what are they going to do when these vehicles come back from there current leases as the financial industry is backing away from leases and rapidly deteriorating residuals plus used car valuations plummeting is a perfect storm for Toyota's current and future profit problems.

I don't want to say I told you so, but....

More to come...

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That Car Guy

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Toyota sales fall 32% for the month of September 2008... It's worst decline since June 1987... Is this the beginning of a steep sales decline?

Toyota Motor Sales USA posted it's largest sales decline since June 1987 one of it's worst monthly sales output's in it's history of selling vehicles in the U.S., for the month Toyota sold 144,260 vehicles, significantly down from the same period last year when it it sold 213,042 vehicles. That is a whopping 32% for a car company that has been long revered as the model for all other manufacturers, now and for the future. I have long cautioned the optimism with Toyota sales success recently and I believe that this is the start of a decline that will have enormous ramifications across the board for the manufacturer. However the sky will not fall quite as hard as it will for GM, Ford and Chrysler dealers as the distribution network for these manufacturers has long been to big to accommodate lackluster sales volume to support it. Sales per unit for these manufacturers continues to erode dramatically and unfortunately a whole lot of these dealerships will soon close there doors.

The Big 6 (GM, Ford, Chrysler, Honda and Nissan) all saw sales decline for the month, but Toyota's sales decline is more troubling as I have written before, the quest to become the largest is perilous at best, plus with it's emphasis to mirror what GM and Ford have done with it's reliance on Truck and SUV's sales is more ammunition to be worried about how Toyota can turn it around.

To be optimistic, Toyota executives are making the rounds saying that Toyota and Lexus customers are concerned just like the rest of the nation about the downturn in consumer confidence, it goes without saying that overall consumers are looking to purchase energy and fuel efficient vehicles that Toyota's line up doesn't measure up outside of the Prius and Corolla and a small output of Scion's. Top to bottom Toyota's line up is heavy on Trucks and SUV's, just like the domestics.

For the record Nissan sales were down 37%, Ford 33.8%, Chrysler 32.8%, Honda 24% and GM 15.6%.

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That Car Guy

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I knew it would happen... 516 miles in a Fuel Cell... Oh What A Feeling! Toyota does it again...

Toyota just announced that they have just developed a new fuel cell hybrid [a car powered by hydrogen and electricity] that will have a maximum cruising range of 830 kilometers or 516 miles. That is a major leap from the manufacturers previous fuel cell model which had a range of 205 miles [330 kilometers] a leap that will surely get attention from skeptics and of course other manufacturers who are eagerly trying to play ball in this area

At this distance, this kind of advancement in technology makes sense for the masses. I am sure that other automobile manufacturers are keeping a close eye on this major development. It far outpaces any advancement that I have seen from any auto manufacturer.

The technology has received the approval of the Japanese government last Tuesday (6/3/08) should be available for leasing according to Toyota Motor Corporation spokesperson Kayo Doi. The FCHV-adv model as it has been tagged should be the front runner in the current fuel cell hybrid race. Quite a few details are still forthcoming, including pricing and other details including overseas exports

Besides a tremendous advantage over gasoline engines and less reliance on crude oil, fuel cell vehicles do not produce any pollution. Fuel cells run on a chemical process when hydrogen stored in a tank and oxygen combine to create water. Water is the emission, WATER, the technology is about as good as it gets in the effort to gain better fuel economy for motor vehicles.

The FCHV-adv is produced with an electric motor and will work as a hybrid by switching between the electric motor and the hydrogen powered fuel cell. In comparison the Toyota Prius switches between an electric motor and a standard gasoline engine.

The fuel economy of the Toyota FCHV-adv was greatly improved with advances in braking technology and some other changes, however some of the most dramatic advances came with major improvement in cold weather starts, the new technology allows the engine to run and start in temperatures as low as 22 degrees Fahrenheit [minus -30 Celsius].

As gasoline prices are rising around the world because of crude oil demand the Major Automobile Manufacturers are seeing consumers interest in alternative fuels increasing. Other Major Automobile Manufacturers are pushing to get there new hybrid and fuel cell technologies into consumers hands. Later this month Honda Motor Company is launching it's new and improved fuel cell vehicle for lease in California. The new Honda will be available in California as it comes off the Honda Motor Co. assembly line later this month and arrives later this year.

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Kevin Kimbrough

That Car Guy

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More good news for GM... Uhh! wait a minute maybe not...

Toyota outsells GM globally in Q1
by John Neff

Both General Motors and Toyota have released their global sales figures for the first quarter of 2008, and for those who like to keep tabs on which automaker is the biggest in the world when it comes to sales, we have new news. The last time we convened for this discussion, both GM and Toyota were in a dead heat for the title of World's Best-Selling Automaker in 2007, though GM was eventually found to have sold more by the slimmest of margins. It seems that this time Toyota has firmly taken the lead in Q1 2008, selling 2.41 million vehicles worldwide to GM's 2.25 million. The Detroit News notes that Toyota also outsold GM in Q1 2007 before GM went on to win the year outright, which just goes to show that things can change over the next nine months. GM is actually enjoying record sales outside of the U.S. in the Asia Pacific region, Europe and Latin American, Africa and the Middle East. Its own domestic market is what continues to drag down GM's numbers, with sales off 10% in the U.S. through March. Sales in the U.S. for Toyota through March were also down, but only by 4.4%. We reiterate like we always do when talk of this global sales crown comes up – it means very little in the grand scheme of things who sells more cars globally. But titles like this can be used to good effect in marketing and for bolstering an automaker's internal morale, so don't expect either one to admit they don't want the mantle of World's Best-Selling Automaker.

[Source: The Detroit News]

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