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Toyota is back in the black, streamlining effort continues

Toyota will further streamline and become more efficient by moving production to emerging markets and away from mature markets such as North America and Japan. Exchange rates are one of the problems faced by Toyota as it exports a bigger portion of the cars it produces in Japan compared to rivals Honda and Nissan. After its first loss in 70 years, Toyota rebounded to make a profit in the fiscal year ending March 2010, but it took a ¥320 billion kick from the yen’s rise against the dollar and euro.

Targets for production in North America will be higher “self-reliance from development to manufacturing” said Atsushi Niimi, Toyota’s global manufacturing boss. Toyota’s North American capacity is now lower by some 400,000 units from the closure of New United Motor Manufacturing Inc, the company’s joint assembly operation with GM in California. Production in Japan will be streamlined by combining lines and putting production of similar vehicles in the same plants. Also planned are lines that are able to produce both body-on-frame and unibody vehicles.

Toyota seems to have got back on its feet financially. With aggressive cost cutting and streamlining, the Japanese giant now needs to make an estimated 7 million units to turn a profit, from the previous 8 million. For instance, in the fiscal year ending March 2009, Toyota built 7.56 million units and made a lost, whereas this year they made 7.28 million and made a profit. Toyota’s aim to be a leaner outfit was evident in Thailand, with the suspension and migration of Hilux/Fortuner production.

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Thailand vehicle sales on the up despite political crisis

Political strife within the Thai government hasn’t slowed down vehicle sales in the Kingdom. In April, General Motors reported a 62% jump in sales to 1,879 vehicles compared to 1,162 units in the same month last year. With this rise in demand, GM is toying with the idea of increasing output at its Rayong factory to 76,000 vehicles per annum and to invest US$467 million to upgrade facilities and build a new diesel engine plant.

The gains are not just for GM, as even Toyota, who recently suspended production at one of its plants, increased deliveries by 43% to 92,000 units. Isuzu, another big pick-up truck player, has reported a 44% jump to 46,071 units sold. These figures are year-to-date, as of end April. According to the Automotive Industry Club, general vehicle output has increased by 129% from a year earlier to 150,119 vehicles.

Ray Young, GM’s vice president of international operations, is concerned about the current political crisis but reiterated his company’s confidence in our northern neighbour. “We are monitoring the situation in Thailand, but we remain optimistic. Our business and expansion plans will continue in Thailand without delays. The nation will remain the leading automotive market in the ASEAN region,” he said.

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Toyota to suspend production in Thai factory

Toyota will suspend production at one of its four vehicle plants in Thailand as part of restructuring efforts to boost efficiency and profitability. Vehicle production will stop by the end of this month at Thai Auto Works, located in Samrong on the outskirts of Bangkok. The plant opened in 1988 and is responsible for churning out the Vigo (Hilux to us) and Fortuner to the tune of around 60,000 units per year.

The 960 workers at TAW and production of the two models will be transferred to two other Thai plants that build them. This development has nothing to do with the current political situation in Thailand, as the decision was made in November last year.

Toyota made 435,000 vehicles in Thailand last year, which is a quarter lower than 2008 figures. It’s not the only manufacturer faced with the problem of excess capacity due to lower demand from the global economic crisis.

However, Toyota may have to readjust a bit more than others after its aggressive expansion plan to build more plants and cars when times were good.

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Toyota Corolla gets updated – Altis facelift coming soon?

Toyota has quietly facelifted the Toyota Corolla (sold here as the Corolla Altis) around the end of last month. This comes shortly after the hatchback version of car known as the Auris was launched. Obvious changes include a new grille up front and a new design for the tail lamps at the rear.

The 2.0 litre engine that is already available in Thailand in the pre-facelift model will also be making its way into models all around the world. At least one country – Australia is confirmed to get the 2.0 litre other than Thailand. What Thailand got is the Dual VVT-i 3ZR-FE but some countries could get the Valvematic 3ZR-FAE 2.0 litre that can produce 156 horses.

The photos of the European spec here is more upmarket compared to the ones we get here in ASEAN – their instrument cluster has a higher end multi-info display integrated into the center of each meter face for example. There is also start/stop functions.

Look after the jump for a full gallery of the new facelifted Corolla.
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Toyota Camry Hybrid production & sales begin in China

The production of the Toyota Camry Hybrid (the version with the Aurion-style look) has started in China via Toyota’s partner Guangzhou Toyota Motor. The Camry Hybrid will be sold between 319,800 yuan to 364,800 yuan, which roughly translates to between RM150k to RM172k at current exchange rates.

The Camry Hybrid is now produced at a few locations around the world – Kentucky, Thailand, Australia, Japan and now China. Not all produce the same version though – there are some that produce the US and Japanese market bodytype while the rest produce the Aurion-based body. The fundamentals under the metal are the same though – a 2.4 litre Atkinson cycle 2AZ-FXE engine producing 147 horsepower at 6,000rpm and 187Nm of torque at 4,400rpm, paired to a 30kW (40 horses) electric motor with 270Nm of torque.

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Toyota Vios Facelift for M’sia launched: RM72K-RM92K!

UMW Toyota has launched the facelifted Toyota Vios this afternoon. Like most MC (minor change in Toyota speak) cars, the makeover is limited to the front and rear look, wheels and cabin trim while the internals are unchanged. Powered by the tried and tested 1NZ-FE 1.5-litre with 108 bhp and 141Nm mated to a four-speed automatic, the refreshed Vios sees a slight increase in price over the old car, ranging from RM1,100 to over RM2,000 depending on variant. Here are the new prices, which are OTR with insurance:

  • Vios TRD Sportivo RM92,000
  • Vios G RM87,300
  • Vios E RM81,500
  • Vios J (A) RM76,090
  • Vios J (M) RM71,990

Up front, the main change is the radiator grille, which brings some “Camry style” to the Vios. The grille now has two chrome horizontal bars as opposed to the previous single split, while the fog lamp housings are now in silver. At the launch event, UMWT showed off the range topping TRD Sportivo and the G-spec, and both came with new design 15-inch alloys and door visors. At the back, the MC Vios gets new taillamps that has more detailing compared to the plain old units. The chrome strip above the number plate is also longer and more prominent now. I have a feeling Toyota wanted to give the Vios a “classier” feel with this facelift, and the grille, chrome and multi-spoke alloys are supposed to create that effect.

Inside, the theme continues with piano black trim on the trademark “waterfall” centre console and chrome on the gear shifter base, hand brake knob and door handles (chrome package only for G). There’s also a new steering wheel with its base flattened off slightly and redesigned audio controls on the left spoke. In the G, the wheel is covered in dimpled leather while the TRD Sportivo gets red stitching to match the rest of its red/black cabin. The G gets combination leather seats and a light grey/beige theme, which further enhances the Vios’ airy, spacious feel. Variants lower down the range get dark grey fabric. We don’t get the Thai market’s HUD, start/stop button and AUX jack.

Equipment wise, all variants come with ABS with EBD and Brake Assist. J-spec cars get a driver’s airbag while the rest comes with two. Most of the goodies such as rear disc brakes, 15-inch rims and integrated stereo are only for the TRD Sportivo and G-spec. As before, the TRD Sportivo can be ordered with optional sports suspension. Scanning through the spec sheet, I saw that both manual and auto J-spec cars now come with power adjustable and retractable wing mirrors, which wasn’t the case previously, if memory serves right.

UMWT started taking orders for this car in February, and has over 2,500 bookings in hand as of now. The company plans to sell 32,400 units of the Vios this year and is confident of retaining the model’s No.1 position in the B-segment.

Pictures from the launch after the jump.
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Local Toyota sales unaffected by recalls, UMWT sales rise


Some might have expected Toyota’s image and sales to suffer across the globe after the world’s top automaker was hit by a wave of recalls, with those in the US particularly sticky and still ongoing. We could see repercussions in the longer term of course, but March and year-to-date sales in America saw upward figures thanks to aggressive incentives to counter the bad press. Back home, although Toyota buyers in Malaysia don’t get sweeteners like zero per cent financing, sales are up nevertheless.

UMW Toyota Motor (UMWT) has revealed figures for the first quarter of 2010, and the 21,017 units sold represent a 22% jump from the same period last year. This has led to internal confidence that this year’s target will be met. “With this positive momentum, I am confident in achieving our target of 88,000 units or 16% market share,” UMWT president Kuah Kock Heng said.

Last year, UMWT sold more than 82,000 units with a market share of 15.4%, and sat at the top of the non-national vehicles segment, a position it has not conceded for 20 years.

Kuah was in Sarawak, and he chose to focus on Toyota’s growth there. Malaysia’s largest state contributed 10% of UMWT’s 2009 sales, and it’s no surprise that the Hilux pick-up truck is the most popular model in the range; four out of 10 Toyotas sold in Sarawak is a Hilux. “For the first quarter of this year, we have delivered 968 units on Sarawak roads, this is a 35% increase compared to 715 units in the same period last year,” Kuah added. Up north in Sabah, the Hilux has a 48.8% monopoly of the pick-up segment.

You’ve got to hand it to Toyota for the Hilux’s success. Here’s a truck that’s outspecced and outpowered by its rivals (the latter by a big margin) and still outsells them easily without a fight. I really don’t envy the marketing people at Isuzu, Ford and Mitsubishi – they must be at wit’s end thinking of a strategy to beat the Big T.

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Mazda licenses Toyota’s Hybrid Synergy Drive

Mazda SKY Engines

Toyota’s Hybrid Synergy Drive will soon find its way into Mazda cars mated to Mazda’s SKY engine instead of Toyota’s Atkinson cycle 1.8 litre VVT-i. The Mazda SKY engine was exhibited at the Tokyo Motorshow last year. It had two variants – the SKY-G and the SKY-D, which are petrol and diesel versions respectively.

The concept SKY-G is a 2.0 litre direct injection petrol engine with variable valve timing and it is likely the engine that Mazda will be mating to the Hybrid Synergy Drive system, as the first Mazda with the new hybrid system is scheduled to be launched in Japan by 2013, and the Japanese aren’t really interested in diesel engines. I think displacement of the hybrid SKY-G engine will not necessarily be 2.0 litres as despite the concept engines being 2.0 litres, there was also a 1.3 litre version of the SKY-G in the Mazda Kiyora Concept.

As for non-hybrid versions of the SKY-D and SKY-G, those are schedule to be put into Mazda cars from 2011 onwards, 2 years ahead of the Toyota-ized hybrid version. They will be launched with a new 6-speed automatic transmission called SKY-Drive.
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Toyota fights fire with facts in runaway Prius case

Toyotas running away from their owners are occuring at a frequent rate these days, but are all cases genuine or is there something sinister behind the allegations? Could it be like the scandals facing celebrities, where the first few bonafide revelations open the gates for many “victims” trying to “cash in” on the situation?

One James Sikes called 911 earlier this month, saying that his 2008 Prius was traveling at a high rate of speed, the accelerator pedal was stuck, and that the vehicle was out of control and could not be stopped. The operator repeatedly instructed the driver to shift the car into N and turn off the power button. A California Highway Patrol officer intercepted the vehicle and instructed the driver to press firmly on the brakes, apply the emergency brake and turn off the car, at which time the Prius came to a safe stop.

Toyota engineers employed data analysis, static and dynamic testing and inspected all related components of the “problem car”. A final report is not due yet, but there are “strong indications that the driver’s account of the event is inconsistent with the findings of the preliminary analysis”. Toyota believes that Sikes’ assertion that the vehicle could not be stopped with the brakes is fundamentally inconsistent with basic vehicle design and investigation findings. A congressional staff member and NHTSA officers were present during Toyota’s examination, and the latter are conducting their own investigations.

Among the points raised by the embattled carmaker were that Sikes’ car’s accelerator pedal was tested and found to be working normally (the Prius is not subject to the sticky accelerator pedal recall) and the floor mat wasn’t even touching the gas pedal. During testing, Toyota abused the brakes on purpose by continuous light application in order to overheat them. The vehicle could be safely stopped by means of the brake pedal, even when overheated, and there were also no diagnostic trouble codes found in the power management computer.

Read Toyota’s full press release on its findings after the jump.
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US customers “come back” to Toyota in March

Toyota has built up a well earned reputation for quality and reliability over the years, and while the current recalls and safety issues it’s facing might have dented the rep, there remains many happy and loyal customers in the US who aren’t swayed by the vicious, political mileage seeking elected reps, media outlets that are always sniffing around for a good story and suspicious new cases of unstoppable cars cropping up at a fast rate.

Toyota sales for the first two months of 2010 has been understandably down (by 10% in February) but 0% financing, subsidised leases and free maintenance incentives introduced for March has proven to be effective. For the first eight days of this month, North American sales surged about 50%, the Associated Press reported. Analysts forecast a 30% bounce for the full month as initial excitement tapers off.

“Incentives work best in the early going, but they start to peter out as the month goes along,” Edmunds senior analyst Jessica Caldwell said. “That’s why it’s important for Toyota to find something else in the months ahead.”

George Magliano, director of North American auto research for IHS Global Insight in New York, said Toyota quickly attracted loyalists who had deferred buying until an incentive was offered. But the offers won’t help for long, he said. “This will boost sales a little bit, but it’s not going to continue beyond this month. They’re still wrestling with the recalls and new reports of problems.”

But when heads are down, any form of encouragement is valuable, and Toyota will be heartened by this development.

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