Is Toyota Going to Report Any Profit this Fiscal Year?

According to reports, 2009 is the worst fiscal year for Toyota, considering its otherwise, successful history. After years of leading the automotive industry, the company experienced a significant decline in sales. However, a recent article from Automotive News suggests that this fiscal year, which ends on March 31, isn’t as bad for Toyota as some people think. The Japanese automaker might just report profits this year.

AN cites Japanese newspaper Nikkei in claiming that Toyota will announce a total profit of as much as $532 million. This is despite the sagging sales which caused the company to recall a lot of its cars, and the inevitable weakness of the US auto industry this year. Before AN’s report, Toyota had already anticipated losing at least 20 billion yen (with $213 million in US funds) by the end of this year.

However, Nikkei claims that the cost cutting implemented by Toyota coupled with the weak value of the Japanese Yen might just help the company work beat the estimated loss. The Japanese daily further forecasted that the global revenues from Toyota’s car and truck sales will only be down by five percent. The company should still be able to sell around 7.2 million vehicles.

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TOYOTA Press Release on the GAS PEDAL RECALL

Rigorously Tested Reinforced Pedals Will Eliminate the Excess Friction that Caused Sticking

Toyota Will Make Concerted Effort to Repair Recalled Vehicles as Quickly and Conveniently as Possible

TORRANCE, Calif., February 1, 2010 – Toyota Motor Sales (TMS) U.S.A., Inc., today announced it will begin fixing accelerator pedals in recalled Toyota Division vehicles this week. Toyota’s engineers have developed and rigorously tested a solution that involves reinforcing the pedal assembly in a manner that eliminates the excess friction that has caused the pedals to stick in rare instances. In addition, Toyota has developed an effective solution for vehicles in production.

Parts to reinforce the pedals are already being shipped for use by dealers, and dealer training is under way. Many Toyota dealers will work extended hours to complete the recall campaign as quickly and conveniently as possible, some even staying open 24 hours a day. The company has also taken the unprecedented action of stopping production of affected vehicles for the week of February 1.

“Nothing is more important to us than the safety and reliability of the vehicles our customers drive,” said Jim Lentz, president and Chief Operating Officer, TMS. “We deeply regret the concern that our recalls have caused for our customers and we are doing everything we can – as fast as we can – to make things right. Stopping production is never an easy decision, but we are 100% confident it was the right decision. We know what’s causing the sticking accelerator pedals, and we know what we have to do to fix it. We also know it is most important to fix this problem in the cars on the road.”

Lentz added: “We are focused on making this recall as simple and trouble-free as possible, and will work day and night with our dealers to fix recalled vehicles quickly. We want to demonstrate that our commitment to safety is as high as ever and that our commitment to our customers is unwavering.”

On January 21, Toyota announced its intention to recall approximately 2.3 million select Toyota Division vehicles equipped with a specific pedal assembly and suspended sales of the eight models involved in the recall on January 26.

Toyota vehicles affected by the recall include:
• Certain 2009-2010 RAV4
• Certain 2009-2010 Corolla
• 2009-2010 Matrix
• 2005-2010 Avalon
• Certain 2007-2010 Camry
• Certain 2010 Highlander
• 2007-2010 Tundra
• 2008-2010 Sequoia

No Lexus Division or Scion vehicles are affected by these actions. Also not affected are Toyota Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser, Highlander hybrids and certain Camry models, including Camry hybrids, all of which remain for sale.

Further, Camry, RAV4, Corolla and Highlander vehicles with Vehicle Identification Numbers (VIN) that begin with “J” are not affected by the accelerator pedal recall.

In the event that a driver experiences an accelerator pedal that sticks in a partial open throttle position or returns slowly to idle position, the vehicle can be controlled with firm and steady application of the brakes. The brakes should not be pumped repeatedly because it could deplete vacuum assist, requiring stronger brake pedal pressure. The vehicle should be driven to the nearest safe location, the engine shut off and a Toyota dealer contacted for assistance.

Detailed information and answers to questions about issues related to this recall are available to customers at www.toyota.com/recall and at the Toyota Customer Experience Center at 1-800-331-4331.

How Toyota Will Fix Recalled Vehicles

Toyota has pinpointed the issue that could, on rare occasions, cause accelerator pedals in recalled vehicles to stick in a partially open position. The issue involves a friction device in the pedal designed to provide the proper “feel” by adding resistance and making the pedal steady and stable. The device includes a shoe that rubs against an adjoining surface during normal pedal operation. Due to the materials used, wear and environmental conditions, these surfaces may, over time, begin to stick and release instead of operating smoothly. In some cases, friction could increase to a point that the pedal is slow to return to the idle position or, in rare cases, the pedal sticks, leaving the throttle partially open.

Toyota’s solution for current owners is both effective and simple. A precision-cut steel reinforcement bar will be installed into the assembly that will reduce the surface tension between the friction shoe and the adjoining surface. With this reinforcement in place, the excess friction that can cause the pedal to stick is eliminated. The company has confirmed the effectiveness of the newly reinforced pedals through rigorous testing on pedal assemblies that had previously shown a tendency to stick.

Separately from the recall for sticking accelerator pedals, Toyota is in the process of recalling vehicles to address rare instances in which floor mats have trapped the accelerator pedal in certain Toyota and Lexus models (announced November 25, 2009), and is already notifying customers about how it will fix this issue. In the case of vehicles covered by both recalls, it is Toyota’s intention to remedy both at the same time.

MEDIA CONTACTS:

Toyota Motor Sales, Corporate Communications
(310) 468-5297
(310) 468-7359

Media Web site: http://www.toyotanewsroom.com
Public Web site: http://www.toyota.com

Toyota will unveil FT-86 Concept at the 2009 Tokyo Auto Show

The news about the product of the Toyota-Subaru collaboration has been creating some buzz for quite a while now. Finally, the theories have been confirmed and the questions answered as Toyota unveils the FT86 concept which takes shape as the soul under a modified chassis of a Subaru Impreza.

The FT86 is still on the drawing boards but it will take the spotlight in a concept form at the Tokyo Auto show later this month. The lines of the FT86 will be very similar to the Lexus IS-F and will take shape as a 2+2 sports car.

Toyota has decided to use a four cylinder 2.0L engine from Subaru. The configuration of the powerplant will be for a rear drive vehicle instead of the usual Subaru all wheel drive configuration. The engine will be coupled with a six-speed transmission on manual.

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Toyota needs $1 billion to abide by stricter California regulations

Automakers are in a scramble to fix their budget and comply with stricter emission and fuel mileage regulations that will be in effect across the nation. The state of California is also setting tougher requirements. Japanese car maker Toyota is also studying a tough goal of 3% of its total 2012 sales that should come from zero emission units.

The company estimates that they will need about $1 billion to follow all the new industry rules from the federal government and California.

California requires manufacturers that sell more than 60000 vehicles in a year to have 3% of the units as zero emissions. This puts automakers like Toyota, Ford, and Honda in a no choice position because of the state legislation.

Chrysler and General Motors will also have to follow the new rules but do not require as much budget considering that the other car makers share the bigger chunk of the market.

The needed $1 billion of funding can be broken down into production of components needed for building the electric vehicles, equipment, and service centers. They also have to consider things like training of the manpower, marketing, and coverage for the vehicle’s guarantees and warranties.

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Toyota A-BAT Production on the Shelf for Now

No matter how the Toyota A-BAT concept caught the spotlight during the 2008 Detroit Motor Show, the hybrid pickup will be remaining a concept vehicle for now according to Toyota insiders.

It was a good bet for a production vehicle but Toyota executives point out that they have a lot of priorities at the moment and building the A-BAT is not on top of their list.

The A-BAT was close to reality when the Japanese car manufacturer asked for bids from potential suppliers for the hybrid version and four cylinder variant of the truck. The light never went green though for the bulky futuristic vehicle.

The decision of the company may have been influenced by the dismal performance of their two pickups which have suffered from the drop in housing and construction. Toyota only sold 18349 units of the Tundra which is a 55% drop in 1Q sales. The Tacoma was also a laggard performer in the market with first quarter sales dropping as much as 37% or translating to only 24937 units sold.

Toyota executives assure the public that they are committed to meet the demand for the Tundra although the sales are greatly dependent on the construction industry.

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Toyota Takes over Auto Industry, Dethrones General Motors

The Japanese car maker Toyota Motor Corporation reigns as king of sales in the global auto industry sector stripping General Motors of Detroit, USA its crown that it held for 77 years.

Sales records show that Toyota sold 8.972 million cars and trucks in 2008 globally ahead by as much as 616000 units of GM’s final count of 8.356 million vehicles.

The transfer of glory lacks luster though as every car manufacturer is hoping for recovery and better picture in their sector.

The global financial crisis played a major role in the race. The global sales of the auto industry drop by 3.5 million vehicles. Toyota suffered a 4% drop in sales while GM (gmautoblog.com) had an 11% decline.

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Toyota Turns to Cash Rebates to Perform

Toyota definitely means business. With the low cut they’ve made business-wise last December, Toyota is not sitting down with apathy. To attract their buyers, Toyota is turning to cash rebates as one of their major marketing plan to perform better this year.

They’re giving away $2,000 to $4,000 dealer cash or customer rebates for units like Tundra pickup and 2008 Tundra. Hybrid cars will have dealer cash of $750 on its hood. For Corolla, the manufacturer is putting in $1,500 as cash rebate for customers for both its base and the LE trim levels. The rest of its trim levels will have $1,250. The trim levels of Camry will also have a customer cash of $1,000. Its dealer cash will be at $500.

The president of Toyota Motor Sales USA, Jim Lentz, expressed that they’re doing this for the benefit of their dealers as competition marks up its way to the marketplace.

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