Toyota struggles to meet small car demand

DETROIT (Reuters) - The surge in popularity for small cars and fuel-efficient hybrids has left Toyota facing an unusual problem: deepening shortages of popular models such as the Prius hybrid.

A limited inventory of small cars hurt Toyota, which reported a 11.5 percent drop in U.S. sales in June.

In stark contrast, Japanese rival Honda Motor Co reported a 13.8 percent sales rise on record demand for its Fit subcompact car and Civic sedan.

Toyota executives said a dwindling inventory of vehicles, such as the Prius, Yaris and Corolla, had forced the automaker to scramble to try to keep up with demand in June, a month when industry-wide U.S. auto sales dropped almost 9 percent.

Sales of Toyota's Prius, the top-selling hybrid in the U.S. market, fell 26 percent as dealers ran short of inventory and customers faced a six-month waiting list. Toyota said it would only partly be able to satisfy the backlog of demand from its dedicated Prius factory in Japan this year.

Hybrids command about a $5,000 price premium compared with equivalent vehicles without the expensive battery.

"It is very doubtful that there is going to be a lot of recovery this year to be able to satisfy consumer demand and that is very unfortunate," said Jim Lentz, Toyota's head of North American sales, referring to the Prius.

Toyota says the whole system reduce noise levels inside the car by up to 8dB

Noise-cancelling isn’t just useful for getting some peace and quiet on a plane, it’s also great for shutting out the hubbub of the motorway on a long drive, at least, it is if you’re driving a Toyota.

The car firm has shoved its new Active Noise Control technology inside the Toyota Crown Hybrid, a half electric, half petrol car that uses speakers to cancel out noise from the engine, road, and other cars.

Toyota says the whole system reduce noise levels inside the car by up to 8dB, using three microphones inside the cabin that listen for noise, before passing it to a processor that flips it, and plays reversed signals back out of three speakers in the front doors and parcel shelf.

The effect is a dampening of low frequency rumble, and a much quieter ride

Toyota Camry hybrid hallelujah for car industry

The Federal Government revealed it would help Toyota by giving it $35 million from its $500 million Green Car Innovation Fund, money Toyota said could help subsidise the higher cost of the hybrid.

Premier John Brumby joined Toyota executives and staff at Altona yesterday to celebrate the announcement, but refused to reveal how much Victorian taxpayers would be kicking in to the project.

It's also unclear how many jobs the new production line will create.

Prime Minister Kevin Rudd, who was at Toyota's headquarters in Nagoya yesterday for the announcement, said the new Camry hybrid would use 30 per cent less fuel than a conventional Camry, saving an average family who drove 20,000km a year $1000 from its annual fuel bill.

Mr Rudd called the hybrid plan a "significant coup".

Toyota to export U.S.-made cars to emerging economies

TOKYO (MarketWatch) -- Toyota Motor Corp. (7203.TO) plans to export large cars produced in the U.S. to the Middle East and other emerging economies around the world, the Asahi Shimbun reported Tuesday.

Toyota, which mostly sells its U.S.-made cars only in the U.S., now plans to export them as car sales are declining in the world's biggest economy due to the economic slowdown and the rise in crude prices. The plan is also motivated by the fall in production costs in the U.S. due to the dollar's weakening against the yen.

According to the report, the automaker will start exporting Sequoia sport utility vehicles to the Middle East before the end of this year. It also plans to export Sienna minivans to China and other countries in the early 2010s.

Toyota set to raise prices of some cars

Toyota Motor Corp. is raising prices on some U.S. vehicles amid worries about its profit growth in the American market.

The price increases of about 1 per cent will start in the middle of May, and include a $200 (U.S.) hike on the 2008 Yaris sedan, boosting the cost of the base model to $12,425. Extra features mean higher prices. The base 2009 Camry (pictured above) will go up $200, to $18,920, while the base hybrid Camry, introduced as a 2007 model in late 2006, will cost $300 more, at $25,650.

Like other Japanese automakers, Toyota is enjoying sales growth while American automakers are struggling. Soaring gas prices have increased demand for smaller, fuel-efficient cars that Japanese automakers are reputed for.

But Toyota faces a challenge in maintaining profits partly because of the U.S. dollar's decline, which erodes the value of Japanese exporters' overseas earnings. Worries are also rising about how a U.S. economic slowdown may hurt sales.

Toyota and GM recall 662,000 cars due to power window faults

As many as 539,500 Corolla and Matrix vehicles from the 2003 and 2004 models will reportedly be recalled by Toyota. While General Motors (GM) will be recalling 122,598 Pontiac Vibe hatchbacks, which share the same platform with Toyota's Matrix and are a result of a joint venture between the two automakers.

According to Toyota, it is likely that in vehicles equipped with power windows, the driver and front passenger glass bolts may loosen and cause the door glass to get dislodged from the window regulator. The company said that vehicles equipped with manual windows will not be affected by the recall.

Mails will be sent to the vehicle owners by the end of April 2008 informing them about the recall. They will have to contact the local Toyota dealers to get their vehicles inspected and repaired. Further, the company has announced that the driver and front passenger door glass bolts will be replaced free of cost.

Toyota Opens Mall to Boost Japan Sales

YOKOHAMA, Japan (AP) — The new sprawling Japanese shopping mall has the usual restaurants and stores, even a fitness gym. But it's the shiny Camry and other Toyota models that take center stage — not only at the dealers but on display in the walkways.

The indoor shopping mall, with 220 stores and restaurants, opening to the public this week, is being developed, built and operated by a relative newcomer to the business — Toyota Motor Corp.

It's the latest attempt by the Japanese automaker to tackle a serious problem in its home Japan market: Young people are rapidly losing interest in cars. Overseas, however, Toyota is doing so well that it has nearly overtaken General Motors Corp. in global vehicle sales.

UMW Toyota aims to sell at least 90,000 cars this year

UMW Toyota Motor Sdn Bhd aimed to sell more than 90,000 units of Toyota cars this year, up from around 82,000 last year, its managing director, Kuah Kock Heng said.

Kuah said UMW Toyota was confident of securing the sales, in line with the Malaysian Automotive Association’s (MAA) 4.7% growth projection of total motor vehicle sales this year.

Customers had booked 798 units since UMW Toyota began taking orders for the car on March 7, he said.

“The Toyota Corolla Altis was first introduced to the Malaysian market in 2001 and from its introduction until 2007 we have sold a total of 30,787 units,” he added.

Imported in completely built-up form from Thailand, the Corolla Altis is available in five variants, 1.8G sporty, 1.8G, 1.8E sporty, 1.8E and 1.6E. All versions feature Toyota’s variable valve timing with intelligence engine and four-speed automatic transmission with super electronic control transmissions.

Geneva 2008: Toyota iQ

The finished version of Toyota’s new iQ city car has just been launched here at the Geneva motor show. And it's barely changed from the clever, cute concept that we were introduced to in Frankfurt last year.

The iQ is the ‘world’s smallest four-seater car’, boasts its maker, measuring just 2985mm in length. To achieve such tight packaging, Toyota’s engineers have come up with a clever cabin system that allows three adults and one child to sit in comfort, despite the iQ’s diminutive, almost Smart car dimensions.

They’ve also miniaturised components like the air conditioning; developed a flat under floor fuel tank; come up with a new differential that allows the iQ to have short front overhangs, and slimmed down the dashboard and seats. You can read in more detail about the iQ’s packaging on Hilton Holloway’s Geneva blog.

Introducing the assembled global media to the iQ, Andrea Formica, Vice-President of Toyota Europe said it was the most “major milestone” in Toyota’s vehicle development since the Prius. He added that the iQ would have a “large effect on the market, but a small effect on the environment.”

Toyota expects to produce 11.3 mln cars by 2012

Toyota Motor Corp. expects to produce 11.3 million of its own brand vehicles by 2012, up about 30 percent from 2007 amid rapid growth in Russia, China and other emerging markets, a report said Wednesday.

Toyota forecasts that its annual output, excluding affiliates Daihatsu Motor Co. and Hino Motors Ltd., will continue to grow by 600,000 vehicles a year, the Nikkei business daily reported quoting an unnamed executive.

If the goal is met the automaker's global output will have doubled over 10 years from 5.63 million vehicles in 2002.

In 2007, Toyota produced 8.53 million of its own brand vehicles worldwide.

Carr tries to sell Toyota on hybrids

Senator Carr held a day-long series of meetings with Toyota's executives in Tokyo, while a review of automotive manufacturing in Australia works to prepare an interim report on the future of the industry by the end of this month.

The Rudd Government has committed to spend $500 million on a green car fund, which could be used to convince Toyota to produce hybrid cars in Australia.

Toyota produces its petrol-engined Camry and Aurion vehicles in Victoria, at Altona.

A spokeswoman for Senator Carr said the meetings were "very productive discussions".

"He has reinforced the federal Government's enthusiasm for the motor vehicle industry," shesaid.