Toyota readies blitz of new cars

[Arizona Slim]

Automaker's move to introduce 16 models over next 30 months puts pressure on Big 3.

By Ed Garsten / The Detroit News



TRAVERSE CITY -- Toyota Motor Corp. will launch 16 new models in the United States over the next 30 months, including two gas-electric hybrids, as part of an aggressive push to boost its sales and output in North America.

The automaker also expects to be selling 600,000 hybrid vehicles a year in the U.S. market early in the next decade, Jim Press, president of Toyota Motor Sales USA, said at an annual industry conference here.

That hybrid sales target amounts to nearly one-third of Toyota's U.S. sales of 2.1 million vehicles last year.

Toyota's plan to expand its U.S. lineup will heighten pressure on Detroit's automakers, who already trail Japan's leading manufacturers in the pace of rolling out new models. They also lag in production of hybrids, a fast-growing market niche.

But Toyota's relentless expansion plans are cutting into its profits. After increasing research and investment spending this year, the Japanese automaker reported a second consecutive drop in quarterly income.

Toyota is adding new models for the U.S. market across its Toyota, youth-oriented Scion and premium Lexus brands, Press said. The new vehicles include the Toyota FJ Cruiser, a small sport utility vehicle, two replacements for the Echo compact and hybrid versions of the Camry sedan and Lexus GS luxury car.

It now sells 30 models across the Toyota, Scion and Lexus brands in the United States.

Toyota already is the industry hybrid sales leader, with three gas-electric vehicles on the market: the Toyota Prius, and the Highlander and Lexus RX400h sport utility vehicles.

It plans to broaden its hybrid offerings and has 10 additional models under development.

Toyota's new president, Katsuaki Watanabe, has set a goal of selling 1 million hybrids per year globally early in the next decade.

"At our current rate, that's about 600,000 hybrids in the United States," Press said. "To achieve that, we will have to look at offering hybrid power systems in virtually all of our vehicles, including trucks."

Although it was once considered a niche technology, Press said there is growing evidence the public is embracing hybrid vehicles. Last month, for example, sales of the Prius trailed the popular Chrysler 300 passenger car by just 905 units.

"The demand is there," Press said in an interview on the sidelines of the Management Briefing Seminars in this resort town.

"Gas prices are going to continue to push demand. As the manufacturers increase the availability of products, the share is going to increase."

Toyota has months-long order backlogs for its hybrid vehicles, but some analysts say its forecasts may be optimistic. Hybrid vehicles now account for just 1 percent of U.S. light vehicle sales.

"How do you convince the meat of this market to pay for something that'll cost thousands of dollars more?" said Lindsay Brooke, an auto analyst at forecasting firm CSM Worldwide in Farmington Hills.

Although rising gas prices have boosted demand for hybrids, "they would have to go over $3.50 a gallon to really start to force people to make profound changes in their car purchases," Brooke said.

Toyota, the world's second-largest automaker after General Motors Corp., has increased its research and investment budgets for the Japanese fiscal year starting April 1. For the first quarter that ended June 30, Toyota said net income dropped 7 percent to $2.4 billion.

Continued...
http://www.detnews.com/2005/autosins...A01-269787.htm

[espo19047]

Who cares?I'll read about this at Toyota inside news...

[geronimo66]

Then stay out of the "COMPETITION" forums... DUH.

[Whirling_Dervish]

Well if 3.50 is the tipping point we'll see it in 2-3 years at this rate.

On topic, the new FJ looks pretty cool imo. I wonder what its specs will be. Price is mid to low 20s iirc.

[Arizona Slim]

Originally Posted by Whirling_Dervish

Well if 3.50 is the tipping point we'll see it in 2-3 years at this rate.

On topic, the new FJ looks pretty cool imo. I wonder what its specs will be. Price is mid to low 20s iirc.

Yeah, the FJ is a pretty neat little truck. Kind of embarrassing for the H3 that the FJ has a 4.0L V6 rated at 245hp and 282 lb-ft. I know the H3 is bigger so they may not be direct competitors, but the added power and lower cost of the FJ make it pretty intriguing.

[NedKelly]

Originally Posted by espo19047

Who cares?I'll read about this at Toyota inside news...

What's the URL for Toyota Inside News?

[Tony's BlkGTP]

I could care less. I can't stand Toyota, no matter what!

[versa]

You should care because Toyota is the General's biggest competitor.

[gmsickofan]

Originally Posted by versa

You should care because Toyota is the General's biggest competitor.

Some guys are still stuck in the Calivin peeing on a Ford emblem and vice versa time bubble. meanwhile Toyota is ready to take them both down, brick by brick. Wake up and smell the Green Tea guys. Know your enemy.

[Tony's BlkGTP]

Originally Posted by versa

You should care because Toyota is the General's biggest competitor.

I know it's GM's biggest competitor, but from a buyers standpoint, I will never buy a Toyota product. I don't care how good they may be. That's my personal choice.

[Cortazzo]

Ugh, seeing the toyota logo makes my skin crawl. I'm more of a US automaker fan than just a GM fan, i don't understand why people can be so GM vs Ford in this day and age. We're fighting the battle together against the foreign companies.

[Tony's BlkGTP]

Originally Posted by Cortazzo

Ugh, seeing the toyota logo makes my skin crawl. I'm more of a US automaker fan than just a GM fan, i don't understand why people can be so GM vs Ford in this day and age. We're fighting the battle together against the foreign companies.

Why is Ford being brought into this? Granted, I don't really care about Ford products either, I would definitely support Ford before I will Toyota. Again, that's my personal choice and feelings.

[Tony's BlkGTP]

Nevermind, I see where Ford came into this thread.

[HEVguy]

Originally Posted by Arizona Slim

...

"How do you convince the meat of this market to pay for something that'll cost thousands of dollars more?" said Lindsay Brooke, an auto analyst at forecasting firm CSM Worldwide in Farmington Hills.

...

Good article,...

regarding the above quote, IMO, you convince them with less expensive 'mild hybrids' in some lines, get to market first with some 'full/strong hybrids' in other lines (GMT900, and Caddy H-series), add 'full hybrids' in where competitors are selling them (to keep competitive options out there), and continue to incorporate new, advanced, technologies (move from mild to stronger hybrid options), in all lines as they become more compelling (cost comes down)... even if you are the one driving the cost down (as in general market prices, as GM is doing now). GM is doing some of this, and I like that part of their strategy, now they just need to make it more comprehensive and keep the pressure on the market to match Toy's intensity.

Otherwise, I agree with those saying that we have to watch Toy as they are the biggest threat in the market right now.

[FoMoCo Fan]

From an AP story that is on the front page of Yahoo today-

http://news.yahoo.com/s/usatoday/200...ybridstolineup

Toyota to add 10 hybrids to lineup

By Sharon Silke Carty, USA TODAY Thu Aug 4, 6:54 AM ET

In its attempt to be the leading environmentally friendly automaker, Toyota (TM) says it will add 10 hybrid cars to its lineup and plans to sell 600,000 hybrids annually, or 25% of its total sales, in the USA in the next decade.


Hybrids are a key part of Toyota's effort to reduce the automotive industry's dependence on foreign oil, said Jim Press, the company's North American president and COO.

The company is also developing vehicles that use clean diesel, natural gas and hydrogen power.

Consumers are demanding more environmentally friendly cars, and Press called on the auto industry to come together and find ways to address consumer concerns.
.........

Does anyone honestly think GM stands a chance selling "mild hybrids" that simply shut off at stoplights? They're going to be the laughingstock of the automotive world. Consumers are smarter than that.