Toyota braces for sales hit from recall, costs mount

Toyota Motor's unprecedented recall of millions of vehicles with faulty accelerators is taking a toll on sales and may force the world's largest automaker to cut 2010 sales forecasts.

U.S. auto sales for January due later on Tuesday are expected to show a sharp drop for Toyota after it pulled eight of its most popular models from showrooms last week following a series of crashes linked to unintended acceleration.

In the first public comment from an executive at Toyota's head office, the company's executive in charge of quality said there had been a bigger-than-usual impact from the recall.

"The sales forecast is something that we're extremely worried about," Executive Vice President Shinichi Sasaki he told a news conference in the central Japanese city of Nagoya.

"Already, I am hearing that sales have been affected somewhat in January," he added, noting the company will report its third-quarter earnings on Thursday.

Although Toyota says the occurrence of problems is rare, public confidence is being shaken by coverage of saga, including the harrowing details of the crash of a Lexus blamed on a stuck accelerator that killed an off-duty California state-trooper and three members of his family last year.

Sasaki, who appeared alone in front of more than 100 reporters, offered no deep bow of apology as has been seen at other 'scandal'-related media conferences in Japan.

Koji Endo, director at Advanced Research Japan, said there had been a lack of communication from the top of Toyota.

"I've never seen Toyota like this. Until recently, they had a culture of acting swiftly to problems. But the impression I get now is that PR is not functioning very properly."

Toyota President Akio Toyoda, the grandson of the company's founder, has not formally addressed the public or media on the recall problems. While in Davos, Switzerland last weekend, he appeared briefly on broadcaster NHK and apologised to consumers.

SALES MONITORED

The world's largest automaker detailed its plans on Monday to fix the faulty pedals with a small metal shim, or spacer, to prevent them from sticking.

On top of a separate recall for slipping floormats also linked to unintended acceleration, almost 8 million vehicles worldwide are being recalled.

Toyota said it would restart on Feb. 8 production of the eight models including its popular Camry, Corolla and Rav4 models after an unprecedented one-week shutdown at six plants in the United States and Canada.

Sasaki said costs were not taken into account with the recall and said they would monitor sales before reviewing their 2010 forecast.

Toyota last month forecast global auto sales to rise 6 percent this year but has since said that did not take the impact of the recalls into account.

The costs for the recall and the shutdown now look to come to roughly 100 billion yen to 200 billion yen ($1.1 billion to $2.2 billion), two analysts estimated.

"It's a positive that we now can grasp what the direct costs might be, but Toyota has yet to address uncertainties about indirect costs, such as litigation costs and costs of incentives to win back customers," said JP Morgan analyst Kohei Takahashi.

"The size of these indirect costs is of far greater importance" for Toyota's future, he said.

Shares in Toyota rallied almost 5 percent in Tokyo on Tuesday following the company's U.S. announcement on the fix and restart for production.

The jump in its shares comes after about an 18 percent tumble over the last seven business days. A weaker yen also boosted shares, some investors said.

LAWSUITS, DELAYS

Toyota faces a growing number of lawsuits claiming it and its U.S. supplier CTS Corp endangered drivers by not acting sooner to fix problems with faulty accelerator pedals.

Lawsuits announced on Monday in the U.S. claimed Toyota had ignored signs of trouble with some of its top-selling models. The suits are part of what is expected to be a wave of litigation against the automaker for claims ranging from losses on car resale values to injury and death.

Analysts and dealers said it would take months for the automaker to fix all of the vehicles at risk of having an accelerator pedal stick in the open position.

Rivals such as General Motors Co, Ford Motor Co and Hyundai Motor Co have been offering discounts targeting Toyota customers.

(Additional reporting by Yumiko Nishitani, Elaine Lies, Mayumi Negishi; Writing by Lincoln Feast; Editing by Jean Yoon)

Chang-Ran Kim and Soyoung Kim

Toyota Launches Land Cruiser

Toyota Kirloskar Motor Pvt Ltd (TKM) announced the launch of the globally acclaimed leader in the premium SUV segment, the Toyota Land Cruiser, in India on June 2009.

The 8th Generation Land Cruiser, which offers the ultimate four-wheel-drive and has unparalleled cutting-edge technology and comfort features, was unveiled in Mumbai today by Mr Hiroshi Nakagawa (MD, TKM). The Land Cruiser has a rich heritage of over 50 years and having sold over 5 million units globally, is the world’s most successful SUV.

Speaking at the launch, Mr Vikram Kirloskar, Vice-Chairman, TKM, said, “Toyota’s Land Cruiser is globally acknowledged as a combination of the ultimate driving experience and luxurious interior/exteriors and comfort features. This ‘King of SUVs’ offers complete freedom of movement, ensured strength, durability and reliability with outstanding off-road performance. The Land Cruiser ensures both road stability and a long suspension stroke for off-road driving.”

Added Mr Hiroshi Nakagawa, Managing Director, Toyota Kirloskar Motor (TKM), “We’re very proud to finally bring to India the much-awaited 8th Generation Toyota Land Cruiser. Not only is the Land Cruiser a global benchmark in automotive engineering, it is also the ultimate lifestyle statement of luxury, comfort and best-in-class safety features. Our aim is to bring to our customers the world’s most admired SUV, backed by Toyota’s countrywide assured sales and service support.”

Added Mr Sandeep Singh, DMD, Marketing, TKM, “Inspite of the recent slowdown, the Premium SUV segment has witnessed a growth, driven largely by the introduction of new models. We will execute comprehensive training programmes at our dealerships to provide the necessary sales support and create the desired impact amongst our high end customers. We will also implement a focused marketing campaign (including print, magazines, hoardings, direct marketing, web and SMS) to inform all our customers about Toyota’s capabilities in advanced technology and over-powering performance demonstrated in the Land Cruiser.”

Mr Sadayoshi Koyari, Chief Engineer, Toyota Motor Corporation (TMC) said, “The New Land Cruiser has been extremely successful globally. The Land Cruiser can handle different terrains with an innovative Kinetic Dynamic Suspension System, which offers both on-road stability and off-road exploration. The unique Crawl Control System automatically balances engine power and the brakes, thereby enabling the Land Cruiser to handle all types of rocky terrain.”

The multi-terrain ABS continually monitors engine revolutions and vehicle speed, instantly adjusting wheel-slippage regardless of surface conditions. The Hill Assist Control further contributes to smooth hill starts making the Land Cruiser suitable for mountainous terrain. And as always, passenger safety and security has been prioritized by providing 10 airbags with Seat Position Sensors, Active Traction Control, Vehicle Stability Control and Clearance and Back Sonar (to assist in cornering/reversing).

The new Land Cruiser has the world’s most advanced four zone air-conditioning system where each passenger has an independent temperature control facility.

The new Land Cruiser will be available in two options. One will have 9 speakers and the other will have an advanced 6 DVD, 14 JBl premium speaker system with EMV screen and a Moonroof. These options will be available at Rs. 81.64 lakhs and Rs. 83.1 lakhs (Ex-showroom, Thane) respectively.

Austrian company to take stake in Neolite Industries

Neolite Industries has signed a memorandum of understanding (MoU) with Austria-based ZKW Zizala Lichtsysteme GmbH to set up a joint venture company for manufacture of automotive lighting equipment. With revenues of 200 million euros from its auto lighting business alone, ZKW will take a minority stake in Neolite.

The Neolite group has been in the auto lighting business for over five decades and is one of India’s fastest growing companies in this segment. It meets the needs of over 25 OEMs both here and abroad.

Rajesh Jain, managing director, refused to divulge the exact equity participation by ZKW in his company. “I cannot disclose either that or the value that we have agreed upon till we sign the JV agreement. We will continue to manufacture at our existing plants but plan to set up at least two new modern units within 18 months. We are still working out the export and buyback commitments,” he told Autocar Professional.

ZKW is a leading premium segment OEM supplier of front lighting equipment in Europe. It is the preferred supplier of front lightings and LED lamps to top-end brands like BMW, Volvo, DaimlerChrysler, Audi, Porsche, GM etc in Europe.

The JV will make the latest and most advanced lighting for the auto industry which will cater to OEMs both in India and overseas. “Through this joint venture, our customers can access world-class lighting equipment which will meet global standards and can perform in demanding local conditions,” Jain said.

ZKW, he added, would benefit from the experience and strong position Neolite has in the Indian OEM segment and global presence in more than 85 countries. In its turn, Neolite will have access to the latest technology in automotive lighting including Xenon lamps, AFS system lamps and LED headlamps.

Neolite has five plants. Two more, one each in Uttarakhand and the special economic zone in Gurgaon, will add to the list. It makes 1500 different kinds of lighting products and has 200 customers worldwide. In the last year or so, a major portion of its turnover has come from Australia, Europe and the US. It is an OEM supplier to Piaggio in Italy, John Deere in Germany and a host of truck cabin makers. Exports (with home lighting) account for around 50 percent of business.

P THARYAN


Source: http://autocarpro.in/contents/NewsDetails.aspx?NewsID=234

Toyota pushes up prices for Innova, Altis

Toyota Kirloskar Motor has announced prices hikes in its cars from January 1. The Innova's price tag will go up between Rs 10,000- Rs 25,000 and the Corolla Altis by Rs 16,000-Rs 25,000.

According to Sandeep Singh, deputy managing director, marketing, TKM, “Due to circumstances beyond our control, such as the increase in the rupee and others, we have been forced to increase the price of our vehicles. However, TKM has tried to absorb the price increase as much as possible, limiting the increase to the customer”.

Source: http://autocarpro.in/contents/NewsDetails.aspx?NewsID=459