Autoblog

Sluggish market conditions in the United States are the reason Toyota Motor Corp. is slowing down the launch of its new Highlander crossover plant in Tupelo, Mississippi. Originally scheduled to open in late 2009 with production at 150,000 vehicles per year, Toyota will instead begin production in May 2010 with an expected reduced annual output of 120,000 units a year. Of course, that number will increase if U.S. market conditions improve.

While the slowing economy is a leading reason for the delay, Toyota officials also confirmed that they are facing difficulty hiring skilled labor for the Tupelo project. They are now recruiting from around the country to fill positions in maintenance, along with tool and die engineers. Toyota expects to employ 2,000 workers at Tupelo. This isn't the first time Toyota has faced recruiting issues. When they opened San Antonio in 2004 and 2005, they found themselves challenged to staff the Tundra pickup plant. The Texas plant recently made headlines when Toyota slowed production of the Tundra. For the fiscal year, Toyota is forecasting operating profits to decline by 29-percent.

[Source: Automotive News, subs. req'd]

Click either image for a high-res gallery of the Subaru Exiga.

We received word from a little birdie last week that Subaru was gearing up to release its brand-new Exiga into journalist's hands in Japan. Coincidentally (or not), a teaser shot of Subaru's new pseudo-CUV popped up on the NASIOC forum over the weekend and it's clear from the darkened profile that many of the elements from the show car have migrated over to the production model.

The Exiga, which appeared at last year's Tokyo Motor Show as a lightly veiled concept, will likely form the basis for the new Outback, slotting in between the Legacy and the Tribeca CUV. However, it's doubtful that when the Exiga (or Outback) makes the trek across the Pacific it will be sporting seven full seats. Its closest competitor here in the States is the forthcoming Toyota Venza, which aims to define a new segment between wagon and crossover, but in reality, both vehicles own their inspiration to the AMC Eagle, the original wagon on stilts.


[Source: NASIOC via Straightline]

Toyota lawyers arrived at the U.S. Supreme Court today and were denied an appeal to overturn a ruling originally upheld by a federal appeals court in Washington last year. The case involved a technology patent held by a company named Paice LLC, which contended that Toyota used the same microprocessor developed by the McLean, Virginia-based company on its hybrid vehicles that inputs torque information for both the gasoline-powered engine and the electric motor. The $4.3 million dollar award against Toyota will stand, and Toyota is required to pay royalties to the firm to the tune of $25 for every Prius, Highlander Hybrid and Lexus RX400h sold. Ouch. Sometimes the price of success is steep.

[Source: Detroit News]

Anybody who has watched more than 30 minutes of television the past couple weeks has likely seen Ford's new ads claiming that the automaker has caught up to Toyota and Honda with regards to initial quality. Toyota certainly has, and it apparently doesn't like the Blue Oval's boastful tone. On Toyota's Open Road blog, Mike Michels seems taken aback at the claim, stating that the initial quality survey Ford cites was commissioned by the automaker and performed by a third-party company not affiliated with the well-known J.D. Power & Associates. He then spends a few paragraphs discrediting initial quality in the first place, citing J.D. Power figures that show the difference between the best and worst vehicles during the first few months of ownership were a mere .8 problems per vehicle. Of those problems, most of them were customer preferences and not actual issues that needed repair.

While we agree that initial quality is far from the complete quality story, it's incredible that Toyota would discredit a stat that has been a pillar of its own high quality image. The Toyota and Lexus brands have been among the leaders in initial quality for ages, which anyone would say is a result of great design, engineering and manufacturing. But now that other automakers are catching up, it seems Toyota wants to label initial quality as insignificant. Either way, we'll just have to wait another 3-5 years to find out if a Ford Fusion built today holds up as well as a Toyota Camry.

[Source: Toyota]

The current economic environment in the United States is hurting all auto makers these days, even mighty Toyota, which was once considered immune to so-called market realities. Though its overall performance last year would be considered a stellar achievement for any other automaker, Toyota's 28% profit plunge in the fourth quarter of 2007 points to an expected 27% drop in annual profits in 2008. If Toyota's revised forecast proves accurate, 2008 would break a nine-year stretch of profit growth. In addition to the slowing U.S. market, Toyota also cites high material prices, the worldwide credit crunch and a strong yen as contributing factors in its mild downturn.

Toyota's expected profit drop is certainly newsworthy, but we just have to wonder how the money-losing American car companies will cope in the U.S. market with the same issues. While sales of cars are gaining strength, the SUV and truck markets are sinking with what could be Titanic-like implications for the truck-heavy lines from Ford, Chrysler and GM.

[Source: Toyota]

Click on the image above for our Toyota Prius gallery

When an eight-year-old boy on a bicycle gets hit by a car while riding in the middle of the street, the blame often points directly at the youth. However, if the car in question just happens to be a quiet hybrid-electric... there just may be reason to accuse the vehicle.

Last weekend, a youthful Owen Erickson was riding his two-wheeler with a friend when he was struck by a Toyota Prius and tossed onto the hood of the popular hybrid. Thankfully, he was unhurt. His mother, however, was quick to place some of the blame on the "totally silent" Prius, claiming her son never heard it coming. As a scapegoat, the hybrid-electric vehicle is taking more than its fair share of heat. Two years ago, we blogged about the silent danger of hybrids. Earlier this year, Maryland launched a study, and passed legislation aimed at vehicle noise levels (more specifically, the "lack of" audible decibels), citing a legitimate concern for the blind. Just last month, a bill was introduced in the House of Representatives to study whether or not a "minimum sound level" needs to be established for these highly-efficient silent runners.

We obviously haven't "heard" the end of this hybrid-electric argument as it begins to gain momentum around the country. Whether future Prius models are equipped with blaring sirens or not, we do know that Moms will still need to teach their children to not play in the middle of the street. Thanks for the tip, Tyler!

[Source: KARE 11]

Click above for a gallery of the Prius Convertible.

Some modifications improve the breed; others are just plain stupid. We'll let you decide on this one. A forum member at PriusChat by the name of Exproducer spent six months and over $17,000 modifying his Waveline Blue Prius to get the open-air experience that was obviously lacking from his life. The amount of mods necessary to remove the roof and install the electrically operated soft top are staggering. The side airbags had to be nixed and the rear seats no longer fold down. The antenna had to be removed and relocated to the dashboard, and the trunk has lost half of its usable space with the top folded down. However, what's even more disturbing is Exproducer's claim that while fuel economy has dropped by two MPG with the top up, it's actually improved by four MPG when he's cruising with the wind in his hair. Since Toyota spent millions of dollars on wind tunnel testing the Prius to make it slippery as snot, we somehow doubt the validity of those figures. Regardless, head on over to PriusChat if you want to read up on all the details of the build.

Thanks for the tip, Danny!


[Source: PriusChat]

Click above for a high-res gallery of the Toyota iQ.

The expense of developing an entirely new platform to underpin a single model is hardly cost efficient, so it comes as little surprise that Toyota is considering another model built off its recently released iQ microcar. The new vehicle would be larger than the two-door city car – possibly aimed to compete with the Volkswagen up! -- although there's no word on how the dimensions might grow and what body styles are under consideration.

As for the standard iQ, an unnamed senior executive at Toyota told Autocar that their new city car would be priced "between the Fiat 500 and the MINI," and that a hybrid version isn't feasible since there's no room of the battery pack and the additional weight contradicts the philosophy behind the iQ; specifically designed to be a lightweight means of urban transport. While engine choices have yet to be officially announced, Autocar is reporting that two gasoline-powered engines will be offered, along with one diesel mill, and that a start-stop system will be employed to improve fuel economy.


[Source: Autocar]

Click above for more high-res images of the Toyota iQ

Toyota has been working on an affordable small car that will be cost-competitive in emerging markets, and Autocar is reporting that India is being considered as a destination for production. India makes sense due to its low-cost labor, and with competitors like the Tata Nano going for as little as $2,500, the world's biggest automaker will need to cut cost everywhere it can. There is no word as to exactly what vehicle would be produced in India, but one option is Toyota's production iQ from Geneva, which is scheduled to begin production later in 2008. Toyota is looking for initial sales of the iQ to crest 100,000 units.


[Source: Autocar via Winding Road]

Although Toyota has recently claimed the title of the World's Largest Automaker in terms of global sales, the Japanese-giant is finding out that life at the top isn't all it's cracked-up to be. While the Camry, Corolla, Yaris and Prius sedans are reportedly brisk movers, the same thing cannot be said about Toyota's line of trucks and sport utility vehicles. Toyota has cut Tundra and Sequoia production already, but dealers are still declining to purchase them, pushing the number of unclaimed units to an all-time high. Automotive News quotes an unnamed Toyota dealer as saying, "Last month, Southeast Toyota had 9,700 vehicles that had been turned down twice by dealers and are either sitting at the port or at sea. That's a significant number." Right now, Toyota/Scion has a high 58-day supply of available inventory on hand.

Some dealers, though, see the high number of available units as a blessing-in-disguise. "We've been asking for more inventory for two years and now we finally got it. This is a great opportunity. You have to take it when you can get it," says Steve Cain, general manager of Lewis Toyota-Scion in Topeka, Kansas. Regardless of your viewpoint, we expect that Toyota will align itself with market realities in order to bring production in line with actual sales sooner rather than later. In other words, if you've been in the market for a Toyota truck, chances are good you'll get a decent deal.

[Source: Automotive News - sub. req'd]