Autoblog

Click above for a high-res gallery of the Toyota Prius

Toyota announced today that worldwide cumulative sales of the Toyota Prius have passed the 1 million mark. While that milestone is impressive, more astounding is the fact that sales of the gasoline/electric hybrid continue to increase year-after-year -- even without a model change.

The Toyota Prius has been sold in Japan since 1997. However, it wasn't introduced into the U.S. market until 2000 (as a 2001 model). The first compact models sold in the States didn't exactly fly out of the showroom (North American sales in 2001 were only 16,000 units), but the innovative vehicles educated customers to the benefits of hybrid technology, and paved the groundwork for the current-generation Prius with its updated Toyota Hybrid System II technology. The current model (pictured above) was first sold in 2005. As owners will boast, it is often recognized as the most fuel efficient vehicle sold in the United States. With fuel prices skyrocketing, the gas-sipping sedan has been hot from day one, regardless of its looks or ergonomics. In 2005, Toyota pushed 109,000 units out the door. Last year, 183,000 found new homes in North America alone and through the first four months of 2008, over 107,000 have been sold. If going green is your thing and the current model doesn't do it for you, Toyota will introduce the 3rd-generation Prius in January at the 2009 North American International Auto Show in Detroit.

[Source: Toyota Motor Corporation]

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]

Some automakers might be concerned over California's fight for an EPA waver, but Lamborghini isn't one of them. Regardless of government-imposed regulations, the Italian exotic car maker knows that the luxury market will continue to demand high-powered vehicles available in every color found in a Skittles bag. That is why Lamborghini has chosen the Los Angeles area, Santa Monica specifically, to house its brand new headquarters for North American sales operations. It is the company's first business venture outside of Italy, and it happened in this country mainly because the continent comprises a 41-percent market share of all Lamborghini's sold in the world. The sunshine state alone accounts for more Lambo sales than most entire nations, hence the reason it won out in the race for office location.

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

A tight credit market, slumping construction, an economy on bed rest, an end-of-model year, and high gas prices mean one thing for pickup trucks: lots of brand new trucks waiting for buyers. Dealers trying to shift their 2008 Dodge Rams before the 2009s arrive are taking as much as $13,000 off the bill to try and convince buyers to come forth. That means you can get a Dodge Ram 1500 Quad Cab SLT 4x2 for $19,995, instead of $32,795.

With consumers being more picky about what and when they buy, it also doesn't help that dealers really don't want trade-in trucks either, since they can't do anything with them. What Dodge dealers hope for now is that Chrysler will manage the build-out of the 2009 models to give them a chance to get rid of the 2008s. Chrysler says it has a plan that will keep it competitive and keep the changeover orderly. For now, the Ram is the most heavily discounted vehicle out there.

For a dealer in Ohio, the matter of 120-day inventories really comes down to gas prices. "Until we get gas under three bucks a gallon," he said, "these pickups are not going to move." We're sure that no one wants that to be true, because if it is, there will be brand new 2008 Rams on showroom lots for a long time.

[Source: Automotive News, sub req'd]

The auto industry may be mired in tough times at the moment, but the sales downturn here in the States doesn't seem to be bothering Ferrari and Maserati. Ferrari sales were up 4% year over year to 1,654 units, due in part to outstanding sales of its 612 Scaglietti and 599 GTB Fiorano. Brisk sales of the hot Italian supercars led to a 20% increase in revenue over last year's record numbers, to 456 million euro. It never hurts when you have an 18-month backlog of buyers that are waiting patiently for their Italian Stallion, and new models are on the way to potentially boost sales further.

Maserati has also seen a resurgence in sales, with a 21% improvement in year over year sales to 2,234 units for the quarter. While Maserati made a profit of 10 million euro for the quarter, which sounds lousy until you consider the famed Italian automaker was in the red for 17 straight years until 2007. While the Italian automaker has a checkered past with regards to sales and earnings performance, the gorgeous GranTurismo and a steady backlog of customers translates into good times for quite a while at Maserati.

[Source: Automotive News - Sub. Req.]

It's been easy to forget about Nissan's small car offerings with the recent introduction of the redesigned Maxima in New York and the impending arrival of the GT-R for the first time on U.S. shores. But some of Nissan's more compact vehicles remain the bread and butter of the brand and fill the transportation needs of the masses. However, they're far from exciting and recent sales in the U.S. bear this out. To cope with these slow movers, Nissan is planning to idle its Aguascalientes, Mexico plant for a seven days this month so it can realign production with demand. According to Automotive News, the slowdown of car sales in America is expected to cause a bit of a slump for Mexico's burgeoning automotive industry, as many of the export models built there are intended for sale in the States. After the seven day closure, things should be back to normal, and hopefully sales of Nissan's small cars will rise along with fuel prices.

[Source: Automotive News - Sub. Req.]

Kids in the U.S. want computers in their cars, but kids in Japan want computers instead of cars. Add that craziness to Japan's dwindling population and popular mass-transit options and you'll understand why the Japanese car market dropped to just 5.3 million vehicles, a 27-year low. Toyota, Japan's sales leader in America, is not immune to the sales downturn, accounting for 2.26 million of those new car sales. In order to catch the attention of younger potential car-buyers, Toyota has taken drastic measures: opening its own mall, complete with 220 stores, restaurants and... car dealerships? Not only are there a number of dealerships integrated into the mall, but there are Toyota's littered throughout the walkways.

In addition to showcasing its latest new vehicles, Toyota is also showing off its high-tech robots, some of which, oddly enough, play musical instruments.

[Source: AP via Motor Authority]

Click above for a high-res gallery of the smart fortwo.

Roger Penske, the CEO of the company's namesake and the sole importer of the smart brand into the U.S., says that with demand at its current level, dealers could offload 40,000 fortwos to customers this year. The only problem: the U.S. market is only getting 25,000.

Penske is currently talking with Mercedes-Benz, smart's parent company, to see if it can ship more fortwos Stateside in the coming months, but that looks unlikely considering that the smart factory is running at full bore for the year.

Smart expects to sell 3,000 fortwos in the first quarter of this year through the 67 dealers (mainly Mercedes-Benz dealerships that have bought a franchise) currently in the U.S. That number is expected to increase to 74 by the end of the year. Although pre-order cancellation numbers haven't been officially released, some dealers are anticipating that around 25-percent of potential buyers that put down the required $99 deposit might opt out of the diminutive coupe. Thankfully, smart dealers in the U.S. have agreed not to mark up the cars at the risk of losing their franchise, according to the president of smart USA, David Schembri.


[Source: Autoweek]

In trying to establish a Japanese-market foothold for Lexus, Toyota has seemingly fallen prey to the same tactic that made the Cadillac Cimmaron such a maroon. When trying to launch a brand, especially an upscale brand, it's not advisable to rebadge existing models and crank up the price. It doesn't seem to matter how good the car is, or how swanky the new $10-million-a-pop showroom is, once an Altezza, always an Altezza, and paying 20 percent more for the same car with a different logo is rightfully galling.

Japanese luxury car buyers also have quite a taste for European iron, specifically German cars from the likes of Audi, BMW and Mercedes. Enthusiasts in Toyota's own backyard echo the universal car-guy complaint that Lexus vehicles lack personality. There's no denying that Lexus cars are well-made and capable, and the IS-F may finally infuse the brand with enough attitude to woo buyers of storied marques. Currently, most Lexus buyers in Japan are stepping up from Toyota ownership. Less than 5 percent of sales are conquests, and actual sales have lagged behind projections. Lexus offerings have been expanded from the initial IS, GS, and SC models to include the LS, and the RX will be coming in 2009. While it may appear less than successful so far, Toyota can afford to be patient. American buyers have fully embraced Toyota and Lexus nameplates to the point where they're both smashing successes. In another two to three years, we're betting Lexus will have a cheery song to sing in Japan.

[Source: Businessweek]

Ford's not seeing GM-level success in China yet, but its joint venture, Chang'an Ford Mazda, is among the top ten selling automakers in China. The popularity of the Focus and S-Max have bolstered sales by 60 percent since last year, and the new money will be used to facilitate more production. Chang'an Ford Mazda is a three-way split between Ford Motor China, who will throw $20.3 million into the pot, Chang'an Auto, contributing $29 million, and Mazda, which is kicking in $8.7 million. The idea is to sell more than the record 217,000 units sold last year. A new factory was recently opened and can build 160,000 small cars for Ford and Mazda, too. Full-throttle capacity for Chang'an Ford Mazda is a tick over 400,000 cars, and it looks like the Chinese market is the next gold rush for automakers with sales growing by big numbers for Ford, and expected to rise further.

[Source: Inside Line]