Car Makers Agreed to Increase Wages by 10% in South Africa

In an attempt to end an eight-day strike of the workers, car makers like General Motors and Toyota have agreed to raise wages by 10% in 2010. Wages will be further raised by 9% in 2011 and 2012.

The decision of a double digit pay rise has been revealed in a statement released by the Automobile Manufacturers Employers Organization. It has also measured an estimated production loss of 1700 vehicles caused by the strike.

Chris Thexton, the chairman of the employers’ Organization, is naturally not happy with such loss and he has reacted very strongly. He said to the media, “It’s become a trend, not necessarily a good one from an economic point of view, for settlements in the double-digit region, and that’s way above inflation. There’s a high premium in this contract. It allows for the industry to get back up and running.”

National Union of Metalworkers of South Africa (also known as Numsa) has stated in a statement that the workers would resume works on 23 August. Numsa decided to go on strike on 11 August calling for a 15% pay rise, while the employers were offering just 7% increase.

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Toyota Pondering a $50m Investment in Tesla Motors to Manufacture an Electric Car

Toyota is going to invest $50 million Tesla Motors Inc. in order to produce an electric car which would be built at the New United Motor Manufacturing Inc. plant (NUMMI) located in Fremont. It is now pretty much confirmed that around 1,000 new jobs will be created thanks to this new production plan.

Many workers lost jobs at the same plant in April. Now, it is expected that around 4,000 former workers of the plant would vie for the new 1,000 jobs. In fact, Ron Gettelfinger, the president of the United Auto Workers, asked the company to give preference to former NUMMI workers who are highly skilled.

Toyota is facing a huge challenge from Honda in the hybrid electric car market. So, Toyota is now trying hard to strengthen its hold in this flourishing market.

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Toyota Consumer Loyalty Down to 57%

Japanese car maker Toyota is now facing a tough challenge of keeping his brand value and reliability intact following its huge recall over the sudden pedal acceleration problem. According to a recent survey conducted by Consumer Reports, only 57 percent of Toyota’s existing customers think that they would prefer Toyota if they buy a new model. It is down from its previous loyalty mark of 70%. So, it is clearly visible that Toyota’s consumer loyalty has been decreased significantly since December 2009.

Toyota was once well-known for its reliability and safety, but the recall and the subsequent legal proceedings caused heavy damage on its brand value. Rival car makers like Honda and Ford are capitalizing on Toyota’s condition as the survey showed many car enthusiasts now prefer Honda and Ford to buy their next car.

Honda is ranked no. 1 in terms of consumer loyalty as 68% of its current owners would buy another car from it. Among the Ford car owners, 61% are interested to buy a new one from Ford. It is a 10% increase in Ford’s consumer loyalty.

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Toyota Could Launch Hydrogen Fuel Cell Car for $50000 by 2015

Toyota has recently hinted that it could roll out a hydrogen fuel cell vehicle for a price tag of $50000 in the next 5 years. However, it depends on to what extent it can cut the production cost.

Well, the Japanese carmaker has revealed that it has found ways to cut costs by 90% and it is now very possible that an affordable hydrogen fuel cell car would come from Toyota. Reducing cost has been possible by decreasing the platinum usage and producing thin films and carbon fiber at a reduced cost. The company is also planning to decrease the platinum usage further from 30g to 10g which would pave way for the car to be rolled at an affordable price.

Besides Toyota, a number of other car makers including Honda, General Motors, Daimler and Hyundai are also planning to produce hydrogen fuel cell vehicles by 2010. So, it is pretty much clear that after 5 years, hydrogen fuel cell car market would start blooming and Toyota’s focus on eco friendly car segment could lead it to become one of the leaders in the car market.

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Toyota Posted 50% Jump in April Sales in Japan

Despite going through a tough time with a mass recall, Toyota posted a 50% growth in its April sales in Japan. Toyota has recalled a huge amount of vehicles over the faulty pedals that caused sudden acceleration in brake on a number of occasions.

However, it seems that the mass recall did not affect its domestic sales in the last month. Toyota sold 113,644 cars in April 2010, a sharp increase from a year earlier figure of 75,777. What is more important is that this growth rate is even larger than the 33.5 percent growth of the Japanese auto market.

Last year, the market was struck by global economic recession and almost all the car makers experienced reduction in sales compared with the previous year. With recession is over, global auto industry is now improving gradually. However, Toyota’s jump in April sales took many by surprise because the Japanese automaker was under huge pressure due to its recall. Moreover, the company also revealed a 24.4% rise in its April sales in the US market.

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Toyota to Recall a Large Number of Corollas in Brazil

Toyota continues to recall vehicles over the sudden acceleration problem due to its faulty pedals. Recently, the Japanese automaker has decided to recall a large amount of Corollas in Brazil. Justice ministry of Brazil recently contacted with the car maker and asked it to sort out the problem, and Toyota do Brasil Ltd has agreed to recall these vehicles.

An O Globo report says the number could be around 55,000 Corollas, which were sold in 2009 in the country, would be recalled. Loose floor mats in those suspected vehicles may obstruct the gas pedal causing a abrupt acceleration.

No doubt, Toyota is going through a very tough time due to the faulty mats and it seems that the company’s goodwill will be heavily affected because of this problem.

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Toyota Agreed to Pay Record Fine for Delayed Recall of Faulty Pedals

Toyota has agreed to pay a record amount of fine worth $16.4 million for making a delay in recalling faulty pedals. The automaker has decided to pay such a huge amount in its attempt to resolve a complaint filed by National Highway Traffic Safety Administration (NHTSA). This is the maximum amount for fine over safety issue as per the US law.

The company did not report in public about the possible risk associated with the faulty pedals and this was the violation of law. However, Toyota said that it had no intention of hiding its defected pedals, but accepted the responsibility and was ready to pay the fine.

Ray LaHood, secretary of US Transportation, is happy that the company accepted its responsibility on this mistake. Well, this could be good as well as bad for Toyota. Good in the sense that it did not go for any argument, rather has agreed to pay the fine promptly, while the bad part is that the issue regarding the faulty pedals could cost company’s goodwill.

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Toyota to Give More Incentives to Boost Sales

Toyota is suffering a lot from legal problems and its image as a save car. Many people are now shocked that how could the leading car maker of the world become a company that safety record become question in a very bad way. So, naturally, the sales of cars of Toyota have decreased significantly in a last few months and Toyota needs to make a strong come back. As a result, the company officials are now planning to give some attractive incentives to the consumers. One of the best ways to attract consumers is to provide them interest fee loan or at least make part of the money interest free. This can be helpful and attract more customers. We have to see in the next months whether this strategy of Toyota can become successful.

By the way, if you are interested about Indian business then read this news: Laila Mahmood Stepdaughter of Vijay Mallya Questioned by Income Tax Department

Toyota Looking to Cut Annual Production Cost by Reorganizing Manufacturing Operations in the Domestic Market

Japanese automaker Toyota is now looking to cut its annual production cost in the domestic market by reorganizing its production plans. The company is planning to merge the production operations of similar models in a plant with a view to cutting 100 billion yen of annual production costs by 2012.

Initially, Toyota was planning to close down some of its manufacturing plants in what would have left many workers jobless. However, the automaker is now going to reassemble the production operations by shifting the workers across its production plants. This way, workers would not lose their jobs and at the same time the company would be able to cut its annual production costs.

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Auto Recalls: Toyota is not Alone anymore

When it seems that bad thing is only coming for Toyota and other companies will be able to take advantage from this Toyota recall, the other companies are getting affected too. For example, in the last two days, we heard about GM recall and Nissan recall. Of course GM and Nissan are yet to suffer in the large scale that Toyota has been suffering but it is clear that a pattern is emerging. A car is a very important matter and what I suspect is that these days most companies are in a rate race to save money and give cheaper car to attract customers and get more market share. When you compromise with quality and try to get the better price then naturally it will create some problem. However, a car is a very important matter and it can cost human life. If 100,000 defective cars around the street then they can claim many lives.

I think that the time has come for rich countries like Japan or USA to address this problem. The government officials should sit with the high officials of all the major auto companies and try to understand the problem. They should make it clear to the auto-mobile companies then that. Safety must come first. 

Toyota Crisis: Which Companies Will Benefit?

Toyota is passing its toughest time in its history. Right now, everyday, we hear just bad news about this company especially in the US market. In the US market, it is clear that American car makers will get benefited from the problem of Toyota. I was thinking about the Asian market. In Asia, the major car markets are Japan, China and South Korea. Now India is also becoming a growing auto market. If we look at these four countries then we will notice then in Japan is very strong indeed.

In the Japanese market, Nissan and Honda will perhaps benefit from the current crisis of Toyota. I just hope that no bad news come from these two companies but now, I could find news of Nissan recall in USA. Toyota will also try hard to keep it Japanese market in fact. As for China, General Motor has been aggressively pushing last years. There are some Chinese auto makers too. In the Korean market, Hyundai may benefit.

Toyota does not have that strong presence in the Indian market and that is why no significant change will take place in India.  

Bad Times for Toyota: Good Times for Ford

I perhaps do not need to repeat the fact that it is a very bad time for Toyota right now. Toyota is suffering everywhere and in US market it has suffered serious decrease in its sale. Just last year US automakers were suffering from the impact of recession and General Became bankrupt. Government intervention saved GM and many people thought that Toyota would have very good position in US market.

Now, the situation has completely become opposite. Toyota is suffering and US automakers will be able to increase their market share in their home market. It is still not clear that which US car maker will be benefited most from the current crisis of Toyota. The sells figure will be available on this Tuesday and then it will be more clear. Most probably Ford will have significant increase in sales and market share.

The trouble of Toyota will not go away soon and it will take months for Toyota to get back on the current position. 

Is this the beginning of the end for Toyota?

Toyota could survive the worst economic recession of our time. But it seems that it will be very difficult to company for survive the current problem. Well, the current problem is mainly created by the company itself. Toyota was always famous for its quality and now it seems that it has lost its that good reputation. When you are driving in a car then safety is perhaps the most important thing you look for. No matter how much a car is attractive and beautiful or even prestigious if it is not save then you don’t want to buy it.

Toyota officials have apologized in Japan. Now, they have to face the US law makers and they will perhaps go through another round of apology. However, there is no doubt that the image of the company has taken serious beating. It will perhaps take many years for Toyota to get back its good image.

There is a very important lesson to be learnt by other top companies in any industry from the downfall of Toyota. No matter how much big you become or profitable, you should always look at the quality and try to give the best service to your customer. 

Toyota Recall: What Next for the Company?

Toyota is suffering its worst crisis in its history. Many of its cars are now being recalled and the main problem is that it has got some serious defects that can become fatal for the drivers. As a result, Toyota will suffer huge financial loss and more than anything, the brand got a very bad hit in its reputation. Toyota was always famous for its reliability and quality but all of a sudden, it has become the victim of its own negligence. I still can not understand why such a big problem happened for the company. They have many workers to look after these kinds of problems. Thousands of Toyota cars are now being recalled.

In USA, some people do not like Toyota because it is a foreign company. They feel happy now that Toyota has been suffering this way. In Japan, many people are angry and they think that US media and even bloggers are just giving too much coverage of the problem of Toyota because it is a Japanese company. I agree with both the sides. I think that Toyota has been targeted too much by the American media and bloggers. On the other hand, I also think that the American journalist and bloggers are right because Toyota has failed in a very bad way.

I am interested to see what happens next for the Toyota and the Auto industry. The condition of General Motors is also not that good. So, I don’t think that GM can take advantage of the current problem of this Japanese auto manufacturer. 

Will Toyota and Honda Suffer from Japanese Economy in 2010?

In 2009, we have seen US automakers suffer due to the economic recession in the country. In fact, General Motors became bankrupt and financial support from American government saved it from becoming a thing of the past. Billions of dollars from Troubled Asset Relief Program saved the company last year and still, most of the shares are owned by the United States Treasury. Now, Japanese economy is suffering and it is now news flash that Japan Airlines has filed for bankruptcy. Consumer confidence in Japan is very low at the moment and there is really no good news for the economy of the country. There is little hope for Japanese economy to revive in 2010.

Will Toyota and Honda suffer the same way like GM or Chrysler suffered in USA in 2009? I don’t think so. The main reason that I feel that Toyota and Honda will not suffer even if Japanese economy suffers its worst condition in 2009 is the fact that two companies could diversify themselves globally in a good way.

Of course, Japan is an important market for them. However we have to remember that Japanese is a smaller market compared to that of USA. Secondly, Toyota is in good position in the America market.

Toyota to produce 1 million hybrid cars from 2011

When it comes to hybrid cars, Toyota is the market leader. No other company except Honda has been able to challenge them. Even Honda is some way behind than Toyota in this market segment. You know that a hybrid car is such a car that can run both on gas and electricity.

Toyota now has the plan to produce one millions hybrid cars annually from 2011. The company’s high officials feel that because of environmental concern, many people in future will want to buy this kind of car. At the same time, in countries like in USA, Obama administration has been giving a lot of emphasis on environment friendly and low emission car.

Reuters reported:

Honda Motors produces a rival hybrid, the Insight, whose popularity has so far trailed behind that of the Prius.

Toyota plans to add about 10 new hybrid models in the next few years to its existing lineup and to increase the number of sites where it can assemble hybrid models, the Nikkei said without citing sources.

Toyota's global production of hybrid cars is likely to have been 500,000 units in 2009, accounting for about 8 percent of its overall production, the paper said.

So, it seems that this idea of producing more hybrid cars will be a good thing for the company and bring more revenue.

I really cannot understand why American companies like GM and Ford are not that much interested in challenging Toyota in this market. After all as more people are now becoming conscious about environment, the future of this kind of car is only bright. 

Can Toyota make Profit in American Market?

Because of economic recession, US car companies suffered a lot of loss. Even foreign companies like Toyota did not a have time. The financial year is going to end in March 2010 and there is strong possibility that Toyota might suffer loss in the current fiscal year. Now, the company is trying hard to cut cost and get some profit from the American market. However, several things are acting against it. The recession is almost over but jobs are not back and car sale has not gone back to pre-recession time. This is a very big factor that any car company has to deal these days. The demand is coming back but not very strongly.

The second problem is that the relationship if Yen-Dollar exchange rate. It has been continually working against this Japanese company. Finally, Toyota officials in the US are also at a loss to find out the areas that they can improve a lot. They feel that things are not that bad and there is no special area that needs a lot of improvement. Instead, they feel that they have to go for an overall improvement strategy.

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Toyota to Unveil an All-New Scion in April

Toyota is going to introduce an all-new scion at the upcoming New York Auto Show in April. Besides, the Japanese car maker is also planning for a launch of an updated product in next month’s Chicago Auto Show. There are rumors all round that the new Scion would actually be the Toyota iQ which was announced in September 2008. Initially, reports claimed that Scion would be available only for Japanese and European markets. However, later on it was revealed that Toyota iQ would arrive in the US with the name of Scion.

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Toyota Planning to Produce a Small Hybrid Car

Toyota is now planning to bring a small hybrid car and the automaker is going to introduce a concept version of this small hybrid model in the North American international auto show, starting from 11 January. Toyota has already made a strong foothold in the hybrid car market with its successful Prius model that starts from $22,400. The new hybrid model that Toyota is planning for will be smaller in size than Prius and if everything goes according to plan, then this hybrid model will go into production in Japan in 2011 and come to the US market in 2012. However, Toyota has not reveled details about the car.

Toyota has a number of hybrid cars of both Toyota brand as well as Lexus brand. The new hybrid car will be different from the previous models as it will be a subcompact model and its target customer could be different too. Price could be another factor as this small hybrid car could offer an eye catching price for the car enthusiastic people.

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Toyota to Showcase New Concept and Hybrid Vehicles in Delhi Auto Expo

Japanese automaker Toyota is going to unveil its low-cost small car in the upcoming Auto Expo in New Delhi. Besides the small car, the car maker would also showcase some other 13 products including concept and hybrid cars. These products will also feature the company upcoming technologies. So, Indian car enthusiasts will have a good chance to see what products Toyota is planning to roll out over the next few years. The compact car that Toyota is planning to unveil at the Auto Expo is specially designed for Indian car market.

The small car will be produced by a joint venture between Toyota and Kirloskar group and the production will be started from December 2010 at the Bangalore plant.

Business Standard reported:

The compact car project is Toyota's most ambitious venture in the country in its 11-year existence and the company is betting big on this in its bid to become a volume player in the domestic market.

It is supposed to showcase both the hatchback and sedan versions of the vehicle during the Expo. Toyota also has plans to roll out 70,000 units of the proposed compact car in the first year of production.

No doubt, Toyota is trying to capitalize on the price sensitive car market of India. Tata Motors experienced huge response for its Nano car which is priced a little more than 1 lakh. So, it seems that Toyota is going to follow Tata’s footstep by launching a small low-cost car which could help Toyota gain a significant chunk of market share in India.