GM’s failure evokes fear of “the 80s Japan bashing” among Toyota executives

Till now, GM has been the major competitor of Toyota Motors in USA. Now that GM is in bad shape, Toyota should be happy but Toyota executives are afraid that the failure of GM, Chrysler and Ford would rejuvenate Japan bashing that took place in the 80s. Today, Toyota officials said that they wish GM to recover from its losses.

Poor consumer expenditure hurt American auto industry. Yasushiko Ichihashi, Senior Managing Director, Toyota Motor Corporation said that his company does not see GM’s failure as an opportunity. He wished American market would return to health soon. Toyota hopes for an overall recovery of the US auto-market. US automarket is the biggest market of Toyota Motor Corporation. If GM fails today, Toyota might fail tomorrow. Because of the economic recession in USA, Toyota Motor posted its first annual loss since 1950 in the current fiscal year. In March, the condition of auto sales improved a bit. Americans bought 857,735 vehicles in Mach, a 25% rise compared to February. Ichihashi said that the number shows that there is still hope for recovery.

Related articles:

Bloomberg

AP

Toyota Cutting Executive Salaries due to Sales Drop

Japanese newspaper Nikkei has recently reported that Toyota, the largest automaker in the country, is going to cut salary for its executives in order to come to terms with its prediction of first operational loss in 71 years due to ongoing economic recession in world market- leading to slower demand across the world. The situation has been aggravated because of surging Japanese Yen against foreign currencies.

Well, Nikkei did not indicate any source of the news of cutting salaries for the company executives in Toyota Motor Corp. The report even did not say when and to what extent the salary for the executives would be cut. However, you can not simply rule out the report yet because the company is going through a tough time both domestically as well as internationally at this moment. They are cutting production throughout the world in order to prevent inventory building.

Related article:

Bloomberg

Number one carmaker Toyota shedding temporary jobs

For the last three years, we have seen many news about the competition between Toyota Motor Corporation (TYO:7203) and General Motors Corporation (NYSE:GM)  for becoming the leading automaker in the world. GM had traditionally positioned itself as the top automaker in USA but in 2008, it was like the year of Toyota and Toyota achieved good success but then came the great economic recession. GM is now struggling a lot and even we have seen talks of GM getting bankrupted. The only good thing perhaps for Toyota is that their condition did not reach so bad and they are still doing ok. However, economic condition is not good in the markets of Toyota like Japan and USA and even in Asian countries like China and India fewer people are willing to spend to buy car. So, it is becoming a big problem for carmakers as in the time of economic recession the car companies suffer perhaps the worst way. Toyota is now going to shed 3000 temporary workers and the company is not going to take any new temporary workers at this moment. This is bad news for Japanese economy because many Japanese people consider Toyota as an indication of their national economic status.

 

Related article:

AFP

Toyota Motor Experienced 33.9% Fall in November 2008 USA Sales

Toyota Motor saw a sharp fall of 33.9% in their November 2008 sales in USA. Toyota Motor posted sales of 130,307 vehicles in November 2008 compared to sales of 197,189 vehicles in the same period of last year. There are two divisions of Toyota Motor in USA in which Toyota division fared better than the Lexus division in terms of drop in sales. Toyota division experienced 33.8% drop in sales, while Lexus projected 34.7% slid in sales of November 2008.

automotive-business-review reported:

The Toyota division posted sales of 114,084 units in November 2008, a 33.8% decrease, compared to 172,341 units in November 2007. The Lexus division has reported sales of 16,223 units, a decrease of 34.7%, compared to 24,848 units in November 2007.

Among the two divisions, Lexus’ passenger car sales dropped by 40%, while Toyota division saw 31.1% drop in passenger car sales. In light truck sales, Lexus dropped by 26.9% and Toyota dropped by 37.4% last month.

Honda Motor Co. Ltd. resets its motorcycle sales targets and future expansion plans

Japan’s second largest automaker, Honda Motor Co., Ltd. (TYO: 7267), is expecting a drop in the sales of its two wheelers in 2009. The two wheeler products of Honda Motor Co., which helped the company to survive downturns compared to its rivals like Toyota Motor Corporation (TYO: 7203), observed a 16% increase in sales in the current term. However, the worldwide credit crunch have started to affect sales in developing countries like China, India, Brazil, Thailand, and Indonesia, which are major markets of Honda motor cycles. Tatsuhiro Oyama, Chief Operating Officer, Operations, Honda Motorcycle, said that tighter credits had started to affect buyers in many markets leading to a prediction of dry sale in 2009. Mr. Oyama is saying that if the sales figure remains flat next year, they would be very lucky.

In order to avoid inventory build up, Honda is now following the conventional path; slashing down production and forcing workers to take leave. The company told its Brazil plant workers to take eleven days paid leave between October and December.

In the next two years, Honda is planning to sale 18 million motorcycles. Only a month ago, this sales target would have been dubbed as “conservative.” Honda also postponed its plan to build up a new motorcycle manufacturing plant in Southern Japan with an annual production capacity of half million units. The company has decided to wait till the demand of big bikes in Europe and USA picks up. The plant was supposed to start production in the middle of 2009.

Related article:

Reuters

Toyota Marked First Quarterly Sales Drop in 7 Years During July-September Quarter

Toyota Motor Corp. has seen its first quarterly fall in global sales in seven years as its global sales dropped more than 4 percent to 2.236 million vehicles in the July-Septemebr quarter. Though the Japanese automaker experienced excellent sales and profits over the last few years because of the heavy demand of Toyota’s fuel-efficient vehicles, the recent global economic crisis stirred a heavy drop in Toyota’s global sales. Especially in the US market, the number of sales volume has been decreased extensively.

Global credit crunch has affected many businesses across the globe so far. Many have lost their jobs and many companies have been shut down already. Who knows what is yet to come in the future. However, it is pretty much understandable that the ongoing economic recession has a direct link up with car industry because if people do not have money at their hand, car sales will definitely be affected.

Related article:

AFP

Toyota launches Verso multi purpose vehicle in the UK

Toyota Motor Corporation (TYO: 7203) has launched its mid-sized multi purpose vehicle in England. The car is available in four categories: T2, SR, T Spirit, T180.

Dimension:

• Overall length: 4370 mm
• Overall width: 1770 mm
• Wheel base (front/rear): 2750mm
• Wheel base (between two front wheels): 1495mm
• Wheel base (between two rear wheels): 1505 mm
• Maximum speed: 206 km/h
• Acceleration: 0-62 mp/h within 8.8 seconds.
• Weight: 2140 kg.
• Acceleration: 62 mph in 8.8 seconds

Toyota Verso T2:

• The Toyota Verso T2 has 6 speakers.
• The Toyota Verso T2 comes with audio, integrated unique fit with LCD.
• The Toyota Verso T2 has single disc CD player that supports both MP3 and WMA.
• The Toyota Verso T2 has color keyed door handles and mirrors.
• The Toyota Verso T2 has ventilated front disc brakes.
• The Toyota Verso T2 has color keyed front & rear bumper
• The Toyota Verso T2 comes with front seatbelts with electronic sensing, pre-tensioner and force limiter. They can be adjusted according to hight.
• The Toyota Verso T2 comes with child seat fixings.
• The Toyota Verso T2 has ABS, electronically controlled with Electronic Brake Force Distribution.
• The Toyota Verso T2 comes with driver and front passenger airbags with hybrid inflators.
• The Toyota Verso T2 has headrests in all five seats that can be adjusted.

Price: ₤ 15005

Toyota Verso SR:

• The Toyota Verso SR comes with 6 speakers.
• The Toyota Verso SR steering wheel mounted audio controls.
• The Toyota Verso SR comes with roof mounted radio aerial.
• The Toyota Verso SR has audio system with LCD display.
• The Toyota Verso SR comes with Anti-lock Braking system, electronically controlled with Electronic Brake Force Distribution.
• The Toyota Verso SR has ventilated front disc brakes.
• The Toyota Verso SR has brake assist system.
• The Toyota Verso SR comes with de-coupling brake pedal mechanism.
• The Toyota Verso SR has side impact beams on all side doors.
• The Toyota Verso SR comes with head impact protection structure.
• The Toyota Verso SR comes with driver and front passenger airbags.
• It also has front knee airbag for driver.
• The Toyota Verso SR comes with energy absorbing crumple zones in front and back.
• The Toyota Verso SR has dual zone climate control.
• The Toyota Verso SR comes with MP3 enabled CD player.
• The Toyota Verso SR has rear privacy glass.
• The Toyota Verso SR has rear spoiler.
• The Toyota Verso SR comes with 16” alloy wheels.
• The Toyota Verso SR has cruise control.
• The Toyota Verso SR has front and rear parking sensors with a dashboard proximity indicator.

Price: ₤ 17,895

Toyota Verso T Spirit:

• The Toyota Verso T Spirit has 6 speakers.
• The Toyota Verso T Spirit has steering mounted audio controls.
• The Toyota Verso T Spirit comes with roof mounted radio aerial.
• The Toyota Verso T Spirit has audio system with LCD.
• The Toyota Verso T Spirit comes with AM/FM radio with preset settings.
• The Toyota Verso T Spirit comes with single disc CD player with MP3 and WMA compatibility.
• The Toyota Verso T Spirit has fully trimmed boot.
• The Toyota Verso T Spirit has luggage load hooks in boot.
• The Toyota Verso T Spirit has interior tailgate pull handle.
• The Toyota Verso T Spirit comes with removable rear tonneau cover.
• Toyota Verso T Spirit has twin DVD screens.
• Toyota Verso T Spirit comes with cruise control.
• Toyota Verso T Spirit has dual-zone climate control.
• Toyota Verso T Spirit has leather-trimmed steering wheel with audio controls.
• The Toyota Verso T Spirit has child seat fixings.
• The Toyota Verso T Spirit has driver and front passenger airbags with hybrid inflators. It also has front knee airbag for driver.
• The Toyota Verso T Spirit comes with adjustable headrest on all five seats.
• The Toyota Verso T Spirit supports de-coupling brake pedal mechanism.
• The Toyota Verso T Spirit comes with side impact beams on all side doors.
• The Toyota Verso T Spirit has head impact protection structure.
• The Toyota Verso T Spirit comes with energy absorbing crumple zones in front and back.
• The Toyota Verso T Spirit has child proof locks on rear doors.

Price: ₤ 19,990.

Toyota Verso T 180:

• The Toyota Verso T180 has rear Privacy Glass
• The Toyota Verso T180 has rear Chrome license plate garnish.
• The Toyota Verso T180 comes with color keyed door handles and mirrors.
• The Toyota Verso T180 has anti-lock braking system, electronically controlled with electronic brake force distribution.
• The Toyota Verso T180 has ventilated front disc brakes.
• The Toyota Verso T180 comes with brake assist system.
• The Toyota Verso T180 comes with color keyed front and rear bumper.
• The Toyota Verso T180 has trip computer with fuel consumption & average speed display.
• The Toyota Verso T180 has fuel indicator with low fuel warning.
• The Toyota Verso T180 has water temperature indicator.
• The Toyota Verso T180 has engine temperature warning.
• The Toyota Verso T180 has engine management warning.

Price: ₤ 21,905

Related articles:

Toyota.co.uk

June US auto sales: GM takes the leading position

The month of June has been terrible for the American automakers as they observed their sales further went down. Interestingly, GM took the leading position in the USA in car sales over Toyota Motor Corporation (TYO: 7203). Still, sales of GM dropped by 18.2%. Another good news is that GM observed more than 2% rise in its share prices on July 1^st after hitting their lowest point in the last fifty years on 30^th June. GM (NYSE:GM) reported that it sold 262,329 vehicles in June compared with Toyota’s 193,234. In June GM’s car sales fell 21% and in the first six months, overall sales went down by 16.3%. On the other hand, Toyota’s sales fell 6.8% in the first six months.

In June, car sales of Toyota fell 9.4% and truck sales dropped 38.8%. Ford sales dropped 28% and Chrysler 35.9%.

In 2007 Toyota Motor Corporation almost caught GM in car sales but took over in vehicle production. In the first quarter of 2008 Toyota took the sales lead.

Related articles:
AP

Boston.com

Toyota Planning to Use Transsiberian Railway for Transportation of Cargos

Toyota is planning to use Russian Transsiberian Railway (Transsib) in order to reduce the transportation cost of the company cargos to Russia. Toyota is currently transporting the cargos from Japan to Russia by Sea which is the cheapest, but it takes 60 days, which will come down to 20 days when Toyota will begin to use Russian Transsiberian Railway. Toyota will start using this new route to Russia from spring 2009.

Bernama reported:

Toyota, one of the world's largest automobile-making corporations, regards this method of transportation as more promising, considering the growth of world prices of fuel and the need for reducing effluents of carbon dioxide into the atmosphere, the Nikkei newspaper wrote on Monday.

It is a good initiative taken by Toyota because quick delivery of the parts will speed up the production thus increasing the possibility of more profit. In the face of surging fuel price in the global market, Toyota has got to ensure the best possible way to increase production open up the possibility of profit.

Toyota increases its stake in Fuji Heavy Industries Ltd.

Toyota Motor Corporation (TYO: 7203) is going to raise its stake in Fuji Heavy Industries Ltd.(TYO:7270), the maker of Subaru cars. After the deal is completed, Toyota Motor will be the largest stake holder in Fuji Heavy Industries Ltd. Earlier, GM (NYSE:GM) was the largest stake holder of the company but in a move to collect cash for restructuring, the company sold its portion in 2005. Currently, Toyota Motor Corporation holds 9.5% stake. After this deal, Toyota’s stake will rise to 16.61% (nearly 17%). Toyota is going to pay $293 million for 61 million shares of Fuji Heavy.

Amidst global economic crisis and rising oil price, mergers like this have become a common move among the automakers to decrease the cost of research and development. Toyota has joined with Subaru to develop hybrid cars in which, Toyota is currently one of the market leaders.

In 2005, GM sold its 20% stake in Subaru followed by Suzuki Motor Corporation (TYO:7269) and Isuzu Motors Limited (TYO:7202) in 2006. Toyota also bought shares of Isuzu Motors Limited. The deal between Toyota and Fuji is expected to be finished on July 14.

Related articles:
International Herald Tribune

Reuters

Toyota outsales GM in June but there is nothing to be happy about it

Toyota Motor Corporation(TYO: 7203), the largest automaker of Japan will over take General Motors Corporation(NYSE:GM) in the monthly US sales in June but there is nothing to be happy about it as the US economic slowdown is still continuing and the automaker is struggling with downward auto sales. Auto industry experts and analysts are expecting another “double digit dip” in auto sales in June.

Higher fuel price, weak economy, and lower consumer confidence has resulted into switching over small fuel efficient cars and cross over vehicles. This has proved to be a boon for the Japanese automakers like Toyota Motor Corporation and Honda Motor Company Limited (TYO: 7267) that depends less on the sales of trucks and SUVs like the three largest American vehicle makers: GM, Ford and Chrysler.

Still, Toyota is experiencing its share of problems. The company is hardly keeping up with the high demand of its Hybrid Prius. More over, it has cut down its pickup and light truck production.

Famous marketing consulting firm, J.D. Power and Associates, is predicting that, with continuation of the present trend, the ‘annualized sales rate’ for June would be 12.5 million vehicles ; the lowest monthly sales since 1992.

Related article:
AP

Toyota Motor Corporation is going to observe sales decline in the USA for the first time since 1995

For the first time since 1995, in the USA, Japan’s largest auto maker Toyota Motor Corporation (TYO: 7203) is facing sales decline. The USA is the largest market of Toyota, but the rising fuel price, coupled with subprime loan crisis, have affected the buying capacity of the consumers resulting into big slump in car sales.

Yesterday, at the Toyota shareholders meeting in Japan, Tokuichi Uranishi, Toyota Executive Vice President, announced that the company’s US sales could go below 2.62 million vehicles Toyota sold last year. Uranishi told the 3200 share holders that they were struggling in the US at the moment. Higher fuel price and the subprime loan crisis have cut the demand.

The rise of Toyota Motor Corporation in the USA is truly phenomenal. The company has been consistently growing in the region. According to Autodata Corp., the last sales decline happened in 1995. At that time, Toyota’s sales declined by 0.4% to 1.08 million. Freep.com

But as Toyota grew into a full-line manufacturer, offering a wide choice of pickups and SUVs, it became more exposed to overall economic conditions, said Tom Libby, senior director of industry analysis for J.D. Power and Associates.

"They are really not in the ideal position for today's market conditions," Libby said. "If I had to pick a company that is in the ideal position of the marketplace right now, I would pick Honda, because they have no exposure to the upper end of the market, and Toyota does."

In 2008, Toyota’s sales target was 2.64 million vehicles. Currently, Toyota Prius and Toyota Yaris are the top selling vehicles of the company and it could hardly keep up with the demands of these two vehicles. Unfortunately, Toyota’s pickup and other large vehicle sales took a big blow. Few days ago, Toyota declared to cut its Tundra pickup production at its Princeton and Indiana plants. It also decided to stop production for 14 days at its San Antonio facility. The company has also cut down its imports from Japan.

Related articles:
Freep.com

Asianbiz

Toyota's American plants slashe down Toyota Tundra pickup production

In the face of rising fuel price in the USA, Toyota Motor Corporation (TYO: 7203) has declared to cut its Tundra pick up production in four months. In an interview, Toyota’s spokesperson, Mike Goss, said that the company will slow down its Tundra production at its Princeton and Indiana plants. However, he did not provide any details of the production slowdown. San Antonio’s truck line will stop production for 14 days between the current month and the end of October. The Princeton factory is cutting down six scheduled production days between the current month and the end of August. The Princeton plant produces Tundra and Sequoia sport. Bloomberg reports:

Toyota ``is considering all kinds of options to make sure we're making the best use of all our production facilities,'' Goss said. There are no plans to concentrate all Tundra and Sequoia assembly at the San Antonio plant, Goss said.

Tundra sales dropped 32 percent in May as U.S. customers shifted away from large pickups and SUVs to smaller, more fuel- efficient vehicles. Higher gasoline prices, combined with a sluggish economy hurt by falling home values, have contributed to a 22 percent dip in sales of large pickups this year and a 32 percent drop for large SUVs.

The declaration of reduction in Tundra first came in March 13^th. Fortunately, neither of the two Toyota plants will lay-off its full-time assembly workers. However, 200 temporary employees at the San Antonio plant will be eliminated in the next few months.

Related articles:
Bloomberg

Japanese manufacturers take top position in UK's Car Magazine survey

Famous British magazine, Car Magazine recently conducted a reliability survey which revealed that Japanese cars are better than British and other European models. Honda Motor Company Limited (TYO: 7267), the second largest car maker in Japan took the first place. The first eight spots of the survey were taken by 38 Japanese brands. The study was conducted over 89,768 cars that were upto eight years old. Telegraph.co.uk reports:

Statistical analysis was used to calculate a Brand Reliability Index percentage based on readers' reports of total breakdowns, faults that required a vehicle to be taken to a garage and minor niggles.

Break-downs were weighted more heavily than niggles. Honda achieved 85 per cent followed by Toyota, Daihatsu, Lexus, Mazda, Subaru and Suzuki.

The Korean Hyundai brand was the first to make inroads into Japanese domination, scoring 80 per cent.

The table was divided into reliability categories ranging from the best "very good" through "good", "average" and "poor" with the least reliable being described as "very poor".

Out of the eight Japanese brands, seven made it to the ‘very good category’. South Korea’s Hyundai and Porsche fell into the “good” category.

Most of the British cars fell either into ‘poor’ or ‘very poor’ category. Rover, MG, Land Rover fall into “very poor”; Vauxhall “poor”; Mini and Jaguar reached the average figure.

Honda was also in fault position with it Civic model that was made in Swindon, Wiltshire. The car came at the joint-bottom spot in the individual model’s list.

Related article:
Telegraph

The FCX Clarity : First zero-emission vehicle from Honda Motor Co. Ltd.

The FCX Clarity is the new zero-emission car from Honda Motor Co. Ltd. (TYO: 7267). On June 16 2008, the first batch of FCX Clarity rolled out of the production line and is heading for Southern California. Honda unveiled the FCX Clarity in November 2007. After revealing the car, the company received 50,000 emails inquiring about the FCX Clarity. Many of you now know Toyota Motor Corporation (TYO: 7203) as the hybrid pioneer but it was Honda that first brought out hybrid cars. Unfortunately, Toyota Motor Corporation took over Honda. Now, Honda is preparing to give Toyota Prius a run for its money. After releasing the FCX Clarity, Honda Motor Corporation will become the top player in the green auto industry.

Here are some of the information I have collected about the FCX Clarity:

• Honda is now claiming that it is the first company to have a certified hydrogen car for commercial use by the U.S. Environmental Protection Agency.

• The FCX Clarity is a roomy four door sedan. In terms of performance, the FCX Clarity has a smooth ride and easy to handle.

• The FCX Clarity runs on hydrogen and electricity. The car does not emit any Carbon but steam.

• According to Honda, the FCX Clarity is two times more energy efficient than gas-electric hybrid and three times than a standard gasoline-powered car.

• The first FCX model was unveiled as a concept vehicle at the 2005 Tokyo Motor Show. Compared to FCX, the FCX Clarity uses 75% fewer parts. It took Honda Motor Company 19 years to develop the car. Fool.com says:

The hydrogen fuel cell is hardly new. It's been around since 1839! The principal challenges to its widespread application in vehicles have related to the fuel itself: the need for an entire fueling infrastructure, the cost of creating and distributing the hydrogen fuel, and the energy (often from natural gas) required to produce the fuel.

• The FCX Clarity is powered by a newly designed fuel cell stack. The new fuel cell stack has allowed Honda’s engineers to lighten the body, expand the interior and increase efficiency.
  

• The fuel cell generates energy through chemical reaction between hydrogen gas and oxygen in the air. A lithium-ion battery provides supplemental power.
  

• The FCX Clarity can go “270-miles per tank with hydrogen consumption equivalent to 74 miles per gallon, according to the carmaker.” (280 miles according to Business Week)
  

• The FCX Clarity weighs 3,600-pound.
  

• The FCX Clarity can reach speeds up to 100 miles per hour.
  

• The FCX Clarity can go from 0-60mph in around nine seconds.
  

• The FCX Clarity is still at experimentation stage. Honda will just lease 200 FCX Clarity in the next three years. The potential customers will have to be residents of Santa Monica, Torrance or Irvine, and California. The reason, these areas contain Hydrogen fuel stations. The person who would lease the car for three years will have to pay $600 per month including maintenance and collision coverage. The leasing process will start from July. Out of the 200 cars, 50 will be leased in Japan and 150 the USA. In Japan, the car will be launched in fall. C Net says:

Starting in July, Honda plans to offer the hydrogen-powered FCX Clarity through a lease program at three dealerships in California: Power Honda Costa Mesa, Honda of Santa Monica, and Scott Robinson Honda in Torrance. Honda also plans to make the cars available in Japan. The cars will be leased on a three-year basis for about $600 per month, according to Honda.

Lucky first customers:
The FCX Clarity has already started a big buzz in Hollywood. The lucky first customers of the car are:

• Actress Jamie Lee Curtis and filmmaker husband Christopher Guest.
• Actress Laura Harris.
• Film producer Ron Yerxa
• Southland Industries CFO Jon Spallino
• Jim Salomon (businessman)
  

Launching ceremony at Japan:

On June 16^th, Honda held a launching ceremony of the FCX Clarity, at the Tochigi prefecture. News reporters who joined the ceremony were allowed test drives of the FCX Clarity which was followed by a presentation and tour of the factory. Actress Laura Harris and producer Ron Yerza attended the event and cheerfully communicated with the reporters.

Interview of Takeo Fukui:
Famous American business magazine, Wall Street Journal, had an interview with Takeo Fukui, President and CEO of Honda Motor Company. Fukui shares his thoughts, ideas about fuel-cell vehicles and Hondas and future plans of Honda. Here is an excerpt of the interview:

WSJ: Why is Honda introducing fuel-cell vehicles when there is no infrastructure yet to support them?
Mr. Fukui: About 100 years ago, when Ford's Model T came out, that kicked off the development of the auto industry. If you ask, 'Were there any gas stations back then?' there weren't. In the car industry, cars should come first and then infrastructure will follow.

WSJ: So how many years away are we from having hydrogen refueling stations for fuel-cell vehicles?
Mr. Fukui: That's not going to happen really quickly. It's happening in California, and may eventually happen in several other states, and also Japan and Europe. We are working on the technology where we can charge hydrogen into fuel-cell vehicles at homes. So probably in the next 10 years we will get some level of infrastructure in place.

When asked about developing electric vehicles Mr. Fukui said that the practical feasibility of electric vehicle is very limited and the biggest issue is driving distance. Charging time is also another major issue. Where an electric vehicle takes several hours to charge a fuel-cell vehicle takes only one minute. Electric vehicles have restricted applications like golf carts.

Obstacles and debates:

• Lack of large number of hydrogen filling stations is a big problem for the FCX Clarity.
  
• Another major debate over hydrogen is whether it is truly energy efficient. It requires large amount of electricity to produce hydrogen.
  

Price of FCX Clarity:
Another major obstacle for the FCX Clarity is the price. Though Toyota Prius is now the most fuel efficient car in the USA, it comes with a hefty price tag. As a result, many analysts are saying that Prius is not the ultimate money saver.

Takeo Fukui, President and CEO, Honda Motor Company said that the new FCX Clarity will cost tens of millions of yen but its previous models cost higher; hundred million yen. To introduce the car into the mass-market, price need to go below 10 million yen or $92000. Mr. Fukui said that it would take another ten years for the company to make the car widely available to every one. To cut the price, Honda should reduce the use of expensive metals and work on producing cheap hydrogen fuel tank.

Related articles:
AP

Business Week

Waleg

CNet

News.Scotsman.com

Honda and Toyota beats Ford in the May USA car sales

After General Motors Corporation (NYSE:GM), it’s Ford’s term. The second largest car maker in the USA took a big blow in May car sales from Japanese auto-giants: Honda and Toyota. As the USA consumers are switching toward fuel efficient Japanese cars, Honda Motor Company’s (TYO: 7267) Civic Accord and Toyota Motor Corporation’s (TYO: 7203) Corolla and Camry enjoyed higher sales to Ford Motor Company’s (NYSE:F) F-Series pickups. According to Honda spokesperson Chris Martin, in May, Honda sold 53,229 Civics and 43,778 Accords. Toyota on the other hand sold 52,826 Corollas and 51,291 Camrys. Bloomberg reports:

The second-largest U.S.-based automaker sold more Focus small cars than F-Series pickups to individual consumers, Farley also said. Those so-called retail sales usually are more profitable than those to business and government fleets that get discounts for buying in bulk.

The F-Series still beat the Focus in total sales because of fleet purchases. Ford sold 32,579 Focus cars last month, an increase of 53 percent from a year earlier, while the F-Series total was a 31 percent drop. Ford's total sales fell 16 percent last month, its sixth straight monthly decline.

Declining pickup sales contributed to Ford's announcement last month that it would abandon a target of returning to profit by next year. The company had combined losses of $15.3 billion in 2006 and 2007, mostly because of its North American unit.

For the first time in last fifteen years, any foreign auto maker topped Ford in car sales. For the first time also, Honda’s Civic has become the best-selling car in the USA. According to Ford’s marketing chief, Jim Farley, it was a watershed month. The people of USA are paying $4.20 gas for the first time.

The main problem is USA car makers are good at making heavy vehicles that take lots of fuel. Success of Japanese car makers is a big sign of change for the USA car industry. From now on, they should go for producing small fuel efficient cars to survive in the extremely competitive auto market.

Related articles:
Bloomberg

Ford

GeneralMotors

Honda

Toyota

Samsung and LG has been ranked in Forbes' Top Global Companies list

In the latest ranking of the top 200 global companies of Forbes magazines, South Korean conglomerate Samsung and LG has been ranked 196 and 163. Japan’s largest car maker Toyota Motor Corporation (TYO: 7203) took the top place followed by Google (NASDAQ:GOOG), Swedish retailer IKEA, Ferrero, Italian food and tobacco company and Johnson & Johnson (NYSE:JNJ). Famous American business magazine, Forbes has been conducting this survey since 2006 with the Reputation Institute, a New-York based research and consulting firm. The Korea Times reports:

Each company is given a Global Pulse score, based on what the Reputation Institute calls the ``seven dimensions'' of reputation: products and services, innovation, workplace, citizenship, governance, leadership and performance.

The most influential dimensions are products and services and citizenship, says Forbes.

The institute says it surveyed more than 60,000 respondents during February and March this year, who voted only for their domestic companies.

According to the survey, Samsung saw the largest slump in reputation since 2007. It lost 8.96 points. Forbes thinks that this dropping is more related to the recent bribery scandal. I checked out the Forbes magazine website but could not find the list. However, I found the news about Toyota ranked the top company in the Reputation Institute website.

Related articles:
The Korea Times

Toyota

LG

Samsung

IKEA

Toyota lowers its expectation over US automarket

Because of rapid decline in truck sales, the top three American automakers: Ford, GM, and Chrysler are losing market. GM may observe its auto sales falling below 20%. Because of slow economy, falling home values and rising gasoline prices, people are losing interest in buying big trucks and SUVs which are the prominent products of the American automakers. Because of its high quality fuel efficient vehicles, Toyota Motor Corporation (TYO: 7203)may have survived the fall but ultimately the company would not be able to avoid a drop in sales.The top Japanese automaker is now thinking of lowering its US sales forecast. Bloggingstocks.com

Now, the Japanese company is beginning to realize that the US auto picture is so bad that even its quality and fuel-efficiency may have limits when the world's largest market falls into a recession. According to the FT, "Toyota, the world's top-selling carmaker, is considering downgrading its US sales forecast to account for a worsening outlook for pick-up trucks and other big vehicles in its largest market."

Toyota had hoped to sell 2.64 million vehicles in America this year.

The USA is Toyota’s biggest market. Like its rivals, looking at the rising sales in the first quarter, Toyota became very ambitious and invested heavily on its pick-ups and SUVs. As a result, it is now suffering from lower sales. Still, Toyota will be able to pull through this recession for its hight quality products and strong financial condition compared to other automakers.

Related articles:
Bloggingstocks.com

The Wall Street Journal

Toyota

GM

Ford

Chrysler

Toyota and Nissan acquire top position in April Japan car production

With the rising price of fuel, Japanese cars have become ‘hot cakes’ in North America. In April, Toyota Motor Corporation (TYO: 7203) and Nissan Motor Company Limited (TYO: 7201) took the top position in car production in Japan. According to the latest figure published by Japan Automobile Manufacturers Association, the combined auto production of twelve major Japanese automakers have increased 5.4% to 917,951 and exports increased 21% to 584,059.

Currently, Toyota’s hybrid model is very popular in the USA. On May 27^th, Toyota announced to build a third battery plant in Japan for its hybrid vehicles. News came out that Toyota is talking with GM to produce Prius hybrid at the Toyota GM joint venture plant in California. However, Toyota spokesperson said that nothing had been decided on production of Prius at the joint venture New United Motor Manufacturing Inc. Bloomberg reports:

The price of gasoline has jumped 30 percent in the U.S. so far this year, prompting demand for small cars. Toyota and Nissan increased sales in the world's largest car market last month, winning customers from General Motors Corp. and Ford Motor Co. Japan's vehicle exports to the U.S. jumped 21 percent.

``Rising gasoline prices are certainly helping the Japanese carmakers the most,'' said Jesse Toprak, director of market forecasting for Edmunds.com in Santa Monica, California. ``The Japanese brands are perceived to have more gas-efficient vehicles.''

Sales of the domestic cars in the USA is at the lowest since 1995. Japanese companies are making profits from their small vehicles. Toyota increased its domestic output 1.1% to 331,100 vehicles. Exports rose 8% and shipment to China rose 77%. Production of Nissan Motor Company increased 42% to 98,873 vehicles and export to the USA increased 64%.

Related articles:

CNN.com

Bloomberg

Asianbiz

Toyota

Toyota Motor Corporation global out put rise by 8.8%

On May 27^th, Toyota Motor Corporation announced an 8.8% increase in its global automobile production to 727,040 units. Below is the statistics:

• Domestic output increased 1.1% to 331,100 units.

• Overseas output grew 16.3% to 395,940 units

• Vehicle sales in the domestic market rose 8.6% to 114,735 units.

• Exports increased 9.4% to 238,174 units.

• Toyota group's combined global vehicle production rose 8.7% to 808,948 units.
  

Automotive Business Review further reports:

Toyota's vehicle production in Japan increased 1% to 401,997 units in April 2008, while overseas production increased 17.5% to 406,951 units, compared to April 2007.

The company's total passenger car production increased 0.7% to 352,559 units, and trucks and bus production increased 2.8% to 49,438 units.

Toyota and its subsidiaries have reported total sales of 165,024 units in April 2008 in Japan, an increase of 7%, compared to April 2007. Total passenger car sales in Japan increased 9.9% to 140,121 units, while total sales of trucks and buses decreased 6.7% to 24,903 units, compared to April 2007.

Exports of passenger cars from Japan increased 8.1% to 230,550 units, and exports of trucks and buses increased 26.4% to 26,830 units.

Related articles:

Automotive Business Review

Japan Corp.net

Smart Money

Toyota

Toyotamotors