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Molly Brookshire

As Sonata turns cautious, Camry flees good-but-frumpy image - 0 views

  • With an ambitious, sporty restyling just three years into the current cycle, Toyota sought to change the Camry's image as a bland appliance. Hyundai, meanwhile, positioned its 2015 Sonata to cast a wider net by offering shoppers a more upscale driving experience and a design less flamboyant than that of the swoopy, value-priced version that burst into the segment five years ago.
  • The twin unveilings spotlighted two competitors -- one a perennial but aging champion, the other a small but feisty challenger -- that still have something to prove in a mature market.
  • As an attention-hungry challenger, "We had to do something fairly dramatic five years ago," Dave Zuchowski, Hyundai Motor America CEO, said in an interview, referring to the outgoing Sonata's polarizing shape.
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  • But with nearly 900,000 more Sonata owners on the road since the outgoing model's debut, and a chance to build a broader, more sustainable following, "We have to be more careful," Zuchowski said.
  • But Hyundai says the car's suspension and steering have been redesigned for better ride and handling. The interior also is new, with greater use of soft-touch materials and more countermeasures against road noise. Also, high-tech features and advanced safety equipment -- plus a starting price that Zuchowski says won't stray far from the outgoing model's sticker of just over $22,000, with shipping -- will help the Sonata retain the value image that has been a key purchase reason for the sedan, Hyundai says.
  • With 6.6 million Camrys on the road, Toyota understands well the delicate balance Hyundai is seeking. The Camry's large, loyal following has allowed it -- compelled it -- to stick with safe, modest designs and driving characteristics, generation after generation.
  • But when the current generation was launched in late 2011, mostly to yawns from auto critics, the sportier SE model became the best- selling trim package. Toyota took the hint.
  • Every piece of sheet metal except the roof has been changed, as have more than 2,000 part numbers. For some automakers, that constitutes a redesign.
  • Both products will land in a mid-sized market that has been roiled by intense competition, not only within the segment but also from fast-growing crossovers. At 2.6 million units in 2013, sales in the segment grew just 1 percent from the previous year,
  • No one feels this more than Toyota, which is fighting to continue the Camry's 12-year streak as America's best-selling car against a strong challenge from the Nissan Altima. Toyota has spent more on Camry incentives, yet had a lower mean transaction price, than its top four competitors -- the Altima, Honda Accord, Ford Fusion and the Sonata -- every month since November 2012, according to TrueCar.
  • Carter hopes the investment in the new-look Camry will allow Toyota to dial back on incentive spending. "One way to lower incentives is to increase demand, and that's what this car is about," Carter said. But if competitors should raise their incentives, Toyota won't sit still. Said Carter: "This is a competitive market. And we're going to compete."
Molly Brookshire

Mazda2 output begins in Japan - 0 views

  • Mazda Motor Corp. began manufacturing the next-generation Mazda2 subcompact in Japan today
  • The fourth-generation Mazda2, called the Demio in Japan, will go on sale here in the fall, Mazda said in a statement. It will hit American showrooms in 2015.
  • It is the first Mazda2 to be equipped with the full suite of Mazda’s fuel-saving Skyactiv technologies, including new engines, transmissions, body, and chassis. It is the fourth Mazda nameplate to receive the Skyactiv makeover, after the CX-5 crossover and Mazda6 and Mazda3 sedans.
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  • The U.S. version is expected to be sourced from Mazda’s new plant in Salamanca, Mexico, which opened earlier this year and makes the Mazda3.
  • Supplemental volume for the U.S. market may also come from Japan, but Mazda has not detailed sourcing plans yet. Currently all Mazda2s are imported from Japan.
  • U.S. sales of the outgoing Mazda2 surged 42 percent to 7,957 vehicles in the first six months of the year, from 5,594 the year before, as the carmaker cleared out inventories.
  • But last year, sales of the aging nameplate, which is getting its first full redesign in seven years, slumped 39 percent to 11,757.
  • That ranked it near the bottom of the subcompact segment, way below such rivals as the Chevrolet Sonic, the Ford Fiesta, the Honda Fit, the Kia Soul, the Nissan Versa, the Hyundai Accent and the Toyota Yaris.
  • The next Mazda2 will also provide the basis for a new subcompact sedan from Toyota Motor Corp. That car will be made in Salamanca, where Mazda has allocated about 50,000 vehicles for Toyota from its full annual capacity of 230,000 units. While that car will get Skyactiv underpinnings, including a Skyactiv engine, it will have a Toyota-designed body. Output for Toyota is expected to begin after April 1, 2015, but before March 31, 2016.
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    Mazda2 had slumping sales in 2014, but with redesign, it could bring competition to the Yaris. Also, Mazda2 platform will be used for a new Toyota-designed body. ?.
Molly Brookshire

Toyota's massive engine overhaul - 0 views

  • Toyota Motor Corp., after long neglecting the humble internal combustion engine in favor of hybrids, is preparing a sweeping powertrain makeover.
  • The automaker is designing common parts to spread costs across large numbers of engines. This will allow it to economically customize engines for specific vehicles with fuel injection, turbocharging and more.
  • The goal is to cut costs and maximize performance by standardizing the basics: bore, stroke, combustion cycle, valve timing and components such as engine blocks, cylinder heads, cam-shafts and crankshafts. After that is where the hair ornaments come in.
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  • The strategy underscores how Toyota is playing catch-up in a fundamental field, as rivals gain on the automaker's top fleet average fuel economy in the United States with big advancements in such fuel-saving technologies as direct injection, turbocharging and stop-start systems. For years, Toyota has focused on its best-selling gasoline-electric hybrid systems. It hasn't abandoned that track.
  • Toyota is seeking fuel economy increases of up to 30 percent and cost cuts on key components of up to 50 percent.
  • "Just like putting something beautiful on top of your hairdo, by using kanzashi through such things as turbocharging or downsizing, you can improve the performance of the engine."Kanzashi add-ons may include direct fuel injection, exhaust gas recirculation systems or stop-start technologies that turn off the engine when the vehicle stops.
  • The EPA's annual report on fuel economy trends, which calculates automakers' fleet average fuel economy based on sales, shows Toyota losing ground to rivals such as Nissan and Mazda. For example, in 2010, Toyota's U.S. fleet average fuel economy was 25.4 mpg. In 2013, it was 25.2 mpg. Meanwhile, Mazda improved from 24.4 mpg in 2010 to 27.5 mpg in 2013, and Nissan rose from 23.3 mpg to 24.6 mpg during the period.
  • "Eventually we think this is where the technology is going, but right now we don't know what the reaction of U.S. customers will be," he said. "So probably right up until the last moment, we will have to be ready with both and watch customer feedback."
Molly Brookshire

Subaru, Toyota discuss ending production of Camry in Indiana - 0 views

  • Toyota owns 16.5 percent of the small Japanese automaker
  • But it poses a big headache for Toyota, which is also strapped for capacity in North America as the market quickly accelerates.
  • SIA has annual capacity for 100,000 Camrys, and it may be tough for Toyota to absorb that at another North American plant.
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  • Subaru will stop building the Camry in Indiana by 2017
  • Subaru said earlier this year that it would boost the plant's annual capacity to build Subaru vehicles to 300,000 by the end of 2016, up from 170,000 currently. On top of that, the company has capacity to build 100,000 Camrys a year
  • Subaru also said earlier this year it would add production of the Impreza to the factory, its only plant in North America
  • The additional capacity Subaru plans to add by 2016 would come from the Toyota line, meaning that Subaru vehicles would be made in mixed production with the Camry on the same line.
  • Subaru needs more capacity, as it aims for annual U.S. sales of 500,000 by 2016. That's up from an estimated 420,000 units expected this year.
Molly Brookshire

GM and Toyota to battle for smaller pickup truck segment - 0 views

  • While the Detroit Three dominate big pickups, Toyota Motor Corp. has become the top mid-size truck seller in the U.S. with its Tacoma. GM, which stopped building a mid-size pickup for the U.S. last year, is returning to the segment with a redesigned version of the Chevrolet Colorado, betting it can appeal to Toyota buyers.
  • Along with the Colorado, GM will also offer a GMC version called the Canyon.
  • Ford Motor Co., whose F-Series has been the best-selling truck for 36 years, only sells full-size and heavy-duty versions, as does Chrysler Group LLC's Ram brand. Toyota doesn't offer a heavy-duty pickup while offering full-size and compact trucks.
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  • Ford got out of the mid-size segment in 2011, saying customers prefer larger pickups. GM, embracing one of the few areas where it won't fight head-to-head with Ford, is taking a risk.
Molly Brookshire

For now, Toyota chooses shortfall over costly expansion - 0 views

  • a key point of Toyota's midterm strategic plan through 2025 is to determine whether to expand the San Antonio plant. The plant already is one of Toyota's fastest-moving factories worldwide, with a capacity of about 200,000 units, without overtime or Saturdays.
  • to build another line in San Antonio could cost hundreds of millions of dollars. Plus, Toyota is still unsure if there's an additional 100,000 units of demand for its trucks -- the typical minimum volume for adding a new assembly line -- without resorting to costly incentives to push demand.
  • With truck demand returning, expansion is tempting
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  • demand for Toyota trucks is about 30,000 units over present volumes. He added: "None of us has the stomach to add another 100K."
Molly Brookshire

Toyota weighs adding truck capacity - 0 views

  • Toyota can produce a combined 250,000 Tundra full-sized and Tacoma compact pickups in San Antonio, running two shifts plus overtime and Saturdays, Fay said. Toyota's knockdown assembly plant in Tijuana, Mexico, can add another 50,000 Tacomas, but many of those trucks go to Mexico and Canada.
  • Assembly line tweaks could add about 7,000 units at each plant, Fay said. But that might not be enough.
  • Even if Tacoma sales were to stay flat next year, the combined pickup sales would exceed what San Antonio and Tijuana could produce for the United States. The quick rebound in pickup sales has caught Toyota by surprise.
Molly Brookshire

Toyota lays out future powertrain plans in catch-up bid - 0 views

  • Toyota Motor Corp. will launch a swath of powertrains in the next several years
  • Toyota is investing heavily in turbocharged engines, larger displacement Atkinson cycle engines, continuously variable and fixed-gear automatic transmissions, and new hybrid and fuel cell technologies
Molly Brookshire

Toyota's North America chief seeks fuel cell sedan supply boost - 0 views

  • Toyota Motor Corp.’s North American chief, preparing to sell Camry-sized hydrogen sedans next year
  • wants more U.S. supply of the Japan-built cars.
  • Toyota, the world’s largest seller of hybrid-electric autos, is to sell the as-yet unnamed four-door model in California in 2015, as well as in Japan and Europe
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  • Battery models carry electricity in their lithium-ion battery packs while fuel cell vehicles make electricity on board in a chemical reaction between hydrogen and oxygen, with only water vapor as a byproduct. While hydrogen vehicles have a range comparable to gasoline vehicles and need only a few minutes to refuel -- compared with hours for most battery autos -- there are few hydrogen pumps currently open to the public.
  • California has said it will provide as much as $200 million over the next decade to help open stations across the most populous U.S. state.
  • Fuel cell autos will need three to five years to build a market presence in California, and at least a decade to get to U.S. sales of half a million or more annually, Lentz said. Still, advances in the technology and an industrywide push, with Daimler AG, General Motors Co. and Nissan also planning to sell fuel cell models, may help the vehicles get a market foothold faster than hybrids, according to Lentz.
Molly Brookshire

Toyota begins production of 2014 Highlander in Indiana - 0 views

  • The popularity of the Highlander led Toyota to invest $430 million in the Princeton plant, creating an additional 600 jobs,
  • The company said it will export Highlanders from Indiana for the first time, shipping vehicles to Russia and Australia.
Molly Brookshire

VW preps reworked diesel engine for '15 - 0 views

  • diesel
  • went into about 22 percent of the cars that VW sold in the United States in 2013.
  • It will also be more efficient, VW says, though the company has not released estimates for city and highway
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  • VW has started launching TDI “value editions” of select models to better position diesel as a money-saving option on par with hybrids
  • The value Jetta starts at $22,115, including shipping, with a TDI engine and a manual transmission -- a $2,300 price cut that has bolstered its position as the least expensive diesel car on the U.S. market. That puts it squarely between the base Toyota Prius C ($19,890, including shipping) and the base Toyota Prius ($25,010, including shipping).
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    VW to leverage its diesel engine to grow sales in States and compete with hybrids like Prius in price and fuel economy. VW dominates diesel sales in the US, which accounted for 22% of their sales in 2013.
Molly Brookshire

Toyota's major midcycle revamp aims to keep Camry on top - 0 views

  • The midcycle revamp is an apparent response to consumers' indifferent reaction to the bland 2012 redesign and Toyota's subsequent need to crank up incentives. Camry sales were flat in 2013, just keeping pace with the overall segment, and the car's 2014 sales through February fell 17 percent, compared with an 11 percent drop for the segment.
  • Since the redesigned Camry was launched in October 2011, the car's incentives have risen above the average for the mid-sized sedan segment -- this from an automaker that has prided itself on having some of the lowest incentives in the industry. But the Camry incentives didn't help lackluster sales.
  • Through February, the Nissan Altima was the top seller, although one large multibrand dealer said that was the result of big sales to daily rental fleets, which will subside as the year progresses.
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  • Another worrying trend for Toyota could be slipping owner loyalty.
  • Camry owners who bought another Camry stayed level, at 30 percent,
Molly Brookshire

Denso is not just Toyota's supplier anymore - 0 views

  • banking on brisk demand for safety sensors with plans to offer a suite of new products for mass-market cars by 2016.
  • The new technologies will include autonomous emergency braking, lane-keep assist and full-speed adaptive cruise control systems
  • And in a bid to diversify its customer base, the Toyota-affiliated parts maker will offer the new products to any automaker, not just its tried-and-true Toyota Group stalwarts.
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  • The upcoming rollout, which will deploy the technologies by March 31, 2016, is part of Denso's drive to boost sales of sensors, the crucial eyes and ears of tomorrow's safety systems.
  • Cars without these features will be hard-pressed to achieve the top five-star rating. And European adoption of more stringent rules is expected to force other markets, such as the United States and Japan, to raise the bar as well.
  • But it trails European rivals such as Robert Bosch GmBH and Continental AG in advanced safety sensors. Denso's bread-and-butter products are drivetrain components and air conditioners.
  • But deployment is rapidly moving downmarket because of stricter European Union safety rules taking effect in 2015. The Euro New Car Assessment Program, or Euro NCAP, rates vehicle safety and increasingly will test for crash avoidance technologies.
  • The components include systems using camera-based optical sensors, millimeter wave radar and laser radar.
  • That is because the regulations set a baseline for sensor performance that must be met by all carmakers. And the clear specifications make it easier to develop standardized sensors. Standardization, in turn, allows for higher volume and lower costs, meaning a wider array of customers can use the same part.
Molly Brookshire

VW Group targets 10 million sales this year on model expansion - 0 views

  • Volkswagen Group may sell more than 10 million vehicles in 2014, four years earlier than planned, as Europe's largest automaker accelerates model introductions in a strategy to overtake Toyota Motor Corp. as the global sales leader.
  • Volkswagen, which has budgeted 84.2 billion euros ($117 billion) in investments through 2018 to pursue a goal of taking the No. 1 spot from Toyota, said it will introduce more than 100 models this year and next, including vehicles for the mass-market VW nameplate and the Audi and Porsche premium marques
Molly Brookshire

Lexus NX to offer a 235 hp turbo or 194 hp hybrid in U.S. - 0 views

  • Lexus unveiled the production version of the Lexus NX compact crossover
  • offering a U.S. sales forecast of 2,200 units a month.
  • The turbo drivetrain likely will account for up to 85 percent of U.S. sales
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  • the NX is slightly smaller than the Acura RDX, and slides between the BMW X1 and X3.
  • The NX is derived from the Lexus CT platform with some RAV4 underpinnings and goes on sale this fall.
  • The NX will be manufactured at Toyota Motor Corp.'s Lexus assembly plant in Japan's southwestern island of Kyushu.
  • He added, however, that Lexus' U.S. dealer council has informed him that such an estimate is too conservative.
  • When Lexus launched the original RX 300 in 1998, it had the same sales estimate. RX demand quickly jumped above six figures a year, and it became Lexus' best selling product.
Molly Brookshire

Japanese collaborate on r&d for new fuel efficient engines - 0 views

  • Japan’s automakers, aiming to take the lead in fuel-efficient powertrains, have joined forces in a new consortium to develop the next generation of fuel-sipping combustion engines.
  • Their goal: A 30 percent improvement in the fuel efficiency of traditional gasoline and diesel engines by 2020.
  • The Japanese government will aid the country’s eight automakers by chipping in half of the project’s 1 billion yen ($9.9 million) budget. The automakers will foot the rest.
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  • Research Association of Automotive Internal Combustion Engines. It pools the resources of Toyota Motor Corp., Nissan Motor Co., Honda Motor Co., Mazda Motor Corp., Mitsubishi Motors Corp., Daihatsu Motor Co., Suzuki Motor Corp. and Fuji Heavy Industries Ltd., the maker of Subaru-brand vehicles.
  • The objective is to share costs in an increasingly competitive, investment-heavy field to meet more stringent fuel economy guidelines, organizers
  • The strategy is patterned after a similar approach taken by competitors in Europe, organizers said. There, rivals cooperate with academia and the government on basic technologies, giving European carmakers a head start in cutting costs.
  • While Japanese automakers have developed advanced electric and hybrid drivetrains, the creation of AICE acknowledges that internal combustion engines will remain the workhorse of global fleets for a long time, especially in cost-sensitive emerging markets.
  • Organizers outlined a 10-year time frame for achieving world-leading advancements in combustion engine efficiency.
  • Engineers target thermal efficiency rates for both approaching 50 percent. That compares with today’s best rates of around 39 percent for gasoline engines and 42 percent for diesel engines. Higher thermal efficiency means more energy from internal combustion is captured for higher engine output. Organizers said such a breakthrough could boost the fuel efficiency of gasoline and diesel engines 30 percent by 2020.
  • Diesel engine development will focus on eliminating particulate matter and nitrogen oxide emissions, partly through better particulate filters and exhaust gas recirculation systems. Gasoline engine research will focus on achieving more complete combustion cycles and better ignition while reducing knock.
  • Keiji Ohtsu, managing officer of Honda R&D Co., Honda’s product development arm, will be AICE president.
Molly Brookshire

Hyundai promises a more refined, upscale Sonata during unveiling - 0 views

  • Hyundai says it spent
  • over the past three years developing the 2015 Sonata.
  • roughly $416.3 million
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  • For its seventh generation, Hyundai says the Sonata has “evolved into a more refined premium vehicle” that “provides a luxury feel of a car from the segment above.”
  • The Sonata became Hyundai’s top-selling car, with sales topping 200,000 units in 2011, 2012 and 2013. But sales have slowed since fresher competing models such as the Honda Accord, Ford Fusion, Nissan Altima and Toyota Camry hit the market, with sales dipping by 12 percent last year and off another 28 percent through the first two months of 2014.
Molly Brookshire

By-wire age is coming; what's missing is trust - 0 views

  • It's not that removing pumps makes for an inherently better vehicle. It is that automakers desperately want to improve fuel economy on the coming generation of vehicles. And that means ending the standard engineering practice of running various pumps off of engine power, like so many extension chords plugged into a wall socket. Fewer devices draining power from the engine means better fuel economy.
  • Bosch is also preparing to begin supplying a clutch-by-wire system called the eClutch.
  • Wire-based driving systems themselves require fewer moving parts
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  • Having fewer parts would simplify a vehicle's manufacturing process
  • That means potentially lower development costs.
  • Having fewer parts also translates to reduced vehicle weight, which appeals to automakers straining to meet fuel economy targets
  • "There's no question that X-by-wire technology will bring all sorts of benefits to the industry," he says. "But automakers will really have to work hard at making sure their customers are willing to come along with them."
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