Toyota plans to return to 1 million sales this year

The massive earthquake that hit Japan this year in March halted the production of the Japanese automakers Toyota.  The company which is known for building 38 % cars in Japan as compared to 25 % of Honda and Nissan is all set to revive its pre-earthquake production level to 1 million cars in Europe.

The announcement was made by the officials of the Toyota automakers recently during a meet with their suppliers.  The earthquake and tsunami which damaged their plants of key parts in northeastern Japan disrupted their production to a great extent.  However, the most affected automobile company during the earthquake has made a rapid recovery to get back to its position.

With its quick come back Toyota shows its ability and spirit and promises to get back to their original level of sales production in Europe.  By returning to their original production level Toyota intends to wipe off the damage of 40, 000 units of its production lost in Europe as the aftermath of the earthquake and tsunami.

Despite the economic crisis strike the whole European market last year, Toyota managed to sell 808,000 vehicles in Europe.  Toyota’ regional chief Didier Leroy said that the sales are going to be much higher this year.  The company spokesperson also informed that the company will get back to 90 % of its pre-quake sales level.  The automakers are returning faster to their estimated productions than anticipated.

However, production at Toyota is returning to pre-quake levels faster than the company anticipated, with output in June likely to reach 90 percent of pre-quake levels, a company spokesman confirmed last week.

Japanese cars dominate driver satisfaction poll

According to the 2011 UK Ownership of Vehicle Satisfaction survey conducted by What Car? Magazine and JD Power and Associates, Japanese cars dominate the driver satisfaction survey for the consecutive eleven years. Leaving Ford and Vauxhall far behind, Japanese cars seized the seven of the top ten models.

The top rated models appeared to be Lexus IS which incidentally also captured the top position in the satisfaction table of manufacturers in the survey. Besides, a gain of 845 points in 1000 made Lexus IS top the charts for continuous eleventh year. Praises are pouring in for this particular model indicating a possible influence on the buyers.

On the second number in the list was placed the Honda Accord with a score of 833 points. Lexus Rx. Honda CR-V, Toyota Prius and Toyota RAV4 occupied the subsequent ranks of 3rd, 4th, 5th & 6th respectively by 16, 500 car holders. The Volvo S4O, Mercedes Benz E-class, BMW 5 Series and Honda Jazz were next in the survey.

Ford Ka faded away with a failure to make any impact and pushed itself to the last choice for most of the buyers along with Vauxhall Corsa and Kia Rio. Reportedly it was even the worst car of all the brands in the survey and has not at all impressed the car owners. The survey doers also criticized Vauxhall for not having even a single car that would be at par the average score of the industry.   Even manufacturers chose to dispel Honda and Lexus as their most cherished brands.

Jim Holder editor of What Car? Magazine exclaimed that it is indeed good that buyers are getting more drawn toward the car market. In a way that means that the car manufacturers are surely striking the right note with the customers. Every buyer wants a reliable car which is cost efficient with low repair and maintenance cost. With Lexus topping the survey for a stretch of eleven years, it is more than a cause of worry to the other brand to improve their products and build a rapport with their customers again.

According to sources, the satisfaction with ownership has improved owing to the increased premiums of insurance, competitive prices and pressure during a year.

Toyota Unveils Hybrid Wagon Prius Alpha

Toyota has recently launched Prius A hybrid, their all new seven seat car in Japan.  However it has been announced that the buyers have to wait for a couple of days before they get to own their Prius A as the supply chain has been disrupted by the recent earthquake that hit Japan in March this year.

During the launch, Toyota revealed it has taken orders for 25,000 models of the new Prius Alpha which is a wagon version of the ultra-efficient Prius.  Although Toyota had had projected it will come up with 3000 models per month, the initial reservations seems to outstrip the same.  A variety of several configurations including 5-seat and 7- seat versions of the car will be available in Japan.

The 5-seat version will have a battery of Nickel-Metal Hybrid whereas the 7-seat will have a equi-powered Lithium-Ion battery, the more compact one and shall be placed between the passenger and the driver in the central console.  Toyota Prius A is efficiently bigger in size and hence will witness a slight decrease in the fuel efficiency.

Toyota Hybrid System II and an Atkinson cycle engine of 1.8 litres are the added features of the new vehicle.  It produces approx. 89g/km of CO2 with its fuel efficiency of 73mpg.  Under the Regulations Concerning Rational Use of Energy, the Prius A exceeds the fuel efficiency of Japan in 2010 and meets the fuel efficiency of Japan in 2015.

Toyota made use of its Eco-Vehicle Assessment System to process methods & adhesives for internal parts and review materials.  Another feature is the hybrid indicator system along with the electric vehicle driving indicator which helps to show when the petrol engine shuts down and the electric motor powers the vehicle.

Prius V- the 5-seat model is about to be launched in Northern America much later than the scheduled date.  Though supply of Prius + has been significantly disrupted in the European market due to the earthquake. Customers willing to buy in Europe would still have to wait as the launch will be made in Europe in mid 2012.  Surprisingly, Toyota can build only 1000 of the 7-seaters model per month but it has received orders for over 7000 models.

Toyota Motors feel that US is going to have a different experience with the 7-seated Prius.  As of now selling million hybrids seems to be Toyota’s Primary focus. Currently it is fighting the delay of eleven months before it hits the market for deliveries.

Technorati Tags: Japan, Toyota

The earthquake and tsunami that struck Japan on March 11 this year damaged the Fukushima Dai-ichi nuclear power plant, and sent three reactors into meltdowns.  Now the Hamaoka nuclear plant is being shut down too due to safety fears, adding to the shortage of energy resources in the country.

Auto production was already stagnating as a result of a 20-year slowdown when the 9.0 magnitude earthquake hit Japan.  In March, the production of 404,039 vehicles marked a drop of 57% from the same month the previous year, and also the sixth consecutive month of declining production levels.  As the twin disasters had hit production in addition to supplies to dealers, domestic sales of new trucks, cars, and buses also registered their biggest-ever decline in April.

To cope with the current energy crisis, the government had asked leading manufacturers to reduce the use of electricity by 15%.

With electricity consumption being usually higher in the country during the week than over the weekend, Japanese automakers have therefore decided to take an off on Thursdays and Fridays and manufacture cars over the weekend to save energy and avoid the possibility of blackouts resulting from the power crunch set off by damaged nuclear reactors.  Production at factories will be stopped on Thursdays and Fridays from July to September – the months in which electricity use is highest in Japan. The automakers and auto-parts makers have decided to shift our holidays from Saturdays and Sundays to Thursdays and Fridays, as the companies need to respond with a sense of crisis to the power shortage.

On Saturdays and Sundays, power supplies are adequate and the auto companies can conduct production without limitations.  Some companies may even direct their back-office staff too to opt for days off during the week, and will try to limit power consumption without disruption to production.

The expected power shortage is yet another challenge confronting Japanese car manufacturers that are already grappling with reduced output due to around 500 parts suppliers in northeastern Japan being affected by the earthquake and tsunami.  Besides, the recent disasters also resulted in a number of temporary factory shutdowns as a result of which shipments of key parts to China was also stopped.

Honda Motor Co. and Toyota Motor Corp. think it won’t be possible to get back to pre-disaster production levels till the end of this year, while Nissan is aiming for October.  Toyota has slashed manufacturing at its Chinese plants by around 50-70 % till June 3 because of a shortage of parts.

Japanese automakers are also facing other challenges like high taxes, the surging yen which is reducing the value of exports, pressures to check global warming and competitors in nations that have beat Japan in clinching free trade deals. One third of Japan’s electricity is provided by nuclear energy.  To deal with the power shortage, buildings in Tokyo have reduced lighting, several stores are closing earlier, and people are using the stairs instead of escalators and elevators.  Also, at home, citizens are being motivated to put up with higher room temperatures, prefer fans to air conditioners and unplug their personal computers and other appliances when not in use.

Japanese Automakers Screen Cars for Radiation

Never before had the automobile industry of Japan had to face so many problems and issues.  The fury of the Tsunami and the wide spread destruction caused by the earthquake have caused huge losses to the Japanese industry in general and the automobile industry is one of the worst hit.  Already, the manufacturing of cars has gone done by a good fifty percent and now there are other problems faced by the car industry of Japan.

As you already know, the tsunami has caused great damage to the nuclear plant near the north-eastern coastal areas thereby increasing the harmful radiation levels in the nearby areas.  Although, Japan is trying its level best to contain the harmful radiation leaks, international fears are on the rise.  Plenty of countries import cars from Japan and these countries fear that the cars may contain harmful radioactive substances.  As a result of this, the car manufacturers have started checking the cars for any kind of traces of radioactive materials.

The spokesperson for the JAMA (Japan Automobile Manufacturers Association), Mr. Furukawa, has stated that the tires of the cars and all the materials inside the car are being tested for radiation.   According to him, not even a single trace of radiation has been deducted on the cars waiting to be exported.  This definitely comes as good news.  This entire exercise was required to be carried out as few international consumers had expressed their concern and worry over radiation leaks.

Even after the concerns raised by the international consumers, JAMA emphasized that it was heartening to observe that the sales of the Japanese cars in other countries had not fallen.  Strict measures are being taken to check the radiation levels and for every five thousand cars, a good ten cars are being checked for radiation.  The car manufacturers of Japan have decided to continue this checking process till the entire nuclear plant crisis is resolved.

Leading car manufacturing giant, Toyota is also checking its cars for radiation before exporting them to other countries.  Recently, Toyota checked around thirty cars to be exported to United States.  You would be surprised to know that a good forty six percent of the cars manufactured by Toyota are exported to the United States.  Another leading car manufacturing giant Honda is also carrying out checks on its cars to dispel any kind of doubts.  A good thirty percent of the cars manufactured by Honda are exported to other countries.  A good fifty percent of cars manufactured by Nissan are also going to be shipped to other countries.

Although, there were international concerns regarding the radiation leaks and effects of radiation on the Japanese cars, the Japanese car industry has done a great job by conducting proper checks and ensuring that the cars are not affected by radiation at all.

Scarcity of new cars fuels used car sales worldwide

You are aware that the devastating earthquake and the ferocious tsunami have affected Japan very badly and the car industry is one of the worst hit.  You would be amazed to note that the developments in the car industry in Japan have had far reaching effects in many countries throughout the world.  Many of the auto parts suppliers have been badly hit and they usually supply auto parts to car plants in Europe, United States as well as in Japan.  The manufacturing of cars at these plants has greatly suffered since the supply of auto parts from Japan has greatly reduced.

You would also be astonished to note that the car plants set up by giant Japanese automakers around the world has greatly suffered and many global car plants belonging to these Japanese giants have cut their production to as much as half.  Many experts in the automobile industry feel that this might be a temporary phenomenon, but the world in general is witnessing this change.  You would have noticed that it is not only the car industry but also the automobile industry in general which is greatly suffering.  The manufacturing of trucks has also been greatly affected.

It is not only the Japanese car industry that is being affected, the car companies of other countries have also had to reduce their manufacturing of cars.  The inventories required for producing a car have greatly reduced.  All these factors have resulted in the rise in the price of used cars.  What is even more worrying is that the gas prices have also risen to a great extent.  You would be surprised to hear that the prices of used cars of some of the leading car brands have increased up to a good ten percent.  Since the month of January, the prices of Honda Civic and Toyota Corolla which have been used for around three to five years have also appreciated a good ten percent.

Even when the car industry is going through troubled times, one group of people has greatly benefited and they are the car dealers.  Instead of waiting for the new cars to arrive, people are now opting for fuel efficient cars that are compact and small.  This problem is likely to continue till the problem and scarcity of auto parts continues.  People usually prefer brand new and small compact cars. But with the manufacturing of small compact cars at an all time low, people are opting for used small compact cars, thus increasing the prices of small compact cars greatly.

Giant car makers Toyota and Nissan have predicted that they would be able to start full production only by August end due to scarcity of auto parts.  Due to the increase in demand for used cars, the auction prices of many leading brands of trucks and cars have gone up as much as fifteen percent.  So, definitely the prices of used cars are going to increase and this is going to be the trend for some time now.

Panic Car Buying of Japanese Cars As Shortages Worsen

The deadly earthquake and tsunami that struck Japan on March 11 this year resulted in production shutdowns affecting the supply of cars like the Toyota Yaris, Toyota Prius hybrid, the Mazda2 and Honda Fit subcompacts, as well as many other Japan-built economy cars.

Now it appears that the disruptions in the auto industry are about to worsen.  Much of the auto industry in Japan – the second largest global supplier of cars – remains idle.  Though few plants suffered serious damage, with water and electricity supplies being fleeting, it is hard to say when operations at the factories will speed up again.  Some experts think this could only be possible as late as this summer.

The Japanese auto manufacturers who have closed most of their local facilities say a few of their overseas plants might also shut down to conserve supplies.  Honda and Toyota said they expect shutdowns at their North American plants.  At Honda, production is expected to be hit after April 1.  That is because though most of its components are sourced locally, a few key parts still come from Japan.  Read more »

Toyota, Honda suspend plant operations

The recent mega-earthquake and tsunami that struck Japan have had a negative impact on the operations of many auto manufacturers in the country.  Many Japanese automakers have had to either suspend or reduce their plant operations since parts manufacturers in many regions including Tohoku that were affected by the quake, cannot easily procure parts.

About 20,000 to 30,000 parts are needed for manufacturing vehicles and automakers cannot assemble them if even one part is not available.  Recently, automakers had increased vehicle exports mainly to China and Asian countries, but now their presence in overseas markets could diminish due to the deteriorating supply.

Honda Motor Co. and Toyota Motor Corp. in Japan announced plans to put off resumption of car assembly given the current problems in parts supply after the destruction in the Tohoku region following the March 11 earthquake and tsunami.  Since the two major auto manufacturers show no signs of resuming production, vehicle output will surely be suspended for a long period.

Toyota, which is the world’s largest car maker, had earlier decided to suspend car assembly till Tuesday, but has now decided not to resume operations until Sunday.  So the automaker will stop car assembly for a total of 11 operating days, exceeding the 3 ½ day suspension after the powerful earthquake in 2007 in the Niigata Prefecture.  During this lengthy period, Toyota will stop production of around 140,000 units. Read more »

Technorati Tags: Honda, Japan, Toyota