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Toyota reports huge quarterly profit increase, raises forecast for the year
Sun, 04 Aug 2013Toyota isn't just the world's largest automaker - so far its the biggest winner for quarterly profits. With an enormous $5.5 billion take during Q2, Toyota took advantage of the weak Japanese yen and strong US demand to record a 94-percent improvement in profit over the same period from last year. So far, Toyota brought in larger profits than Ford and General Motors combined.
Toyota is showing no signs of slowing down either, as it has bumped up its forecast for full-year global production, going from 9.94 million to 10.12 million vehicles, on the back of a 13-percent drop in the buying power of the Japanese yen versus the US dollar. That strong exchange rate is largely responsible for Toyota's big jump in profits, although it also managed to shift 1.3 million vehicles in the US market this year. Strong Camry sales have also helped. But while Toyota is raking in the cash, it actually saw a small drop in market share, down 0.1 percent to 14.3 percent of the US market.
As is the case with most automakers, Toyota seems flummoxed by Europe, where it recorded less than one percent of its revenue. Still, as Automotive News points out, Toyota only maintains a 4.5-percent market share in Europe and is far less dependent on the continent than other manufacturers. Toyota also struggled at home, much like Honda. With 525,777 units sold, JDM sales were down almost 51,000 units, although Toyota still saw its operating profit jump from $3.5 billion to $4.6 billion.
Toyota Harrier gets a whale of a facelift [w/video]
Thu, 21 Nov 2013Historically, the Toyota Harrier has been a doppelgänger for North America's Lexus RX - at some points, it was little more than a badge-swap and a few options away, at least aesthetically. That appears to be changing with this just-revealed new generation at the Tokyo Motor Show.
That's because this two-row, five-seat Toyota is in possession of a bold new look, dominated by a jutting, baleen-like grille edged in chrome, along with new headlamps and fascia. The greenhouse has likewise been revamped and gotten more pointed at the rump, which has new taillights, a resurfaced tailgate and a faux rear diffuser. Were it to be ported over to North American Lexus dealers intact, the Harrier's look would be jarring in light of the brand's spindle-grille-based design language, so we suspect that if the RX gets any of these updates (it was just refreshed for 2013), it will strike out on a different path visually.
Unlike the US RX, the new Harrier will rely on smaller-displacement four-cylinder engines, namely a 2.0-liter paired with a continuously variable transmission or a 2.5-liter four backed up by an electric motor. We'd like to see a smaller-displacement option for the US RX (it presently runs with 3.5-liter V6 engines in both gas-only and hybrid guise), but suspect it won't arrive until the next all-new model.
Toyota Camry incentives and fleet sales cranked to keep sales crown, insiders worried
Mon, 01 Jul 2013We've been watching for some time now as Toyota has piled more incentives on the hood of its Camry sedan, and Automotive News reports that the we're not the only ones with raised eyebrows. The current Camry hasn't even been on the market for two years, but the family sedan segment is more hotly contested than it has been in years. It's that high level of competition that has led the automaker to uncharacteristically add more money on the hood in order to assure it maintains its long-held title of America's Best-Selling Car, a mantle it has owned for a dozen years. It's ramping up fleet sales, too.
According to the analysts at TrueCar, Toyota has bumped incentives per unit every month this year, now totaling some $2,750 as of May, a 38-percent hike over this time last year. That's more spiff money than the segment's other best sellers, the Nissan Altima ($2,400), Ford Fusion ($2,300) and Honda Accord ($1,400), all of whom have actually decreased their incentive spend by 20- to 40-percent over the same period.
The ramp up in incentive spending and fleet sales has analysts concerned that Toyota will tarnish the Camry's historically sterling resale value. ALG pegs the 2013 Camry's current 36-month residual value at 54.4 percent, well ahead of the segment average's 50.9 percent (but shy of the Accord's 55.6 percent). However, analysts are concerned that as the current generation ages, their resale values will eventually plummet if incentives continue to increase as Toyota looks to keep the Camry's best-selling car crown going forward.