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Japanese automakers ramping production for renewed American sales

The 2011 earthquake and tsunami that struck Japan took quite the toll on the automotive industry in that nation. Not content to lean on that tragedy as excuse for slagging sales, the Japanese automakers are planning on a major production expansion in North America. The aim is to reclaim the market share lost from the Tsunami-based dip, and overcome a dollar/yen exchange rate that makes exporting to America unprofitable.
Following the Tsunami, Japanese automakers ramped up production in their North American facilities to compensate, but according to Automotive News, Nissan, Honda and others have all reported plans for still-further increased production in the year ahead. As part of this ramp-up, Mazda will open a facility in Salamnca, Mexico before March of 2014. Part of that increase in output is 50,000 units of a Toyota-badged compact car, which Mazda will produce.
Other Mexican production facilities opening include a Honda plant, which will open in Spring 2014 in Celaya, and a Nissan plant, set to open later this year in Aguascalientes. Nissan also said that it will need another plant in North America within the next five years. According to Nissan Boss Carlos Ghosn, the company aims to raise its stake in the US market from 8 percent to 10, and adding production will help achieve that goal. Even Mitsubishi is aiming to boost production at its Normal, Illinois plant. Production of the Outlander Sport is currently at 50,000, which Mitsubishi wants to raise to 70,000.

Toyota will retrofit late-model cars with new technology

Toyota will inaugurate a service called Kinto Factory that will add modern features like electronic driving aids to select late-model cars. The program will launch in Japan in January 2022, and it aims to let motorists benefit from new technology without having to buy a new car. Kinto Factory will initially offer customers two basic services: upgrading and remodeling. Upgrading is defined as retrofitting safety and convenience functions, like emergency braking assist, a blind spot monitoring system with rear cross-traffic alert, and a hands-free tailgate or trunk lid. Remodeling involves replacing worn or damaged parts inside and out, such as the upholstery, the seat cushions, and the steering wheel. Personalization will join the list of services at a later date, partly because it involves gathering data on how drivers use their car. The list of cars eligible to receive a makeover from Kinto Factory include the Prius, the Prius c (which is called Aqua in Japan), the Prius V (known as the Prius ? in its home country), the Lexus UX (pictured), and the Lexus NX. Since the program is launching in Japan, Kinto Factory will also work on vehicles we've never seen on American roads, like the Vellfire (a big minivan) and its upscale Alphard derivative. Pricing information and availability will be announced closer to the program's launch. Toyota notes that each upgrade will be available individually, so customers will be able to select precisely what's added to their car, and that all of the parts will be backed by a warranty. As of writing, Toyota hasn't announced plans to bring the Kinto Factory program to the United States. However, it added that the upgrades detailed above represent the program's first step, and it clarified that it's open to the idea of expanding the service in overseas markets.

Toyota's 'green bond' an industry first, quickly rises to $1.75 billion

Toyota is greasing the skids for more green car purchases with the announcement of a $1.75-billion bond designed to finance the purchase of high-efficiency Toyota and Lexus models. The Asset-Backed Green Bond is a first for the automotive industry and is making a lot of money available to buy or lease the following vehicles: any of the four Prius variants, Camry Hybrid, Avalon Hybrid, RAV4 EV, Lexus CT 200h and Lexus ES 300h. Originally, the bond was set at $1.25 billion, but Justin Leach, manager of public relations for Toyota Financial Services (TFS), told AutoblogGreen that demand was high and it was quickly oversubscribed. TFS has been looking at more ways to diversify its portfolio after a Diversity & Inclusion Bond that was announced in early 2013 and, with the new Green Bond, TFS is offering something for the "number of investors out there who are looking for investment opportunities in green." The way the money from the bond is used, basically, is that TFS takes the $1.75 billion and uses it to finance the purchase or lease of the nine vehicles listed above. As of right now, all the eligible vehicles are plug-in or hybrids, but the rules simply say that the cars in the program have to meet certain "powertrain, fuel efficiency and emissions" criteria. That means: Minimum EPA estimated MPG (or MPG equivalent for alternative fuel vehicles) of 35 city / 35 highway California Low-Emission Vehicle II (LEV II) certification of super ultra-low emission vehicles (SULEVs) or higher, which would include partial zero emissions vehicles (PZEVs) and zero emissions vehicles (ZEVs). TFS raises plenty of billions in other ways for the rest of the lineup, and got into asset backed securities in 2010, Leach said. Given the success of this first Green Bond, Leach said he expects TFS to keep this idea in its arsenal. "This one was so well received, I would be surprised if we didn't see it again," he said. "If anyone was going to do it, it should be Toyota, right?" Toyota Financial Services (TFS) Issues Auto Industry's First-Ever Asset-Backed Green Bond Bond Proceeds to Fund Consumer Loans and Leases for Toyota's Leading Portfolio of Green Vehicles TORRANCE, Calif., (March 24, 2014) – Toyota Financial Services (TFS) issued the auto industry's first-ever Asset-Backed Green Bond in the amount of $1.75 billion.