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Toyota, Suzuki partner on hybrids, EVs, building cars for each other

NAGOYA, Japan — Toyota and Suzuki on Wednesday said they planned to produce electric vehicles and compact cars for each other to better compete with fast-changing technologies in the global auto industry. The agreement follows an initial R&D tie-up announced by Japan's No. 1 and No. 4 automakers in 2017, and will see more vehicles produced by Suzuki for Toyota, one of the world's biggest carmakers. Although Suzuki is far smaller, it is a dominant force in the fast-growing Indian market. The two automakers have been pooling their strengths. Toyota is a leader in hybrid technology and is investing heavily in automated driving, while Suzuki specializes in affordable compact cars — as many automakers struggle to keep pace with ballooning investment in EVs and self-driving cars. Under the latest agreement, Suzuki will source gasoline hybrid systems for cars it sells worldwide from Toyota, which pioneered hybrid vehicles with the Prius more than 20 years ago, the companies said in a joint statement. In return, Suzuki will produce two compact models for Toyota in India based on its Ciaz and Ertiga models. Further cooperation with Suzuki will help Toyota expand its presence in India, the world's fifth-largest passenger car market where it has struggled to grow sales due to lean demand for its lower-cost models. The deepening partnership between the two automakers will enable cost-conscious Suzuki to tap into Toyota's R&D firepower to develop lower-emission vehicles and self-driving cars — areas which Suzuki has admitted it is struggling to keep up. "We believe that the expansion of our business partnership with Suzuki ... will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation," Toyota President Akio Toyoda said in a statement. The two automakers will deepen their cooperation in India, where Suzuki's hybrid vehicles will be made using engines and batteries locally produced by Toyota. They will also join forces in Europe, where Toyota will produce electric vehicles based on its RAV4 SUV crossover and Corolla wagon for Suzuki, while Suzuki will supply Toyota with gasoline engines for compact vehicle models sold in the region. Suzuki will also produce its Baleno, Vitara Brezza, Ciaz, and Ertiga models for Toyota which will be rebranded and renamed as Toyota models for the African market.

The techie choice | 2017 Toyota Prius Prime Quick Spin

The Prius nameplate has been inexorably tied to the green car scene for a long time now. When Toyota unleashed the Prius Prime upon the world, we said it was the best Prius yet. But this is no longer a world where Toyota's hybrids are automatically crowned king. Our recent time with the Hyundai Ioniq trio was a stark reminder that the economical, eco-conscious competition is getting stiffer. We put some miles on a Prius Prime to see how our recent Ioniq Plug-In Hybrid test colors our view of Toyota's prime contender. Our first impression: the Prius design is very clean and inorganic. As sterile as it feels, the design appears to have a lot of actual thought behind it. Our Advanced trim tester is spiritually in touch with the mobile gadget culture, with a huge touchscreen, digitization of seemingly everything, and white and black glossy plastic aesthetic. It's a tech-heavy design that will likely seem familiar to those of us who have been interfacing with Apple designs for the past 10 or so years. The Ioniq Plug-In Hybrid, on the other hand, remains truer to the look and feel most drivers expect from their commuters. It's less about user interface, modes, and drive data, and more about just getting behind the wheel and driving. The Ioniq Plug-In Hybrid hardly even distinguishes itself from its plugless counterparts, opting to go green under cover rather than the in-your-face futurism the Prius projects. It retains the traditional instrument cluster in front of the driver, too, which the Prius Prime lacks. In the Toyota, you'll have to look around the car for the right display with the information you're looking for – there's the huge central touchscreen with all its menus, as well as smaller displays above it on the dash – or you can find your speed on the HUD. The Prius is composed in its handling, but doesn't provide much of the sensory feedback that makes one feel connected to the chassis. The steering feels super artificial, but the car stays fairly flat in the corners without providing too much feedback through the seat of your pants. Hyundai's offering, though, proved to be a surprisingly willing dance partner in the corners. While feeling equally as capable as the Prius, the Ioniq's sense of connection through steering and suspension made the act of stitching one turn after another together enough to get our blood pumping. Sport mode makes the Prius Prime slightly livelier, though.

November U.S. new car sales mixed as automakers deepen discounts

DETROIT — Major automakers posted mixed U.S. November new vehicle sales on Friday and predicted a competitive December as they rushed to sell vehicles and boost their numbers before 2017 ends. Automakers are trying to sell down 2017 model-year vehicles, offering high discounts to consumers as the year-end nears. In 2016, the industry reported record annual sales of 17.55 million units. According to consultancies J.D. Power and LMC, discounts have been above 10 percent of the average transaction price for 16 of the past 17 months, a level experts say is unhealthy and unsustainable. The November sales results come as the National Automobile Dealers Association said on Friday it expects new vehicle sales to decline to 16.7 million units in 2018, after dropping to 17.1 million for the full year in 2017. If that forecast comes true, the race to move new vehicles off dealers' lots will only intensify next year. Brandon Mason, a director at PwC's automotive practice, said a worrying trend for the industry was a rising number of subprime loans. He said subprime levels are at just over 20 percent of originations, against more than 30 percent prior to the Great Recession, but recent increases remain a concern. "That's a bit of a red flag," Mason said. "It's something to keep an eye on as we move into 2018." November results by automaker: General Motors: Sales fell 2.9 percent, with sales to consumers flat against the same month in 2016. Much of the decrease was driven by lower fleet sales. GM said strong SUV and crossover sales pushed its average transaction price for the month above $37,000 for the first time. The level of unsold cars, which has been a concern for analysts and the industry, rose slightly to 83 days' supply, from 80 days at the end of October. "More vehicles are sold in December than any other month, and we are very well positioned because we have momentum in so many segments, but especially in crossovers," said Kurt McNeil, U.S. vice president of sales operations. Fiat Chrysler Automobiles: Fleet sales are low-margin, and FCA in particular has targeted a significant reduction in this type of sale in 2017. It posted a 4 percent overall decrease in sales for November, but fleet sales were down 25 percent while sales to consumers were up 2 percent on the year. Ford: The No. 2 U.S. automaker reported a 6.7 percent increase for the month, with fleet sales up nearly 26 percent and retail sales 1.3 percent higher than in November 2016.