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Akio Toyoda pledges return to WRC in 2017 with a Yaris

There have been rumors of Toyota returning to the World Rally Championship since the end of 2013, and a Yaris prepped by Toyota Motorsport in Germany has been caught on The Continent several times last year in testing. Akio Toyoda visited Rally Finland while we were there with Hyundai to watch a race up close, and he said that the passion people still had for Toyota's past exploits encouraged him. He finally answered the question about when they planned to enter the series, announcing in Tokyo that they'd line up for the season in 2017. The Japanese company, a legend in rallying, got into the sport in 1979 and left in 1999 after winning seven titles in ten years through the nineties with Carlos Sainz and Juha Kankkunen. The 2017 return is likely due to the regulation changes that year to allow more power than the roughly 300-horsepower in today's challengers and the switch to a fuel-flow formula to let manufacturers use different kinds of engines. Toyota has been sitting in on the WRC rules meetings, and the final slate of changes will be announced at the end of this year. The Yaris that's been testing is powered by a 1.6-liter, four-cylinder that meets current regulations, but we can expect it to change somewhat before it's race-ready. TMG will test the car for the next two years, then it will go up against fellow manufacturers Volkswagen, Hyundai, and Citroen, as well as Fords run by M-Sport. There's video of the Yaris running solo through the Belgian countryside above, and a gallery of the coming car below.

Recharge Wrap-up: Toyota Prius airbag recall, Peugeot launches eU01s e-bike

Toyota is recalling 7,600 Prius vehicles for an airbag issue. Certain examples of the 2016 Prius could have malfunctioning inflators that could cause the passenger side airbags to deploy accidentally. There are no known injuries from the faulty airbags, but Toyota says, "This has been observed when the vehicle is parked and unoccupied for a period of time." Toyota also says this issue is unrelated to the massive recall of airbags supplied by Takata. The automaker will contact affected owners to arrange free repairs. Read more at Automotive News. Peugeot is adding another e-bike to its portfolio with the eU01s. What sets this electrically assisted bicycle apart from both regular bikes and other pedelecs is its ability to propel the bike to 28 mph under electric power. It comes with either a 400- or 500-Wh lithium-ion battery, providing 47 or 59 miles of range, respectively. It also offers an optional on-board computer with its 4.3-inch screen, through which riders can customize the electric assistance, get directions, receive sports coaching, and connect their smartphone. Earlier this year, Peugeot also launched its e-Kick scooter and folding eF01 e-bike. Read more at Green Car Congress. BYD is expanding its manufacturing facility in the US. In the second of three phases for the plant, BYD is adding onto its factory in Lancaster, California, where it currently builds electric buses. The Chinese company plans to triple the number of employees, up from the current 400, as it expands the facility by 40,000 square feet. BYD plans to build medium- and heavy-duty trucks at the plant, but declined to comment on whether it has plans to build light-duty vehicles there. Read more at Automotive News. The German states of Hesse and Baden-Wuerttemberg are suing Volkswagen over the Dieselgate scandal. The states are joining other investors seeking damages over losses incurred because of the automaker's emissions cheat device. Hesse Finance Minister Thomas Schaefer said the scandal cost the state about $4.4 million in stock losses, while Baden-Wuerttemberg likely lost closer to $450,000. Bavaria said earlier that it would sue Volkswagen on behalf of its pension fund for civil servants, which lost around $780,000. Read more from Automotive News Europe.

Toyota sees Camry share loss despite predicting increasing sales

Toyota may be set to lose share the midsize sedan market. While speaking with Automotive News, Toyota North America CEO Jim Lentz said that if his company kept pace with the current swell in the market for family four doors, Toyota would need to sell around 500,000 Camry models. "I'm not sure we can do much more than 400 [thousand] today," Lentz said.
But that doesn't mean Camry sales are shrinking - on the contrary, Lentz thinks Toyota will likely sell more Camry units in 2013 than it did in 2012, it's just that the company isn't keeping pace with segment's current explosion in popularity. Industry wide, midsized sedan sales have increased by 20 percent. "Are we going to lose [Camry] share? Probably so," Lentz said, "but we will continue to grow in raw volume."
Toyota sold 404,886 Camry units last year, and the company just revised its 2013 sales objective from 2.18 million units earlier this year to 2.2-million plus units, so while things are looking up for the brand and Camry sales may be on the rise, Toyota may not have the muscle to keep up its share in the sedan segment. Whether that's because of a production bottleneck or a predicted sales ceiling isn't clear. We've got a call in and will update this news item if/when we learn more.