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Toyota close to unveiling 4th-generation Prius hybrid

The timing isn't perfect, but Toyota is getting close to rolling out the next generation of its Prius gas-electric hybrid car. Low gas prices have depressed sales of hybrids, with Prius sales falling 14 percent in the first five months of this year. The US government expects gasoline to average $2.44 a gallon this year, compared with $3.36 a gallon in 2014. North American CEO Jim Lentz said Thursday that the new Prius will get better gas mileage than the old one and is better looking. He cautioned that reports of a 15-percent improvement in fuel economy are probably too high. The current Prius gets an estimated 50 mpg in combined city and highway driving. He also said the new version has a lower center of gravity for better handling. Lentz said Toyota, the market leader in hybrid sales, will continue to develop new hybrids even though sales of alternative-fuel cars as a segment are down about 15 percent for the year. "With lower fuel prices, it's having an impact on the entire segment," he said. "But long term, it's still the player. We've seen these rises and falls in fuel prices in the past. " Lentz wouldn't say exactly when the fourth-generation car will debut. The Prius was last revamped six years ago in 2009. Lentz made his remarks Thursday at a groundbreaking ceremony for a $126 million expansion of its technical center on two campuses near Ann Arbor, MI. The moves will bring about 335 jobs to the area from other Toyota locations. The AP contributed to this report.

Toyota sells off Tesla shares, too

The incredible rise of Tesla's stock price has done little to now stop two major shareholders from ditching their stake in the American EV manufacturer. First, Daimler, parent company of Mercedes-Benz, ditched its four-percent stake, and less than a week later, Toyota is doing the same thing, selling off an undisclosed bit of its Tesla investment.
The move comes as Toyota winds down sales of the RAV4 EV, which gets its batteries and electric motor from Tesla at the company's Fremont, CA factory.
"We have a good relationship with Tesla, and will evaluate the feasibility of working together on future projects," Toyota spokesperson Kayo Doi told Bloomberg via email.

Kayaba, Sumitomo to pay millions for price-fixing in US

Kayaba Industry Co, which does business in the US as suspension parts maker KYB, and Sumitomo Electric Industries are facing payments in the millions to settle price-fixing cases about the components that they make. As part of the Department of Justice's ongoing crackdown of price fixing in the auto industry, KYB agreed to pay $62 million and pleaded guilty to conspiracy to set the cost of shock absorbers from the mid '90s through 2012. The company allegedly worked with co-conspirators to keep the cost of the parts high, and those components then made it into vehicles from Honda, Kawasaki, Nissan, Subaru, Suzuki, and Toyota. "Any collusive agreement among competitors to restrict price competition undercuts our free enterprise system and violates the law," said Carter M. Stewart, US Attorney of the Southern District of Ohio, in the DoJ's announcement. Over the past few years, the DoJ has brought cases against 37 parts suppliers and 55 executives, leading to over $2.6 billion in fines. The investigations haven't always been so successful – some of the Japanese execs fled from the US to avoid prosecution. Critics allege that price fixing is simply how business is done. According to Automotive News, Sumitomo Electric Industries is also facing a $50 million settlement in a civil lawsuit that's related to price fixing of parts like wiring harnesses and heater control panels. The plaintiffs include owners and dealers that purchased vehicles with these parts. The company asserts that the violations are from before 2010, and it now has different process in place to avoid further violations. KYB Agrees to Plead Guilty and Pay $62 Million Criminal Fine for Fixing Price of Shock Absorbers Kayaba Industry Co. Ltd., dba KYB Corporation (KYB) has agreed to plead guilty and to pay a $62 million criminal fine for its role in a conspiracy to fix the price of shock absorbers installed in cars and motorcycles sold to U.S. consumers. According to charges filed today, KYB conspired from the mid-1990s until 2012 to fix the prices of shock absorbers sold to Fuji Heavy Industries Ltd. (manufacturer of Subaru vehicles), Honda Motor Co. Ltd., Kawasaki Heavy Industries Ltd., Nissan Motor Company Ltd., Suzuki Motor Corporation and Toyota Motor Company, including their subsidiaries in the United States.