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Toyota finds profit in Europe thanks to hybrid sales

In the land of diesel, Toyota appears to be making money its own way and thereby making more of it. The Japanese automaker is taking on Europe's diesel-centric ways by substantially boosting sales of hybrids on the continent. That, along with cost cutting measures, has increased the company's European profitability, Automotive News says, citing recent remarks by Toyota's European operations chief Didier Leroy. Toyota, which lost money in Europe between 2008 and 2011, started turning things around two years ago by cutting labor at places like UK factories while consolidating production of models such as the Auris and Yaris hybrid vehicles. During the most recently completed financial year, Toyota Europe reported earnings that were up 75 percent from the year before, despite revenue being up just five percent. The company also aims to sell at least 1 million vehicles in Europe by next year and is boosting sales in countries like Russia. Late last year, Didier told Bloomberg News that Toyota's European market share was rising about one percentage point a year, while production at Toyota's factories in countries like France, Turkey and the UK were running at full capacity. Toyota estimated at the time that hybrids accounted for about a fifth of Toyota's European sales.

10% of Toyota China dealers may drop due to losses

News about the auto industry in China is usually positive thanks to booming sales and an ever-increasing number of factories across the country. But in some cases, it appears that the dealers with the job of actually selling all of those vehicles are having trouble finding buyers. The result is cars piling up on lots and showrooms resisting against automakers. Japanese automakers already face a tough road to success in China, but the FAW-Toyota joint venture is especially struggling this year. According to Bloomberg, as many as 10 percent of the dealers might have to close or stop selling the brand because they just can't make money selling the vehicles on their lots. Also, 95 percent of the showrooms are reportedly losing money. The issue facing FAW-Toyota sellers is mostly a case of supply and demand. Automakers in China mandate the number and types of vehicles that dealers sell. However, the inventory from all makes is at its highest level since August 2013, according to Bloomberg. The situation leaves dealers with packed lots, and cars often require discounts to move. Making matters harder is that showrooms have annual sales targets, which are linked to bonuses. This money can account for over half of the sellers' annual profits, according to Bloomberg. The FAW-Toyota dealers are pushing back by asking Toyota for 2.2 billion yuan ($355 million) to pay for costs associated with the extra inventory. It also lowered sales targets by six percent earlier this year and has requested no increase in the numbers for 2015. News Source: BloombergImage Credit: Nelson Ching / Bloomberg via Getty Images Earnings/Financials Toyota Car Buying Car Dealers

Toyota recalls pre-collision system on Avalon and ES models

Toyota is recalling 31,000 US examples of the 2013-2015 Avalon, Avalon Hybrid, Lexus ES350, and ES 300h because the Pre-Collision System could potentially cause an accident. According to the company, it's possible for the safety aid to misidentify a steel joint or plate in the road as a hazard and apply the brakes. The sudden, unexpected activation could lead to a crash. Toyota spokesperson Cindy Knight told Autoblog that the company has reports of two accidents in the US related to this issue, and there are also two alleged injuries. The company has no reports of fatalities. Toyota is taking a serious approach to deal with this problem. First, the company plans to disable the system on these sedans. Once the parts are available, dealers will replace the system with improved components. The company doesn't yet know when these repairs will begin, but owners should receive notification of the recall in November, according to Knight. Toyota isn't alone in needing to tweak safety equipment. Ford faced a similar issue when the company recalled 36,857 examples of the 2015 F-150 because passing a large, reflective semi could inadvertently activate the collision warning system. An update for the adaptive cruise control module software fixed the problem. TOYOTA RECALLS CERTAIN AVALON AND LEXUS ES VEHICLES TORRANCE, Calif., November 3, 2015 – Toyota Motor Sales, USA, Inc. today announced that it is conducting a safety recall of approximately 31,000 Model Year 2013-2015 Avalon, Avalon Hybrid, Lexus ES350 and ES300h sedans. In the involved vehicles, under certain situations, the PCS (Pre-Collision System) could interpret a steel joint or plate in the roadway as an object that triggers PCS activation. If this occurs, the PCS warning buzzer sounds and the system may apply the service brake automatically. Unexpected braking could increase the risk of a crash. For all involved vehicles, the PCS function will be disabled as an interim remedy. As the permanent remedy, Toyota dealers will replace PCS components with improved ones. Information about automotive recalls, including but not limited to the list of involved vehicles, is subject to change over time. For the most up-to-date Safety Recall information on Toyota, Lexus or Scion vehicles, customers should check their vehicle's status by visiting toyota.com/recall and entering the Vehicle Identification Number (VIN). Safety Recall inquiry by individual VIN is also available at the NHTSA site: safercar.gov/vin.