Jochen Eckel/Bloomberg

Updated: Aug. 11, 2010

In 2008, Toyota achieved its long-held goal of becoming the No. 1 carmaker in the world,
passing General Motors, which had been the leader since 1931. Shortly after Toyota gained that
distinction, global auto sales plunged, leading to a loss for the fiscal year of $4.8 billion, the
largest in the company's 72-year history.
As Toyota returned to the black in late 2009, its reputation for safety and quality were battered
by a series of recalls that would eventually total more than eight millions cars worldwide. The
issue of unintended acceleration would lead the company through a bruising gantlet of
government investigations, lawsuits from crash victims and one of the heaviest fines ever
imposed on a car manufacturer in the United States.
In January 2010, responding to mounting pressures, the company announced it would
temporarily stop building and selling eight models in the North American market. A month later,
Japanese authorities told Toyota to investigate reports of faulty brakes on the Prius, a centerpiece
of the nation's cutting-edge technology. Approximately 437,000 of its 2010 flagship Prius hybrid
and other gas-electric models were recalled worldwide.
Despite a strong yen and the lingering fallout from recalls, Toyota returned to a profit in the
April-to-June quarter of 2010, because of strong sales in emerging markets and aggressive cost-
cutting.
In another glimmer of good news in August 2010, a U.S. government investigation into
complaints of sudden acceleration of Toyota vehicles found no evidence of flawed electronics in
58 of the vehicles that crashed.
Toyota has recalled nearly nine million Toyota and Lexus vehicles worldwide to correct
problems involving floor mats and sticky pedals, and lawmakers and some drivers have long
suggested that a malfunction in the electronic throttle control system of the vehicles might
explain some of the reports of sudden acceleration.
Read More...
The government's preliminary report supports Toyota's contention that electronics were not at
fault and that many of the reports of sudden acceleration might actually have been instances of
human error -- drivers mistakenly pressing the gas pedal instead of the brake.
Toyota's own examination of sudden acceleration reports, however, has found instances of sticky
pedals and so-caled pedal entrapment, problems it has been fixing on the recalled vehicles.
Federal officials said those problems are real and that their report should not suggest otherwise.
Learning From Detroit
Over the years of its rise to the top, Toyota has made no secret of how much it has learned from
Detroit. Its first car, the AA, was a blatant copy of (or an homage to) a Chevrolet sedan. Its
executives scoured every corner of the Ford Motor Company in the 1950s, taking home ideas to
Japan that later inspired the Toyota Production System. The joint venture it launched with
General Motors in Fremont, Calif., taught it how to manage American workers, lessons it put to
work throughout its factories not only in the United States but in its plants around the world.
Toyota's decades of growth came after, and with, a number of setbacks. After World War II,
Toyota resorted to making dinnerware and fish paste before it could get its factories running
again. The first car it marketed in the United States, the Toyopet, was such a bomb that it was
forced to shut down its dealerships and reopen two years later. Despite its reputation for building
high quality, fuel efficient cars, Toyota took a couple of slaps in the years after 2000, when its
recalls spiked and it was criticized for building the gigantic, gas-guzzling Tundra pickup truck.
In 2002, the automaker's executives set an ambitious goal to own 15 percent of the global auto
industry by 2010, meaning it would surpass General Motors as the world's largest carmaker. To
get there, it would have to grow by 50 percent. It would have to build new plants in the United
States, China, and elsewhere in Asia, and introduce dozens of new models.

It managed to win bragging rights as the world's biggest car company. But that focus on rapid
growth appears to have come at a cost to its reputation for quality, creating an opportunity for
others to potentially take back market share they lost to Toyota.
Recalls
Toyota's November 2009 recall was intended to fix a design flaw that could cause the gas pedal
to become trapped under the floor mat. It was prompted in part by the crash of a Lexus sedan that
ran out of control and crashed into a ravine near San Diego, killing four people. But the
automaker and federal safety officials continued to receive reports of unintended acceleration
and stuck pedals even in cases where the floor mats had been removed, a stopgap measure
recommended by Toyota.
As more details have emerged about the problems, Toyota has faced questions over whether it
routinely fixed potentially dangerous defects in new models without recalling those already on
the road.
In announcing the second recall, the carmaker said the accelerator pedal could wear down and
become difficult to depress, slow to spring back or get stuck partly depressed. The company said
its engineers developed and "rigorously tested" a remedy involving reinforcing the pedal to
eliminate excess friction. On cars and trucks already sold, dealers have been performing what
Toyota said was an "effective and simple" process that involves installing a steel reinforcement
bar into the pedal assembly to reduce the surface tension that might cause it to stick.
The Prius recall was the result of a software glitch leading brakes to fail. The fix, which would
be handled by dealers, would take about 40 minutes for each car, the company said.
Separately, Toyota also recalled 7,300 of its latest-model Camrys in the United States to fix a
power steering pressure hose in the engine compartment; the defect might deplete the braking
fluid, interfering with braking, Toyota said in a statement.
In April 2010, after a rare "don't buy" warning in Consumer Reports, Toyota quickly suspended
sales of its 2010 Lexus GX 460 sport utility viehicle and without any prompting from the
National Highway Traffic Safety Administration. Consumer Reports said the luxury sport utility
vehicle failed to prevent its rear end from sliding sideways during sharp turns.
The same month, the carmaker agreed to pay a $16.4 million fine, one of the heaviest imposed
on a car manufacturer in the United States, for concealing information related to its sticking
pedal recall. The fine did not release Toyota from civil or criminal actions. Numerous lawsuits
have been filed by crash victims and relatives of people killed in crashes seeking billions of
dollars. The Justice Department and the Securities and Exchange Commission has also been
investigating the automaker's actions.
Signaling a Shift in Corporate Culture
Since Akio Toyoda, the company's president and grandson of its founder, traveled to Washington
in February to appear before a House committee, the company has been at pains to show it is on
top of its quality crisis. It has named executives in each of its six regions to watch over quality;
formed an outside advisory panel led by Rodney Slater, the former secretary of transportation, to
give an independent look at future steps to take; and sped up the pace in which it decides to
recall cars.
Analysts say it is far too soon to say if Mr. Toyoda can change his company's structure. But
interviews with current and former executives at Toyota, government regulators and others who
deal regularly with the company suggest that he has, in the least, begun to bridge the gap
between the company's hidebound corporate culture and its biggest and most important market,
the United States.
At its annual shareholders' conference in June, Toyota disclosed that it had docked the pay of its
top management by 10 percent to help atone for the company's recent problems, which have led
to the recalls of more than nine million vehicles worldwide. Mr. Toyoda and other top executives
also forfeited bonuses for the second consecutive year.
In July 2010, the carmaker acknowledged for the first time that an internal review found sudden-
acceleration complaints to be valid.
A Toyota spokesman, Mike Michels, said the company's investigation inspected the vehicles and
downloaded data from onboard recorders if a crash occurred. The study found sticking
accelerator pedals in a small number of vehicles and a larger number with floor mats that
interfered with pedals. None of the vehicles with a sticking pedal was involved in a crash, he
said.
The review pointed to human error in most instances when a vehicle crashed while the driver
was trying to brake, Mr. Michels said. Nearly all of the crashes in those instances resulted from
"pedal misapplication," meaning the driver mistakenly pressed the accelerator instead of the
brake, he said.
No less than three committees in Congress have been examining the Toyota recalls and the
response to them by the National Highway Traffic Safety Administration.
The government has received more than 3,000 complaints of sudden acceleration involving
Toyota vehicles, but investigators from the safety agency were able to study the data recorders in
just 58 vehicles. The recorders provide information only in the case of a crash.
In the report to Congress released in August 2010, the agency said that in 35 of the 58 accidents,
the data recorder did not indicate that the brakes had been applied -- suggesting the possibility
that the drivers had mistakenly floored the gas pedal instead of the brake. In 14 of the vehicles
analyzed, there were indications that the driver had braked; in 9 of the cases, the brakes had been
pressed "late in the crash sequence," the report said. One recorder showed that both the brake and
the accelerator pedals had been pressed.
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Company Information
TOYOTA MOTOR CORPORATION is a Japan-based company mainly engaged in the
automobile business and financial business.The Company operates through three business
segments. The Automobile segment is engaged in the design, manufacture and sale of car
products including passenger cars, minivans and trucks, as well as the related parts and
accessories. The Finance segment is involved in the provision of financial services related to the
sale of the Company's products, as well as the leasing of vehicles and equipment. The Others
segment is involved in the design, manufacture and sale of housings, as well as information and
communication business.
Toyota Motor Corporation
1 Toyota-cho Toyota-shi ACH 471-8571 Japan
Phone: +81 565282121
Fax: +81 565235800

Web site
ARTICLES ABOUT TOYOTA MOTOR CORPORATION
Newest First | Oldest First
Page: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Next >>
Toyota Turns to Consumers for 'Ideas'
By STUART ELLIOTT
Toyota's new ad campaign is aimed at repairing the automaker's reputation.
November 08, 2010
Toyota Turns to Consumers for 'Ideas'
By STUART ELLIOTT
Toyota Motor continues on the journey to repair its reputation with a campaign using the theme
"Ideas for good" that will seek suggestions from consumers. The campaign, to be introduced on
Monday, invites consumers to come up with new ways to use five existing Toyota Motor
technologies
November 08, 2010
Toyota Earns $1.2 Billion and Raises Forecast Slightly
By THE ASSOCIATED PRESS
Like other Japanese exporters, Toyota is fighting damage from a strong yen that erodes the value
of overseas earnings.
November 6, 2010
October Best Month for Auto Sales in 2 Years
By NICK BUNKLEY
October was the best month for new-vehicle sales in more than two years outside of the
government rebate program in 2009.
November 4, 2010
Panasonic Invests $30 Million in Tesla
By DEALBOOK
Panasonic is investing $30 million in Tesla Motors, the U.S. maker of electric sports cars, eyeing
expansion in the global market for green vehicles, the companies said Thursday.
November 04, 2010
Toyota Retrofits 2.2 Million Vehicles With Smart Pedals
By CHRISTOPHER JENSEN
The Smart Stop system is designed -- under some circumstances -- to override the gas pedal and
cut power to the engine. Toyota announced the system as part of its effort to deal with
unintended acceleration concerns.
November 03, 2010

Electric Cars Make Japan’s Gas Engine Industry Anxious

By HIROKO TABUCHI
Spurred by fears of the eventual demise of gasoline engines, car manufacturers and parts makers
are joining forces to prepare for the future.
November 3, 2010

Toyota Is Recalling 1.5 Million Cars for 2 Problems

By HIROKO TABUCHI
Problems with the brakes and the fuel pump led to the latest recall, which the company said
reflected an effort to be more active in addressing potential flaws.
October 22, 2010

A Canvas You Can Paint With Cash - 2011 Scion tC - Review

By JONATHAN SCHULTZ
The revamped Scion tC continues the previous model’s value proposition — offering lots of
standard features and a sporty profile — but its new look is a bit plain.
October 10, 2010
Toyota Says 65% of Recall Repairs Are Done
By NICK BUNKLEY
The automaker said the rate of complaints about sudden acceleration had fallen 80 percent since
April.
October 5, 2010

VW Pushes to Pass Toyota

By DAVID JOLLY and JACK EWING
Managers of Volkswagen are serious when they say they want to be the world's largest auto
maker.
October 2, 2010
Toyota Settles Over Death of Family in High-Speed Crash
By NICK BUNKLEY
The family died in a 2009 crash that had been documented in a 911 call and drew nationwide
attention.
September 19, 2010
Toyota Bolsters Scion Lineup
By PAUL STENQUIST
The Scion line is about to get bigger.
September 17, 2010
Toyota to Offer Six New Hybrid Models in 2012
By MARY CHAPMAN
Toyota and Tesla Motors will introduce an all-electric version of the RAV4 S.U.V. at the Los
Angeles auto show in November.
September 16, 2010
Toyota Plans Electric and Hybrid Autos by 2012
By NICK BUNKLEY
The Japanese car company, which makes the Prius hybrid car, expects to increase its product line
in the next few years.
September 14, 2010
SEARCH 1190 ARTICLES ABOUT TOYOTA MOTOR CORPORATION:
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Price Chart
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Stock Snapshot
Friday's open $75.54
Thursday's close $75.25
52-week range
52-week high $91.97
52-week low $67.56
Market capitalization 118.4B
Avg. volume (10-day) 946.6K
Shares outstanding 1.6B
Dividend (yield) $0.98 (1.30%)
Ex-dividend date 09/27/2010
Key Fundamentals
P/E ratio 17.6x
Earnings per share $4.29
Revenue $245.5B
Profit margin 1.98%
Return on equity 5.49%
Fundamentals are for the trailing 12 months
View financials »

Quarterly Earnings

Analyst Ratings
Buy 1
Outperform 1
Hold 0
Underperform 0
Sell 0
Consensus Buy
(As of 11/05/2010)
Executive Officers
Executive Title
Fujio Cho Chmn. since 2009
Akio Toyoda Pres. since 2009
Kazuo Okamoto Vice Chmn. since 2008
Katsuaki Watanabe Vice Chmn. since 2009
Yoshimi Inaba Corp.Exec. since 2009
Company Events
• On December 6, 2010, TM will pay an estimated $0.49 dividend per share.
• On February 4, 2011, TM will announce quarterly earnings for 2011Q3. The consensus
earnings estimate is $0.54 per share.
Headlines Around the Web
What's This?

Designing Safer Small Cars: Pininfarina's Nido

November 13, 2010
Petrobras in 10-year, $820M contract to supply Toyota Tsusho with ethanol for Bio-PET
project
Cult of Mac
November 13, 2010
The Designer Behind Those Stunning Apple Mosaic Portraits
Jalopnik
November 13, 2010
Unchain the 1986 Toyota Turbo Truck
TheNewsTribune.com - Sports
November 13, 2010
Tough day at area teams at 4A state volleyball
AutoblogGreen
November 12, 2010
Tesla Motors shares surge to $29.36; a 73% increase over IPO price
More at Blogrunner »
Toyota Navigator
A list of Web sites about Toyota as selected by editors of The New York Times.

RELATED SITES
Official Site
Official Blog
Company History
Toyota's NASCAR Page
Toyota Future/Concept Cars
Toyoland
Enthusiast site, with unofficial history.
History of the Corolla
"The most popular car line in history."
Jalopnik.com
A witty site on cars.
Windingroad.com
Web-based car magazine.
Autoblog.com
Car news.
Multimedia
 Interactive Feature
A Toyota Timeline
In recent months, the Japanese automaker has recalled about eight million cars worldwide over
gas pedals that could stick or become caught on floor mats.
• Toyota Recall Coverage
More Multimedia »
Toyota Profit Quadruples In Q2
Last Updated: 2010-11-06T10:10:12+05:30
World’s top automaker Toyota has announced a four-fold increase in its second quarter profit
despite massive recalls of its variety of models over safety issues.

As per the report released on Friday, Toyota reported profit of 98.7 billion yen ($1.2 billion), up
from $ 21.8 billion a ...

A.R. Rahman, The New Brand Ambassador For Toyota Etios

Last Updated: 2010-10-16T16:48:07+05:30
Oscar Award Winner A.R. Rahman is the new brand ambassador for Toyota’s Etios model, the
company announced on Saturday. Rahman would also create new theme music for the Etios’
campaigns, Toyota said.

The Etios model for the Indian market would start rolling out from this ...

Toyota Kirloskar To Hike Vehicle Prices From Oct 1

Last Updated: 2010-09-30T13:13:23+05:30
Toyota Kirloskar Motor would hike its vehicles prices by up to Rs. 29,000 starting this October
1, the company announced on Wednesday.

Toyota’s well-known models including Innova, Corolla Altis and Fortuner will be priced higher
up to 1.50 per cent, Toyota said.

“The ...

Toyota To Recall 1.13 Million Corolla And Matrix Models

Last Updated: 2010-08-27T14:17:33+05:30
Toyota will be recalling about 1.13 million models of Corolla and Matrix cars in North America
and 2 lakh units in Canada, the company announced on Thursday. Toyota ordered for recall after
witnessing certain safety issues in these models.

The models with the 1.8-liter four-cylinder engine ...

Toyota Planning For Low-Cost Car For Emerging Markets?
Last Updated: 2010-07-30T12:54:41+05:30
Toyota Motor Corp is planning to launch a low-cost car model by 2012, reports said on Friday.

According to sources, Toyota is building a new compact model targeting emerging markets
including China and Southeast parts of Asia. Toyota, however, has not revealed or confirmed
any of these ...

Toyota Recalls 400,000 Cars In US

Last Updated: 2010-07-30T10:14:47+05:30
Japanese carmaker Toyota has recalled more than 400,000 cars in the US over fears of defects in
the steering system, the company said Thursday.

The recalled models include 373,000 Toyota Avalons sold between 2000 and 2004, and 39,000
2003-07 LX 470s from its luxury Lexus ...

Toyota Corolla Altis Diesel Car In India

Last Updated: 2010-07-22T14:46:12+05:30
Good news for all the Toyota Corolla Altis lovers, now, Toyota Corolla Altis diesel has been
launched. The price of this long awaited diesel version starts from Rs 10.95 lakh.

It has a 1400 cc D-4D diesel motor. The car is likely to provide a smooth driving experience with
intercooler and ...

Toyota: Diesel Version Of Corolla Altis Arrives

Last Updated: 2010-07-21T12:56:57+05:30
Toyota has launched its premium sedan Corolla Altis for the India market on Wednesday. The
new Corolla Altis comes as a diesel version with varying models including D4DJ, D4DG and
D4DGL.

The new models have priced between Rs 10.95 lakh and Rs 13.75 lakh (ex-showroom Delhi),
with the ...

Toyota To Recall 2,70,000 Cars Including Lexus Model

Last Updated: 2010-07-03T14:29:56+05:30
Toyota would once again recall about 2,70,000 vehicles globally to fix the engine defects. The
company would recall 1,38,000 Lexus models to fix the faults in engine component.

Sources said that it would cost the company up to $228 million. The company will be soon filing
the ...

Toyota Plans For Resuming Production At China Plant

Last Updated: 2010-06-25T16:12:47+05:30
Toyota Motor is planning to resume its production at its plant in China, reports said.

The company would probably restart the production which was halted due shortage of supplies.
Production is likely to be restarted on Monday as the company is expected to get supplies from
its ...

Toyota To Focus More On Rural Areas

Last Updated: 2010-06-21T13:57:19+05:30
Toyota Kirloskar Motor is planning to focus on rural areas with its plan to sell about 40 percent
of cars in these areas.

With the rural market accounting for significant share in the automobile industry, the company’s
plan to focus on these markets is significant. Toyota is planning ...

Toyota Halts Production In China

Last Updated: 2010-06-19T15:31:47+05:30
Toyota’s production operations at its China facility has been stopped as the company ran out of
supply. The employees at company’s supplier plant went on strike which affected the supply of
key materials to Toyota.

The company said its production at Tianjin, near Beijing has ...

Toyota Kirloskar Launches ‘Innova Special Edition’

Last Updated: 2010-06-03T14:15:28+05:30
Toyota Kirloskar Motor on Wednesday launched its ‘Innova Special Edition’ to commemorate
its fifth year of launch of Innova.

The Innova Special Edition has been priced at Rs 8.87 lakh (ex-showroom Delhi) and only about
700 units of the cars will be sold which will be available ...

Toyota To Recall 11,500 Lexus Vehicles Worldwide Due To Steering System Defects
Last Updated: 2010-05-19T11:09:10+05:30
Toyota is again in news for recalling its quality-deficit vehicles worldwide. Toyota Motor on
Wednesday said that it would recall 11,500 Lexus vehicles from worldwide because of the
defects in the steering system, sources said.

It has been reported that the company received complaints of ...

Toyota Not Accepting Fresh Bookings For Toyota Fortuner

Last Updated: 2010-05-14T12:43:27+05:30
Toyota has extended the suspension of booking Toyota Fortuner for some period as the orders
are soaring in. As reported, it has a demand of almost 5,000 units which is still not met, an
official of Toyota Kirloskar Motors said.

"The initial production of 400 units per month has been ...

Toyota Eyes 10% Market Share In India By 2015

Last Updated: 2010-05-14T09:40:03+05:30
Leading car maker Toyota Kirloskar Motor is aiming to increase its market share in India from
the current 3% to10% by 2015.
The company had earlier unveiled concept model of its compact car Etios at Auto Show South
2010 and now plans to launch the product in Q1next year.

According ...

Toyota’s Managed To Attain $1.2 Billion Quarterly Profits

Last Updated: 2010-05-12T17:31:54+05:30
The world’s leading carmaker Toyota has attained a profit of $1.2 billion as the company is
getting better of-late. Meanwhile it is fighting to completely gain back its reputation.

Toyota has achieved a profit of 112 billion yen from this January to March as against 766 billion
yen ...

Automakers- Toyota, Nissan, Maruti, Ford and Tata to shift to Mini Multi-purpose vehicle
Segment
Last Updated: 2010-05-11T17:30:28+05:30
A number of automakers like Tata, Nissan, Toyota, Ford, and Maruti are to enter into mini
Multi-purpose vehicle segment.

Sources say that the MPV market is yet new and unexplored and is said to have competitive
pricing along with a huge volume of sales are the reasons for these ...

Toyota’s Profit Expected To Raise, Despite Quality Crisis

Last Updated: 2010-05-07T16:11:10+05:30
Toyota, despite facing severe quality issues after having recalled around 9 million vehicles
across globe is expected to return to achieve profits.

Toyota’s vehicle sales in US rose to 24 per cent in April and the profit of $842 million is
expected for the fiscal year, sources ...

Toyota Reviews Its Products And Process To Gain Back Its Status
Last Updated: 2010-05-06T15:56:21+05:30
Toyota Motor Coporation which is known for its quality products is being criticised for poor
handling of public relations and media management.

According to various sources, the Toyota is now on plans to evaluate the whole company from
top to bottom.

It has asked a panel of ...

Toyota To Recall 100,000 Corollas In Brazil: Reports

Last Updated: 2010-04-24T16:56:22+05:30
Toyota is recalling about 100,000 Corolla model cars in Brazil over acceleration problems.

The report was released by a consumer protection group after discussion with the Japanese
automaker.

The recall came just after the Brazilian ministry Minas Gerais ordered a ban on the sales ...
Toyota Scores 360th Position In Forbes Ranking
Last Updated: 2010-04-22T16:21:57+05:30
Toyota Motor Corp has fallen to 360th position from 3rd in the latest Forbes ranking.

The huge drop in the ranking is the result of drop in major automaker company’s sales in the
middle of the global auto market fall.

This time only three Japanese companies managed to ...

Toyota To Recall 34,000 Lexus GX 460 SUVs Worldwide

Last Updated: 2010-04-20T10:59:03+05:30
Toyota Motor Corp has announced Tuesday that it would recall about 34,000 Lexus GX 460
vehicles worldwide to update the stability software programme.

The recall affects all Lexus GX 460 sport utility vehicles (SUV) sold throughout the world,
including about 9,400 units in the US and about ...

Toyota To Suspend Selling Lexus GX460

Last Updated: 2010-04-14T09:34:39+05:30
Toyota has announced to suspend selling its Lexus GX460 SUV after an
unusually high risk of a rollover accident during certain types of turns in the
US.

This is the latest blow to the Japanese automaker after a series of recalls to
its various models just months ago.

Toyota also ...

Toyota Faces $16.4 Million Fine From U.S

Last Updated: 2010-04-06T15:32:16+05:30
Toyota Motor Corp may be fined up to $16.4 million from U.S. regulators for willingly delaying
the massive recall of its models for defective accelerator pedals.

This will be the largest ever civil penalty that the U.S. Department of Transportation has ever
sought. However, Toyota can ...

Toyota, GM JV Ends After NUMMI Plant Closure

Last Updated: 2010-04-02T17:13:06+05:30
Toyota Motor has closed its joint manufacturing plant with General Motors (GM) in California
after about 25 years of operation.

The joint venture came to an end after the production of Toyota Corolla passenger car that came
off the assembly line recently at New United Motor Manufacturing ...

NASA To Test Toyota Electronics Problem

Last Updated: 2010-03-31T16:35:24+05:30
According to the latest information, the U.S. safety regulators are planning to approach NASA
scientists to help them in analyzing the unintended acceleration problem in Toyota cars.

According to the U.S. Transport Secretary Ray LaHood, there will be separate study on ...

Toyota Global Sales Up 13% In February

Last Updated: 2010-03-29T16:48:31+05:30
Beleaguered auto major Toyota said on Monday that global sales gained 13% year-on-year in
February. However, the analysts have warned the automaker not to ignore the effects of recall of
its models in recent past.

According to reports, the Toyota group had sold 613,845 vehicles worldwide ...

Toyota Shareholders Heading To Court With Lawsuits Over Fallen Stock Price
Last Updated: 2010-03-22T15:47:50+05:30
Toyota shareholders have been furious over a sudden drop in the Japanese automaker's stock
price and are heading to court with lawsuits. They have claimed that the company executives
deliberately misled investors and the public about the possible problems in the accelerator of
its ...

Toyota Faces Criminal Charges In Canada

Last Updated: 2010-03-18T13:12:33+05:30
According to reports, Toyota may be slapped with criminal charges in Canada for hiding
accelerator problems from motorists. However, it is trying to fix the problem soon.

Next Toyota Yaris and Corolla likely to come from South East Asia to cut costs
Mazda3-MPS
29 July 2010
By BYRON MATHIOUDAKIS
TOYOTA Australia is looking to cheaper production sources such as Thailand for its next-
generation Corolla and Yaris which it admits are too expensive from Japanese factories.

This would put both vehicles in a far more even pricing keel with most rivals, as well as help
improve the local operation’s bottom line in the wake of a disastrous $107.9 million operating
loss for its 2009-2010 financial year ending March 31.

The third-generation Yaris is due to be unveiled sometime towards the end of next year, while
small car buyers will have to wait until later in 2012 at the earliest to drive the all-new 11th-
generation Corolla.

Toyota Australia senior executive of sales and marketing Dave Buttner said switching the
sourcing for Corolla and Yaris from Japan to somewhere else could come soon enough.

“I think that any manufacturer who is locked in for the medium or longer term in Japan will
struggle in the competitive marketplace when you look at what is happening with other
manufacturers now,” he told GoAuto Media in Melbourne.
 From top: Toyota Yaris, Toyota Aygo, Toyota iQ.

“So we have to look at other manufacturing bases in the

future.

“Yaris could be Thailand – there is no definitive plan yet.

We’ve got plants in India now, so there are choices in the
region.”

Honda Australia led the way in the light-car segment when

it switched sourcing the first-generation Jazz from Japan to
Thailand for the 2006 model year. Since then it has been
followed by the recently facelifted Mazda2 and, soon, the
Ford Fiesta and next-generation K13 Nissan Micra.

This will leave the Yaris in company with only the

outgoing Nissan Micra, Mitsubishi Colt and Suzuki Swift
as ‘Made in Japan’ babies.

In the mainstream small-car class, only the Mazda3,

Mitsubishi Lancer, Suzuki SX4 and Corolla are sourced
from their Japanese parent companies’ home turf.

South Korea supplies the Hyundai i30, Holden Cruze and

Kia Cerato, while the petrol Honda Civic sedan, 2012 Mk3
Ford Focus and possibly some future Mazda3 models are or
will be out of Thailand.

Interestingly, Toyota has sourced the Corolla from outside of Japan before for Australia, with
local manufacture of the 43 year old nameplate occurring for most of its career up until 1999
(when it was ousted by the 2000 Avalon at the Melbourne plant), while some of the ninth-
generation series from 2001 to 2007 also coming out of South Africa for a time.

Today, as more manufacturers extend to low-cost labour rate sources such as Thailand, South
Korea and India (with the latter supplying the new Hyundai i20 and next year’s mooted-for-
Australia i10 runabout), Toyota Australia realises that it cannot afford to let young and first time
buyers stray.

It also is wary of the wave of cheaper Chinese light and small cars that are almost on our
doorstep, offering size and performance for a fraction of the price of Toyota’s offerings.

“We haven’t forgotten about China,” Mr Buttner said.

“But what we have to make sure with our small and compact (light) cars for the next generation
is to look at both where they are manufactured and their specification regarding safety etc.

“That’s because 75 per cent of Toyota passenger-car sales come from small and compact, and in
2005 they represented 45 per cent of the marketplace, and in 2009 that was 69 per cent.

“In terms of entry into the Toyota brand, our total loyalty (rate) is 65 per cent; and first-time
entry rate is higher for Yaris and Corolla.

“Here people are coming into our brand, having a good experience, and coming back and buying
again. So we are very focussed on those two segments in the market place.

“Trust me. We would ignore those two segments at our peril.”

Meanwhile, Mr Buttner reiterated that a model to slot in at under the $15,690 Yaris YR three-
door was still a priority for Toyota.

“We have been looking at a sub Yaris,” he said. “I have made no bones about that for a number
of years. But we have not found anything appropriate yet.

“As part of our future model line-up study it is something that we are considering.”

On pricing grounds he quelled speculation that the next-generation Aygo – a sub-B segment
hatch co-developed with PSA Peugeot Citroen and built solely in the Czech Republic – is on the
agenda for Australia.

Sadly for Smart car-style aficionados, the lauded iQ city car is also a non-starter for Australia.

“We couldn’t bring Aygo in because it is an expensive car,” he said.

“There is always going to be niche buyers, but if you bring in product that is just niche then you
gotta have volume. And we have a large enough model range now.

“We’re trying to bring in some niche stuff, but we’re still trying to pitch it well into the
marketplace. Rukus is an example of that. So will FJ Cruiser.

“(But the iQ) is still too expensive. You could land it here at a cost, but then how many buyers
are you going to get? We’ll only sell 10 a month.”

Yet Mr Buttner is also cold on the idea of importing models manufactured by the Toyota-owned
(and small-car specialising) Daihatsu subsidiary.

“We’ve had Daihatsu cars in the past, but we’re not currently looking at Daihatsu product,” he
said.

“And you have to look at the product you put your badges on …”