Daihatsu to trim output of Toyota-brand cars in Japan

TOKYO, Oct 28 (Reuters) - Daihatsu Motor Co said on Friday it would reduce work to produce Toyota-badged cars at two Japanese factories next week due to a shortage of parts from Thailand, where floods have cut off supply.
Daihatsu, the minivehicles unit of Toyota Motor Corp , said it expects no impact from the Thai floods on its own minicar production in Japan and in Indonesia and Malaysia at least for November.

Toyota cutting back on overtime due to Thailand flooding

Flooding in Thailand means a cutback in overtime for Toyota.
That flooding caused a shortage in vehicle parts for Toyota plants nationwide.
This week, production and overtime went on as usual in Gibson County.
Toyota tells 14 News they've cancelled their "Production Saturday" and won't have any overtime next week.
They say his means a slight decrease in vehicle production.

Toyota, Honda Plants Among Hundreds Closed by Thai Floods

Honda and Toyota have stopped all production in Thailand as that nation’s floods continue to rip through industrial parks, and now threaten Bangkok.
Thailand is a major production base for the two Japanese car-makers, according to CBS.
At least five major industrial parks have been flooded (earlier coverage here) and hundreds of factories shut down, putting over 100,000 out of work. Thailand’s Central Bank said the floods’ total cost could rise to 100 billion baht ($3 billion). Since late July, the floods have killed at least 307 people, Reuters reports.
Over 200,000 people were evacuated yesterday from Thailand’s oldest industrial park, Nava Nakorn in Pathum Thani, according to Bangkok-based The Nation. About 10 percent of the estate was flooded, CBS reported.
Companies with operations there include Nestle, Toshiba, Casio, Seiko and hard drive manufacturer Western Digital, which already had to shut down production at another factory park.
The flooding is likely to affect other companies operating in other countries, as they face a shortage of key components.
And last night Bangkok’s governor said the city needs 1.2 million sandbags within 48 hours to keep the capital from flooding. The national government had said earlier on Monday that the flood threat to Bangkok appeared to be subsiding.
Because of the floods, industry has called on the government to ditch plans for a 40 percent rise in the minimum wage, Reuters reports. Thai authorities instead pushed back the start date for the increase, from January 1 to April 1.
The change will set the minimum wage at 300 baht a day for Bangkok and six other provinces, with lower wages for the rest of Thailand’s 77 provinces.

To Our Shareholders and Other Investors

We would like to take this opportunity to express our deepest appreciation to our shareholders and other investors for your support of Toyota Industries Corporation and the Toyota Industries Group.

First of all, we would like to extend our most heartfelt condolences and prayers to the people and their families who are suffering or have lost their lives due to the Great East Japan Earthquake that struck the country on March 11, 2011. We sincerely hope for the early recovery of the disaster-stricken areas.

As the economies in and outside Japan move toward recoveries, the Toyota Industries Group undertook efforts to ensure customer trust through its dedication to quality as well as responding quickly and flexibly to the global economic recovery trend for our sales expansion. However, the Great East Japan Earthquake had a significant impact on the Japanese economy. Toyota Industries was also forced to suspend production partially due to the problem of parts supply from suppliers.

As a result, despite the earthquake aftermath effects, we were able to achieve increases in both sales and profit. Including the interim cash dividend of 25 yen per share, which was paid in November 2010, Toyota Industries will pay a year-end cash dividend of 25 yen per share, with total cash dividends for fiscal 2011 amounting to 50 yen per share.

For the foreseeable future, although the global economy is projected to gradually recover, uncertainties remain with regards to credit contraction, further deterioration in the employment situation and fluctuations in raw material prices such as crude oil, as well as concerns about exchange rate fluctuations. The operating environment in Japan is expected to remain severe, as the impacts of the earthquake on the economy could become more serious or prolonged.

Amid this environment, Toyota Industries has been striving for early normalization of production activities, which have been adversely affected by the disaster, through flexible operations and supplier support. We will also proceed with business structure and cost structure reforms to realize a solid business structure so that we can weather any changes in the business climate. As we aim to strengthen business activities in existing markets, primarily in developed countries, and accelerate business development in fast-growing emerging country markets, we will carry out meticulous market surveys in respective regions and release products closely tailored to each market's characteristics and needs.

In the medium to long term, we remain firmly entrenched in the concept of quality first. Upon the recognition that responding to the environment and safety as well as improving our international competitiveness are key issues to tackle, we will continue to engage in customer-oriented development of products and advanced technologies based on 3Es (energy, environmental protection and ecological thinking).

In closing, we ask our shareholders and other investors for your continued understanding and support.

Auto safety bill prompted by Toyota incidents is in doubt

Senate legislation that would create major new safety standards and increase fines for automakers in violation of federal rules is running into Republican opposition and may never be put to a vote. The most comprehensive overhaul of motor vehicle safety laws in a decade, which once seemed certain in the wake of Toyota’s sudden-acceleration problems, may never reach a vote in Congress.

Read more on Chicago Tribune

Ford Gains On Toyota In ‘Consumer Reports’ Survey

Ford Motor Company has risen almost to the top of an annual brand perception survey by Consumer Reports . The Detroit automaker is now just behind Toyota, after its years-long effort to improve quality coincided with devastating recalls by Toyota.
Read more on NPR

Related Posts

• Ford Gains Ground On Toyota For Consumers
  Ford Gains Ground On Toyota For Consumers Ford Motor Co. has gained ground on rival Toyota Moto...
• Despite recalls, Toyota continues to rank high in quality survey
  Despite recalls, Toyota continues to rank high in quality survey Associated Press Wednesday, Oc...

Toyota Signals Shift on Plants

TOKYO—Toyota Motor Corp. has signaled it may relocate unprofitable manufacturing capacity overseas, a possible turning point for its longtime commitment to maintaining its production base in Japan.
Toyota President Akio Toyoda said his company will strive to keep its current manufacturing mix, but may move production capacity due to unfavorable foreign-exchange rates and other factors. "If we are simply unable to make a profit...we may be forced to move our production elsewhere," he said in a statement posted on the company's website on Friday.
Mr. Toyoda also said his company plans to begin implementing a more decentralized management structure globally. That effort to delegate more decisions to regional managers is part of a new corporate strategy to "not use the logic that Toyota has developed for Japan" for its overseas operations.
Mr. Toyoda said this was one of several measures planned as part of an effort that he dubbed "Toyota restart," an initiative by the company to cope with the fallout from a massive recall of a year ago. He designated the date of the "restart" as Feb. 24, a reference to the date that Mr. Toyoda appeared before a U.S. Congressional committee last year to testify about the recall of the company's cars.
The statement came in the form of a New Year's message ahead of the release of a long-term strategic plan in April called "20/20 Vision." It didn't provide details on any locations or specific factories.
Toyota typically has used exports from its factories in Japan to adjust to short-term changes in demand and supply abroad. That has become a more critical function for more of these facilities as the Japanese vehicle market has shrunk year-on-year for the past several years.
Mr. Toyoda's statement indicates this role may no longer be tenable as a result of the yen's rise close to all-time highs.
Japan's leading auto maker also produces all but one of its Lexus luxury vehicle models at its factories in Japan, which has crimped profit growth as the yen has appreciated rapidly over the past year.

 More In Auto Industry News

Routine Toyota Service in MA Available at Woburn Toyota

Car owners know that car maintenance is vital to keep a safe and reliable car.  While no one looks forward to it, Toyota owners turn to Woburn Toyota to help them with routine maintenance.  Toyota service in MA helps car owners keep up with scheduled maintenance, which can be prevent future breakdowns and accidents. 

The service center at Woburn Toyota is proud to serve Boston Toyota service customers with quality car maintenance and repairs and will help car owners keep up with routine maintenance. 

General car maintenance, such as routine oil changes, tire rotations, fluid flushes and filter replacements, are all affordable procedures that will keep all vehicles in their best shape and in ideal driving conditions.   

Some of these procedures can be done by car owners, such as filter replacements.  Car owners can purchase the correct filter for their vehicle at the part’s department at Woburn Toyota or have them replaced at the dealership during their next car service.  Filters that should be checked at a future visit include air filters, fuel filters and cabin filters.

Routine oil changes are among the easiest and most important things to keep up with.  

Be sure to make an appointment at the service center at the dealership serving Boston Toyota service shoppers or stop by the dealership for an oil change.  Oil changes are recommended every 3,000 miles.  Routine oil changes ensure that the car and engine are running efficiently.

Car owners who do not keep up with oil changes will run into problems when their vehicle has old oil or not enough oil.  Problems such as an engine overheating or other major problems can occur and result in high repair bills.

Fluid flushes should also be kept up with.  Coolant/antifreeze flushes, brake system flushes and transmission fluid services also help to keep all vehicles in top shape.  The technicians at the Toyota service center in MA will let drivers know when their vehicle is in need of one.

Tire rotations are also important to lengthen the lifespan of tires.  Tires should be rotated about every 5,000 miles or about every other oil change.  Tire rotations are important because they prevent tires from wearing unevenly, which can cause a car to lean and lead to safety problems.  Tire pressure should also be monitored, especially in the winter.  Car owners should make sure that they have the correct about of pressure in their tires for safety and optimum fuel efficiency.  Too low pressure wears down tires and tire treat and overfilling tires can cause tire blowouts.

Important inspections, such as inspections on brakes, front end, under-carriage, belts, hoses and battery, should be done routinely to ensure that everything is in best shape.

Toyota owners near Boston can keep up with these routine maintenances by having regular tune ups and checkups at Woburn Toyota.  Car owners will find that their vehicle will perform better and be in a much better driving condition.

For more information or to schedule an appointment at the Toyota service center in MA, contact Woburn Toyota at 800-649-0400 or visit http://www.woburntoyota.com/.

About Woburn Toyota: 
Woburn Toyota has served Toyota shoppers since 1967. The dealership carries a large inventory of new Toyota vehicles as well as used and certified used vehicles from top brands.

Contact Woburn Toyota: 
394 Washington Street
Woburn MA 01801
Sales- 877-275-1907
Service- 800-649-0400

New Toyota Prius Line Up Coming Monday

Word began to leak out more than a year ago that Toyota would grow its line of hybrids under the Prius name, transforming it from a mere model into a brand itself. It then teased an image out of a new Prius in October. And now the company says it will unveil an unspecified new Prius vehicle on Jan. 10, at the 2011 North American International Auto Show in Detroit.

Toyota was quite coy in making the announcement, saying simply, “In addition to the current third-generation Prius and Prius Plug-in vehicle (PHV), the first all-new addition to the Prius Family will debut along with a Prius concept vehicle.”

Of course, such behavior only invites intrepid auto hounds to ferret out the information, and various news organizations, blogs and chat rooms have apparently known for a while that what Toyota will show off is a hybrid Prius MPV. Car and Driver, which reported this news back in October, said the minivan was chosen to lead off the new Priuses in part because “the MPV was the vehicle most requested by current Prius owners.”

image via Toyota

To get folks ready for the new Prius, Toyota roped  X Games champion skateboarder Bob Burnquist to do a sneak peak video. You can see it below, though frankly there isn’t much to see yet.

Like what you are reading? Follow us on RSS, Twitter and Facebook to learn more and join the green technology discussion. Have a story idea or correction for this story? Drop us a line through our contact form.

Related Stories

• ’04-’07 Priuses Need New Water Pump
• Getting To Know Green Hybrid Cars
• Toyota SEMA Prius Dresses To Impress
• Upgrade Kit Aims To Make Prius A Badass
• Toyota UK Pimps Out 10th Birthday Prius

Insurers take on Toyota in acceleration lawsuits

LOS ANGELES (AP) — Hundreds of disgruntled drivers have sued Toyota Motor Corp. over its sudden acceleration issues, hoping to get paid for their safety concerns with Toyota vehicles. The Japanese automaker now faces a more formidable opponent that legal experts say has plenty of time, money and resources to challenge it in court: insurance companies.

Seven insurers filed a lawsuit in Los Angeles last week, looking to recoup more than $230,000 to cover crashes blamed on sudden acceleration. Allstate Corp. also sued Toyota late last year.

While Toyota brushed off the latest litigation and said disputes between automakers and insurance companies are common, legal experts say the world's No. 1 automaker can't be pleased that it's squaring off against an industry that knows its way around a courtroom.

"This isn't David vs. Goliath," said Tom Baker, a professor at the University of Pennsylvania Law School. "This has to be the worst news that the general counsel of Toyota has gotten in a while. If I'm Toyota and I see name–brand insurance companies suing me, I am definitely paying attention."

Working in favor of the insurance companies is an industry database that can give insurers information about accidents nationwide. That potentially damaging evidence could make its way into other lawsuits alleging Toyota is responsible for injuries, deaths, and falling resale values on the more than 10 million vehicles Toyota has recalled since late 2009.

"Presumably they are going to bring in experts and resources on the questions that haven't been answered," said attorney Christine Spagnoli, who has won several multimillion–dollar verdicts against automakers over safety defects. "They made the decision to put in the investment to prove their case, so they must be convinced there is a viable claim."

Insurance companies have played pivotal roles before. State Farm Mutual Insurance Co. said in 2000 that it tipped the National Highway Traffic Safety Administration two years earlier about crashes involving Firestone ATX tires that were later recalled for safety concerns.

NHTSA has said it has received about 3,000 reports of sudden acceleration from Toyota drivers in the past decade, including 93 deaths. The government, however, has confirmed only five deaths from two crashes.

In the insurers' lawsuit filed Dec. 30, the companies cite data compiled by an automative safety research group that sudden acceleration incidents have accounted for at least 725 crashes. The lawsuit accuses Toyota of failing to disclose known defects and not equipping its vehicles with a fail–safe measure that would cause a car to idle if the brake and gas pedals are pressed at the same time.

Among those that sued are Fireman's Fund Insurance, National Surety Corp., Motorists Mutual Insurance and American Hardware Mutual Insurance. Allstate's similar lawsuit filed in October seeks $3 million in compensation.

Toyota has blamed driver error, faulty floor mats and sticky accelerator pedals for the unintended acceleration and denies there is a design defect, as is alleged in some lawsuits that have been consolidated before a federal judge inOrange (News - Alert) County.

The U.S. government fined Toyota $48.8 million for its handling of three recalls dating back to 2004, and it was recently disclosed that the automaker paid $10 million to the family of four people killed in an August 2009 crash involving a runaway Lexus.

Insurers likely revel in suing another major entity because often times they find themselves as defendants, said Los Angeles–based lawyer Brian Kabateck, who has sued major banks for discriminatory lending practices. Although a potential payout will be a drop in their financial bucket, insurance companies are aware their involvement in a major lawsuit can have a significant impact.

"It's like giving a kid the keys to a candy store," Kabateck said. "If I was Toyota I would just groan."

View All Associated Press Articles

Japanese Stocks Advance, Boosting Topix to Its Best First Week in 15 Years

Japanese stocks climbed, boosting the Topix index to its best first week in 15 years, as carmakers rose on speculation U.S. demand will expand and employment will improve in the world’s largest economy.

Toyota Motor Corp., the world’s No. 1 carmaker, rose 2.2 percent and Bridgestone Corp., the world’s largest tiremaker, jumped 2.6 percent after PricewaterhouseCoopers LLP said car assembly in North America may increase 5 percent this year. Inpex Corp., Japan’s largest oil and gas explorer, sank 1.7 percent and Mitsubishi Corp., the country’s biggest commodities trader, lost 1 percent after crude and metal prices fell. Resona Holdings Inc., Japan’s fourth-largest bank by market value, slumped 4 percent after a report of a share sale.

“Investors can’t find convincing factors either to buy or sell stocks,” said Ayako Sera, a strategist in Tokyo at Sumitomo Trust & Banking Co., which manages about $310 billion. “Investors need a push to buy shares and that might be the coming U.S. jobs data.”

The Nikkei 225 Stock Average climbed 0.1 percent to 10,541.04 at the close in Tokyo, after falling as much as 0.3 percent. The broader Topix advanced 0.2 percent to 926.42. The Topix gained 3.1 percent this week, its best yearly start since 1996. The Nikkei also rose 3.1 percent.

Economists expect a U.S. Labor Department report today to show employment improved in December in the world’s largest economy.

Carmakers Gain

Carmakers were the biggest support to the Topix. Toyota gained 2.2 percent to 3,455 yen, contributing the most to the Topix’s gain. Nissan Motor Co., Japan’s third-largest automaker, jumped 4.4 percent to 861 yen.

Bridgestone, a tiremaker that gets more than 40 percent revenue from the Americas, gained 2.6 percent to 1,643 yen and its smaller rival Sumitomo Rubber Industries Ltd. climbed 0.9 percent to 867 yen. Rubber-products makers had the largest advance among the Topix’s 33 industry groups.

Automobile assembly in North America may increase 5 percent this year to 12.6 million vehicles, Anthony Pratt, automotive senior analyst of PricewaterhouseCoopers’s Autofacts team, yesterday said in a presentation in Detroit.

Inpex and Japan Petroleum Exploration Co., the nation’s second-largest oil explorer, both slumped 1.7 percent. Oil companies had the biggest drop in the Topix’s 33 industry groups.

Commodity Prices Drop

Mitsubishi, which gets about 40 percent of its sales from metals and energy, lost 1 percent to 2,349 yen. Mitsui & Co., a trading house that counts commodities as its biggest source of profit, fell 0.7 percent to 1,417 yen.

Crude oil for February delivery declined 2.1 percent to $88.38 a barrel in New York yesterday. The London Metal Exchange Index of six metals including copper and aluminum dropped 0.2 percent yesterday, falling for a second day. Gold futures for February delivery declined for the third straight day yesterday.

The Topix and Nikkei 225 yesterday both closed at their highest levels since May, with gains of about 15 percent in a rally that began Nov. 1. Stocks in the Topix were valued at 15.9 times estimated earnings on average at yesterday’s close, compared with 13.5 times for the Standard & Poor’s 500 Index and 11.1 times for the Stoxx Europe 600 Index.

The 25-day Toraku index, a measure of daily stock winners and losers in Tokyo, reached 141 yesterday, the highest reading since Dec. 22. A level of more than 120 suggests to some investors the market is overheating.

“Investors are getting concerned about overheating in the short-term,” said Juichi Wako, a senior strategist at Tokyo- based Nomura Holdings Inc. “Investors will likely be in a wait- and-see stance ahead of the jobs data.”

Resona dropped 4 percent to 523 yen. The lender confirmed, after trading closed, report that it will raise as much as 575 billion yen ($6.9 billion) selling shares in a global public offering this month to repay government bailout funds.

To contact the reporter on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net.

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

Japanese Stocks Advance, Boosting Topix to Its Best First Week in 15 Years

Japanese stocks climbed, boosting the Topix index to its best first week in 15 years, as carmakers rose on speculation U.S. demand will expand and employment will improve in the world’s largest economy.

Toyota Motor Corp., the world’s No. 1 carmaker, rose 2.2 percent and Bridgestone Corp., the world’s largest tiremaker, jumped 2.6 percent after PricewaterhouseCoopers LLP said car assembly in North America may increase 5 percent this year. Inpex Corp., Japan’s largest oil and gas explorer, sank 1.7 percent and Mitsubishi Corp., the country’s biggest commodities trader, lost 1 percent after crude and metal prices fell. Resona Holdings Inc., Japan’s fourth-largest bank by market value, slumped 4 percent after a report of a share sale.

“Investors can’t find convincing factors either to buy or sell stocks,” said Ayako Sera, a strategist in Tokyo at Sumitomo Trust & Banking Co., which manages about $310 billion. “Investors need a push to buy shares and that might be the coming U.S. jobs data.”

The Nikkei 225 Stock Average climbed 0.1 percent to 10,541.04 at the close in Tokyo, after falling as much as 0.3 percent. The broader Topix advanced 0.2 percent to 926.42. The Topix gained 3.1 percent this week, its best yearly start since 1996. The Nikkei also rose 3.1 percent.

Economists expect a U.S. Labor Department report today to show employment improved in December in the world’s largest economy.

Carmakers Gain

Carmakers were the biggest support to the Topix. Toyota gained 2.2 percent to 3,455 yen, contributing the most to the Topix’s gain. Nissan Motor Co., Japan’s third-largest automaker, jumped 4.4 percent to 861 yen.

Bridgestone, a tiremaker that gets more than 40 percent revenue from the Americas, gained 2.6 percent to 1,643 yen and its smaller rival Sumitomo Rubber Industries Ltd. climbed 0.9 percent to 867 yen. Rubber-products makers had the largest advance among the Topix’s 33 industry groups.

Automobile assembly in North America may increase 5 percent this year to 12.6 million vehicles, Anthony Pratt, automotive senior analyst of PricewaterhouseCoopers’s Autofacts team, yesterday said in a presentation in Detroit.

Inpex and Japan Petroleum Exploration Co., the nation’s second-largest oil explorer, both slumped 1.7 percent. Oil companies had the biggest drop in the Topix’s 33 industry groups.

Commodity Prices Drop

Mitsubishi, which gets about 40 percent of its sales from metals and energy, lost 1 percent to 2,349 yen. Mitsui & Co., a trading house that counts commodities as its biggest source of profit, fell 0.7 percent to 1,417 yen.

Crude oil for February delivery declined 2.1 percent to $88.38 a barrel in New York yesterday. The London Metal Exchange Index of six metals including copper and aluminum dropped 0.2 percent yesterday, falling for a second day. Gold futures for February delivery declined for the third straight day yesterday.

The Topix and Nikkei 225 yesterday both closed at their highest levels since May, with gains of about 15 percent in a rally that began Nov. 1. Stocks in the Topix were valued at 15.9 times estimated earnings on average at yesterday’s close, compared with 13.5 times for the Standard & Poor’s 500 Index and 11.1 times for the Stoxx Europe 600 Index.

The 25-day Toraku index, a measure of daily stock winners and losers in Tokyo, reached 141 yesterday, the highest reading since Dec. 22. A level of more than 120 suggests to some investors the market is overheating.

“Investors are getting concerned about overheating in the short-term,” said Juichi Wako, a senior strategist at Tokyo- based Nomura Holdings Inc. “Investors will likely be in a wait- and-see stance ahead of the jobs data.”

Resona dropped 4 percent to 523 yen. The lender confirmed, after trading closed, report that it will raise as much as 575 billion yen ($6.9 billion) selling shares in a global public offering this month to repay government bailout funds.

To contact the reporter on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net.

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.