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Toyota plans to increase plants in North America
Toyota’s North American planning group is considering building another North American assembly plant. The planning group considered the increase in sales they have experience in the past few years, and they’re now projecting their increase in the American market through 2010. The group suggested that Mexico would be the best place to build a new production plant for exportation to the U.S.
Steve Sturm, vice president of North America planning for Toyota Motor Sales U.S.A. Inc., declined to offer details about Toyota’s projection of sales in the U.S.
In 2005, the company produced 1.56 million units in North America, 63 percent of its North American sales. Its goal is to produce in each region at least 60 percent of its sales. (See story at right.)
Plans suggested by the North American planning group must be approved by Toyota headquarters in Japan, he says.
Sturm says the planning group is exploring a broad expansion of powertrain production. "Our engine and drivetrain manufacturing needs to grow in proportion with new assembly plants," Sturm says.
Over the past decade, Toyota’s North American sales have grown by an average of 8 percent annually. If things continue at that rate, Toyota’s sales growth will outpace its local production growth.
Toyota will gain volume from its existing products becoming more popular and from new vehicles.
Consulting firm CSM Automotive forecasts Toyota will manufacture close to 2.1 million units in North America in 2010. Plants already under construction or previously announced will handle most of this increase.
Mike Jackson, director of North America vehicle forecasts for CSM, said Toyota might expand some existing factories, such as plants in San Antonio and Baja California, Mexico.
If Toyota does build a plant in Mexico, it would assemble the Yaris (a subcompact car they’re releasing to replace the Echo).
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Fast cash for world’s largest automaker
GM is heads over heals right now trying to figure out how to make their company profitable. They’re laying employees off, closing plants, cutting pension plans, and selling their cornerstone stock in GMAC for a quick $14 billion.
Rick Wagoner, GM Chairman and Chief Executive, believes this move will sustain the company for a turn around from its $10.6 billion loss in 2005. However, many investors still don’t believe this "quick fix" will actually fix anything in the long run.
GM had to have been in one of the tightest corners ever to sell their stake in GMAC. So, I’m starting to believe that things are worse than they seem.
In the context of history, the last six months are going to prove to be pivotal," Wagoner said at a news conference. "This is about restructuring our business so we can be robustly profitable in the future, so we’re not so balanced on a razor’s edge (that) if gas prices go up, you don’t make any money, if your sales go down 10 percent you don’t make (any money)."
But GM’s shares sank more than 3 percent after the announcement as analysts questioned whether the cash infusion would have a lasting impact on GM’s outlook and major credit ratings agencies indicated the deal may not lead to an investment-grade rating for the finance arm.
Nothing is looking good for GM at the moment. I surely hope this $14billion is enough to get them back up and running.
I know this is an extremely serious matter and I don’t mean to lighten it at all, but I can’t help but wonder how a company gets in such a bad position where $14 billion is not enough to ensure success?
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Auto News: GM sticks with plan
GM will continue to lower prices instead of offering discounts and incentives for the next year.
GM began of lowering the price of their cars with the "American Revolution" ad campagn. Now, instead of offering rebates and extras with their vehicles, GM’s vehicles will actually be cheaper than the competition.
GM announced this news while they continue to lose market share against fierce competitors.
General Motors Corp. expects its U.S. market share to continue to fall in the first quarter of this year due to aggressive competition, but said that won’t reverse its strategy of lowering prices and relying less heavily on discounts, GM marketing officials said Monday.
"We’re certainly not pleased with current share levels and we’re not satisfied with it, but we have to run this play," said Paul Ballew, GM’s executive director of market and industry analysis, in a teleconference with analysts.
GM is in the same boat as the rest of the American auto world. Maybe, once this pricing program matures, there will be forbearance of profit, eventually.
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AutoNation did not meet the expectations of Wallstreet Journal
AutoNation announced that they did not meet expectations in the first quarter. In fact, Q1 was not their best performance.
AutoNation blames the folly on unbelievably high interest rates and towering stock option costs.
Of course, making a dealership a successful dealership is not as easy as it was at one time, says Chairman and Chief Executive Officer Mike Jackson. Jackson also insists:
revenue should be flat to slightly higher compared with the $4.62 billion recorded a year ago, but added that rising interest rates hurt its earnings by 2 cents per share and stock options reduced results by another penny.
It’s not looking like a good start in ’06 for the auto world. I’m sure this news affected everyone in the auto industry and there will be a ripple affect accordingly up the line all the way to the auto manufacturing sector.
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Harley-Davidson is opening a dealership in China
Harley-Davidson is opening a dealership in mainland China and is planning to open next month. This will mark the first dealership outside the United States since WW II. Harley-Davidson is also going for a "first-class" experience when building the show room and other parts of the dealership.
The dealership will have 14 staff members initially and be headed by Feng Huo Lun’s founder, owner and executive director Wan Jidong. Foley said Wan and his management team are passionate about riding motorcycles and understand the market in China.
The dealership will sell several makes of Harley-Davidson motorcycles, parts, accessories, merchandise and collectibles. Sales and service will be offered, as will rider training and events including organized rides.
Entry into the Chinese market is expected to be gradual because the market is limited by ownership and riding restrictions in most large cities and on highways, Harley-Davidson said. A population with a limited, but growing, disposable income will also prove a challenge, it said.
This is really neat. It’s odd to see an American company exporting to China. Heck, it’s odd to see any company exporting TO China. They seem to be always exporting.
Nice to see the US sharing a great product like the quintessential American motorcycle. Though, I just can’t see very many Chinese driving a Hog.
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You must look for the best deal
Most people are looking for the best rate on their auto warranty. For many it’s the deciding factor as to which warranty they choose. This just isn’t smart…
We all know cost is a great indicator of auto warranty choice. In fact, it may also be YOUR choice. However, to ensure you have a warranty in place that’s reliable, it’s not all you should be looking at:
- Price
Yes, price is important, but don’t let that be all you notice.
- Trust
Is the company established? Is it a member of the BBB? Are they visible online? Are their contact details prominently located?
Don’t end up with a great price on a useless auto warranty.
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Five car seats to protect your infant
Our families are the most important things in our lives, and we’ll do everything and anything to protect them.
It is important essential to make sure our kids are buckled properly. Making sure your kids are properly buckled in and quiet is a challenge in itself. But, as parents we have the parental obligation to research the best methods and products for buckling our infants in car seats. So, here are the top five rated car seats for infants. Some of them may be a bit pricey, but consider what they offer.
#1 The "Britex Companion" model is the top rated infant car seat. The seat retails for approximately $170.
The Britax also features Easy harness adjuster and side-impact material. Now while all of that sounds great, if you are on a tight budget, you might just want to check out our number two car seat…
#2 The "Safety 1st Designer" has everything the "Britex" has, it’s just $90 less. However, can a cheaper seat be just as good as the more expensive one? The simple answer is, yes. If you’re on a tight budget the "Safety 1st designer" is the best choice.
#3 The"Peg Perego Primo Viaggio" is much simpler to operate than to pronounce… But, it is a bit pricier than the “Safety First" car seat. The "Peg Perego Primo Viggio" retails around $170 with about the same features as the others.
#4 "Graco" is a very popular brand and has been around for a while. But, as some of you may know, there were recalls on some of the Grarco infant seats. However, every company has their set of recalls, and since the recall, "Graco" has managed to fix and improve their car seats. The “Graco” car seat is around $80 and is a great buy.
#5 The "Baby Trend LATCH-LOC Adjustable Back" comes in at 5th place. The "Baby Trend LATCH-LOC" is a formidable car seat but lacks some of the features of the others. When purchasing this car seat, you’re mainly buying the "Baby Trend" name brand. While the seat is only $90, it is still holds less value than the "Graco" or "Safety 1st" car seat.
Those are the top five infant car seats from consumerreports.com
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10 secrets that could help you
Cars.com has devised 10 "secrets" that the mainstream consumer is oblivious of. These secrets can help you get the best deal, save gas, and be informed when purchasing or maintaining your automobile. Here are three:
1. The Best Finance Rates
Dealers aren’t required to give you the best finance rate. Many consumers finance their vehicles through the dealership. Sometimes this involves the best deal, especially when subsidized by the automaker. However, if a dealer claims to have found you the "lowest rate," it’s possible that rate includes a point or two of profit for the dealer. (There’s no federal law forbidding this.) To be sure and get the best rate, look into it on your own before entering the dealership.
2. Dealers Don’t Own the Cars They Sell
Dealers don’t own the cars they sell, and neither do the manufacturers. Instead, the bank — sometimes in the form of the captive finance company — owns them.
3. Cordless Hybrids
Hybrids don’t need to be plugged in. Understandably, many people think hybrids run on electric power until their batteries die, and then they switch to a gasoline engine. While some plug-in hybrids existed as long as a century ago, all the current versions use gas engines that both propel the car and replenish the battery, which also is charged through braking. There’s some plug-in research going on, but don’t hold your breath. Automakers determined that American buyers are, well, turned off by the prospect of plugging a car into household current, so most hybrid advertising emphasizes that the model "never needs to be plugged in."
These 3 tips will save you a lot of headaches and money when it comes to automobiles. I sure wish I would’ve known some of these secrets when I was buying my first car.
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New technology from the auto world
Most Automakers are looking into the future. However, it looks like Nissan maybe the first off the line with the next generation of safety features. Nissan’s newest development is the "Safety Shield" which is an "an electronic system that helps drivers control the distance between their car and the vehicle in front."
The system uses a front bumper-mounted radar sensor to determine the following distance and the relative speed of both cars. If the driver releases the gas pedal the system automatically applies the brakes. If the system itself determines that braking is required (presumably because the vehicle ahead is slowing), the driver is alerted by a lighted indicator and a buzzer, and the gas pedal automatically moves upward to "assist the driver in switching to the brakes."
This distance control assist system with pedal feedback will be very helpful in high traffic areas and in low traffic areas, where the drivers alertness may be at risk. There has been no word when this new technology will see production.
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A breakdown of where your money goes when you buy gas
Gas prices are a hot topic here at AutoWarranties.com, but I want to make sure everyone knows where his or her money is going. That’s what being a smart investor is all about, right? And, with the fluctuation of gas prices, it’s only natural for people to wonder in amazement about the rapid change in prices from day to day.
Crude oil: Crude oil suppliers require the largest share of the pie at about 45%. This share is determined by the oil-exporting nations and the Organization of the Petroleum Exporting Countries (OPEC) in particular. The price of one barrel of crude oil depends on how much crude oil these oil-exporting countries produce.
Taxes: Federal and local taxes take about 31% of the price you pay at the pump. Federal excise taxes account for about 18 cents per gallon, while state excise taxes require about 20 cents per gallon.
Refining costs: Refining crude oil makes up approximately 13% of the price you pay at the gas pump.
Distribution and marketing: The costs of transporting and marketing gas make up about 13% of the price of gas. Crude oil must be transported from oil-producing countries to refineries, then the gasoline must be transported to distribution points, and then lastly to the gas stations that fill your tank.
Gas station markups: There is no set percentage for this number. Gas stations are at their own discretion as to how much to add on to the price in order to actually make a profit on the gas that they sell. Some stations (usually the larger ones) will only tack on a couple cents, while others will add a dime or even more.
There you go! A simple breakdown of where each penny goes when you buy gasoline.
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