The U.S. Environmental Protection Agency (EPA) has awarded Toyota Motor Engineering & Manufacturing North America, Inc., (TEMA), with a 2008 ENERGY STAR Sustained Excellence Award in recognition of its continued leadership in protecting our environment through energy efficiency. TEMA was honored for its long-term commitment to energy efficiency and management across its ten manufacturing operations in the U.S.

“Protecting the environment by reducing greenhouse gas emission while improving energy efficiency is a top priority of our team members,” said Steve St. Angelo, TEMA Senior Vice President. “Our commitment to the environment is a strong business case that not only helps our bottom line, but demonstrates our goal to be the most admired in town in the communities where we do business.”

Examples of energy improvement at TEMA’s U.S. facilities include:
• Replacing plant lights with new technology efficient lights, saving $500,000 annually and reducing CO2 emissions by 10,242 metric tons, equal to 730 homes.
• Reduce weekend and non-production energy usage, saving $103,000 annually and reducing CO2 emissions by 1,596 metric tons, equal to 115 homes.
• Reduce water use during the paint process, saving $185,000 annually and reducing water use by 50 gallons per vehicle.

Since 2002, Toyota has reduced its overall energy usage per vehicle by 21 percent and CO2 emissions per vehicle by 20 percent, equals to 17,000 homes. These overall energy savings equate to savings of $26 million.

Scion announced manufacturer’s suggested retail prices (MSRP) today for the 2009 model year xB urban utility vehicle and tC sports coupe. The xB will arrive at dealerships later this month while the tC will arrive in May.

The xB underwent a major model change in 2008, but this year carries over with only a change in exterior color. Stingray Metallic will replace Nautical Blue Metallic. The base MSRP for the xB is $15,750 with a five-speed manual transmission and $16,700 for the four-speed automatic with sequential shifting. Prices for both configurations represent an increase of $100 or 0.6 percent.

The sporty 2009 tC also carries over with only a minor change- updated seat fabric. Prices for both the automatic and manual transmission remain the same as the 2008 models. The tC with a five-speed manual transmission has a base MSRP of $17,000; the four-speed automatic transmission model carries an MSRP of $17,800.

All Scions come mono-spec with a generous list of standard features including a 160-watt maximum output Pioneer audio system with iPod connectivity and auxiliary port; power steering, windows, door locks and mirrors; cruise control; remote keyless entry; air conditioning; four-wheel anti-lock brakes with electronic brake assist; driver and front passenger airbags; front seat-mounted side airbags; front and rear side curtain airbags; and tilt steering wheel with audio controls.

An additional $620 delivery, processing and handling (DPH) fee is added to all Scion models and is not included in the MSRP. DPH fees for vehicles distributed by Southeast Toyota (SET) and Gulf States Toyota (GST) may vary.

According to the Michigan-based RDA Group, Ford is approaching Toyota and Honda when it comes to vehicle quality. Ford managed 1,284 “things-gone-wrong” (TGW) per 1,000 vehicles during the first three months of ownership this year, statistically matching the two top Japanese brands, which are tied at 1,250 TGW. Ford’s performance in this study marks an eight-percent improvement over the previous year, at which time they were tied with Toyota, but trailing industry-leader Honda.

Attempting to capitalize on that finding, Ford initiated an ad campaign that makes the statement, “Ford’s quality is now equal to Toyota’s.” Unfortunately, this ad campaign may not be as effective for Ford as it is for Toyota. It implies two things- that Ford quality has been poor and that Toyota quality is the standard of excellence to reach.

Ford has been working very hard on its image these days, but faces a large perceived quality gap. For its part, Ford has been making tremendous improvements in quality in the past few years; however it’s surprising to see an advertisement that points to the excellence of a competitor.

I can think of no higher compliment to Toyota than the fact that Ford is riding its coattails. I can think of no sadder commentary on Ford than that it feels it has to. Toyota has been the most profitable car company in the world for a long time. Last year, it officially passed GM to become number one in worldwide sales; and it has passed Ford to become number two in US sales. Toyota has long been a strong force in worldwide motorsports; last year it entered major NASCAR competition. This year, a Toyota Camry won a Sprint Cup race, the first non-US car to do so since 1954.

Toyota is a generation ahead in hybrid technology and is working hard to develop a technological edge in safety, efficiency and luxury. It has a longstanding reputation for quality.

Ford, after being the butt of countless jokes for decades, is finally achieving a sense of quality. The current ad campaign reflects a long history of poor quality at Ford. In many ways, Ford is getting the “You’re Special” treatment. Many of its recent accomplishments are in the “most improved” category. Ford always hoped to be number one- but after half a century at number two, Ford has fallen to number three. It doesn’t look likely to recover the status that Toyota has taken from it. Certainly not with this ad campaign.

What I get from this ad is Ford saying, “We always told you that quality was job one at Ford. It wasn’t, really. We swear, it is important to us this time. Really. In fact, we’re every bit as good as the guy that just beat us.” At least it’s not another Pinto ad.

Approximately 539,500 Corolla and Matrix vehicles sold in the U.S. are subject to a safety recall by Toyota and the National Highway Traffic Safety Administration. Also affected by the recall are 122,598 Pontiac Vibe hatchbacks. The Pontiac Vibe hatchback shares the same platform as the Matrix and is built by GM in a joint venture with Toyota.

On certain 2003 and 2004 model year Corolla and Matrix vehicles equipped with power windows, the driver and front passenger door glass bolts may loosen and come off, causing the door glass to separate from the window regulator. This may cause the window to shatter. Vehicles that are equipped with manual windows are not involved in this campaign.

Toyota said Wednesday that it was aware of 143 cases where the bolts at the bottom of the window assembly had become loose.

If this condition has occurred on the vehicle – in some cases due to the components becoming loose and possibly rattling – an abnormal noise may be heard from the driver and/or front passenger door when operating the power windows.

Toyota will notify owners of the involved vehicles with a Special Service Campaign letter via first class mail beginning in late April. Owners are requested to contact their local Toyota dealer for diagnosis and repair upon receiving their notification. Replacement of the driver and front passenger door glass bolts will be done at no charge to the owners of the vehicle.

Customers with questions or concerns should contact the Toyota Customer Experience Center at 1-800-331-4331.

There are a number of interesting rumors floating around about the future of Toyota hybrids. As a hybrid owner myself, I have been following the developments very closely. While watching for new hybrids to hit the showroom floor, I have encountered some sinister rumors about impending hybrid shortages.

First, the good rumors- Toyota has several hybrid concepts that they hope to introduce soon. These include the A-BAT, the PHEV (Plug in Hybrid Electric Vehicle) 1/X and the PHEV Prius. Also rumored to be in the works are plans for a mid-size hybrid-only model with a 2.5 or 3 liter engine. The new vehicle would include third-generation hybrid technology coupled with a larger engine than the Prius to appeal more broadly to the North American market. Rumor has it that this vehicle will come out in 2009. Another interesting rumor floating around is the chance that the new Venza, which is set for a late-2008 release will also be released as a hybrid sometime in 2009.

Now for the bad rumors- there may be a shortage of materials available to manufacture hybrids. As the appeal of hybrids spreads beyond the Prius and even beyond Toyota, precious metals used in the manufacture of batteries may become harder to find. There are indications that Toyota will slow production of the popular Prius this year because of a shortage of batteries. There are even rumors that Toyota is trying to purchase mines to protect its interest in the required materials.

Prototype PHEV Prius’ are already in use by Toyota, while the 1/X and the A-BAT concept vehicles were displayed at the North American International Auto Show in Detroit in January. But what of plans for a new mid-size hybrid or a hybrid Venza?

Currently, Toyota has not publicly admitted to any plans to release a hybrid Venza, but the Venza shares many features with the Highlander. As a crossover vehicle that is marketed as smaller and more fuel-efficient than an SUV, it’s hard to imagine Toyota not releasing a hybrid package. The only question is- will a hybrid model come as soon as 2009? With the Venza being released in 2008 and a 4-cylinder version coming out in 2009, I expect that there will be an additional wait for a hybrid version. If I had to guess, I’d say late 2009 at the earliest, but probably by early 2010. That gives the 6-cylinder and 4-cylinder Venza models a chance to mature and gain acceptance in the US market.

What of a mid-size hybrid sedan? Toyota has announced a concept hybrid sports car called the FT-HS, to be powered by a 400hp hybrid powertrain. Add to that the A-BAT and the 1/X concept, and you have a very strong field of hybrid hopefuls at Toyota. The Hybrid X made its debut at the Geneva Auto Show, but as a four-door, four seater, it does not quite fit the bill as the “mid-size sedan” that is said to more closely resemble the Camry in size. Toyota already makes a hybrid minivan (the Estima- a four-wheel-drive hybrid available in Japan) and there are rumored to be plans for a hybrid Sienna in the US soon.

With all of the innovation on a practical and conceptual level, it would be easy for Toyota to produce a new hybrid. After four years of the Prius virtually unchanged, many buyers are looking for change. The Prius will still have a place on the Toyota lot, but it just may be time for a new American hybrid- perhaps one with a slightly better profit margin. If Toyota is getting ready to release such a vehicle, it would once again shift the hybrid edge firmly back to Toyota. Thus, I get the feeling that something has to be in development. The fact that we haven’t heard about it from Toyota makes me suspect that they are closer to surprising the competition than they’re letting on. So perhaps this rumor is true- or at least close.

As to the chance of a hybrid shortage, there are reports that this may be a problem in the future. Toyota has announced that production of the Prius will decline in 2008 because of production issues. “Our volume on Prius was up 67% (in 2007),” said Toyota GM Bob Carter. “That was a supply-restricted 67% increase. That’s 181,000 cars. We can’t repeat that, no way, even though the demand may be there. We just can’t keep up. So you will see much more moderate growth because of the supply.” Is production being held up by the battery?

It may be more complicated than that. The battery is needed for Camry, Highlander and Lexus hybrids as well as the Prius. It only makes sense that priority would go to these higher-profit vehicles during even a slight battery shortage. As of yet, there are no reports of a shortage of these Toyota hybrids. In fact, no other manufacturer is reporting difficulty keeping up with hybrid demand. Of course, no other hybrid vehicle is approaching 188,000 units in a year.

There seems to be growing concern about the availability and cost of the precious metals that are required for hybrid batteries. According to a report in Asahi Shimbun, there are rumblings on the part of Toyota executives to look into options, including acquiring mines. In March, 2007, senior Toyota advisor Hiroshi Okuda shocked a gathering by inquiring, “Is there a way we could purchase an entire mine?” Mining precious metals would be a drastic step for Toyota, mainly because the process is often viewed as environmentally unfriendly. Toyota president Katsuaki Watanabi has made Toyota’s position clear, “Without co-existence with the environment, Toyota has no future.”

Thus far, engineering teams have focused heavily on limiting the need for valuable resources. For example, the design of the Crown (a high-end sedan available in Japan) features an integrated electronic control unit that is free of wire harnessing, saving copper. Nonetheless, Toyota’s trading house, Toyota Tsusho Corp, has sent fact-finding teams to mines in China, Vietnam, Australia, Canada and Mongolia. The effort has been so intensive that Shigeo Nakamura of the rare metal trading company Advanced Material Japan referred to 2007 as, “the first year of Japan’s natural resource diplomacy.”

When questioned about the biggest threat facing Toyota today, President Watanabe listed his biggest concern as, “The risk of (being unable to secure) materials.” Although Toyota has made no real moves toward acquiring a mine or interests in rare metals, it has laid a strong groundwork to protect its interests in that area. In the meantime, the conversion to hybrid technology is taking place- limited not by demand but by availability of materials.

Scion unveiled its Hako Coupe Concept vehicle at the New York International Auto Show. The Hako Coupe was developed by Tokyo Design Division, which studied global, youth-inspired trends. The design team looked at both American and Japanese trends in as part of their efforts. The Hako Coupe Concept was inspired by the iconic xB and the emergence of American vintage style among young Tokyo trendsetters.

“Scion’s Hako Coupe Concept embodies a distinct global perspective on today’s youth,” said Jack Hollis, Scion vice president. “We took the xB’s iconic boxy shape and explored something more vivacious, yet just as emotionally appealing. This concept is the sporty version of a box.”

Tokyo Design developed the Hako Coupe with classic American coupes in mind. The car was given a geometric profile, trapezoidal LED headlights that lie parallel with a large and aggressive, rectangular upper grille. The lower rectangular grille anchors the front fascia and continues to communicate the Hako’s aggressive attitude. Round fog lights, symmetrically placed high on the front bumper, have integrated turn signals.

The Hako’s silhouette is accentuated by slim, race-car-inspired side mirrors that also feature integrated turn signals. Powerful, flared fenders add dimension and contrast to the concept’s boxy shape and smooth surface planes. The Hako concept hugs the road with custom 18-inch deep dish five-spoke wheels and tires with a “Scion” custom tread.

The Hako Coupe features a vertical windshield; the side windows wrap around the rear and are tinted to add an air of mystery. The concept is equipped with a flat, panorama roof that features a random, barcode-like pattern that can be seen on the exterior and from the interior.
The rear features LED taillights that echo the shape of the headlights. To complete the package, the rear bumper has an integrated fog and back up light on the left and exhaust on the right.

Inside, the Hako is accented with orange and metallic detailing. The front and rear seats are covered with urethane and rubber-like upholstery for easy cleaning. The contemporary front bucket seats flow to the floor and incorporate a geometric design on the seatback. The seats are separated by a center console. Two cockpit-like rear seats also share a storage crevice.
The orange driver’s seat has a gaming theme. Instrumentation and warning lights cascade from the art inspired instrument panel to the steering wheel. The shifter, located on the center console, resembles a large joystick. On the steering wheel is a simple button to start the engine and a track-ball type control for the Hako’s entertainment system located on the passenger dash. The entertainment system consists of two video monitor screens mounted on the dash for radio, video, and music capabilities. Users can upload their videos and music through a Bluetooth® connection. The front passenger controls the system using a large rollerball mounted on the center of the dash. A black seat differentiates the front passenger area.

Video monitors located on each door and on each side of the rear seating area project distorted fish-eye images from orange filtered cameras mounted beneath the A-pillars. While the vehicle is parked the driver and passenger can edit the scenes captured by the cameras to show their friends where they have been and perhaps even post the clip online for others to see.

“As you know, polarizing style fits in well with our lineup,” said Hollis. “And of course we love a good box. We’ll listen to the feedback from this concept to help us determine how our brand could evolve and grow over the next five years.”

SCION HAKO COUPE CONCEPT VEHICLE
PRELIMINARY SPECIFICATIONS
DIMENSIONS (inches)
Overall Length: 145.7
Overall Width: 68.1 without side mirrors
74.0 including side mirrors
Overall Height: 57.5
Wheelbase: 94.5
Ground clearance: 4.0
Wheels: 18-inch alloy wheels
Tire Size: 225/45 R18
Seating Capacity: 4
Currently, an engine type has not been chosen for the Haku Coupe.