Japanese production figures for November, 2008 highlight the grim economic news facing all auto makers. Production decreased for Toyota and all of its subsidiaries in Japan when compared with November, 2007. Sales in Japan were generally down compared with last year; Daihatsu did see an increase in sales.

Daihatsu sold approximately 51,000 minivehicles (up 5.1%) for a 33.5% share of the minivehicle market in Japan. Toyota and Hino sales both decreased, including Lexus.

Exports also decreased for Toyota and all of its subsidiaries. Overseas production decreased for Toyota but increased for Daihatsu, mainly in Indonesia.

Worldwide production of all vehicles for Toyota and its subsidiaries for the year to date (January – through November 30) reached 8,666,843 vehicles (a 1.3% decline in production compared with the same figure in 2007). Figures for November are much more grim- 665,583 vehicles produced worldwide in November marks a frightening 24.8% drop in production when compared with November 2007.

Toyota, possibly the world’s largest automaker, may start cutting jobs in North America for the first time since it arrived in 1984, according to Jim Wiseman, head of North American external affairs. Its Texas truck plant has been idled for 15 weeks, and a planned Prius plant has been put on hold due to a drop in sales. Workers of the Texas plant famously stayed on the payroll when the Tundra factory stopped producing trucks. Toyota added training, efficiency efforts, and community service.

In Japan, where Toyota has a lifetime employment policy, full time workers have not been terminated since 1950. Toyota is expected to lose $1.7 billion for the fiscal year, but has large reserves.

Many have criticized domestic American automakers for having high costs, including a large number of retirees. This will, however, be the first time in many years that Toyota has had to cut production by any substantial amount. Running factories at less than full capacity increases the cost per vehicle, especially if engineering and depreciation costs are included.

Toyota has scaled back its projections for fiscal year 2009 based on the deepening global economic crisis and expectations of a strong yen. The original forecast called for a decline in sales and profits; these revisions anticipate a steeper decline in both.

In light of the revised figures, Toyota will post its first operating loss since it began reporting in 1941. The only other loss the company ever posted was in 1938. Toyota expects an operating loss of 150 billion yen ($1.66 billion). In contrast, Toyota had an operating profit of 2.27 trillion yen ($25.2 billion) during FY 2008. Toyota does still expect a 50 billion yen ($555 million) net profit, but it is the operating income that is generally seen as a more accurate representation of the core business.

Toyota’s sales in the US have fallen to their lowest levels in 26 years. During FY2008, Toyota sold 8,913,000 vehicles worldwide. Its new estimate for FY2009 is 7,540,000 vehicles. The strong yen further cuts profits due to the exchange rate.

At a press conference, Toyota President Katsuaki Watanabe stated, “The tough times are hitting us far faster, wider and deeper than expected.” Watanabe has promised that Toyota will grow so lean that it will realize profitability even if worldwide sales fall to 7 million vehicles- what he called the “bottom line” for Toyota. Watanabe added that the economic situation “is an unprecedented crisis requiring urgent action.”

Toyota announced a new collaboration with eBay Motors, allowing all Toyota Certified Used Vehicle (TCUV) dealerships to showcase certified used vehicle inventory on the eBay Motors Certified Pre-Owned Showroom.

The new relationship with the world’s largest online marketplace aims to provide TCUV with a greater presence on the Internet and increase consumer awareness of the Toyota Certified Used Vehicles brand.

“We’re very pleased to work with eBay Motors in support of our dealers and customers alike,” said Steve Gallagher, marketing operations manager for Toyota Certified Used Vehicles. “Dealerships benefit from added exposure of their vehicle inventory while our customers gain another avenue to find the right vehicle.”

Effective December 17, 2008, consumers can search classified listings on http://www.motors.ebay.com to view TCUV inventory from Toyota dealerships within their local area. Through the site, customers can educate themselves on all the benefits that come with a Toyota Certified Used Vehicle, then connect directly with the dealer to expedite the purchase process.

The TCUV program combines the confidence of purchasing a new vehicle with the value of a used vehicle to provide a “like new” ownership experience. Toyota certified used vehicles offer consumers a smart alternative to traditional used car options and give them the peace of mind they seek in a used vehicle. TCUV posted sales of 253,855 vehicles this year through November, an increase of 1.5 percent over the same period last year.

Toyota announced plans to increase use of plant-derived, carbon-neutral* plastics in more vehicle models, starting with a new hybrid vehicle next year. The TMC newly developed plastics, collectively known as “Ecological Plastic”, are to be used in scuff plates, headliners, seat cushions and other interior vehicle parts. Within 2009, TMC aims for Ecological Plastic to account for approximately 60 percent of the interior components in vehicles that feature it.

There are basically two types of Ecological Plastic—that produced completely from plant-derived materials and that produced from a combination of plant- and petroleum-derived materials. Because plants play a role in either type, Ecological Plastic emits less CO2 during a product’s lifecycle (from manufacture to disposal) than plastic made solely from petroleum; it also helps reduce petroleum use.

Ecological Plastic adequately meets the heat-resistance and shock-resistance demands of vehicle interiors through the use of various compounding technologies, such as those allowing molecular-level bonding and homogeneous mixing of plant-derived and petroleum-derived raw materials. And being equal to conventional plastics in terms of quality and productivity means that it can be used in production vehicles.

TMC continues to develop various advanced technologies aimed at realizing sustainable mobility and believes that it is important to increase the availability of such technologies in the marketplace. As such, TMC became the first automaker in the world to use 100-percent plant-based plastics in production-vehicle interior parts when it launched the Japanese-market “Raum” in May 2003, featuring Ecological Plastic that used polylactic acid and other all-plant-based materials. TMC intends to pursue research and development and practical application that result in expanded use of Ecological Plastic in vehicle parts.

*Zero net CO2 emissions over an entire product lifecycle

Due to falling sales, Toyota said it was going to delay construction of the new Prius plant in Blue Springs, though it is 90% complete now. The plant will be finished on schedule, but production equipment will not be installed until markets recover.

The plant was originally intended for Highlanders, but rising gas prices caused Toyota to alter its plans, building Highlanders in Princeton and displacing Tundra/Sequoia production there.

The Prius is the best selling hybrid vehicle in the world, and was the world’s first mass-production hybrid car; but U.S. sales of the mid-sized car fell 48% in November as gas prices dropped. A new Prius will be unveiled in January at the Detroit auto show, but it is not expected to enter production until mid-2009 at the earliest.