Toyota announced its production, domestic (Japanese) sales and export figures for January 2009. In light of the struggling worldwide economy, figures are down for Toyota and all of its subsidiaries. Percentage figures below represent the year-on-year change from January 2008 to January 2009.

Toyota sales in Japan are down by 23.4% but production is down by 40.3% and exports are off by 56.2%. Production outside of Japan has also fallen by 44.8%.

Toyota subsidiary Daihatsu is a much smaller producer; it’s domestic sales and production have only dropped by 1.7% and 2.7% respectively. Daihatsu exports, which were already very small, have plummetted by 78.7%; overseas production has dropped by 18.7%.

Hino, which manufactures trucks and busses only in Japan has also suffered a drop in production. Japanese demand for Hino busses is down by 27.2%; exports are down by 38.4%; and production is down by 49.0%.

Combined figures for Toyota, Daihatsu and Hino show a steep decline in Japanese domestic sales (off by 17.12%), a steeper decline in production (34.6%) and a drastic decline in exports (57.1%).

As a whole, Toyota relies heavily on exports and the collapse of the global economy along with the strong Japanese Yen have strangled those exports. While the Japanese economy is clearly struggling, the worst is still yet to come as significantly deeper export cuts take their toll on the Japanese economy- and Toyota.

Lexus ranked highest in customer satisfaction in the J.D. Power and Associates 2009 Customer Service Index (CSI) Study. Lexus achieved an overall CSI score of 835 on a 1,000-point scale, 25 points better than the next-highest brand.

The Lexus brand also led in four of five measures in the CSI Study. Those areas include service initiation, service advisor, service facility and service quality.

“We will always work hard in partnership with our dealers to improve the customer experience for Lexus buyers,” said Lexus Group Vice President and General Manager Mark Templin. “Lexus has a great working relationship with our dealers, who are the best in the business. We are proud that we’ve consistently scored very well in the CSI survey even as our sales and units in operation have grown over time.”

The 2009 CSI Study is based on responses from 106,059 owners and lessees of 2004 to 2008 model-year vehicles. The study was fielded between October and December 2008.

Toyota debuted the 2010 Tundra full-size pickup truck and a new 4.6-liter V8 engine at the 2009 Chicago Auto Show.

New packages are the Tundra Platinum Package and the Tundra Work Truck. Value will be enhanced on all 2010 Tundra models with the addition of standard and optional exterior, mechanical, safety and convenience feature upgrades. The 2010 Tundras will arrive at dealerships in April.

The new 4.6-liter V8 engine will be available on all 2010 model year Tundra models. With 310 horsepower, 327 lb-ft. of torque and internal preliminary fuel efficiency estimates of 15 mpg city and 20 mpg on the highway, the new engine will be mated with a six-speed automatic transmission.

The Platinum Package will be available on 2010 Tundra CrewMax Limited models equipped with the 5.7-liter V8 and Flex Fuel powertrains. The package contains a vast assortment of features that make the CrewMax Limited virtually monospec and will carry a manufacturers suggested retail price (MSRP) of $5,140.

On the outside, the Platinum Package includes a new Limited grade billet-style grille with chrome bumpers, unique 20-inch alloy wheels and tires, daytime running lamps, door sill protectors with a Platinum logo, and Platinum badging.

The Platinum Package will be available in four exterior colors that include Black, Silver, Slate, and Salsa Red.

Inside, the package adds features including a power memory function on the driver’s seat, outside power mirrors and puddle lamps, and a tilt and telescopic steering wheel. Also included is a power tilt and slide moonroof, navigation system, ventilated seats with a unique perforated leather seating surface, wood trimmed shift knob and door switch plates, auto up/down driver and front passenger windows, chrome accented HVAC vents and controls, and headrests with an embroidered Platinum logo.

The Tundra Work Truck Package is aimed at commercial truck buyers, or those who require a tough no-frills truck. The new work truck will be available on Tundra 4×2 and 4×4 Regular and four-door Double Cab models in standard and long bed configurations. It will be available with a V6 or one of two V8 engines including Tundra’s powerful 381 horsepower 5.7-liter i-Force V8, with a towing capability of up to 10,800 pounds.

The Tundra work truck will be offered at a reduced MSRP of $550 to $655 less, depending on the model. Final pricing of the work truck will be announced shortly before the vehicle goes on sale this spring.

On the outside, the Tundra work truck Package will include black bumpers and grille surround, replacing chrome. Power mirrors are replaced by manual outside rearview mirrors.

Inside, the truck comes with easily washable vinyl bench seats and rubber floors. Several personal-use features have been replaced or removed. Tundra’s standard silver instrument panel and HVAC controls are replaced by basic black and include voltage, oil pressure and warning lamps in place of gauges. Lighting in the ignition key ring and the glove box are removed along with map and door courtesy lamps. The package also excludes cruise control and the remote keyless entry as standard features, although separate Work Truck packages will be offered with these features.

All 2010 Tundra models receive a freshened look with a redesigned front grille and taillamp design. The Tundra and SR5 grades will receive similar grille designs and the Limited grade will be equipped with a unique billet-style grille. Additional standard equipment on all Tundra models include driver and front passenger knee airbags, height-adjustable headlamps, and a redesigned seven-pin towing hitch connector that sits above the hitch to help avoid damage during high departure angle driving. Also, a shelf to help organize storage space has been added to the lower glovebox.

Two new optional audio systems supplement the three existing systems. The new Tech Audio system features AM/FM/CD, integrated satellite radio receiver, Bluetooth®, auxiliary and USB inputs and six speakers. In addition to the carryover JBL navigation system, a new non-JBL navigation system includes AM/FM/CD, auxiliary input, a backup camera monitor and six speakers.

Pricing for the 2010 Tundra will be announced closer to its launch in April.

Toyota is implementing additional measures at its North American manufacturing plants designed to further reduce production in the midst of the worst automotive slump in decades. The new actions are consistent with the company’s philosophy of making every effort to protect jobs during the sales downturn.

“We’ve taken responsible, step-by-step actions to address this issue in recent months, and we hope the new measures will help us adjust while protecting jobs,”
said Jim Wiseman, vice president of external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA). “This philosophy of shared sacrifice is the best approach for us, and hopefully will make us a stronger company in the long term.”

TEMA had previously scheduled periodic non-production days, while providing training and plant improvement activities to protect jobs;
established a hiring freeze; eliminated overtime; and suspended capital spending.

Additional steps include additional non-production days in April, varying from plant to plant; strong possibility of work and pay cuts, known as “work sharing,” at some plants. Production team members at affected plants would work and be paid 72 hours instead of 80 during the two-week pay period; executive and salaried bonuses eliminated; executive pay cuts; production team member bonuses reduced; voluntary exit program for team members who wish to pursue other opportunities; and no wage increases for the foreseeable future.

Scion announced that the only limited-production tC for 2009, the tC Release Series 5.0 (tC RS 5.0), will have a Toyota Racing Development (TRD) theme and be available at dealer showrooms in March. The 2009 tC RS 5.0 will be on display in the Scion space at the Chicago Auto Show, February 11-22, for media and public days.

The 2009 tC RS 5.0 features gloss black exterior paint and numerous performance products from TRD. TRD edition 18-inch multi-spoke alloy wheels, in matte black with red trim, and red TRD lowering springs provide this tC with its menacing presence. For additional stability when cornering, the tC is fitted with a red TRD rear sway bar. A TRD sport muffler gives the tC RS 5.0 an aggressive sound signature, while a TRD exterior badge marks the car. A black rear lip spoiler will also be available.

The TRD theme is continued inside with a black leather steering wheel featuring red stitching, black seats with red accents and floor mats with the TRD logo. The tC RS 5.0 is also equipped with a cargo mat. Individually numbered badging completes the uniqueness of this vehicle.

No more than 2,000 units of the tC Release Series 5.0 will be built. The tC RS 5.0 model will carry a manufacturer’s suggested retail price (MSRP) of $2,300 over the base price of the tC. The base MSRP for the standard tC with a manual transmission is $17,000, while the standard tC with an automatic transmission model carries a MSRP of $17,800. The available black spoiler has a MSRP of $285, not including installation.

The delivery, processing and handling (DPH) fee for all Scion models is $670 and is not included in the MSRP. DPH fee for vehicles distributed by Southeast Toyota (SET) and Gulf States Toyota (GST) may vary.

Toyota has announced financial results for the third quarter ended December 31, 2008.

On a consolidated basis, net revenues for the third quarter totaled 4.8 trillion yen, a decrease of 28.4 percent compared to the same period last fiscal year. Operating income decreased from 601.5 billion yen to a loss of 360.6 billion yen, while income before income taxes, minority interest and equity in earnings of affiliated companies was a loss of 282.1 billion yen. Net income decreased from 458.6 billion yen to a loss of 164.7 billion yen.

Operating income decreased by 962.1 billion yen. Negative factors for the decline include 560 billion yen due to the effects of marketing activities and 250 billion yen due to the appreciation of the Japanese yen against the U.S. dollar and the euro.

Commenting on the results, TMC Executive Vice President Mitsuo Kinoshita said, “Both revenues and profits declined severely during this period. The negative results are largely due to lower vehicle sales volume under difficult market conditions mainly in the U.S. and Europe, and the rapid appreciation of the yen against the U.S. dollar and the euro.”

Consolidated vehicle sales for the third quarter amounted to 1.84 million units, a decrease of 443 thousand units compared to the same period last fiscal year.

In Japan, vehicle sales were 465 thousand units, a decrease of 76 thousand units. Operating income decreased by 553.6 billion yen, to a loss of 164.2 billion yen, mainly due to the appreciation of the yen against the U.S. dollar.

In North America, vehicle sales were 521 thousand units, a decrease of 235 thousand units. Operating income decreased by 311 billion yen to a loss of 247.4 billion yen including 119.6 billion yen of valuation losses from interest rate swaps. Operating income, excluding the impact of valuation losses on interest rate swaps, decreased by 217.4 billion yen, to a loss of 127.8 billion yen, mainly due to a sharp fall in vehicle sales.

In Europe, vehicles sales were 235 thousand units, a decrease of 73 thousand units. As a result, operating income decreased by 77.4 billion yen, to a loss of 43.4 billion yen.

In Asia, vehicle sales were 222 thousand units, a decrease of 19 thousand units. Operating income decreased by 23.8 billion yen, to 40.5 billion yen.

In Central and South America, Oceania, Africa and the Middle East etc., vehicle sales were 395 thousand units, a decrease of 40 thousand units. Operating income for Central and South America, Oceania and Africa decreased by 16.4 billion yen to 33.5 billion yen.

In the financial services segment, operating income decreased by 144.8 billion yen, to a loss of 123.9 billion yen compared to the same period last fiscal year including 111.2 billion yen of valuation losses from interest rate swaps. Excluding valuation losses, operating income decreased by 50.1 billion yen. The decline was mainly due to the increase in allowance for credit and residual value losses in the U.S. despite the contribution of the increase in outstanding loan balance and the improvement in our lending margin.

TMC estimates that consolidated vehicle sales for the fiscal year ending March 31, 2009 will be 7.32 million units, which is a decrease of 220 thousand units from TMC’s forecast announced in December 2008. Consolidated net revenues and earnings forecasts for the fiscal year have also been revised, to consolidated net revenues of 21 trillion yen, operating loss of 450 billion yen, negative income before income taxes, minority interest and equity in earnings of affiliated companies of 500 billion yen and net loss of 350 billion yen.

Commenting on the forecasts for FY2009, Kinoshita said, “Due to the severe automotive market situation, we have revised our forecast for FY2009.” Kinoshita also commented on the ongoing profit improvement activities, “As we announced last November, we have been operating under the newly established “Emergency Profit Improvement Committee”. To accelerate our activities further with the aim of reforming our earning structure as swiftly as possible, we will focus more on how we can maximize revenues, by developing a new product line-up that responds to the customers’ requirements in each region. For the mid-term, we plan to enhance the development of hybrid and compact vehicles which we believe are the key to our future growth. For example, our new generation Prius will launch in May, followed by Lexus’ first exclusive hybrid vehicle, the HS250h this summer. We are also thoroughly reviewing our entire business to reduce costs across the board. We are aiming to implement a more effective cost structure in the areas of research & development, production and sales operations. Specifically, we plan to expand the scope of our emergency value analysis to achieve further cost reduction and reduce fixed costs by 10%. By taking these measures, we will overcome the current crisis and evolve into a company with a higher level of efficiency and resilience.”