The news was devastating to some. As part of its bankruptcy, Chrysler plans to eliminate nearly 800 dealerships. GM has also announced plans to eliminate 2,600 dealerships (with 300,000 employees) this year and another 1,000 dealerships by the end of next year.

With Chrysler’s bankruptcy protection (and the expectation of a bankruptcy filing at GM), the affected dealerships can expect to be, “left out in the cold,” according to one industry insider. “There won’t be a buyback of cars or parts. The dealers will lose their affiliation but will be stuck with all of their inventory.”

Toyota is said to be actively approaching many former Chrysler and GM dealerships. Of particular interest to Toyota are those dealerships that already have a Toyota franchise in place.

What deals will be made and what impact this will ultimately have is unclear. Toyota’s strength is the relative scarcity of dealerships. Toyota dealerships are more spread out than domestic counterparts, so there is less internal competition.

As Toyota looks to convert some of the old Chrysler and GM dealers, it will have to take care not to over-saturate any existing markets. Since most of Chrysler and GM’s cuts are in urban and suburban markets, Scion may prove to be the biggest beneficiary of the franchise change.

The wild card in all this is that old inventory. Dealers are supposed to try to sell it to surviving franchises. This works fine for companies like AutoNation, Inc which owns other franchises, but smaller dealerships will be left trying to sell entire inventories in a market that is already weak. These dealers can expect to get only a fraction of what they paid for their inventories.

Their alternative is to take a smaller loss by selling their products off at rock-bottom prices. This could cause a sudden, severe deflation of car prices across the board that would affect not just Chrysler and GM, but Toyota as well.

It’s a bleak prospect for sales and economic recovery that would likely knock the auto industry back for years- something that everybody will be looking to avoid.

However it turns out, the ripple effect from these bankruptcies will echo throughout the industry for years to come.

Toyota Motor Corp., the world’s biggest automaker, forecast a much bigger-than-expected $8.6 billion loss for its current fiscal year and said it would sell about 1 million fewer vehicles as it scrambles to cut costs amid a severe market downturn. Worse news for the auto industry (and economy in general) is Toyota’s new forecast for fiscal year 2010. Toyota now estimates worldwide sales to be about 6.5 million units- a decrease of 1.06 million units from fiscal year 2009 and half a million units less than last year’s “worst case scenario.” That’s a tremendous drop from fiscal year 2008, when Toyota sold over 9 million vehicles worldwide.

In December, 2008, Toyoland.com reported on the failing economy. At that time, Toyota President Katsuaki Watanabe stated, “The tough times are hitting us far faster, wider and deeper than expected.” Watanabe promised cost-cutting measures to insure that Toyota would 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.”

It appears that Toyota is prepared to weather the economic crisis- albeit with continued operating losses- with the expectation that it will dominate the market when the economy recovers. Watanabe commented on the newly revised outlook: “It appears to take some more time before the financial markets in the U.S. and Europe normalize and the global economy recovers.”

For now, Toyota plans deeper cost-cutting measures. Also, Toyota hopes to boost sales with new models- emphasizing hybrid and compact models. Toyota also plans to focus on “resource-rich and developing countries.”

Toyota reported month-end sales of 126,540 vehicles, a decrease of 41.9 percent from last April, on a daily selling rate basis.

The Toyota Division posted April sales of 112,345 units, a decrease of 42.2 percent from the same period last year. The Lexus Division reported April sales of 14,195 units, a decrease of 39.2 percent from the year-ago month.

Industry-Wide Carnage
Toyota’s 42 percent drop was in line with the industry-wide sales slump. Chrysler, which recently filed for capter 11 bankrupcy protection, fell 48 percent. Nissan tumbled 38 percent, GM 34, and Ford 32. Honda dropped the least, with sales off by only 25 percent.

Normally, a 25 percent drop is a disaster, but given the current economic situation, Honda is viewing it as a victory. The other big winner is Ford- whose 32 percent drop leaves them as the top-selling car-maker in the US for April. Apparently Ford is reaping the benefits of being the last major domestic car-maker as GM and (especially) Chrysler customers who still insist on buying American are buying Fords instead.

Toyota Division
Toyota Division passenger cars recorded April sales of 70,662 units, down 41.6 percent from the same period last year. Camry and Camry Hybrid remained Toyota’s volume leader in April, posting combined monthly sales of 25,324 units. Corolla recorded sales of 18,534 units. Yaris reported sales of 8,118 units for the month. The Prius mid-size gas-electric hybrid posted April sales of 8,385 units.

Toyota Division light trucks posted April sales of 41,683 units, down 43.1 percent from the year-ago month. Light truck sales were led by the RAV4 compact SUV with sales of 11,126 units. The Tacoma mid-size pickup reported sales of 9,027 units for the month. The Tundra full-size pickup recorded April sales of 6,156 units. Highlander and Highlander Hybrid posted combined sales of 5,595 units.

Scion posted April sales of 4,442 units. The xB urban utility vehicle led the way with sales of 2,036 units. The tC sports coupe recorded sales of 1,526 units. The xD reported sales of 880 units for the month.

Lexus Division
Lexus passenger cars reported April sales of 7,189 units, a decrease of 47.8 percent from April 2008. Passenger car sales were led by the ES entry luxury sedan with April sales of 3,549 units. The IS entry luxury sport sedan posted combined sales of 2,324 units. The LS flagship luxury sedan recorded combined sales of 765 units. The GS luxury sport sedan reported combined April sales of 468 units.

Lexus Division light trucks recorded April sales of 7,006 units, down 26.9 percent from the year-ago month. Lexus sales were led by the RX and RX Hybrid luxury utility vehicle, which posted combined April sales of 6,237 units. Thanks to strong sales of the new 2010 RX 350, the RX was the industry’s best-selling luxury vehicle for the month of April.

TMS Hybrids
TMS posted April sales of 12,223 hybrid vehicles. Toyota Division recorded sales of 11,516 hybrids for the month. Lexus Division reported April sales of 707 hybrids.

Toyota will launch an Equipment Safety Recall with the National Highway Traffic Safety Administration (NHTSA) involving approximately 39,100 Toyota Stainless Steel Exhaust Tip retention Clamps. This optional accessory was designed specifically for 2008 model year Highlander and Highlander HV vehicles sold in the United States.

Due to improper heat treatment, the original clamp used to secure the stainless steel exhaust tip to the exhaust pipe may develop microscopic cracks. If this occurs, the crack may expand causing the clamp to break and in the worst case the exhaust tip may fall off.

There are approximately 39,100 accessory kits that may be affected by this condition. Because this accessory is installed at the Toyota vehicle processing centers and dealers, and is available over-the-counter, all of approximately 121,000 vehicle owners will be notified.

There have been ten reported incidents of this condition in the United States; no other Toyota or Lexus vehicles are involved in this recall.

Toyota will inform owners of the involved vehicles with a Safety Recall notification via first-class mail beginning in early May. The notification will include inspection instructions for owners to determine if their vehicle is equipped with this accessory. Affected owners are requested to contact their local Toyota dealer for inspection and repair.

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

Lexus announced the Manufacturer’s Suggested Retail Price (MSRP) for the all-new 2010 RX 450h hybrid luxury utility vehicle and the 2010 IS250C and IS350C retractable hardtop convertibles. The original RX400h was the world’s first luxury hybrid vehicle when it debuted in 2005, and the second-generation RX 450h. The 2010 RX 450h carries a base MSRP of $41,660 for the front-wheel drive (FWD) model and $43,250 for the all-wheel drive (AWD) version.

Continuing the performance and styling trends set by the IS luxury sport sedans, the ISconvertible provides the expressiveness of a convertible and the sporty styling of a coupe while expanding Lexus’ strong presence in the entry luxury segment. The 2010 IS250C will have a MSRP of $38,490 when equipped with a six-speed manual transmission; the IS250C with a six-speed automatic transmission will be $39,660. The IS350C will have a MSRP of $43,940.

RX450h
The 2010 RX 450h introduces an updated version of Lexus Hybrid Drive, featuring a 3.5-liter V6 Atkinson-cycle engine, lighter electric motors, a smaller and lighter power-control unit and other fuel-saving innovations. It offers up performance similar to V8s with better combined fuel economy than the average four-cylinder mid-size sedan. With an EPA-estimated 32 mpg city and 28 mpg highway (30 mpg combined) –30 mpg city, 28 mpg highway (29 mpg combined) for the AWD – it earns 16-20 percent better fuel economy than its acclaimed predecessor. While achieving improved fuel economy, the new RX450h produces 295 total system horsepower, 27 more than the current generation RX400h. It will achieve Super Ultra Low Emission Vehicle (SULEV) certification in California (Tier 2-Bin 3 in other states), producing nearly 70 percent fewer smog-forming emissions than conventionally powered vehicles.

Active safety features include the available Vehicle Dynamics Integrated Management (VDIM), which governs all of the vehicle’s standard dynamic handling systems – the Anti-lock Braking System (ABS), Brake Assist, Vehicle Stability Control (VSC) and Traction Control (TRAC) – employing them collectively and seamlessly to make corrections while allowing higher dynamic capability. The new RX adopts Hill-start Assist Control, which uses brake pressure to help prevent the vehicle from moving backward when starting out on an incline. The RX450h also has the available new Intelligent Adaptive Front-lighting System (AFS), and the Pre-Collision System (PCS) with Dynamic Radar Cruise Control.

The 2010 RX450h is equipped with a segment-leading 10 standard airbags, including side curtain airbags, front seat-mounted side airbags, rear side airbags (for the outboard seating positions) and knee airbags for the driver and the front passenger.

It features new wider standard 18-inch aluminum-alloy wheels, which were designed to appear as if carved from a single block, and 235/60R18 tires. Optional unique 19-inch aluminum-alloy wheels with 235/55R19 tires are available.

Lexus’ available next-generation Hard Disc Drive (HDD) navigation system eliminates the need for DVD map discs and offers a unique voice recognition system, which can work using casual-language inputs on certain functions. A distinctive Remote Touch controller allows the user to operate the navigation system, climate, audio, phone controls and more. The screen menus are selected with the controller, eliminating the need to reach out or avert eyes from the road. The attribute that most distinguishes Lexus’ navigation controller from other devices in other luxury models is its “haptic”-feedback technology, which provides a tactile response to the hand.
The new RX450h accommodates a variety of music sources, providing auxiliary and available USB inputs, Bluetooth® Audio wireless connectivity and standard XM® satellite radio capability (requires subscription), which is also joined by XM NavTraffic® and XM NavWeather®.

An optional rear-seat entertainment system includes two high-definition seven-inch screens, one on each of the front seatbacks. The available wide-view side monitor and backup monitor each help provide the driver with a wider range of visibility.
The all-new RX450h is now available with a Heads-Up Display (HUD) that offers displays for speed, navigation, and audio. High-intensity LEDs project high-contrast white figures onto the windshield, which are easier to read – and easier on the eyes – than the typical green-colored readouts.

IS250C and IS350C
Featuring a three-panel roof that opens in just 20 seconds, the new IS250C and IS350C provide the spirited sophistication of a convertible and the sporty styling of a coupe. The three-panel roof structure is primarily constructed of lightweight aluminum that helps achieve smooth, quiet retraction; it also helps provide compact packaging and convenient luggage space. With the exception of the hood, all other body panels have been designed to blend seamlessly with the new three-panel folding roof.

Powered by the same powertrain as the IS sedans, the IS 250C features a 2.5-liter, 204-hp V6 mated to a six-speed manual or six-speed automatic transmission; the IS350C contains a 3.5-liter, 306-hp V6 with a six-speed automatic. Revisions to the body structure and suspension provide torsional stiffness and ride comfort with the top down, and low Noise, Vibration and Harshness (NVH) on par with the IS sedan when in coupe configuration.

The IS250C and IS350C’s new exterior design provides dynamic, unique styling when interchanging between convertible and coupe configurations. A sleek aerodynamic design and a collection of underbody covers help achieve its lowest possible drag coefficient – 0.29 Cd versus the IS sedan’s 0.27 Cd – while creating minimal wind turbulence in the cabin.

In the front, a new fog-lamp design is integrated in the revised front air dam. The rear overhang increases by two inches to improve luggage space, providing storage for two golf bags in coupe configuration and one in a convertible. New combination tail-lamp clusters feature LED lights; a LED brake light is integrated within the standard rear spoiler.

The interior maintains the innovation and luxury touch points associated with the IS sport sedans, while new comfort and entertainment features provide a consistent atmosphere regardless of top configuration. Instrument gauges have been revised to help increase visibility during top-down driving, and the climate-control system has a speed-sensitive control feature that automatically increases air flow when the top is down while also automatically adjusting to vehicle speed.

With a four-seat configuration, the IS250C and IS350C’s rear seats feature a center console with built-in cup holders. In addition to front doors that are 11.8 inches longer than the IS sedans, an available new one-touch automatic mechanism provides easier egress and ingress through quick-acting, front-seat fold-and-slide activation. Rear-seat comfort is enhanced by shifting seat position inboard, providing improved headroom. The front seat backs are configured to also provide better rear-seat legroom.

A number of body-structure changes have been integrated into the IS250C and IS350C to augment strength, roll-over protection and torsional rigidity. Active safety features from the IS sedans transfer as well, including Vehicle Dynamics Integrated Management (VDIM), Vehicle Stability Control (VSC), and an available Pre-Collision System (PCS). The Safety Restraint System (SRS) will include the twin-chamber passenger airbag, while a new enlarged seat-mounted side airbag helps provide additional protection in certain side-impact scenarios. The convertible body shell has additional energy absorbing side-impact materials that also help protect front and rear passengers.
The IS convertible will go on sale in late May, while the all-new RX450h will reach dealerships in mid-summer. MSRP does not include a delivery, processing and handling fee of $875.

Toyota Motor Sales announced manufacturer’s suggested retail prices (MSRP) for the 2010 Tundra full-size pickup truck and Sequoia full-size sport utility vehicle (SUV).

Tundra
Prices for the 2010 Tundra will range from $22,960 for the Regular Cab 4×2 standard bed with a V6 engine and equipped with a Work Truck Package to $42,155 for the CrewMax Limited 4×4 with a 5.7-liter V8 engine. The new MSRPs reflect an average overall increase of $557.

The 4.6-liter i-FORCE V8 engine will be available on all 2010 model year Tundras. With 310 horsepower, 327 lb-ft. of torque and EPA fuel efficiency estimates of 15 mpg city and 20 mpg highway on 4×2 models. Like Tundra’s optional 5.7-liter i-FORCE V8 engine, the new 4.6-liter V8 will be mated with a six-speed automatic transmission.

All 2010 Tundra models receive a redesigned front grille and tail lamps. The Tundra grade will have a new two-bar grille design and the Limited grade will be equipped with a unique billet-style grille. Additional standard equipment on all Tundra models includes 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 glove box.

Two new optional audio systems will supplement three existing systems. The first, which is optional only on Tundra grade, features AM/FM/CD, integrated XM satellite radio receiver, hands-free phone and streaming music via Bluetoothr, auxiliary/USB inputs and up to six speakers. The second features navigation and a value positioned AM/FM/CD, auxiliary input, a backup camera monitor and six speakers.

New 2010 Tundra Work Truck Packages are aimed at commercial truck buyers or those who otherwise require a tough no-frills truck with exceptional cargo and towing capacity. The specialized trucks include vinyl seating and rubber flooring and will be available in Regular and Double Cab configurations with a V6 or one of two V8 engines including Tundra’s powerful 381 horsepower 5.7-liter V8 with a towing capability of up to 10,800 pounds. Tundra models equipped with optional work truck packages will carry a price adjustment that ranges from $195 to $1,030 less than the truck’s standard MSRP, depending on the model.

For buyers looking for more refinement and convenience, the all-new 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 an assortment of high luxury features such as heated and ventilated seats, sunroof, and wood grain trim, and carries an MSRP of $4,662.

The 2010 Tundra, assembled at Toyota Motor Manufacturing, Texas in San Antonio, will begin arriving at dealerships in late April.

Sequoia
With the addition of popular standard equipment, including safety features, the base MSRP for Sequoia will range from $38,530 for the SR5 4×2 with a new 4.6-liter V8 engine to $58,905 for the Platinum 4×4 with a 5.7-liter V8. The new MSRPs reflect an average overall increase of $3,361 for all Sequoia models.

For 2010, Sequoia provides a much higher level of popular standard features and safety enhancements. The SR5 and Platinum grade models become mono-spec and the Limited grade offers only three stand alone options (navigation system, rear-seat entertainment and seven-passenger seating), giving consumers a more simplified buying process.

An all-new 4.6-liter i-FORCE V8 engine will be standard on Sequoia SR5 grades. When compared to the previous 4.7-liter i-FORCE V8, the new engine delivers 34 additional horsepower (310 hp) with a preliminary EPA fuel efficiency rating of 14 mpg/city and 19 mpg/highway, providing up to two more miles per gallon on the highway for 4×2 models. Sequoia’s powerful 5.7-liter i-FORCE V8 engine remains standard on all Limited and Platinum grades and optional on SR5 models. Both engines are mated to a six-speed automatic transmission.

For enhanced safety, driver and front passenger knee airbags have been added as standard equipment on all Sequoia models. Standard audio has been upgraded to include Bluetoothr, satellite radio capability and MP3 interface with an auxiliary audio jack and USB port. Three new exterior colors include Sandy Beach Metallic, Spruce Mica and Blizzard Pearl.

The 2010 Sequoia, assembled at Toyota’s manufacturing facility in Princeton, Indiana, will begin arriving at Toyota dealers in late April.