Production of the Highlander sport utility vehicle, Toyota’s 12th North American-built model, has begun at the company’s plant in Princeton, Indiana. The $450 million investment is part of the adjustments Toyota began last year in order to streamline in light of the weakened economy.

Production of the Tundra pickup, originally in Indiana, was shifted last fall to the Tundra plant in Texas. Since then Toyota Motor Manufacturing, Indiana (TMMI), which also builds the Sienna and Sequoia, has been preparing for the Highlander.

“Highlander production gives us better use of our capacity and demonstrates our continued commitment to the U.S. and the state of Indiana,” said Wil James, TMMI senior vice president.

TMMI reacted to several months of slow production by retaining all of its 4,200 team members, who were further trained and improved manufacturing processes.

“The result is long-term sustainability of this factory, which is important to our customers, team members, suppliers and the local community,” James said.

TMMI now represents a $3.7 billion investment. The addition of Highlander boosts production at other Toyota plants such as West Virginia, where the 6-cylinder engine is made, and at nearly 250 of Toyota’s North American suppliers.

In Indiana alone, Highlander parts and components including items such as steel, brake parts and interior component assemblies will be provided by about 30 Tier 1 suppliers.

Toyota, still reeling from it’s largest-ever recall, has a new potential problem on the horizon. The NHTSA is investigating complaints against the 2000-2001 model year Toyota Tundra. NHTSA has received 20 reports relating to spare tire separation and brake system failures caused by severe frame corrosion.

There have been 15 reports alleging that the under-body mounted spare tire separated from the crossmember due to corrosion. There have been an additional 5 reports of broken brake lines at the proportioning valve located on the driver’s side of the rear crossmember at the upper shock mount.

There were over 200,000 Tundras sold in the affected model years.

The National Highway Traffic Safety Administration has alerted Lexus and Toyota owners about conditions that could cause the accelerator to get stuck open under certain conditions. The agency strongly recommends taking out removable floor mats on the driver’s side in certain models and not to replace them with any other mat, either from Toyota or any other brand.

“This is an urgent matter,” said U.S. Transportation Secretary Ray LaHood. “For everyone’s sake, we strongly urge owners of these vehicles to remove mats or other obstacles that could lead to unintended acceleration.”

NHTSA notes that there continue to be reports of accelerator pedal clearance issues which provide the potential for an accelerator pedal to get stuck in the full open position. A stuck accelerator may result in very high vehicle speeds and a crash, which could cause serious injury or death.

Toyota will soon launch a safety recall of various model year vehicles to redress the problem. However the safety agency warned owners to remove all driver-side floor mats from the models listed below immediately as an interim safety measure in advance of the recall.

Toyota and Lexus vehicles affected by this consumer alert are:

2007-2010 Camry
2005-2010 Avalon
2004-2009 Prius
2005-2010 Tacoma
2007-2010 Tundra
2007-2010 ES 350
2006-2010 IS 250 and IS350

This recall will affect roughly 3.8 million vehicles, representing the largest US recall in Toyota history and affected vehicle owners will be notified beginning this week.

The recall was sparked by a fiery crash that killed four family members in August near San Diego.

Toyota and the NHTSA recommend that owners of affected vehicles immediately remove the driver’s-side floor mat as a precaution. If the floor mat is in place, Toyota warns that if the vehicle continues to accelerate rapidly after releasing the accelerator pedal, this could be an indication of floor mat interference. If this occurs, Toyota recommends the driver take the following actions:

First, if it is possible and safe to do so, pull back the floor mat and dislodge it from the accelerator pedal; then pull over and stop the vehicle.

If the floor mat cannot be dislodged, then firmly and steadily step on the brake pedal with both feet. Do NOT pump the brake pedal repeatedly as this will increase the effort required to slow the vehicle.

Shift the transmission gear selector to the Neutral (N) position and use the brakes to make a controlled stop at the side of the road and turn off the engine.

If unable to put the vehicle in Neutral, turn the engine OFF, or to ACC. This will not cause loss of steering or braking control, but the power assist to these systems will be lost.

-If the vehicle is equipped with an Engine Start/Stop button, firmly and steadily push the button for at least three seconds to turn off the engine. Do NOT tap the Engine Start/Stop button.

-If the vehicle is equipped with a conventional key-ignition, turn the ignition key to the ACC position to turn off the engine. Do NOT remove the key from the ignition as this will lock the steering wheel.

Toyota Motor Sales (TMS), U.S.A., Inc., today reported September sales of 126,015 vehicles, a decrease of 16.1 percent from last September, on a daily selling rate basis. TMS posted sales of 525,975 units in the third quarter, a 28 percent increase over the second quarter.

“Improving economic conditions and the CARS program led to a significant increase for the industry in the third quarter over the first-half year,” said Don Esmond, senior vice president of automotive operations for TMS. “Moving into the fourth quarter, we expect continued momentum will close the year on a bright note.”

The Toyota Division posted September sales of 108,076 units, down 19.1 percent from last September. The Lexus Division reported September sales of 17,939 units, an increase of 7.3 percent from the year-ago month.

Toyota Division
Toyota Division passenger cars recorded September sales of 69,737 units, a decrease of 15.2 percent from last September. Passenger car sales were led by Camry and Camry Hybrid, which posted combined September sales of 25,745 units. The Prius mid-size gas-electric hybrid posted September sales of 10,984 units. Corolla recorded sales of 20,741 units. Venza reported sales of 4,738 units for the month.

Toyota Division light trucks posted sales of 38,339 units, down 25.3 percent from the year-ago month. Light truck sales were led by the RAV4 compact SUV with September sales of 10,398 units. Highlander and Highlander Hybrid posted combined sales of 5,216 units for the month. The Tacoma mid-size pickup reported sales of 7,513 units in September. The Tundra full-size pickup recorded September sales of 6,308 units. Sienna recorded sales of 6,442 units for the month.

Scion posted September sales of 3,683 units. The xB urban utility vehicle led the way with September sales of 1,539 units. The tC sports coupe posted September sales of 1,232 units. The xD reported sales of 912 units for the month.

Lexus Division
Lexus passenger cars reported September sales of 8,931 units, down 9.1 percent from the year-ago month. Passenger car sales were led by the IS, with combined sales of 3,346 units. The ES 350 luxury sedan posted September sales of 3,046 units.

Lexus Division light trucks reported September sales of 9,008 units, up 30.7 percent over the same period last year. Lexus sales were led by the RX luxury utility vehicle which posted combined September sales of 8,228 units, up 70.3 percent over the year-ago month. The RX 450h hybrid luxury utility vehicle reported sales of 1,168 units for the month, up 50.7 percent from last September.

TMS Hybrids
TMS calendar-year-to-date hybrid sales totaled 142,566 units. TMS posted September sales of 14,585 hybrid vehicles. Toyota Division posted sales of 12,125 hybrids for the month. Lexus Division posted September sales of 2,460 hybrids.

There were 25 selling days this month, compared to 24 selling days last September.

Toyota will soon have a “little sister” to the Lexus HS 250h, according to Automotive News. The hybrid-electric Toyota Sai sedan, which will start selling in Japan on October 20, will have a more powerful engine and motor than the Prius. A decision on whether to sell it in the United States has apparently not yet been made; the Lexus 250h is currently on sale in the U.S., and is equipped with an electric motor and a 2.4 liter gasoline engine.

Toyota Motor Sales (TMS), U.S.A., Inc., has reported August vehicle sales of 225,088 vehicles, up 10.5 percent over year-ago levels on a daily selling rate basis. Toyota Division passenger cars recorded an all-time, best-ever month with sales of 142,529 units, up 32.4 percent over the same period last year as the CARS program generated significant incremental sales for TMS and the industry.

“In addition to increased sales, the CARS program provided tangible benefits to consumers, dealers and industry-related businesses, as well as state and local economies, in the form of sales tax and registration income,” said Jim Lentz, president and chief operating officer for TMS. “Toyota vehicles accounted for 19.4 percent of sales within the CARS program, but we estimate CARS-related Toyota sales account for 32.1 percent of total fuel savings for the CARS program, saving customers an estimated 31 million gallons of gas and over $77.5 million in fuel spending over the next year.”

The Toyota Division posted August sales of 202,196 units, an increase of 15.2 percent over the same period last year. The Lexus Division reported August sales of 22,892 units, a decrease of 18.8 percent from the year-ago month.

Toyota Division

Toyota Division passenger cars recorded an all-time, best-ever month with sales of 142,529 units, up 32.4 percent over the same period last year. Camry and Camry Hybrid remained Toyota’s volume leader in August, and posted an all-time, best-ever month with combined monthly sales of 54,396 units, up 28.2 percent over August 2008. The Prius mid-size gas-electric hybrid posted August sales of 18,886 units, up 45.7 percent from the year-ago month. Corolla recorded sales of 43,061 units, up 51.9 percent over last August. Yaris reported sales of 4,797units for the month.

Toyota Division light trucks posted August sales of 59,667 units, down 12.1 percent from the year-ago month. Light truck sales were led by the RAV4 compact SUV with all-time best-ever sales of 18,312 units, up 47.3 percent over the same period last year. Highlander and Highlander Hybrid posted combined sales of 10,656 units, up 37.1 percent over August 2008. The Tacoma mid-size pickup reported sales of 12,547 units for the month, up 5.0 percent over the year-ago month. The Tundra full-size pickup recorded August sales of 7,872 units.

Scion posted August sales of 10,727 units. The xB urban utility vehicle led the way with sales of 4,588 units, up 3.0 percent over last August. The tC sports coupe recorded sales of 3,082 units. The xD reported sales of 3,057 units for the month, up 15.1 percent over the same period last year.

Lexus Division

Lexus passenger cars reported August sales of 12,610 units, a decrease of 26.6 percent from August 2008. Passenger car sales were led by the ES entry luxury sedan with August sales of 5,629 units. The IS entry luxury sport sedan posted combined sales of 4,855 units.

Lexus Division light trucks recorded August sales of 10,282 units, down 6.6 percent from the year-ago month. Lexus sales were led by the RX and RX Hybrid luxury utility vehicle, which posted combined August sales of 9,317 units, up 7.9 percent over last August.

TMS Hybrids

TMS posted August sales of 24,191 hybrid vehicles, up 28.6 percent from the same period last year. Toyota Division recorded sales of 21,836 hybrids for the month. Lexus Division reported August sales of 2,355 hybrids.

There were 26 selling days this month, compared to 27 last August.