Toyota’s Gas-Electric Car Gets Warm U.S. Reception
Toyota Motor Corp.'s U.S. sales arm says it has received nearly 10,000
orders for its redesigned Toyota Prius hybrid gas-electric car, which
goes on sale Oct. 17. In a statement, Don Esmond, senior vice president
and general manager of Toyota Motor Sales USA, said the demand is
stronger than expected, and the U.S. sales operation may ask for
additional production from the Japanese factory that builds the Prius.
The statement said Toyota's current plan is to build 36,000 Prius cars
in 2004. Toyota's U.S. dealers sold 20,119 Priuses in 2002, out of a
total of 1.75 million vehicles. Toyota said its U.S. dealers have
received more than 3,000 "pre-orders" from consumers for the new Prius,
which starts at $19,995. The new model has more interior room and gets
about 55 miles per gallon, a 15% increase over the previous model.
Hybrids combine an electric motor with a gasoline engine to get much
better fuel economy than traditional cars.
(Source: The Wall Street Journal)


DCX Pushes Aside its Strategy to Expand Chrysler Unit Sales
A tough U.S. auto market is forcing DaimlerChrysler AG to turn cautious
and tone down its once overtly aggressive battle plan to expand sales of
its U.S.-based Chrysler group. Nevertheless, DaimlerChrysler is pressing
ahead with its long-term strategy to inject more Mercedes parts and
engineering into Chrysler and Dodge models sold in the United States. --
exemplified by the new Dodge Sprinter commercial van, which went on sale
in January. DaimlerChrysler announced May 22 it was scrapping the idea
of a fourth assembly plant in Canada for manufacture of a new small
pickup truck. The automaker also disclosed it was considering a new $750
million factory, possibly in Savannah, Georgia, to build the Sprinter.
Two months later, DaimlerChrysler posted a 90 percent decline in
second-quarter profit, stemming from an operating loss of $1.1 billion
in the United States, which had been caused by greater-than-anticipated
rebates and other sales incentives. Now DaimlerChrysler is shelving the
Georgia plant for Sprinter as well -- at least until the auto market
improves. Instead, the automaker will import Sprinters from its factory
in Dusseldorf, Germany. "There's just too much excess plant capacity out
there," said Erich Merkle, automotive analyst for IRN Inc. in Grand
Rapids, a forecasting firm. Relatively weak demand for vehicles means
that DaimlerChrysler and other manufacturers must offer bigger and
bigger cash rebates or subsidized financing to stimulate sales and keep
plants running.
(Source: Bloomberg News)


Saab Sharpens its Image with New Product Blitz
After languishing on the sidelines for years, Swedish automaker Saab
will add three new models over the next two years. The new product
offensive by parent General Motors Corp. is a bid to stoke demand and
reverse losses that are undermining GM's overall performance in Europe.
Saab CEO Peter Augustsson has undertaken various cost-cutting and
restructuring moves, but acknowledges that Saab's real problem is too
few models. "Despite the fact that our 9-5 and 9-3 sedans are good
cars," Augustsson said, "the problem is that the business model won't
work at our sales volume." The new goal for Saab is to top 200,000 units
a year. "To do that," said Bob Lutz, GM vice chairman for product
development, "Saab needs GM help." That assistance will come from two GM
sources. The automaker's North American operation is providing the
"GMT360" platform, the underpinning for the Chevrolet Trailblazer and
Buick Rainier SUVs, for the 9-7X, a mid-sized Saab sport utility vehicle
due on sale in early 2005.
(Source: The Detroit News)