Michigan's Legislature voted overwhelmingly Thursday to sell a tract of land near Ann Arbor to Toyota Motor Co.p., paving the way for an expansion of the Japanese automaker's research operations that will create hundreds of jobs in Michigan.

Gov. Jennifer Granholm is expected to sign the bill into law quickly - possibly as early as today - after showing a clear preference for Toyota's bid over a higher, rival offer from a local developer.

Toyota's plans to expand its local operations bolster Granholm's claims that southeast Michigan has become North America's hub for automotive research.

"This sale will bring the high-tech jobs that Michigan needs and generate millions of dollars in payroll and hundreds of millions in capital expenditure," said State Rep. Matt Milosch, R-Lambertville.

The House approved the bill, 103-1, and it cleared the Senate by a 25-to-9 vote.

"We're encouraged by the action of the Legislature, which has made a clear statement about their desire for Toyota to expand in Michigan," said Bruce Brownlee, general manager of corporate planning for the Toyota Technical Center in Ann Arbor.

Toyota has offered $9 million for the 690-acre property, but the final price will reflect the "fair-market" value determined by an independent assessor.

The deal would be the latest in a string of investments by Asian auto companies that will help offset a steady erosion in Michigan manufacturing jobs.

This week, Japanese supplier Aisin Seiki Co. Ltd. said it was seeking to buy land near Fowlerville, in Livingston County, to build a proving ground for vehicle testing.

Hyundai Motor Corp., Nissan Motor Co., and Suzuki Motor Ltd. plan to establish or expand research and engineering operations in Michigan.

The technical center in Ann Arbor has been Toyota's main North American technical and engineering facility since it was established in 1977.

Last month, Toyota bid for the nearby property to expand its research activities, which are growing in line with the automaker's increasing share of the U.S. auto market.

But developer DPG-York, a unit of Diversified Property Group in West Bloomfield, offered $25.25 million for the land, the site of a state psychiatric hospital that is being relocated.

Michigan's budget office rejected both bids Aug. 30, prompting Granholm to appeal to lawmakers to ensure the sale of the land to Toyota. DPG-York sued the state over the bidding this week.

It has blasted the process, saying the government decided in advance to award the land to Toyota.

DPG officials were not available for comment Thursday.

State officials never hid their preference for Toyota's project, which would create hundreds of high-paying jobs directly and as many as 1,000 more jobs indirectly.

"On a scale of one to 10, as far as the importance of this (project) to the future of Michigan, this is a 12," said David Hollister, director of the Department of Labor and Economic Growth.

Susan Lackey, president of the Washtenaw Development Council, said: "We have a wonderful opportunity to capture an important research and technology center in Michigan - and keep it here."

09/03/2004 Torrance, CA
Lexus announced manufacturer's suggested retail prices (MSRP) today for several 2005 models.

The LS 430 flagship sedan, substantially upgraded last year, will have an MSRP of $55,675, up $300 or 0.5 percent.

The 2005 SC 430 hard top convertible coupe will have an MSRP of $63,175, an increase of $300.

The RX 330 luxury utility vehicle has been enhanced for 2005 by adding the power rear liftgate, 8-way power passenger seat, and a wood steering wheel and shift **** to the list of standard features. The available Lexus Navigation System gets upgraded software, and adds voice activation and Bluetooth® capability. Both RX models get a price increase of $500 with the MSRP for the RX 330 FWD model at $35,775 and the RX 330 AWD model at $37,175.

The LX 470 luxury utility vehicle price will increase $300 to an MSRP of $64,775.

Prices are unchanged for the 2005 IS 300 compact sport sedans, the IS SportCross and the GS 430/300 high performance sport sedans.

These six Lexus models will begin arriving at dealerships nationwide this month.

USA: Toyota aims for world domination by 2010
Toyota has its sights set on dominating the worldwide vehicle market, aiming to by match or better No. 1 General Motors' 15% share of the global market by 2010, according to this week's Barron's magazine, CBS Marketwatch reported.

Barron’s reportedly said that Toyota, which last year overtook Ford as the second-largest producer of light vehicles, currently has a 10% share of the market and would need to increase its sales 50% to reach its goal. It will make its biggest push in the US, Europe and China, according to the report.

The report said that, so far this year, Toyota's US sales growth is already sharply outpacing rivals. Up to August 31, Toyota's sales rose 8.8% while DaimlerChrysler posted a more modest rise of 1.7%, GM sales declined 1.8% and Ford posted a 4.8% sales drop.

CBS Marketwatch noted that Toyota sold more of Camrys in the US than all of the Dodge and Jeep vehicles combined sold by DaimlerChrysler. It also sold more Lexus vehicles than all four of Ford's European luxury brands in total.

According to Barron's, each percentage point of US market share is worth around $1 billion in profits.

In Europe, the reports said, Toyota's sales were up 15% for the first half, pushing its share of that market up to 5.1% from 4.7% previously. Four of the six high-volume European automakers posted sales declines for the period.

The report said efficiency is one of Toyota's advantages, with its network of about 50 plants globally often running near 100% capacity.

The company comes in well ahead of its rivals in terms of profit for each vehicle it sells, according to the report. Toyota also benefits from the wide range of dependable vehicles it makes, it said.

CBS Marketwatch noted that customer dissatisfaction with Toyota's dealer network, particularly in the US but also in Europe, represents one area of potential weakness.

Toyota's US dealers, which are often perceived as arrogant, rank near the bottom of customer satisfaction surveys for sales and service, Barron's reportedly said.

In order to reach its lofty goal of ousting GM from its top spot, Toyota will need to entice new customers, partly by improving the experience its customers receive at dealerships, according to the report.