Toyota says it's no longer profitable in North America
07-27-09, 04:41 PM
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Yet another account of Inaba-san's chat
High on Inaba's to-do list: Lexus, Scion
by Rick Kranz - Automotive News
Yoshi Inaba has discovered a much different Toyota in North America than the juggernaut he left behind six years ago. Among the first things to get his attention was the need to recharge Lexus and Scion.
Lexus is "my personal challenge," the outspoken 63-year-old executive said last week in a meeting with reporters in Detroit.
And he added: "One of my jobs is to revive the Scion spirit in the United States."
Inaba has returned as president and COO of Toyota Motor North America Inc. after running Toyota Motor Sales U.S.A. from 1999 to 2003. He retired from the automaker in 2007 but was brought back as part of the management team installed by Toyota Motor Corp.'s new CEO, Akio Toyoda.
Inaba said he will review "what Lexus is in this country."
After outselling BMW and Mercedes for nine straight years, Lexus has drifted back in the luxury import pack in 2009. Lexus is down 34.1 percent for the first six months compared with 2008 and has been hit harder than its two main rivals.
"Business is OK, it is profitable," Inaba said. "But what is the next phase of Lexus? That is what we need to identify."
Inaba put his stamp on Toyota's luxury brand once before.
"When I was here for the first time in 1995, those were the major decisions." It was "time for us to go from only three models for Lexus to SUVs."
The RX crossover came out on his watch — greatly expanding Lexus' volume.
"The RX made a big impact on the direction we were going and it democratized Lexus," Inaba said.
What's next for Lexus?
Inaba said Lexus is not about ultraexclusive luxury, "but it is more of a volume luxury to aspire to."
"That was one major change," he said. "It brought us to 300,000 units. But where are we going from here? It is not necessarily a volume target. It is how do we shape Lexus?"
Inaba also intends to jump-start the Scion youth brand, which started quickly in 2003 but has plunged in the past two years.
In the first half of this year, Scion's U.S. sales plummeted 60.4 percent. Sales were off 64.1 percent in June.
"Scion is a good business model that will be valuable and viable in the future," Inaba said. But for the business model to be successful, he said, "product freshness is key."
Inaba said the Scion brand has suffered because it received insufficient resources to expand the product line: "We only have three models."
In recent years, Inaba said, Toyota was more focused on meeting demand for non-Scion models. With a three-model line, long lapses occur in the model cycle until refreshed or redesigned vehicles appear. That strategy hurt Scion sales, he said.
To avoid incentives, frequent model upgrades are planned at Scion, Inaba said.
New mission
Next year Scion is expected to sell a version of the Toyota iQ here. The iQ, just over 10 feet long, is currently sold in Japan and Europe.
Inaba said the new mission at Toyota is to create Toyota, Lexus and Scion products that "people fall in love with."
He said a mainstream electric Toyota vehicle is several years away. The issue, Inaba said, is developing battery technology that will boost vehicle range between charges and offer quicker recharges.
"We are exploring even beyond lithium ion batteries," he said. "Given that, we believe today the hybrid technology that we put into the Prius and then the plug-in hybrid program is more realistic. For at least the next four or five years, we won't have electrics."
Inaba also said the future of New United Motor Manufacturing Inc., Toyota's joint venture with General Motors, is under review. Toyota and Liquidation Motors, the GM units that will be disposed of, share ownership in NUMMI, which is in Fremont, Calif.
"We are looking at the viability of NUMMI as a company, as a 50 percent owner of the company," Inaba said. "We may have to make a painful decision. There is a likelihood that we will not buy the rest of it."
The plant produces the Pontiac Vibe and the Toyota Corolla and Tacoma. The Vibe will end production in August. GM will discontinue the Pontiac brand next year.
http://www.autonews.com/article/2009...307279942/1292
by Rick Kranz - Automotive News
Yoshi Inaba has discovered a much different Toyota in North America than the juggernaut he left behind six years ago. Among the first things to get his attention was the need to recharge Lexus and Scion.
Lexus is "my personal challenge," the outspoken 63-year-old executive said last week in a meeting with reporters in Detroit.
And he added: "One of my jobs is to revive the Scion spirit in the United States."
Inaba has returned as president and COO of Toyota Motor North America Inc. after running Toyota Motor Sales U.S.A. from 1999 to 2003. He retired from the automaker in 2007 but was brought back as part of the management team installed by Toyota Motor Corp.'s new CEO, Akio Toyoda.
Inaba said he will review "what Lexus is in this country."
After outselling BMW and Mercedes for nine straight years, Lexus has drifted back in the luxury import pack in 2009. Lexus is down 34.1 percent for the first six months compared with 2008 and has been hit harder than its two main rivals.
"Business is OK, it is profitable," Inaba said. "But what is the next phase of Lexus? That is what we need to identify."
Inaba put his stamp on Toyota's luxury brand once before.
"When I was here for the first time in 1995, those were the major decisions." It was "time for us to go from only three models for Lexus to SUVs."
The RX crossover came out on his watch — greatly expanding Lexus' volume.
"The RX made a big impact on the direction we were going and it democratized Lexus," Inaba said.
What's next for Lexus?
Inaba said Lexus is not about ultraexclusive luxury, "but it is more of a volume luxury to aspire to."
"That was one major change," he said. "It brought us to 300,000 units. But where are we going from here? It is not necessarily a volume target. It is how do we shape Lexus?"
Inaba also intends to jump-start the Scion youth brand, which started quickly in 2003 but has plunged in the past two years.
In the first half of this year, Scion's U.S. sales plummeted 60.4 percent. Sales were off 64.1 percent in June.
"Scion is a good business model that will be valuable and viable in the future," Inaba said. But for the business model to be successful, he said, "product freshness is key."
Inaba said the Scion brand has suffered because it received insufficient resources to expand the product line: "We only have three models."
In recent years, Inaba said, Toyota was more focused on meeting demand for non-Scion models. With a three-model line, long lapses occur in the model cycle until refreshed or redesigned vehicles appear. That strategy hurt Scion sales, he said.
To avoid incentives, frequent model upgrades are planned at Scion, Inaba said.
New mission
Next year Scion is expected to sell a version of the Toyota iQ here. The iQ, just over 10 feet long, is currently sold in Japan and Europe.
Inaba said the new mission at Toyota is to create Toyota, Lexus and Scion products that "people fall in love with."
He said a mainstream electric Toyota vehicle is several years away. The issue, Inaba said, is developing battery technology that will boost vehicle range between charges and offer quicker recharges.
"We are exploring even beyond lithium ion batteries," he said. "Given that, we believe today the hybrid technology that we put into the Prius and then the plug-in hybrid program is more realistic. For at least the next four or five years, we won't have electrics."
Inaba also said the future of New United Motor Manufacturing Inc., Toyota's joint venture with General Motors, is under review. Toyota and Liquidation Motors, the GM units that will be disposed of, share ownership in NUMMI, which is in Fremont, Calif.
"We are looking at the viability of NUMMI as a company, as a 50 percent owner of the company," Inaba said. "We may have to make a painful decision. There is a likelihood that we will not buy the rest of it."
The plant produces the Pontiac Vibe and the Toyota Corolla and Tacoma. The Vibe will end production in August. GM will discontinue the Pontiac brand next year.
http://www.autonews.com/article/2009...307279942/1292
07-27-09, 07:56 PM
#48
Lexus Fanatic
iTrader: (20)
he's certainly saying all the right things. 
07-27-09, 10:01 PM
#49
Lexus Fanatic
07-28-09, 10:15 AM
#50
Moderator
Agreed. I would hope that Toyota stays in California to keep the jobs and the neighborhood community with business flowing. I used to work for Matson Navigation and the NUMMI plant would ship cars from Oakland to Hawaii, Guam and China. If the NUMMI plant closes about 4,700 jobs will be lost and it would be lost revenue for Matson and other businesses in that area...but it's not my decision to make. Mr. Toyoda will make the decision that's best for Toyota...
07-28-09, 12:37 PM
#51
Lexus Fanatic
Agreed. I would hope that Toyota stays in California to keep the jobs and the neighborhood community with business flowing. I used to work for Matson Navigation and the NUMMI plant would ship cars from Oakland to Hawaii, Guam and China. If the NUMMI plant closes about 4,700 jobs will be lost and it would be lost revenue for Matson and other businesses in that area...but it's not my decision to make. Mr. Toyoda will make the decision that's best for Toyota...
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