Tag Archives: toyota news

Toyota, VW and Ford Feeling Sting of Chip Shortage with Lost Production, Profits

Ford’s been hardest hit by the semiconductor shortage, but recent events show that no company can escape the impact. 

Toyota GAC Guangzhou plant
Toyota shutdown its plant in Guangzhou, China last month due to a COVID outbreak.

Toyota announced temporarily shut downs of 27 out of 28 production lines at 14 plants around the world due to the problem. Volkswagen officials said they’re mulling ways to avoid a similar problem, saying production levels would fall, but no plant closures were announced. Unsurprisingly, Ford is closing plants this weekend due to the problem.

The Japanese automaker’s announcement came as a bit of a surprise because of its scale: 40% of all its global capacity will be down for parts of September. The company will lose about 360,000 vehicles due to the maneuver. It covers a variety of the maker’s portfolio: RAV4, Corolla, Camry, Prius and even the company’s luxury unit’s Lexus RX.

Not surprisingly, the world’s second-most valuable automaker saw its stock take a hit today, falling 4.7% on the news. Some of that drop comes because the company’s forecast for annual operating profit of $22.7 billion didn’t change, but it’s already lower than analysts are predicting.

Toyota Takaoka plant assembly station
Toyota’s Takaoka plant was partially shut down due the impact of an earthquake earlier this year.

Avoiding the problem

Toyota managed to steer clear of the issue because it had presciently stockpiled semiconductor chips, according to multiple media reports. The strategy came about as a response to the massive 2011 earthquake that hit Japan, forcing its shutdown for weeks.

Additionally, the Fukishima nuclear plant disaster cemented the need, in the eyes of Toyota’s top leaders, to ensure it had a healthy backstop of chips.

Toyota US Plant
Several product lines will be affected by the automaker’s closures, including the Toyota Camry.

As a result, the automaker confirmed its goal of building 9.3 million vehicles globally for the fiscal year ending March 2022. It also still plans to sell 8.7 million of those vehicles. The total would make it the second biggest automaker behind Volkswagen.

Chips not the only issue

Semiconductors are problematic, but production of vehicles — as well as additional chips — is being hampered as the latest wave of COVID-19 hitting the company’s facilities and its suppliers in Southeast Asia very hard. 

The issue caused Toyota to previously stop assembly lines at some Japanese factories between late July and early August, including its Tahara plant, due to a surge in infections in Vietnam which had constrained the supply of parts, according to Nikkei, the Japanese news service.

The company’s also been forced to deal with similar issues at a plant in Guangzhou, China, and three others in Thailand.

Toyota Giving Avalon Sedan the Ax After ’22 Model Year

Toyota spruced up the Avalon with the Nightshade package for 2021. It’s ending production after the 2021 model year.

Everybody’s buying crossovers, sport-utilities and trucks these days, but officials within Toyota’s North American operations consistently maintain the company is happy to remain one of the top producers of sedans — but it’s cutting the Avalon from its line-up after the 2022 model year.

The move, first reported by Automotive News, was outlined in a letter to suppliers, and later confirmed by the automaker. The sedan is built at Toyota’s plant in Georgetown, Kentucky. It will leave the company with four sedans, one of which is the Mirai, the company’s fuel-cell model that sells in very low volume right now.

The Avalon is the Japanese brand’s largest offering in the segment. Refreshed in 2019 and due for an update next year, the fifth-generation model is selling well this year, up 36.6% through the first six months of the year. However, of the five sedans in the company’s line-up, it was the laggard, trailing Camry, Corolla and Prius. 

In fact, the Prius sold 28,000 more units through June than the Avalon. However, it did outperform one four-door model: the aforementioned Mirai. However, the fuel-cell sedan — by percentages — smoked the Avalon, seeing a 664.1% jump in first-half sales.

The Avalon’s been the brand’s flagship model for 26 years.

We like sedans

Last week, Toyota’s U.S. sales chief Bob Carter reiterated the company’s commitment to the segment during an online meeting with reporters.

“As a company — both Toyota and Lexus — we sold nearly 70,000 sedans last month,” he said. “Compare that to the other companies out there, that’s a very dominant number. There are consumers out there, even at 20% of the industry we’re looking at 4, 4.25 million sales out there so there is a market.”

Carter conceded the profits may be lower on those vehicles, but “it is a profitable business for us.” However, it’s the large car segment that may be suffering the most in the sedan market, and the Avalon was also a laggard there too, outselling only the Nissan Maxima in the first half of the year. Plus, the top sellers in the very small segment are essentially muscle cars: the Dodge Charger and Chrysler 300C. 

A Week With: 2021 Toyota Tacoma TRD Off-Road 4×4

Pickups are more popular than ever, especially with the new players in the midsize segment. However, one of the mainstays only seems to be getting better with age — The Toyota Tacoma. With an updated exterior and enough technology to keep new buyers happy, it’s the reason so many are playing catch up.

2021 Toyota Tacoma TRD Offroad front
The 2021 Toyota Tacoma TRD Off-Road is clearly capable of that, and much more.

Toyota’s Tacoma has been the best-selling midsize truck for nearly two consecutive decades — 16 years. Now for some of that time, the competition was pretty sparse, but nowadays, it’s a tough gig to remain at the top of the mountain.

Overview

The latest version of the pickup is really all things to all people. Available in 33 different configurations, it’s unlikely you’ll find a customer whose needs it won’t fit. Not only is it rough and tumble, as we saw in our week with the TRD Off-Road model but it’s loaded with all of the latest safety technology and some concierge features that truck buyers now demand.

It’s a renaissance truck in a time where these vehicles do the daily commute, trek to soccer tournaments, make sure the yard looks great and is ready to head off scale big rocks and rutted roads. That’s a tall order.

2021 Toyota Tacoma TRD Offroad side
The Tacoma TRD Off-Road certainly looks the part, which is good because it plays it.

Exterior

Few pickups wear the phrase “It’s a truck. Whaddya want?” better than the 2021 Tacoma. It looks the part because it plays the part. The wide, blacked out grille with the name “TOYOTA” emblazed square in the middle and the squinty-eyed headlights on either side are complemented by the black plastic chin on the front fascia that makes it look like you could punch it in the mouth and it’d look at you and say, “That’s it?” 

It’s a truck. 

The crease in the doors about a third of the way up from the frame lend some visual interest, taking you down the side of the cab to the flared wheel wells and the simple, understated liftgate with TACOMA seemingly carved into it 

It’s a truck Whaddya want? That’s a good thing, by the way.

2021 Toyota Tacoma TRD Offroad interior
The interior of the Tacoma is simple, straight-forward, but not bland.

Interior

If the Tacoma has a weak spot, it might be the interior. It’s straightforward. It’s not covered in chrome accents or exotic woods, this is a simple, almost throwback-style cabin. There are knobs, buttons and switches. Some would say it’s a throwback, but there are still a few examples of this kind of interior design on U.S. roads today.

The gauges are clear and easily read. If you want to engage the four-wheel drive, you turn the knob. If you want to open the rear window, reach over and press the button. Again. Simple. Easy. Common sense. I feel like a character from a commercial about something traditional just writing this. I liked it. Get off my lawn! Others who want some more … pizzazz may not like it as much as I did.

Powertrain

Ok. Back to more good stuff. The Tacoma TRD Off-Road is powered by a 3.5-liter V-6 putting out 278 horsepower and 285 pound-feet of torque. It’s mated to a 6-speed automatic transmission that gets the job done. Its responsive and feels powerful and makes a good noise for a midsize truck, which isn’t always the case in pickups.

The transmission is solid and smooth. I didn’t have the opportunity to tow anything or go off-road, but it did take a lengthy trip in it and it performed very well. It’s predictable and strong, which is what you want in a pickup.

Toyota Donated $55K to Republicans Who Voted Against Certifying 2020 Election Results

Japanese automaker Toyota donated $55,000 to 37 GOP lawmakers who tried to decertify the results of the 2020 president election.

Axios Toyota chart
Toyota donated $55K to 37 Republican politicians who voted against certifying the 2020 election results.

Not only did the Japanese automaker support those politicians, but it was their top supporter — by a lot, according to investigative news website Axios, which pulled the data from a study by the Citizens for Responsibility and Ethics in Washington.

The company’s $55,000 was nearly than double amount of the next closest company, defense company Cubic Corp., which approached nearly $30K in donations. Toyota spread that money out to four times more Republican politicians than the next closest company. Toyota officials defended their donations.

“We do not believe it is appropriate to judge members of Congress solely based on their votes on the electoral certification,” Toyota officials said in a statement emailed to Axios.

“Based on our thorough review, we decided against giving to some members who, through their statements and actions, undermine the legitimacy of our elections and institutions.”

Influencing U.S. elections is a hot-button issue

For decades, what groups are funding politicians has been a contentious issue, but divisiveness surrounding the funding and influence has escalated in the last two presidential elections — Americans want to know who or what organizations are supporting their politicians and candidates.

In the wake of the attack on the U.S. Capitol Jan. 6 where protestors attempted to overturn the election while several Republicans inside the building attempted to forestall the inevitable, the divide has skyrocketed.

In all, 147 GOP members of the U.S. House of Representatives voted against certifying the November 2020 election results that saw former Vice President and Democratic challenger Joe Biden defeat Republican then-President Donald Trump. 

Biden captured the popular vote with 81.3 million votes to Trump’s 74.2 million votes. The Electoral College vote was 306 to 232 in favor of Biden with 270 needed to win the presidency.

Since then, Trump and many others have contended the election was stolen. However, neither the Trump campaign nor individual supporters have been able to produce evidence of this, including two cases that went to the Supreme Court — both were shot down.

Where did Toyota’s money go?

The automaker spent big on politicians, including Andy Biggs, an Arizona Republican in the U.S. House. Biggs has been an ardent purveyor of what many call “The Big Lie,” the idea that Trump actually won the election.

Axios reported an organizer of the “Stop the Steal” rally that immediately preceded the storming of the Capitol Building Jan. 6, Biggs helped organize the event. Biggs denies the allegation.

The negative response on social media was swift and predictable with thousands expressing their disappointment and vowing to no longer buy a Toyota. Many tweets used plays on words to talk about the newest Camry S-Edition or some other version of it and typing “#toyota” into the search function automatically pulls up #ToyotaHatesDemocracy.

Toyota Aims for the Moon

Toyota is developing a lunar land rover that the company hopes NASA will use for a 2024 lunar mission.

SpaceX and Tesla CEO Elon Musk has a grand vision of flying off to Mars. Toyota CEO Akio Toyoda is thinking of somewhere just a bit closer to home: the moon.

Toyota is working up the design for a six-wheeled, hydrogen-powered rover that you might want to think of as a Lunar Land Rover. Substantially more sophisticated and capable than the dune buggy-like rovers used during the Apollo mission a half-century ago, the Japanese automaker hopes its design will be picked by NASA for the Artemis moon mission it is planning to launch by 2024.

“We have now found a new ‘road,’ which is the moon. And for this new road, we will be able to make a new vehicle,” Takao Sato, project head of Toyota’s Lunar Exploration Mobility Works and a former interior design engineer who worked on the Prius hybrid. “This is a dream for us.”

(Cost of Toyota, Mazda Alabama plant jumps 50% to $2.3B.)

It’s been nearly 50 years since the Apollo mission wrapped up. After the initial landing by Neil Armstrong and Buzz Aldrin in Apollo 11, the astronauts assigned to subsequent missions had the opportunity to spread out from their landing site using a primitive, open-air buggy developed, in part, by General Motors.

Toyota’s lunar module concept is a six-wheeled beast designed to handle a variety of tasks.

Going forward, NASA and partners, including the European Space Agency, want something more sophisticated that not only features greater range but also offers more amenities. That starts with an enclosed and pressurized cabin that includes both toilet facilities and sleeping quarters. Those would be essential considering the Artemis missions intend to have astronauts planting boots on the moon for weeks at a time.

Toyota’s Lunar Rover design adds an extra axles, six wheels expected to give it greater mobility on the pockmarked moon’s surface.

Then there’s the powertrain. Rather than going with a battery, with its hefty mass and limited energy storage, Toyota is lifting an idea from its Mirai fuel-cell vehicle. Its lunar design would be powered by hydrogen – though, without an atmosphere to draw oxygen from, both gases would need to be carried onboard.

Eventually, the goal would be to produce both hydrogen and oxygen from the water believed to be available on various parts of the lunar surface, primarily near the poles. Initially, tanks of the fuel – and the oxygen to combine with — would have to be delivered to the lunar surface.

The new lunar vehicle from Toyota will borrow fuel cell technology from the Mirai.

(Toyota surprises analysts, turns small Q1 profit.)

Whatever the method, NASA wants whatever rover it finally goes with to be able to manage 1,000 kilometers – about 621 miles — per tank, and as much as 10,000 kilometers during a 42-day period.

The Lunar Rover will use individual wheel motors, six of them each generating 40 kilowatts, or about 54 horsepower, apiece. The maximum speed will be between 12 and 15 mph, according to Toyota.

The Toyota design would still make use of the sun, when available, with a retractable solar panel on its roof to provide additional electricity.

There will be three big antenna on the roof, as well, including ones to send data while also allowing NASA to operate the rover remotely – though, even at the speed of light there will be a roughly 1.5 second delay between issuing a command on Earth and it reaching the lunar surface.

How much each Lunar Rover would cost hasn’t been determined, though it will be far more expensive than anything Toyota has built to date. That said, the original Apollo rovers were supposed to cost about $19 million each but, with cost overruns, doubled that to about $38 million each. Adjusted for inflation, that would work out to about $274 million today, adjusted for inflation.

This provides the scale needed to see just how large Toyota’s lunar rover really is.

A decade ago, when the Lunar X Prize was announced, it was estimated that it would cost as much as $950,000 per pound to get something to the moon. Toyota expects its Lunar Rover – which would be about the size of two microbuses – will weigh in at 3.5 tons. So, the price of getting such a big machine to the moon will likely dwarf a rover’s price tag.

(Toyota building lunar rover for Japan’s 2030 moon landing.)

Toyota is by no means the only company hoping to land the plum, out-of-this-world contract. Company official say they hope to find out if they’ve won by year-end.

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