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Japan carmakers see US gains after 2011 slump
by Staff Writers
Detroit, Michigan (AFP) Jan 10, 2012

Toyota expands hybrid onslaught in US
Detroit, Michigan (AFP) Jan 10, 2012 - Toyota expanded its hybrid vehicle onslaught at the Detroit auto show Tuesday, unveiling the smallest member of its Prius hybrid and a plug-in prototype for its mainstream Toyota brand.

The Prius c hatchback -- set to his showrooms in March -- will be the iconic brand's fourth model.

It will add "substantial incremental sales" by appealing to young buyers and people who had previously found hybrids to be out of reach thanks to a price tag under $19,000, said Jim Lentz, president of Toyota Motor Sales USA.

Toyota's NS4 plug-in hybrid sedan -- set to hit the market in 2015 -- will follow the upcoming launch of a plug-in Prius, which the Japanese automaker expects will sell 15,000 units in its first year, Lentz said.

Toyota has sold two million Prius vehicles in the 14 years since the hybrid's launch and dominates the US market, selling nearly half of all new hybrids despite a growing number of offerings from its competitors.

Yet gas-electric hybrids and other alternative powertrains like Nissan's all-electric Leaf and Honda's natural-gas powered Civic have yet to capture more than a tiny fraction of the market both in the United States and abroad.

"Our industry has spent decades and billions of dollars developing a wide range of advanced powertrain technologies," Lentz said.

"Fuel cells, EVs and plug-ins have been mandated, subsidized and promoted with conviction," he said.

"However the necessary first step is to get consumers to literally buy into the plan in sustainable volume."

While Toyota has high expectations for hybrids over the long-term, it's still "difficult to gauge" when they will grab more than a few points of market share, Lentz said.

Toyota expects US Prius sales to jump around 50 percent in 2012 to around 220,000 vehicles from around 140,000 in 2011, he said.

"Beyond that we'll have to see where acceptance is," he said.


Japanese carmakers are eyeing big US sales gains after introducing a slew of new vehicles for the American market but face stiff competition from a resurgent Detroit and ambitious Koreans and Germans.

Toyota and Honda saw sales tumble in 2011 after supplies were smashed by the devastating March earthquake-tsunami-nuclear disaster in Japan.

It came at a particularly bad time for Toyota, which was finally recovering from a reputation-shattering series of mass safety recalls.

The supply shortages also provided an opportunity for Ford, General Motors and Chrysler to capture new customers after years of painful restructuring resulted in radical revamps of their product offerings.

"The problem for Toyota and Honda is that some of their market share losses are potentially permanent losses because the competition is so much better," said Jesse Toprak, an analyst with TrueCar.com.

"Consumers who would have bought a Toyota or Honda ended up getting something else and realized these cars are as good or better."

Asian automakers dethroned the Detroit Three in 2009 as the biggest sellers in the US market as overall industry sales tumbled amidst a deep economic downturn that pushed GM and Chrysler into a government-backed bankruptcy.

That trend reversed in 2011, when losses at Toyota and Honda pushed the Asian share down to 43.7 percent while US carmakers captured 46.9 percent, according to the research firm Autodata.

With total industry sales forecast to grow to 13.5 million vehicles in 2012 after posting a 10 percent gain to 12.8 million last year, there should be plenty of new customers to go around.

"We're extremely bullish on the market and how we're going to perform in it," Bob Carter, who heads the Toyota division of the group's US sales team, told AFP on the sidelines of the show.

Toyota is launching 19 new products this year across its four brands: Toyota, Lexus, Scion and Prius.

Its fresh approach to styling was on display Tuesday at the Detroit Auto Show when it unveiled the latest addition to its Prius family -- the c hatchback -- and the NS4 prototype of its first plug-in to be launched under the Toyota brand in 2015.

Lexus chief Mark Templin vowed to handily recapture the coveted luxury crown lost last year when Lexus was overtaken by BMW and Mercedes after 11 years of dominance.

"Our base plan -- which we expect to exceed by a wide margin -- is 240,000 units which is 21 percent growth" in 2012, Templin told reporters after introducing the prototype of a sexy new sports car the LF-LC Monday.

Toyota forecasts its market share will grow by about one point as 2012 group sales in the US rise 19 percent to 1.9 million vehicles after falling seven percent to 1.6 million vehicles in 2011.

Honda, which was hit by mass flooding at factories in Thailand just as its production was getting back on line, also has ambitious goals.

It expects to boost US sales by 25 percent in 2012, after posting a 7.1 percent loss in 2011.

Honda introduced the 2013 update to its top-selling Accord sedan at the Detroit show Tuesday after previewing three prototypes from its luxury Acura brand Monday.

"Many of our competitors were enjoying the race with Honda running at half throttle and temporarily picked up a few laps while we were in pits," the John Mendel, executive vice president of sales for American Honda, said Tuesday.

"We're here to serve notice to the competition that Honda is again firing on all cylinders. We're back to full power and racing with a vengeance."

Nissan, whose suppliers were not badly hit by the Japanese disaster, posted a 14 percent jump in US sales to 1.04 million vehicles in 2011 after an 18 percent jump in 2010.

Its US market share rose 0.4 points to 8.2 percent, edging up against Honda, which holds fifth place in the crowded US market with a nine percent share.

It plans to grow US sales in 2012 by about 10 percent, which is around the industry's forecasted growth pace, said Bill Krueger, Nissan's chief of the Americas region.

"We have seen steady growth in the US and on our own current trajectory we expect to continue to grow," he told AFP.

That will likely prevent the second largest Japanese automaker from reaching its target of a 10 percent bite of the US market this year, but Krueger said it is an "inevitable milestone."

With Nissan's US plants nearly at capacity -- and upcoming plants in Mexico and Brazil still a couple year away from production -- supply is more of an issue than demand, he added.

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Nissan-Renault see more record sales in 2012
Detroit, Michigan (AFP) Jan 10, 2012 - Nissan-Renault will post another sales record this year after posting a 10 percent jump in global sales to 8.03 million vehicles in 2011, alliance chief Carlos Ghosn said Tuesday.

With a host of fresh products and demand set to grow in all markets except Europe -- where Ghosn predicts a three percent drop in sales this year -- both the Japanese and French carmakers should continue to expand sales, he said.

"In 2012 we're going to establish for Nissan a new record of sales and for Renault also probably another record of sales even though Renault is probably much more vulnerable," he told an automotive conference on the sidelines of the Detroit auto show.

Nissan's sales rose 14.4 percent to 4.67 million vehicles worldwide in 2011 while Renault's sales were up 4.6 percent at 2.72 million vehicles, he said. Russia's Avetovaz, part of the alliance, sold 638,000 vehicles.

While the alliance has now reached the economies of scale necessary to compete in the global automotive industry, Ghosn said it is always open to new ties with other carmakers.

"Anybody can call and say 'I have a new proposal for you.' We'll always listen," Ghosn said.

He also predicted further consolidation in the industry.

"We are an industry which needs scale. Scale is not going to substitute talent, but talent alone is not going to make it," Ghosn said.

"We're going to need to work together because we know that mergers and acquisitions don't work in our industry."

A lot of talent has been wasted through acquisitions and mergers, while alliances have proven staying power and success, he said.

Renault-Nissan has a "laundry list" of cooperation, including a recently announced pact to develop engines with Daimler, Ghosn said.

The record-setting sales by Japan's second-largest automaker was remarkable given the disruptions caused by the March quake-tsunami-nuclear disaster, Ghosn said.

Nissan's supplies were not as badly hit as Toyota and Honda, but its factories were still struck and Ghosn said Nissan is now suffering from a bit of a perception problem.

"In a certain way we got a disadvantage compared to all the other manufacturers," he told reporters after his speech.

Nissan managed to get its production up to 80 percent of capacity by mid-May and had fully recovered by September.

Whereas Honda and Toyota -- which took much longer to recover -- will be able to post stronger sales growth in 2012 when compared to 2011's depressed levels.

"Maybe I'll have less of an advantage than people who suffered more from the quake, but I still consider 2012 as an opportunity for us because hopefully some of these headwinds will settle."



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Cars back in focus as Detroit celebrates revival
Detroit, Michigan (AFP) Jan 9, 2012
The cars - glitzy and sedate, grand and green - were back in the spotlight Monday as Detroit celebrated the industry's comeback from grueling recession at the annual auto show here. Excitement was clearly in the air at the industry's premier North American extravaganza, with US and foreign makers confidently launching new models and predicting growing markets in the United States and the b ... read more


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