Auto Observer

President Toyoda Details Plan to Restore Toyota Quality, Consumer Trust

Tue, 09 Feb 2010 05:03:19 -0800

In advance of Wednesday's Congressional hearings on the automaker's recent recalls, Toyota Motor Co. President Akio Toyoda detailed in a letter published in the Washington Post his plan to restore product quality and regain customer trust.

In the letter printed in Tuesday's edition, Toyoda, grandson of the company founder, accepted personal responsibility and apologized for the recalls, vowing to Toyota back on track.

Toyoda, who has been largely invisible during the last few weeks of recalls and negative headlines, wrote: "You have my commitment that Toyota will revitalize the simple but powerful principle that has guided us for 50 years: Toyota will build the highest-quality, safest and most reliable automobiles in the world."

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Toyota Recalls 437,000 Hybrids Globally, Including Toyota Prius

Tue, 09 Feb 2010 04:58:25 -0800

Toyota Motor Co., as expected, announced Tuesday the global recall of 437,000 hybrid models, including the Toyota Prius and Lexus HS 250h, to fix faulty braking systems.

The latest recall covers four models and brings the total number of recalled vehicles for various problems to about 8 million worldwide.

Toyota Motor Co. President Akio Toyoda announced the hybrid recall at a press conference in Japan Tuesday. As he did at a press conference last Friday, Toyoda, grandson of the company founder, apologized for causing customers to worry about Toyota's quality and safety and vowed to "redouble our commitment to quality."

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Big Boost for Hyundai, Audi from Super Bowl Ads

Mon, 08 Feb 2010 13:25:30 -0800

Commercials during the Super Bowl are the Gucci handbags of the advertising world: everyone knows they're expensive - but do you even remotely get your money's worth?

A couple of automakers just might have.

Although Edmunds.com, parent of AutoObserver.com, can't answer for other industries, Edmunds data indicate the big-dollar Super Bowl commercials by Hyundai Motor America Inc. and Audi of America Inc. seem to have connected. Both companies enjoyed outsized spikes in consideration on Sunday after their ads appeared during what is called the most-watched single sporting event on the planet.

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Crisis Management, Japanese Style

Mon, 08 Feb 2010 08:53:26 -0800

Last Friday's press conference held by Toyota's chief executive Akio Toyoda has generated plenty of buzz. Much has been made in the Western and Japanese media about whether or not his "apology" -- and even his bow at the start of the conference -- demonstrated true contrition. And there's been various interpretation of his words -- was he sorry for the quality problems or sorry for the concern it caused.

In a recent column in the Wall Street Journal, Jeff Kingston, director of Asian Studies at Temple University Japan, discusses the uniqueness of the Japanese business culture that led to what the headline describes as "A Crisis Made in Japan."

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Ford Tiptoes Around Toyota Storm with Its Own Hybrid Fix

Mon, 08 Feb 2010 04:40:30 -0800

Careful - at least at the moment - what you call it when it comes to fixing hybrids. You might want to say "recall," but Ford's got a better idea, to coin a phrase.

Almost in lockstep with embattled Toyota Motor Corp. reportedly on the verge of announcing a recall or brake software recalibration on its Prius, Ford Motor Co. also announced a decision last week to reprogram the braking strategy for its Fusion Hybrid and Mercury Milan Hybrid.

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GM's Cadillac, Corvette Had Tough Year in U.K.

Mon, 08 Feb 2010 04:36:12 -0800

If sales in the United Kingdom are anything to judge by (and we're not saying they necessarily are), it's a good thing General Motors Co. hung on to its Opel and Vauxhall European brands.

The U.K.'s top sellers for 2009 recently were presented by the country's Car auto-enthusiasts magazine, and Opel's Corsa was the country's No. 3 seller (84,478 units) and the Opel Astra followed at No. 4 with 67,729 sales. The Opel Insignia pulled in to be the U.K.'s ninth best-selling car, with 36,040 finding customers.

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Commentary: Audi 'Green Police' Slays in Super Bowl Ad Wars

Mon, 08 Feb 2010 04:06:18 -0800

Lots of pre-game chatter about which automaker would come out on top with the best of the million-dollar-plus Super Bowl television commercials, but once the last of the confetti settled, Audi stood clear from the pack.

Audi's "Green Police" commercial was witty on many levels, but provoked more than laughs because it dared to satirize what typically is a sacrosanct subject: the environmental movement.

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Will They or Won't They? Toyota Mum on Potential Prius Recall

Fri, 05 Feb 2010 05:21:03 -0800

The beat goes on for Toyota Motor Corp. and its problems with keeping vehicles on the acceleration or deceleration trajectories drivers desire.

After two recalls involving millions of conventionally powered Toyotas, the microscope has swung to the franchise player, the Prius hybrid-electric vehicle.
Reports are mounting that the new-generation 2010 Prius does not brake consistently - and that Toyota knew about it without telling customers.

The company had identified a lag when the Prius transitions from the regenerative braking that recharges its batteries to the conventional friction brakes as the driver slows the vehicle.

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President Toyoda Assures Toyotas Are Safe, Customers Are Top Priority

Fri, 05 Feb 2010 04:19:16 -0800

In his first public appearance since Toyota's quality issues captured global headlines, Akio Toyoda, Toyota Motor Corp. CEO and grandson of the company founder, told the media in Japan Friday that Toyotas insisted are safe to drive and customers remain the automaker's top priority. He apologized for causing customers' worry.

"The fact that we have caused such concern is a cause of regret for us," he said in the press conference, which was not aired globally but was blogged live by the Wall Street Journal. "We are all working in unison to establish confidence again ... We have to earn back the trust of our customers."

Toyoda said he has spoken with U.S. Transportation Secretary Ray LaHood, who earlier this week announced he wanted to talk with the Toyota CEO. However, Toyoda would share little of those discussions. "We aim to cooperate fully with the U.S. authorities," he said.

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Ford Announces Fusion, Milan Hybrid Brake Fix

Thu, 04 Feb 2010 13:56:14 -0800

In response to customer complaints about unusual brake feel, Ford has announced it will update software on the brakes of some 2010 Ford Fusion Hybrids and 2010 Mercury Milan Hybrids.

"We have received reports that some drivers have experienced a different brake feel when the hybrid's unique regenerative brakes switch to conventional hydraulic braking," Ford's statement issued Thursday afternoon said. "While the vehicles maintain full braking capability, customers may initially perceive the condition as loss of brakes."

Ford's announcement comes as Toyota tries to figure out what to do about complaints regarding the Toyota Prius' brakes.

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Despite Quality Woes, Toyota Turns a Profit, Admits Prius Brake Problems

Thu, 04 Feb 2010 04:07:05 -0800

Despite recalls, stop-sales orders on some of its best-selling models and other mounting quality concerns, Toyota announced Thursday it had earned money in the previous quarter and raised its earnings forecast for the year, saying it will return to profitability this year.

Toyota's profit forecast comes as the automaker's quality issues are increasing. Toyota's latest quality problem involves its high-profile Prius -- the world's best-selling hybrid car -- that company executives admitted Thursday has brake issues.

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January Sales: Automakers Joust for New Sales Slots

Wed, 03 Feb 2010 11:13:25 -0800

January car sales had automakers jousting for new positions in the sales rankings.

General Motors retained its No. 1 sales spot. But Toyota's recall and stop-sale order on eight of its best-selling models caused the Japanese automaker to slip to No. 3, behind Ford.

Ford had lost the No. 2 sales spot to Toyota in 2007 and has been fighting to win it back. It closed 2009 by slashing in half the gap with Toyota. This could be the year with Ford gaining momentum and Toyota in reverse with its quality woes.

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Are Toyotas Safe To Drive? Transportation Secretary Confuses the Issue More

Wed, 03 Feb 2010 10:19:04 -0800

Transportation Secretary Ray LaHood publicly recommended that owners of recalled Toyotas should stop driving them during Congressional hearings on Wednesday. Then he backtracked on his statement in later in interviews, only adding to the confusion Toyota owners are experiencing.

"This flip-flop is not helping concerned motorists who are being presented with confusing and contradictory information about the Toyota recall at every turn," stated Edmunds.com CEO Jeremy Anwyl.

Transportation Secretary Says Stop Driving Recalled Toyotas

Wed, 03 Feb 2010 08:29:19 -0800

U.S. Transportation Secretary Ray LaHood said owners of Toyota vehicles recalled for accelerator-pedal defects should "stop driving" them and bring them to a Toyota dealer for repair.

"We need to fix the problem so people don't have to worry about disengaging the engine or slamming the brakes on or put it in neutral," LaHood told a House Appropriations panel hearing in response to questions from a lawmaker.

"If anybody owns of these vehicles, stop driving it and take it to a Toyota dealer," he added.

January Whacks Toyota, But Sales Firm for Other Makers

Tue, 02 Feb 2010 14:17:29 -0800

The U.S. auto market in January continued its recent strengthening trend, with overall sales just shy of 700,000 vehicles (698,456 vehicles) for the month rising by nearly 7 percent compared with 654,757 vehicles in a very weak January 2009. The seasonally adjusted light-vehicle sales rate ticked up to about 10.76 million units versus last year's 9.59 million - and roughly in line with the firming picture of recent months.

Toyota was clearly the biggest loser in January due to its recalls and stop-sales order on eight of its bestsellers. Yet, January's results varied widely for its top competitors that may have tried to take advantage of Toyota's problems with special incentives meant to lure disaffected Toyota customers in particular.

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