Toyota Motor Philippines Corp. announced yesterday that the company’s local operations are still normal despite the work stoppage in Japan as a result of the twin disasters.

In a letter to Board of Investments (BOI) vice chairman and managing head Cristino L. Panlilio, Toyota president Michinobu Sugata said the overall impact on Toyota operations cannot be determined yet. However, Toyota promised that they will update the government on new developments.

“To date, the completely knocked down (CKD) production is still under normal operations. However, TMP is currently studying the overall parts supply situation in coordination with Toyota headquarters and our local parts suppliers,” Sugata said.

TMP vice president Rommel T. Gutierrez yesterday reported that the Nagoya plant is still closed.

Sugata in his letter said the halt in vehicle production was due to the difficulty in procuring parts, among others. The production of parts like replacement parts and parts for overseas production in some plants resumed last week.

In terms of ASEAN operations, Sugata said they have no information as to the specific impact on other ASEAN production bases at this time. In general, Toyota operations are making adjustments considering the current situation in Japan.

Philippine Star

Tsikot.com Philippines

Toyota Motor Philippines Corp. (TMP), the country’s largest car manufacturer, announced yesterday that it recorded an all-time high sales of 45,915 units in 2008 despite the general slowdown in global consumer demand.

“Aside from recording an all-time high sales of 45,915 units since the start of our operations, we have also captured our 7th consecutive triple crown, number one in passenger cars, commercial vehicles, and overall sales,” Raymond Rodriguez, TMP’s First Vice President for Vehicle Sales said in a statement.

“We have also experienced an upward trend market share towards the last two months of 2008. Our November and December shares posted highest for the year at 42.2 percent and 39.6 percent respectively due to the strong sales of our Vios, Innova, Fortuner, Avanza, Hilux and Camry models, which are all leaders in their respective segments,” he added.Rodriguez said they are hopeful that this trend will continue this year.

Rodriguez said that Toyota in the Philippines has already sold more than 500,000 units since the start of operations 20 years ago, and in 2007, have already surpassed pre-Asian crisis levels with annual sales of over 40,000-level.

“We hope this trend continues but we are carefully reviewing our 2009 forecast with a conservative outlook,” he noted.

Rodriguez cited that the country’s top four vehicles are all from Toyota ’s line-up with locally-produced Vios maintaining its lead.

According to the reports of the Chamber of Automotive Manufacturers of Philippines, Inc. (CAMPI), TMPC registered 45,915 units from January to December 2008 with 36.9-percent market share and two-percent growth.

Toyota ’s passenger car sales is recorded at 18,323 units with 20 percent growth versus the same period last year. On the other hand, commercial vehicle sales stood at 27,592 units.

The Vios is the country’s best-selling vehicle for two consecutive years with total sales of 12,020 units at 38-percent growth in 2008. The Innova closely follows as the second best-selling vehicle with annual sales of 10,000 units.

By Ma. Elisa P. Osorio, Philippine Star

Tsikot.com Philippines

Targeting just 1 percent of the population, Toyota Motor Corp. recently brought in to the Philippines five models of its luxury brand Lexus with a price range of P2.9 million to P8.2 million.

Even with the difficult economic situation, Daniel Isla, president of the newly created Toyota subsidiary Lexus Manila Inc., said the company is confident of doing well in its initial year of operations in the country by selling 200 to 300 units.

“The luxury market will not be severely affected during the financial crisis, not as compared with the volume segment,” Isla told the BusinessMirror at the sidelines of the grand inauguration of the Lexus Manila Inc. facility at the North Bonifacio in Taguig.The market of Lexus, he said, will be the “Class A” segment like the businessmen and senior executives, who comprise just about 1 percent of the Philippine population.

Currently, Isla said the luxury vehicle segment represents about 1.4 percent of the Philippine auto market.

The Lexus models currently on display at the North Bonifacio show room are the LS460L, GS460, ES350, IS300, and LX570.

Even before the launch, Isla said they had received orders for eight Lexus vehicles.

Isla said the entry of Lexus into the market has been in Toyota’s plans since 2005, so the crisis will not be enough reason for them to suspend the Philippine launch.

The Lexus cars, Isla said, will not count in the total sales of Toyota Philippines, which dominated the market anew by selling 45,915 units in 2008.

According to Lexus Manila Inc., the LS460L, a long wheel base luxury sedan that boasts of semiairline leather seats with ottoman and massage features, is the flagship model of Lexus. The GS460 is a 4.6-liter V8, eight-speed luxury sedan that bears a sporty elegance.

The LX570 is a sport-utility vehicle equipped with the world-renowned Mark Levinson audio system that has a total of 19 speakers.

ES350, a six-speed V6 luxury sedan, is for discriminating executives, while the IS300 is for the performance-purists younger set of affluent motoring enthusiasts.

by M.V. de Leon, Business Mirror

Tsikot.com Philippines

The Philippines needs it.

Akira Okabe, senior managing director of Toyota Motor Corp., affirmed the giant car manufacturer’s commitment to bring energy-efficient and environment-friendly vehicles to the Philippines.

While Okabe would not reveal the timetable for the Philippine introduction of Toyota’s hybrids – including the Toyota Prius and the high-end Lexus hybrids – he said developing countries like the Philippines need hybrid vehicles that will meet the country’s growing transport needs as well as environmental demands such as lower carbon dioxide emissions.Alfred Ty, chairman of Lexus Manila and vice chairman of Toyota Motor Philippines, told The STAR during last Wednesday’s inauguration of Lexus Manila’s new showroom at the Bonifacio Global City they have been working on bringing the hybrid cars to Manila, but there are some considerations that have to be worked out, including the performance of the car in the country’s wet climate and less than ideal road conditions.

“But hopefully within the year, we can do something,” Ty said.

The Prius is currently manufactured in Toyota plants in the US and Japan. Lexus announced at the auto show in Detroit earlier this month that it will roll out its first dedicated hybrid car this summer. Lexus has sold over 157,000 luxury hybrids since the first model was introduced in 2005. Actor Leonardo DiCaprio reportedly drives a Lexus hybrid.

Ty pointed out that a hybrid will be more expensive than a conventional car of the same size, since the technology that enables the vehicle to switch from fuel to electricity is much more costly.

“In other countries, governments subsidize the development and use of such technology,” Ty said, thus enabling wider consumer application. No such incentives are in place in the Philippines.

“But there are some proposals to that effect,” Ty added, without going into specifics.

Okabe, who was special guest at the three-day Lexus Manila inauguration, confirmed reports that despite an expected operating loss for the current fiscal year, Toyota is not cutting back on research and development of fuel-efficient and next generation ecological vehicles.

Toyota is the acknowledged leader in green automotive technology, and is reportedly also working on a solar-powered electric car.

Last December, Toyota Motor Corp. president Katsuaki Watanabe announced an expected operating loss of Y150 billion ($1.7 billion) for the current fiscal year ending March 31. It is the first such loss for the company in 70 years, its first since 1938, a year after the company was founded. The loss comes after eight consecutive years of record profits, and underscores the spread of the current economic crisis across the globe.

The push towards ecological vehicles is also seen as an effort to turn around the struggling automotive business.

Okabe stressed that the development of such green technology will be promoted “much more,” especially for developing countries.

“We cannot kill the earth,” said Okabe, who is also chief of Toyota’s Asia, Oceania and Middle East Operations Group.

By Doreen Yu, Philippine Star

Tsikot.com Philippines

Toyota Motor Philippines (TMP) said yesterday they will not suspend local production despite a decision of Toyota Motor Corp. (TMC) to suspend production at all of its Japanese plants for 11 days between February and March in response to a slump in sales.

“We have no plans as of now to suspend operation. Japan operation is a separate and independent matter,” TMP vice president for Corporate Affairs Rommel T. Gutierrez said in a telephone interview.

Yesterday, TMC announced that it will suspend production at all of its Japanese plants for a total of 11 days in January, February and March because of low global demand as a result of the global financial crisis.

Only last month, TMC said that for the first time in 70 years they will be posting an operating loss of $1.66 billion for the fiscal year ending March 2009.

TMP, the largest automotive seller in the country, announced zero growth in car sales next year as the slowdown in world economy resulted in a global decline in the demand for cars.

“We will have flat growth for next year,” Gutierrez said

Gutierrez admitted that this year would be more challenging than the last year but strong branding and the introduction of new product lines will help them achieve their goal.

Meanwhile, Gutierrez said the crisis has not dampened their plan to strengthen the local complete knocked down operations.

“We are going to focus on CKDs,” he said. “This would be the focus of Toyota’s initiative,” he added.

The car manufacturer will start selling its high end brand Lexus in the Philippines this year. “We want to enter luxury car market by providing our affluent customers with great products and exceptional service,” Gutierrez said.

TMC last month forecast its first-ever annual operating loss, blaming “an unprecedented crisis” in the global auto industry.

Toyota, which vies with troubled US firm General Motors for the crown of the world’s largest automaker, has already moved to reduce production at its domestic, US, Canadian and French factories.

It also plans to lay off 3,000 temporary workers in Japan, where it builds cars for both domestic and overseas markets.

TMC reported Monday a 37 percent drop in US sales in December, capping a tough year during which the Japanese giant’s sales in the world’s biggest car market dropped 16 percent to 2.2 million vehicles.

The global slowdown has badly shaken Japan’s automakers, which in recent years have cashed in on worldwide demand for their cars.

Toyota had enjoyed hefty profits in recent years fuelled by demand overseas, particularly in the United States, for its eco-friendly hybrid cars.

By Ma. Elisa P.Osorio, Philippine Star

Tsikot.com Philippines

Toyota Motor Phils. (TMP) ranked number one in customer satisfaction with regards to after-sales service in authorized dealerships, according to the J.D. Power Asia-Pacific 2008 Philippines Customer Satisfaction Index (CSI) study that was conducted in September.

J.D. Power Asia-Pacific General Manager for Philippines Taku Kimoto presented the award to TMP President Hiroshi Ito during the company’s customer service committee meeting held on November 28, TMP revealed in a statement.

TMP scored 843 points, six points above industry average.“It is an honor to receive the highest ranking from one of the most credible automotive industry studies, J.D. Power,” said TMP Customer Service Manager Josephine Villanueva. “We made a lot of improvements in terms of customer satisfaction for the past year. Coming from the number four position last year, our efforts have generated very positive feedback from our customers and we are very happy that we are making our customers happy.”

Villanueva also extended TMP’s gratitude to all Toyota dealers, saying, “As front liners, a huge part of this award is due to their hard work, dedication and commitment to raise customer satisfaction to the highest level.”

Now on its eighth year, the J.D. Power study measures new-vehicle owner satisfaction with the after-sales service process by examining dealership performance in seven factors, which are problems experienced; service quality; user-friendly service; service delivery; service advisor; service initiation; and in-service experience. CSI performance is reported as an index score based on a 1,000-point scale. Overall customer satisfaction shows improvement with a score of 837 this year—an increase of 23 points since 2007.

The 2008 Philippine CSI study is based on the responses of more than 1,400 new-vehicle owners who purchased their vehicles between September 2006 and June 2007 and took their vehicles for service to an authorized dealer or service center between September 2007 and June 2008.

Manila Times

Tsikot.com Philippines

PHILIPPINE auto sales may grow at a rate that is higher than what the local industry expects, according to a new study by the Business Monitor International Ltd.

The study also indicated that the relatively unserved market segments would boost growth prospects for 2009.

The London-based market research firm said sales could grow by 8 percent, to more than 127,000 units. The projected growth rate, however, is lower than the 18.3 percent posted in 2007.

The Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association said they were expecting to sell only 125,000 units this year, or a growth rate of 6 percent.

“Although BMI expects production to rise in 2008, local assembly is under threat from moves to reduce import tariffs, which would erode the competitive advantage of local manufacturers,” the study said.

Toyota Motor Philippines Corp., being one of the firms that use a high level of local content in its vehicles, would be particularly hit hard, it added.

Still, BMI said industry newcomers had not been deterred, with Chinese carmaker Geely making its debut initially through importation of completely built units and targeting domestic assembly of kits.

BMI added that both Toyota and Geely were expected to tap into market segments that had been relatively unserved, with the latter producing low-cost cars for the BCD income brackets.

Further, BMI cited plans of Toyota to further boost its share of the market through the launch of the Lexus premium brand.

In an interview last week, TMPC president Hiroshi Ito said the company was finally pushing through with the launch of Lexus in mid-January.

Ito said five models–which he declined to name–will be launched simultaneously along with the brand next month.

“A sixth model will be added later to complete the line up for the year (2009),” he added.

He said the introduction of Lexus in the Philippines had been held off several times, partially on account of a still unfinished facility at the Bonifacio Global City.

Tsikot.com Philippines

Market leader Toyota Motor Philippines Corp. (TMPC) is only looking at equaling its 2008 performance for next year and is not expected to undertake new major investments.

This, as car companies in the country are said to be “cautiously optimistic” of industry prospects in 2009, projecting a 2-percent to 4-percent growth in sales volume.

Elizabeth Lee, president of the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi), said the industry is aiming for a high of 130,000-unit sales volume for 2009. This will be 4-percent higher than the estimated 125,000 units that Campi is expecting to sell this year.

“This year, we are still gunning for 125,000 units. For next year, we are slight positive between 2-percent to 4-percent growth translated to 130,000 sales volume at 4 percent. Although the 2009 forecasted growth may be lower than this year’s 10-percent growth so far, auto players remain cautiously optimistic given the local industry’s better performance versus that of other developed markets,” Lee said.

Rommel Gutierrez, TMPC vice president, said while the local market has yet to feel the impact of the global crisis, there is big possibility that the economic situation will turn for the worse next year.

With this in mind, Gutierrez said the company will have to ramp up its marketing efforts and maintain the production of its Philippine best-sellers, including the Vios compact sedan, to achieve even a flat growth for 2009.

“We don’t want to be pessimistic about it [crisis]. We will just maintain our sales,” he told the BusinessMirror at the opening of the Toyota Automotive Rooms at the Don Bosco Technical Institute-Makati.

He said, while they are still not making key alterations in their business plan for 2009, TMPC is not going to make major investments like bringing in new CKD (completely knocked down) models.

TMPC, which continues to dominate the market with a share of about 38 percent, is also making sure that it will have steady source of competent technicians by tying up with the Don Bosco Technical Institutute.

The company donated P3.5 million for the Toyota Rooms with automotive equipment and training vehicles at Don Bosco.

“We firmly believe that in every quality vehicle we produce, there is always a quality automotive technician behind. Producing quality technicians trained the Toyota way has been proven to be much better if we start at school, and with their skills, knowledge and attitude further honed through our Toyota Dealer Network,” David Go, Toyota Motor Philippine Foundation president, said.

Business Mirror

Tsikot.com Philippines

Toyota Motor Philippines (TMP), the largest automotive seller in the country, expects a zero growth rate in car sales next year as a result of the expected drop in global demand for cars.

“We will have flat growth for next year,” TMP vice president for corporate affairs group Rommel T. Gutierrez told The STAR in an interview.

This is the first time Toyota will not post an increase in local sales.

However, Gutierrez stressed that the local car industry is better off than other markets.

Mother company Toyota Motors Corp. (TMC) decided to cut its global sales forecast owing to the slowdown in demand from the US and European market.

The Japanese group, which includes Daihatsu Motor and Hino cars, now expects to sell 9.7 million cars and trucks in 2009, 700,000 fewer than its previous forecast.

For the local market, Gutierrez said Toyota will still reach its goal of 10- percent growth for this year. This figure is double the industry target of only five-percent growth for the year.

To attain this, Gutierrez said they would have to sell close to 50,000 units this year. The industry target is 124,000 units.

Gutierrez admitted that this year would be more challenging than the last but strong branding and the introduction of new product lines will help them achieve their goal.

“We are the only car company in the country which has attained pre-financial crisis results in terms of sales,” he noted

Meanwhile, Gutierrez said the crisis has not dampened their plan to strengthen Toyota’s local complete knocked down operations.

“We are going to focus on CKDs,” he said. “This would be the focus of Toyota ’s initiative next year,” he added.

The car manufacturer will start selling its high end brand Lexus in the Philippines in 2009.

“We want to enter luxury car market by providing our affluent customers with great products and exceptional service,” Gutierrez said.

Late last year, Toyota held the groundbreaking for the new showroom in The Fort. The three-floor showroom will be ready by the end of 2008.

Once operational, Gutierrez said the showroom will house 11 models of Lexus.

“We expect to sell 300 units during our maiden year,” Gutierrez said.

All the Lexus that will be sold in the Philippines will be imported from Japan . The Lexus is expected to compete head to head with European brand BMW.

Tsikot.com Philippines

Toyota Motor Philippines (TMP) Corporation announces the launch of the new and improved 2008 RAV4.

The enhancements of the compact SUV aims to further strengthen Toyota’s position as the number one automotive company in the country and in the Commercial Vehicle (CV) segment.

The new 2008 RAV4 is still equipped by the powerful yet fuel efficient 2.4-liter VVT-I engine, as acquired from the 2006 model. Both the 4WD and 2WD variants are hauled with a maximum output of 170ps/6,000rpm and maximum torque of 224Nm/4,000rpm.

These features coupled with this year’s interior and exterior modifications make the RAV4 a testimony to Toyota’s commitment to innovation and customer satisfaction.

The exterior of the 2008 RAV4 incorporates a fresh look with a lengthened front bumper, a revitalized radiator grille, trendier multi-reflector fog lamps with plated rings, and a rear bumper upgraded with a scuff plate.

The 2008 RAV4 is now available in the market and available in two variants, both in four-speed automatic transmission in 2.4-litre VVT-i engine.

Philippine News Agency

Tsikot.com Philippines