“We are pleased that TMP has taken the initiative of contacting their customers and perform the required repair at no cost to customers,” Trade Secretary Peter B. Favila said.

DTI said that mistakes that occur in the manufacture of products pose danger to the health and safety of the consuming public. When similar incidents occur in different people when using a specific product, this could be an indication that there is a flaw in its production, and when this happens, a product recall may be necessary.

Recalls may be initiated by the manufacturer upon discovery of defect in its products, but RA 7394, otherwise known as the Consumer Act also have provisions aimed at protecting the safety of consumers from hazardous goods by providing for their retrieval in the market.

Meanwhile, TMP vice president Rommel Gutierrez said that they only sold about 23 units of the P2.25-million hybrid car. Gutierrez said they have already contacted all the owners who agreed to bring in their cars.

In the Prius models, some customers may feel a slight delay in brake reaction, when driving the vehicle over certain road condition while lightly applying the brakes, TMP said.

This is why TMP will be installing a modified ABS management program on Prius at no cost to the owners.

The local recall was instituted after Toyota recalled 223,068 hybrid gasoline-electric vehicles in Japan, including its latest Prius model and three others – the Sai, the Lexus HS250h and the Prius plug-in hybrid, and conducted a voluntary safety recall in the United States for about 133,000 2010 model-year Prius cars and 14,500 Lexus Division 2010 HS 250h cars to update software in the ABS.

In an interview, TMP vice chairman Alfred Ty said the cars sold here are not affected by the recall because the Toyota Camry and Corolla Altis sold by TMP in the Philippines are manufactured in Thailand while RAV4 models are imported from Japan.

“The recall is a preventive measure that shows the consciousness of Toyota management. This is the reason for the recall,” Ty explained.

Ty said they have received some inquiries from their dealerships about the recall that is why they decided to issue a public notice assuring the public that Toyota vehicles sold here are safe.

Ty said the recall has had no effect on the local market. In fact he said that for this year they are looking at increasing their market share.

Last Jan. 21, Toyota Motor Sales USA initiated a safety campaign on sticking gas pedals of specific US market models, including certain 2009-2010 RAV4, certain 2009-2010 Corolla, certain 2007-2010 Camry, 2009 – 2010 Matrix, 2005 – 2010 Avalon, certain 2010 Highlander, 2007 – 2010Tundra, and 2008 – 2010 Sequoia.

In rare instances, Toyota said there is a possibility that certain accelerator pedals may mechanically stick in a partially depressed position or return slowly to the idle position. The condition does not occur suddenly and results from wear.

In spite of this, Toyota said it is not aware of any accidents or injuries related to the issue. It is working quickly to remedy the situation.

Earlier, TMP said they will grow faster than the local industry as they predicted an eight percent growth for this year.

“We want to renew our sales record this year and sell 50,000 units. I see positive signs in terms of automotive,” newly appointed TMP President Michinobu Sugata said.

Sugata pointed out that the Philippines was not hurt by the financial crisis. “There is no concern of risks,” he said.

By Ma. Elisa P. Osorio, Philippine Star

Newly-appointed TMP President Michinobu Sugata told reporters during the company’s annual Media Thanksgiving Party on Friday of the encouraging positive signs of the local automotive market this year.

“There are many positive signs in the auto market,” said Sugata.

For one, he said, Asia including the Philippines was not hit by the global financial crisis and the automotive sector has shown recovery since October last year.

Growth this year is also anchored on robust sales of the company’s two CKD vehicle models: Innova and Vios.

TMP has introduced a tougher version of the country’s best-selling commercial vehicle, the Innova Sport Runner. All the passenger car-like comfort offered by the Toyota Innova is packed in this new variant, with an improved sportier exterior.
The Innova SR is available in 2.5-liter diesel manual and automatic transmissions at P999,000 and P1.064 million, respectively.

The new variant is expected to solidify Innova’s position as the country’s best selling multi-purpose vehicle, which has been consistently selling 900 units a month since its 2005 introduction.

Its passenger car Vios is also the best seller in its class averaging 1,000 units a month. Sugata said there is no plan yet to add more CKD models saying they are concentrating on the assembly of Innova and Vios.

The Japanese car company assembled 22,000 unit vehicles last year at its Sta. Rosa, Laguna plant, which has a full production capacity of 25,000 units.

Sugata also said the company is going to introduce more hybrid cars this year. Last year, the company sold 20 units of its hybrid car Prius and expecting to sell the same number of vehicles this year. “I want as many customers as possible to experience Prius,” said Sugata.

Sugata, who served Toyota Motor Thailand for three years and Toyota Motor Asia Pacific in Singapore for year prior to his TMP appointment, said that the sale of the expensive hybrid vehicles needs government support.

By BERNIE CAHILES-MAGKILAT, Manila Bulletin

For 21 years of being in the industry, TMP remained consistently focused on catering to diverse needs of Filipino consumers. It offers an extensive model line-up of fourteen vehicles distributed to 27 dealer outlets nationwide. By maintaining its strong commitment in providing high quality products and excellent services to its customers, TMP has made its way to being the market leader for eighteen years. TMP is also proud to reveal that despite the economic slowdown in 2009, it has garnered year-to-date sales of 46,193 units as of December 2009.

“While this remarkable feat is made possible by cooperative efforts of the entire Toyota network, we are most grateful to the 600,000 Toyota customers for their trust and loyalty for the brand. We will continue our pursuit of improving our processes to deliver the best for our customers.” expressed Mr. Raymond Rodriquez, TMP’s First Vice President for Vehicle Sales Operations.

As TMP strives to retain its leadership in the market, it also takes up initiatives to unfailingly fulfill its social responsibilities. TMP continuously adheres to its commitment to local production with the Vios and Innova, which are currently the country’s top 2 best-selling vehicles with combined average monthly sales of 1,800 units. By introducing the Hydrid Technology of Prius in the Philippine market, it stands at the forefront of promoting the technology and the environment. TMP also embarks on various socio-economic programs through its socio-humanitarian arm, Toyota Motor Philippines Foundation (TMPF).

The 600K unit sales milestone is a testament of Toyota’s favorable position in the market owing to the respect and confidence of customers in the brand. This drives Toyota to keep moving forward in developing innovative technologies not only to address the changing needs of customers but also to further contribute to the development of the Philippine automotive industry.

We are confident that this new variant will further solidify the Innova’s position as the best-selling MPV, and will contribute to TMP’s overall sales leadership,” surmised Raymond Rodriguez, First Vice President for Vehicle Sales. The Innova Sport Runner will be available in any of Toyota 27 outlets nationwide this month.

Preliminary data from Toyota showed that 11,981 units of its locally-assembled sedan were sold last year.

Toyota’s van, the Innova, also assembled in Sta. Rosa, Laguna, was the second biggest seller with 10,311 units sold in 2009.

All in all, the two models accounted for nearly half of Toyota’s sales in the Philippines last year.

Including the sales of Toyota’s luxury brand, Lexus, which sold 172 units last year, the Japanese car maker sold a total of 46,193 units in 2009.

Toyota accounted for nearly a third of the industry’s sales of new vehicles for last year, but has been losing share to the likes of Honda and Mitsubishi as well as Korean and Chinese auto makers.

The company ended 2008 with 38.2 percent of local new-vehicle sales, up from 36.9 percent in 2007.

Preliminary estimates give Toyota 34.9 percent market share in 2009.

Earlier, the Chamber of Automotive Manufacturers of the Philippines Inc. said it aimed to grow sales by 4 percent this year, to 132,000 units, on increased demand for new vehicles sustained by remittances from abroad and the stable financing environment.

The chamber’s president, Elizabeth Lee, said during the group’s yearend briefing that the automotive industry exceeded its sales target of 125,000 units for 2009 by 2,000 units.

“We grew 2.3 percent in 2009. The strong sales started in September and the trend was sustained up to December.,’’ Lee said.

“A faster replacement rate due to typhoon Ondoy, sustained remittances, and the stable financing environment coupled with aggressive marketing by dealerships helped boost industry sales amid the difficult environment.’’’

by Elaine R. Alanguilan
Manila Standard Today

There are two ways to avail of Toyota’s special sales incentive. With the PAY CASH scheme, customers with cash purchases will enjoy special discounts for the Vios, Innova, Yaris, Avanza, Hilux, Altis, Hiace, Fortuner, RAV4 and Camry.

With the PAY LOW scheme purchases made through Toyota Financial Services (TFS) Lease-to-Own scheme will enjoy payment terms from 24 to 60 months, 10 to 30% cash out, and an all-in package including free one-year insurance with Acts of God coverage, LTO registration, and no chattel mortgage. A 90-day payment holiday will also be enjoyed wherein the first monthly amortization will be settled by customers three months after vehicle release.

Toyota’s special typhoon assistance is open to all Toyota customers of typhoon “Ondoy” and “Pepeng” who are interested to replace their flooded vehicles with a brand new Toyota. Only those with vehicles flooded from seat level and above are eligible to participate. This special promo is available at any authorized Toyota Metro Manila and Luzon Dealers only.

“As the country’s biggest automotive company, this is our way of letting our customers know that Toyota will be here every step of the way to help them. We are already offering special discounts for parts and labor for those whose damaged vehicles need repair. But we also understand that there are cases where the damages are beyond repair. This is why we are offering discounts for new vehicle purchases,” expressed Raymond Rodriguez, First Vice President for Vehicle Sales Operations. TMPC is also offering 40% discount on engine ECU, 20% discount on selected flood-affected parts, and 20% discount on labor.

For more information on Toyota’s special assistance for flood-affected customers, please contact the Toyota Customer Assistance Center (CAC) at 819 2912.

Toyota will offer discounts on replacement of flood-related parts and labor, as well as extend service workshop operations to accommodate affected customers while Honda is offering 30-percent subsidy on all parts, lubricants and 10 percent on labor charges for flood-related repairs.

“Toyota would like to express its sympathy to motorists affected by Ondoy. The number of damaged vehicles is unimaginable and we sympathize with our valued customers who are victims of the crisis,” Raymond Rodriguez, TMPC first vice president for Vehicle Sales Operations said.

Less than a week after the typhoon, Metro Manila Toyota dealers have received more than 2,000 affected vehicles for service and repairs. The numbers of Toyota cars that need to be serviced have now reached a level way above the capacity of Toyota dealers.

In order to help its customers, Toyota will provide discounts of 40 percent for engine Electronically-controlled Units (ECU), 20-percent discount on selected flood-related parts, and 20-percent discount on labor.

All Toyota Metro Manila and Luzon dealers shall likewise fully utilize its current workshop capacity to accommodate all vehicles for service and repair. Each dealer will also have a Special Help Desk for typhoon victims, and customers can directly contact the Toyota Customer Assistance Hotline.

“The typhoon has caused widespread damage in Luzon. We send our deepest sympathies to all the victims of this disaster. After the storm has passed, we have projected a significant increase in service intake of inundated vehicles,” Hiroshi Shimizu, president and general manager of HCPI said.

At present, Honda regularly monitors its dealership network to assess the actual situation.

To prevent further damage to the vehicle, Honda advises immediate disconnection of the battery terminal or better yet, complete removal of battery from the vehicle.

Honda also warned affected owners to avoid switching of ignition or starting of engine to prevent electrical short circuit. For vehicles completely submerged with floodwater, it is best to clean the car, especially the engine bay and air-conditioning unit, with clean water to prevent further rust formation and corrosion.

By Ma. Elisa P. Osorio, Philippine Star

“Toyota would like to express its sympathy to motorists affected by typhoon Ondoy. The number of damaged vehicles is unimaginable and we sympathize with our valued customers who are victims of the crisis,” Raymond Rodriguez, TMPC first vice president for vehicle sales operations, said.

Metro Manila Toyota dealers have received more than 2,000 affected vehicles for service and repairs. The number of Toyota cars that need to be serviced has reached a level way above the capacity of Toyota dealers.

TMPC will provide discounts of 40 percent for engine electronically-controlled units (ECU), 20 percent discount on selected flood-related parts, and 20 percent discount on labor. TMPC said all Toyota Metro Manila and Luzon dealers have been advised to fully utilitize their current workshop capacity to accommodate all vehicles for service and repair. Each dealer will also have a special help desk for typhoon victims, and customers can directly contact the Toyota Customer Assistance (CAC) hotline.

Visit any of Toyota’s 10 authorized outlets in Metro Manila and Luzon or Call the CAC Hotline at telephone number 819 2912 or through email at customerassistance@toyota.com.ph.

In addition, clients of Toyota Financial Services (TFS), TMPC’s financing arm, can also contact their help hotline at 757-8500 (Monday to Friday), or log on to their website, www.toyotafinancial.ph.

The 1.8-liter third generation gasoline-electric hybrid can get up to 38 kilometers per liter and significantly cuts down on carbon emissions, meeting the strictest emission-reduction standards worldwide.

But going green in the Philippines doesn’t come cheap. The Prius has a price tag of P2.2 million, about half of it going to taxes – import duties, excise taxes, and value-added tax (VAT). This is more than double its price in Japan of $20,900.

“Toyota believes that a lot more customers would benefit if a special tax incentive will be given for the Prius to bring its cost down,” said Raymond Rodriguez, first vice president for vehicle sales operations of Toyota Motor Philippines Corp.

There are moves to provide incentives to environment-friendly vehicles.

House Bill 2084 authored by Ilocos Norte Rep. Ronald Singson, son of former Ilocos Norte governor and now deputy national security adviser Luis “Chavit” Singson, seeks to give importers and manufacturers of hybrid vehicles a break on duties and taxes. While the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and Toyota Philippines have made presentations before the House of Representatives’ ways and means committee chaired by Antique Rep. Exequiel Javier, the committee has yet to hold formal hearings on the bill.

Last April, the Japanese government implemented significant tax breaks for environment-friendly cars, both as a means to stimulate the economy and to encourage green technology.

As a result, data from the Japan Automobile Dealers’ Association showed that Toyota sold 10,915 units of the Prius in May, more than five times the number sold in the previous month.

Toyota dealers in Japan have reportedly placed orders for a total of 110,000 units of Prius for the year.

Hiroshi Ito, president of Toyota Philippines, said that by the end of last year, “combined Toyota and Lexus hybrid cumulative global sales reached 1.7 million units, 70 percent of which are Prius.”

The 1.7 million hybrid vehicles are estimated to have taken nine million tons of carbon dioxide from the atmosphere.

The first Prius went on sale in Japan in December 1997.

Alfred Ty, vice chairman of Toyota Philippines, earlier told The STAR that they started working on bringing the Prius to the Philippine market as early as three years ago.

But there were initial concerns about the adaptability of the hybrid to local conditions, specifically the bad roads and floods.

Rodriguez assured us that with the improvements incorporated into the third generation Prius, these concerns – as well as those related to temperature and humidity – have all been addressed and are no longer an issue.

Toyota Philippines is targeting sales of 100 units of Prius this year. While acknowledging that the Prius is a “specialty product targeting a very niche market,” Rodriguez nevertheless said that “is always a good time to introduce an eco-friendly product, especially now that there is greater awareness on environmental preservation.”

Reports from CAMPI show that there has been no drastic decline in the automotive market. As of May 2009, the market only registered negative growth of 4 percent compared to the same period last year.

The Prius, the global pioneer and standard for hybrid technology, allows the car to run solely on its gasoline-operated engine, its electric motor, or a combination of both. Its new shape allows for maximum aerodynamic efficiency, and the aluminum and high-tensile steel makes the car lighter, sleeker and more stylish.

Waiting for incentives

The hefty price tag of P2.25 million of the hybrid car Toyota Prius is expected to go down once the government grants fiscal incentive to the distributor, Ito said.

During the car’s launch Friday evening, Ito revealed that more than 30 percent of the cost of the car goes to the national government in the form of taxes.

Ito said that they are paying three kinds of tax to the government, the import tax, the excise tax and the value added tax.

The executive said that the auto industry has already requested for incentives from the government for this environmental friendly car but there is still no response from the Department of Trade and Industry (DTI).

“Once the incentive is introduced the price may go down,” he noted.

Likewise, Ito said that the Prius is not covered by the perks granted under the Japan-Philippines Economic Partnership Agreement (JPEPA) because it runs on 1.8 liters and not the 2.0 liters.

The launch came in spite of the slowdown in consumer demand which has affected the local automotive industry.

Even though hybrid cars are more expensive, Ito said they have been getting inquiries regarding hybrid vehicles. “There is a demand,” Ito said.

by Elisa Osorio, Philippine Star

Photo from Philippine Star