Automotive News - March 31, 2008 - (Page 20)

20 • MARCH 31, 2008 Toyota enters untapped Korea, home of Hyundai Hans Greimel hgreimel@crain.com TOKYO — Toyota is a global success from Bangkok to Boston, but there’s one market right next door where the company’s badge has long been missing: South Korea. Until now, that is. On March 20, Toyota Motor Corp. said it will start selling its flagship brand in Asia’s fourth-biggest economy late next year. The world’s top automaker plans to launch the Prius hybrid, RAV4 crossover, Camry sedan and Camry Hybrid. Toyota is expanding rapidly over- The Prius is one of the vehicles Toyota plans to sell in South Korea beginning next year. seas with a global sales target of 10.4 million vehicles in 2009. Market liberalization in South Korea opened the door to Japanese exports in 1999, and Toyota follows domestic rivals Honda and Nissan with plans to compete in Hyundai Motor Co.’s backyard. For the time being, Toyota’s ambitions are modest: The automaker wants initial monthly sales of only 500 units, through five dealerships in Seoul. Toyota hopes to quickly reach 1,000 units a month. Toyota operated in Korea during the 1960s through a joint venture with Shinjin Kogyo, but that partnership ended in 1972. Since then the Toyota brand has been all but nonexistent in Korea, except for a limited number of specialty imports from the United States during the 1990s. Toyota launched the Lexus brand in Korea in 2001. But like many Japanese makers, the company had held back lower priced offerings in a market all but sewn up by local champions Hyundai and Kia. But Korea’s interest in imports is surging, and Japan is hoping to ride the wave. Lexus sold 6,600 cars in Korea in 2007, up from 800 units in the year the brand debuted. Nissan Motor Co. introduced the Infiniti brand in Korea in 2005. It plans to head downmarket this year with the introduction of the Nissanbadged Rogue crossover, Murano SUV and Altima sedan. Honda Motor Co. also is in Korea, selling the Accord, Civic, Legend and CR-V. c Toyota considers new engine plant in Japan Hans Greimel hgreimel@crain.com TOKYO — Toyota Motor Corp. is weighing plans to build a fifth engine plant in Japan. The factory would come on line in 2010 and produce 1.5-liter engines for subcompacts as demand for fuelefficient cars soars, Japan’s Nikkei newspaper reported this month. “We are always considering ways to optimize production,” said Toyota spokesman Hideaki Homma. “But nothing has been decided yet.” The automaker has 12 more engine plants overseas. According to the Nikkei, the world’s largest automaker plans to spend as much as ¥30 billion ($303 million) on the new plant. Output will start at around 200,000 units a year. The engines will go to a Kanto Auto Works Ltd. factory in northern Japan. Kanto, an auto body assembler and Toyota group company, counts the Corolla, Rumion, Auris, Blade and Scion xB among its vehicles. The increased engine production will help Toyota meet its ambitious growth targets. Toyota expects global sales to reach 10.4 million vehicles in 2009. c obituary James O’Rourke Jr. STONY BROOK, N.Y. — Longtime Long Island auto dealer James O’Rourke Jr. died here Feb. 26 at age 82. O’Rourke began selling cars in Queens in the 1950s. He became part owner of Raines Cadillac in Smithtown, N.Y., in 1977. After partner Ray Raines died, O’Rourke teamed with Steve King and the dealership was named King O’Rourke Cadillac. In 1986, the partners bought a dealership in Lynbrook, N.Y., and bought a third in 1992, which became King O’Rourke Buick-Pontiac-GMC in Port Jefferson, N.Y. The partners split two of the dealerships in the late 1990s. O’Rourke kept the Lynbrook store for several years before selling it. The men continued to jointly own the Port Jefferson dealership. http://www.imbranded.com http://www.imbranded.com

Table of Contents Feed for the Digital Edition of Automotive News - March 31, 2008

Axle strike leads GM to alter production plan Industry expert Ferron joins Automotive News Group Hummer adds E85 models Lear expands in China Ford spills the beans on car seats Concern ... confidence ... curiosity — welcome to America, Tata Expect most Ford-bred executives to stay put Tip for Tata: Let British brands be British brands Dana CEO sees need for growth in Asia Chrysler: Any deal for partner would be done by Cerberus Farley retools Flex marketing strategy Malibu attracts import-minded buyers European purchasing execs to suppliers: Costs must fall Reynolds removes dealership modems New Saturn ads will promote Aura, Vue, Outlook This Spring Hill launch is a fraction of the first one GM works on small global car Hal Riney, Saturn campaign creator, dies Dealer sours on China importer Secret computer lets Nissan planner peek into future XM-Sirius merger: Lower prices, more choices? Key Chrysler product developer resigns Ford's new boss in HR plans no major changes Wagener to replace Pfeiffer as Mercedes design chief It's time to break the glass ceiling Autos don't cause all global warming Toyota plumbed the depths of Scion Customer loyalty is serious business Future bright for Tata brands Dauch sends wrong signals as Axle strike drags Yanase opened Japan to Western cars Fewer dealers, sure, but more brands What if Ahn falls short? Want to inspire Lori Queen? Just say no Hanwha to build GM Powertrain assembly line Toyota enters untapped Korea, home of Hyundai James O'Rourke Jr. Picture This -- March 31st, 2008 Lexus pays dealers for innovations Suppliers to the 2009 Dodge Journey Ricardo center has battery focus Howa USA opens interior parts plant in Kentucky N.Y. show suggests a future of smart powertrains, muscle BMW sees new models as sales saviors Ford contract has unique take on core jobs 6 more PACE-setters in auto innovation Buy-here, pay-here may grow Dealers Mercedes SL: A fresh face — with 1 flaw Ex-Chrysler design chief John Herlitz dead at 65 Future could be bright for Jag, Land Rover Land Rover in good shape, but challenges remain Fuel economy fines loom for Tata As segment shrinks, Chrysler minivan output takes a big dip Mercedes names 27 AMG dealers Continental to cut jobs Cobalt SS price: $22,995 Kia opens Ga. training center Nissan idles Mexico plant Plastech legal bill: $1 million for a month Magna will add 3 plants in Mexico El Camino diehards say Pontiac G8 should have been a Chevy No 2nd chance for Nasser, other Ford alums Buick grabs a name from the past After short list, a short stay for Laymon Lori Queen or Ellery Queen? Daimler's mum on BMW Southern supplier strategy Tracing the Camaro's bloodline Alfa searches for a U.S. factory

Automotive News - March 31, 2008

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