Automotive News - November 10, 2008 - (Page 6) 6 • NOVEMBER 10, 2008 Don Esmond: While he was Toyota Division general manager, the Camry became the best-selling car in America. ‘Unprecedented’: U.S. meltdown whacks Toyota Hans Greimel hgreimel@crain.com Toyota slashes earnings outlook Toyota cut profit forecasts by more than half for the fiscal year ending March 31. NEW FORECAST OLD FORECAST NEW FORECAST VS. PREVIOUS YEAR Toyota’s Esmond to speak at congress Veteran Toyota sales executive Don Esmond will speak at the 33rd Automotive News World Congress in January in Detroit. Esmond, 64, is senior vice president for automotive operations at Toyota Motor Sales U.S.A. Inc. He will speak Wednesday morning, Jan. 21. Esmond oversees Toyota and Lexus divisions, as well as the company’s sales administration, Toyota Logistics Services, Toyota Motor Sales de Mexico and Toyota de Puerto Rico. During Esmond’s tenure as general manager of Toyota Division in the late 1990s, the Camry went from alsoran sedan to best-selling car in America, a title it has relinquished only once since then. Before joining Toyota in 1982, Esmond spent 12 years in various sales field positions with Ford Motor Co. Esmond joined Toyota as a corporate fleet and truck manager and national fleet manager. Later, he became vice president of the largecar sales team. Esmond was named to his current position in April 2005. c TOKYO — The Toyota profit machine tumbled to a rare loss in North America. Toyota Motor Corp. now expects global operating profit to plunge 73.6 percent to ¥600.0 billion, or $5.83 billion in the fiscal year ending March 31. The new goal would be Toyota’s lowest operating profit since the company began calculating in U.S. accounting standards in 1998. Lower vehicle sales in the United States have cut into Toyota’s profits. In the April-September fiscal first Operating profit $5.83 billion $15.5 billion –73.6% Toyota’s Mitsuo Kinoshita: Things won’t improve for at least a year. charged with keeping Toyota in the black in 2009 and 2010. Details are scant, but the committee will review everything from pricing to the product pipeline. Looking ahead, Toyota now expects global sales to fall 7.6 percent to 8.24 million units this fiscal year. c half, Toyota slumped to a $335.9 million operating loss in North America. Also during the period, Toyota’s North American sales slid 9.4 percent to 1.36 million vehicles. “This is an unprecedented situation,” Executive Vice President Mit- suo Kinoshita said here last week while delivering financial results. “Every week, the environment gets worse.” Kinoshita said things won’t improve for at least a year. Toyota President Katsuaki Watanabe is chairman of a committee The nose of the Fascination concept, shown, foreshadows the E-class coupe. Back in the game: Subvented Mitsubishi loans pushed Galant sales. Mitsubishi reclaims its finance business Lindsay Chappell lchappell@crain.com PHILIP MEECH Key facts Mercedes will kill CLK, add larger coupe, convertible Diana T. Kurylko dkurylko@crain.com When: Jan. 19-22 Where: Detroit Marriott Renaissance Center Cost: $1,495 early registration fee by Dec. 1 (save $200); daily fee $850 Information: 313-446-0485 or autonews.com/worldcongress Exclusive lead sponsors: PricewaterhouseCoopers and IBM MONTVALE, N.J. — Joining the surge toward larger luxury coupes, Mercedes-Benz will ax the CLK after the 2010 model and replace it with a coupe and convertible based on the new E class. The coupe will debut when the Eclass sedan is launched in mid-2009, says Ernst Lieb, CEO of MercedesBenz USA. The convertible will follow about a year later. The CLK is based on the previousgeneration C class. Through October, 9,129 CLK units have been sold in the United States, down 28.5 percent from the same period a year ago. The C class is Mercedes-Benz’s biggest-volume car in the United States. Market segments for the CLK and E-class coupe are similarly sized, but Mercedes-Benz wanted a two-door that could better compete with larger coupes being launched by competitors. Audi’s A5, which went on sale last year, is particularly hot. And Porsche will launch the Panamera, a fourdoor with a coupe roofline, next year. The E-class coupe likely will cost more than the CLK, but Lieb wouldn’t give specifics. Today’s CLK is positioned between C- and E-class sedans and starts at $48,975, including shipping. The base E class — the E350 sedan — starts at $54,075, including shipping. The nose of the E-class coupe will be similar to the Fascination concept shown last month at the Paris auto show. Although the concept was a wagon, Mercedes executives said the front end is a preview of what to expect on the new E class. c Loss is more: Europe snatches bigger share of U.S. market European brands venUnited States, only two tured into uncharted terEuros — BMW group’s ritory in America last Mini and VW’s Audi — month — approaching 10 posted year-on-year sales percent of the market. gains in October. Mini Industrywide sales sales were up 56.4 perRunning the numbers plunged 31.9 percent in cent to 5,272. October, but Europe’s 17 Meanwhile, the BMW brands were down just 17.9 percent on average brand is catching up with Japanese rival compared with October 2007. That gave the Lexus. Europeans 9.2 percent of the market, up from BMW was down just 13.9 percent for the 7.6 percent in October of last year and 7.8 per- month, compared with Lexus’ 35.2 percent cent in September of this year. drop-off. Toyota’s luxury brand has outsold Among the strong European performers in BMW for 10 straight years in the United States. October (and let’s remember that “strong” is a But the German marque eclipsed Lexus 20,203 relative accolade these days) was BMW Group, to 16,283 in October and has pulled to within with sales down just 5 percent. Volkswagen 5,000 units for the year to date. After the first 10 group was off 6.3 percent. months of 2007, Lexus held a lead of about Among the 37 top-selling brands in the 30,000. c Octoberfest Market share for the 17 European brands sold in the United States hit an all-time high in October. 10% 8 U.S. market share 6 4 2 0 JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT Source: Automotive News Data Center Mitsubishi’s U.S. auto-finance arm is lending again after a three-year hiatus. In 2005, Mitsubishi Motors Credit of America sidelined itself to preserve capital as its troubled Japanese automaker parent worked through a business turnaround. The automaker retained Wall Street giant Merrill Lynch & Co. Inc. to take over its U.S. auto financing. But now Mitsubishi’s credit subsidiary is offering auto loans and leases in full force, says Jeff Young, its president. “We’ve recommitted ourselves to the U.S. market and to our dealers,” Young says. “We all recognize that this is a period of uncertainty.” Mitsubishi’s 450 U.S. dealers say it was difficult to get customer loans approved this year as Merrill Lynch coped with the credit crisis. In September, Bank of America Corp. agreed to acquire troubled Merrill Lynch. “With Mitsubishi handling things again now it’s very consistent,” says Don Herring, owner of three Dallasarea Mitsubishi stores and chairman of the automaker’s dealer franchise committee. “It’s still a difficult time to get some customers financed.” Young reports that his subsidiary garnered more than 40 percent of the retail lending business of its U.S. dealers last month, up from about 20 percent three years ago. In October, Mitsubishi’s U.S. sales fell 19.3 percent from the year-ago month to 7,486 vehicles. But Galant sedan sales rose 64 percent for the month, due in part to 0 percent loans for 60 months from Mitsubishi Motors Credit. Last week, Mitsubishi Motors Credit was charging dealers 7.49 percent for 60-month loans offered to customers with good credit. Dealers can earn profits by adding up to 2.50 percentage points to the consumer loan. c http://www.autonews.com/worldcongress
Table of Contents Feed for the Digital Edition of Automotive News - November 10, 2008 Life at 11 million: Slash, rethink The options: Bailout or disaster Can Toyota reheat the frozen Tundra? Chrysler dealers cheer halt to merger talk VW will unveil roadster at Detroit auto show BMW boosts dealers' year-end ad money Mercedes' $220 million flagship Mercedes hit hard in Northeast, once a sales stronghold Mercedes will kill CLK, add larger coupe, convertible Mitsubishi reclaims its finance business Toyota's Esmond to speak at congress Loss is more: Europe snatches bigger share of U.S. market Cash burn rates threaten GM, Ford GMAC: We're nobody's captive As losses mount, suppliers risk cash-flow crunch Tata: Yes to Jaguar XF derivative, no to SUV U.S. aid is needed now, but not to help Cerberus They are too big to fail Why should we help GM and Chrysler? First and foremost, you must be flexible U.S. trade policy gives it all away To the Editor: A rough ride is nothing new for autos Dealer's politics were pertinent Chrysler's 1st electric: Probably a cargo van Auto meltdown forces Mercedes to scrap prediction of sales record Boosting mpg will bump up stickers, too Adding up the tab for fuel economy Camaro Black: Eye-catching, affordable and available Honda sees green in Civic HFP's street performance Honda offers peek at future Fit Ford F-150 Raptor flies off-road Souped-up, tricked-out â and headed for the showroom Report: Toyota plans $5,000 car Amid gloom, Mazda chief sees revival in 2009-10 Report: Past-due subprime loans jump Toyota aims to win loyalty with credit card Study: Car buyers turn green for different reasons Thanks, buddy Hyundai helps Dealers Metaldyne offers pennies to bondholders Obituaries Personnel As expected, Oct. sales sank Another Chinese automaker plans Mexico factory Honda backs off U.S. clean diesels Industry pal, foe vie for key post in Congress Industry expects more activism from D.C. N.A. output falls 19.9% Toyota moves in striking distance of GM's U.S. sales crown Going, going . . . An ex-GM exec's view: It's going to get nasty Sex, Nazis, chicken and BMW: A scandal that puts fiction writers to shame Recession rips up roadster market Toyota takes heat for 'the herpes of the advertising world' Want to boost mpg? Turn up the heat on AC Cutting energy loss: A nibble here, a nibble there ... Carbon slashes weight, but it's still too pricey Carmakers shift to gears in search of mpg gains Natural gas draws interest as alternative fuel Friction? Ay, there's the rub Electric for a week Automotive News - November 10, 2008 Automotive News - November 10, 2008 - (Page Intro) Automotive News - November 10, 2008 - (Page Bellyband1) Automotive News - November 10, 2008 - (Page Bellyband2) Automotive News - November 10, 2008 - The options: Bailout or disaster (Page 1) Automotive News - November 10, 2008 - The options: Bailout or disaster (Page 2) Automotive News - November 10, 2008 - VW will unveil roadster at Detroit auto show (Page 3) Automotive News - November 10, 2008 - Mercedes hit hard in Northeast, once a sales stronghold (Page 4) Automotive News - November 10, 2008 - Mercedes hit hard in Northeast, once a sales stronghold (Page 5) Automotive News - November 10, 2008 - Loss is more: Europe snatches bigger share of U.S. market (Page 6) Automotive News - November 10, 2008 - Loss is more: Europe snatches bigger share of U.S. market (Page 7) Automotive News - November 10, 2008 - As losses mount, suppliers risk cash-flow crunch (Page 8) Automotive News - November 10, 2008 - As losses mount, suppliers risk cash-flow crunch (Page 9) Automotive News - November 10, 2008 - Tata: Yes to Jaguar XF derivative, no to SUV (Page 10) Automotive News - November 10, 2008 - Tata: Yes to Jaguar XF derivative, no to SUV (Page 11) Automotive News - November 10, 2008 - First and foremost, you must be flexible (Page 12) Automotive News - November 10, 2008 - First and foremost, you must be flexible (Page 13) Automotive News - November 10, 2008 - Dealer's politics were pertinent (Page 14) Automotive News - November 10, 2008 - Dealer's politics were pertinent (Page 15) Automotive News - November 10, 2008 - Auto meltdown forces Mercedes to scrap prediction of sales record (Page 16) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 17) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 18) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 19) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 20) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 21) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22a) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22b) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22c) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22d) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22e) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22f) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22g) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22h) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22i) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22j) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22k) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22l) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 23) Automotive News - November 10, 2008 - Souped-up, tricked-out â and headed for the showroom (Page 24) Automotive News - November 10, 2008 - Amid gloom, Mazda chief sees revival in 2009-10 (Page 25) Automotive News - November 10, 2008 - Toyota aims to win loyalty with credit card (Page 26) Automotive News - November 10, 2008 - Hyundai helps (Page 27) Automotive News - November 10, 2008 - Dealers (Page 28) Automotive News - November 10, 2008 - Personnel (Page 29) Automotive News - November 10, 2008 - Personnel (Page 30) Automotive News - November 10, 2008 - Personnel (Page 31) Automotive News - November 10, 2008 - Personnel (Page 32) Automotive News - November 10, 2008 - Personnel (Page 33) Automotive News - November 10, 2008 - Personnel (Page 34) Automotive News - November 10, 2008 - Personnel (Page 35) Automotive News - November 10, 2008 - Personnel (Page 36) Automotive News - November 10, 2008 - As expected, Oct. sales sank (Page 37) Automotive News - November 10, 2008 - Honda backs off U.S. clean diesels (Page 38) Automotive News - November 10, 2008 - Industry expects more activism from D.C. (Page 39) Automotive News - November 10, 2008 - Industry expects more activism from D.C. (Page 40) Automotive News - November 10, 2008 - N.A. output falls 19.9% (Page 41) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 42) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 43) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 44)
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