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Toyota to donate Prius systems as emergency power generators in Japan

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Toyota to donate Prius systems as emergency power generators in Japan

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Toyota to recall Prius vehicles in US

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Toyota to recall Prius vehicles in US

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Toyota Announces Social Network For Drivers

May 23, 2011

TOKYO — Toyota is setting up a social networking service with the help of a U.S. Internet company and Microsoft so drivers can interact with their cars in ways similar to Twitter and Facebook. Japanese automaker Toyota Motor Corp. and Salesforce.com, based in San Francisco, announced their alliance Monday to launch “Toyota Friend,” a private social network for Toyota owners that works similar to tweets on Twitter. In a demonstration at a Tokyo showroom, an owner of a plug-in Prius hybrid found out through a cell phone message from his Prius called “Pre-boy” that he should remember to recharge his car overnight. When the owner plugged in his car to recharge it, the car replied, “The charge will be completed by 2:15 a.m. Is that OK? See you tomorrow.” The exchanges can be kept private, or be shared with other “Toyota Friend” users, as well as made public on Facebook, Twitter and other services, the company said. The companies did not give details of how the technology, such as the content of the talking car’s dialogues, will be managed. But officials said the answers will be automated through sensors in the car. If your car is up for an inspection, for example, the owner will be notified through “Toyota Friend,” which will in turn automatically link to a dealer to set up an appointment. Toyota is investing 442 million yen ($5.5 million), Microsoft Corp. is investing 335 million yen ($4.1 million) and Salesforce.com 223 million yen ($2.8 million) in the project. Many cars are already equipped with navigation and other network-linking capabilities, and can function as a mobile device just like an iPhone or a Blackberry. Toyota’s service, built on open-source cloud platforms that are the specialty of Salesforce.com, as well as on Microsoft’s platform, will start in Japan in 2012, and will be offered later worldwide, initially with electric vehicles and plug-in hybrids, according to Toyota. Such next-generation cars need to be recharged and so drivers may need real-time information, such as the battery level of their cars and locations of charging stations, more than regular gas-engine cars. Toyota President Akio Toyoda, a racing fan, said he always “talks” with his car when he is zipping around on the circuit. With the popularity of social networking, cars and their makers should become part of that online interaction, he said. “I hope cars can become friends with their users, and customers will see Toyota as a friend,” he said. Salesforce.com chief executive Marc Benioff said social networks can add value to products and companies. It can also help Toyota gain massive information not only about their buyers but about how the car is working or not working, he said. “I want a relationship with my car in the same way we have a relationship with our friends on social networks,” he said. Toyoda, who has always been interested in telematics, or the use of Internet technology in autos, has been aggressive in forging alliances with new kinds of companies, including one with U.S. luxury electric carmaker Tesla Motors that he announced last year. Partnerships with dot.com types have been a bright spot in Toyoda’s bumpy career as president. He has faced growing doubts about reliability and transparency because of the massive global recalls that began two years ago, shortly after he took office, and which now affect more than 14 million vehicles. Toyota is also battling parts shortages after the March 11 earthquake and tsunami in Japan destroyed key suppliers, hampering production.

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GM Will Become World’s Biggest Automaker This Year

April 22, 2011

DETROIT — General Motors is almost certain to claim the title of world’s biggest automaker this year, retaking the top spot from Toyota, which has been hurt by production problems since the Japanese earthquake and still can’t escape the shadow of major safety recalls. The No. 1 title, a morale booster for the winner’s employees and managers, would cap GM’s remarkable comeback from bankruptcy. GM’s sales are up, mainly in China and the U.S, the world’s top two markets. Its cars are better than in the past, especially small ones. But even though GM came within 30,000 sales of Toyota last year and began strong in 2011, any sales victory this year has more to do with Toyota’s problems. First, a series of big recalls has ballooned to 14 million vehicles worldwide and damaged Toyota’s reputation for reliability. That has spurred loyal buyers to look at other brands. Second, a March 11 earthquake and tsunami in Japan curbed Toyota’s car production. On Friday, Toyota Motor Corp. said its factories worldwide won’t return to full production until November or December. That means buyers across the globe may not be able to get the models they want. Already the crisis has cost the company production of 260,000 vehicles. Last year, Toyota sold 8.42 million cars and trucks, barely ahead of a resurgent GM, which sold 8.39 million. GM held the No. 1 spot from 1932 until 2008. Here’s why GM is almost a lock to retake the lead this year: A BETTER GM: General Motors Co. was dysfunctional three years ago, hobbled by enormous debt and a giant bureaucracy. Its quality was suspect, it lost billions, and it had few products other than pickups that buyers found appealing. After a government bailout, a leaner GM emerged from a 2009 bankruptcy with new vehicles and a focus on Chevrolet, Buick, GMC and Cadillac. Since then, GM has come up with hits including the Chevrolet Equinox small SUV, the Buick LaCrosse luxury car, and the Chevrolet Cruze compact. Its quality is better. Sales so far this year are up 25 percent in the U.S. and 10 percent in China. The efficient Cruze compact and Chevrolet Volt car both hit the market as U.S. gasoline prices started rising. TOYOTA TROUBLES: Bad publicity from the recalls, mainly for cars that can accelerate without warning, was hurting Toyota long before the earthquake. The recalls began late in 2009, and came just as GM, Ford, Hyundai, and others introduced more competitive cars and trucks. With a bunch of nice alternatives and doubts about quality, customers who once dutifully returned to Toyota started considering other brands. Many Toyota models look old and need upgrades. Despite rebates and low-interest financing, Toyota was the only major automaker with lower U.S. sales last year. Sales are up 12.5 percent so far in 2011, but only at half the growth of GM. Toyota is scrambling to keep factories open after the earthquake, and U.S. dealers expect to run out of some models. Already dealers are reporting shortages of the Prius gas-electric hybrid, a high-demand model because of gas prices. Merle Gothard, general manager of North Park Toyota in San Antonio, says he’s not worried about GM retaking the title because it still has a tarnished image from bankruptcy. “It’s important from a marketing standpoint,” he says. “But Toyota has other things going for it.” He notes that Toyota is still profitable and never took a dime of stimulus money from the government. THE CHINA FACTOR: Toyota has nowhere near GM’s presence in China, now the world’s largest auto market. Through March, Toyota sold 208,000 vehicles there, but GM and its joint ventures sold more than three times that number. Growth in China by itself probably would have moved GM ahead of Toyota in worldwide sales. Toyota’s lead was only about one day’s worth of sales for GM. CAVEATS: Toyota still has a loyal customer base that believes the cars are safe and will last forever. Many Toyotas run for hundreds of thousands of miles with little more than routine maintenance. It also has a reputation for fuel efficiency, led by the Prius. GM would have to run into major problems to let No. 1 slip away this year. So far it has not been seriously hurt by parts shortages, but if some key electronic components from Japan can’t be made elsewhere, the company could run short of models. A new management team also is pushing to speed up introduction of new models, and that could hurt quality. If GM takes No. 1 this year, it won’t crow much, says Jesse Toprak, vice president of industry trends and insights for TrueCar.com, an auto price tracking website. “It’s because of (factory) capacity restrictions, and that’s not something they want to brag about,” he says.

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Toyota recalls 650,000 Prius cars worldwide

December 1, 2010

Toyota recalls 650,000 Prius cars worldwide

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Toyota Prius tops Japan’s car sales 16th straight month

October 6, 2010

Toyota Prius tops Japan’s car sales 16th straight month

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Toyota Prius tops Japan’s car sales 15th straight month

September 6, 2010

Toyota Prius tops Japan’s car sales 15th straight month

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Toyota, Channeling James Bond, Makes Big Play For Sports Car Market

August 19, 2010

As the world’s largest carmaker tries to rebuild its reputation for quality following record recalls, President Akio Toyoda, a racing fan, has said he wants to add more fun to his cars. Under Toyoda, who became president in June 2009, the company has taken orders for the Lexus LFA $375,000 supercar, is readying an “affordable” rear-wheel drive coupe and may even add a sporty version of the Prius.

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Video: Toyota Making Renewed Push Into Sports Car Market: Video

August 18, 2010

Aug. 19 (Bloomberg) — Bloomberg’s Mike Firn reports on Toyota Motor Corp.’s renewed push into sports cars. As the world’s largest carmaker tries to rebuild its reputation for quality following record recalls, President Akio Toyoda, a racing fan, has said he wants to add more fun to his cars. Under Toyoda, who became president in June 2009, the company has taken orders for the Lexus LFA $375,000 supercar, is readying an “affordable” rear-wheel drive coupe and may even add a sporty version of the Prius. Bloomberg’s Phillip Yin also speaks. (Source: Bloomberg)

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Toyota to start production of Prius Hybrid in Thailand

August 9, 2010

Toyota to start production of Prius Hybrid in Thailand

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Toyota Prius tops Japan’s car sales for 14 straight months

August 5, 2010

Toyota Prius tops Japan’s car sales for 14 straight months

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Steve Parker: Exclusive First Drive! Nissan’s 2011 Leaf EV

July 16, 2010

We have driven the future, and you can, too, sometime after the beginning of the new year. We took some short road test drives recently and one of the cars we flogged was Nissan’s 2011 Leaf EV. And while Toyota’s Prius gas/electric hybrid has been the Official State Car of Santa Monica for some years now, Leaf is definitely worthy of taking a shot at the title and could well prove successful in its efforts. In fact, the latest Leaf press preview was hosted at the Sheraton Miramar Hotel, smack in the center of the beach town. The challenge to Toyota has been made, and it might get ugly. Turns out all the excitement isn’t so much about the car’s performance, technology, styling or even interior design. It’s the car itself — the fact that it comes to life at a time so many other EVs, hybrids, extended-range hybrids and alternative fuel vehicles are hitting the marketplace. Customers will have a lot of info, maybe too much, to sort through when making their next vehicle choice. It’s bound to be shunned by some of the “holier than thou” who think cars should be banned entirely. But Leaf will be embraced by others, especially the so-called “hyper-milers,” who spend their days coming up with ways to suck even more energy out of every last atom in their batteries. Leaf is, without doubt, a history-making car. In terms of performance Leaf is about what we expected but it’s still, by default, a revolutionary and historic vehicle, the first EV to be mass-produced by a major car company in the “modern era” (post-WWII) and sold worldwide. Weighing in at a hefty 3,500 pounds (the battery pack alone is 600), Leaf will begin its U.S. sales sometime around the end of this year. Nissan announced this past week that Leaf’s on-board battery will be warranted for 8 years or 100,000 miles, whichever comes first. Nissan, along with Japanese battery-maker NEC, has formed a new corporation specifically to make Leaf’s batteries in Japan. For model year 2013, Nissan has plans to officially open its own dedicated battery-making facility in Tennessee for cars built in the U.S. Using laminated Lithium Ion batteries (Li-Ons for short), these batteries have been highly-developed by Nissan engineers to keep Leaf going for 100 miles after a charge, with a top speed of about 94 miles per hour. Now sit down, listen and learn something. Sorry, just wanted to see if you were still paying attention. There are three different charging methods for Leaf including “portable” charging, which uses a standard 110-volt wall plug-in charger which comes with the car. The portable method takes about 18 to 20 hours to make Leaf’s battery go from 0 to 100 per cent filled. “Installed charging” is the second method. When buying the Leaf, customers can also order an installed home charging unit. This method, using a 220-volt receptacle, takes around 8 hours to fully recharge Leaf. The home unit costs about $2,200, installed, but there are rebates and tax credits which can pay up to $2,000 of the total cost to encourage this option. Now, just as in auto racing, how fast you want to go depends on how much you want to spend, and this next option will be expensive, especially for Nissan and Aerovironment, the company working with Nissan on charger development and installation. “Quick charging” plans call for Leaf’s battery to be charged up to 80 per cent of capacity in only 30 minutes. Nissan engineers envision these quick chargers installed in busy shopping mall and office building parking lots, on major routes between cities ala truck stops and wherever else there might be a burgeoning population of EVs and plug-in hybrids needing a little love from the electric gods. We’ve gone over some of these specs before so let’s get down to it: How is Leaf on the streets? The Leaf we drove delivered about what we expected. The car is very intuitive; Nissan knows what we’re thinking when we get into the driver’s seat. All controls are in familiar places and operate accordingly, though, as on almost all the hybrids we’ve driven so far, there are some gimmicky eco-gauges and -controls that don’t seem altogether necessary (one allows the driver to “build a tree” as their eco-friendly driving style continues and improves for a period of time). The battery is under the car, as near the center as possible to help locate the center of gravity and help with handling. Nissan was smart to do this because they are going to catch a lot of hell for the car’s heft; perhaps Valerie Bertinelli and Jason Alexander can take fellow Jenny Craig clients to meetings and help Leaf lose a little bulk, too. Nissan Leaf interior Our test Leaf was, Nissan told us, about 90 per cent of what the final production version will look, feel and sound like. And the news is good in those areas: the car has an extreme style and much of that comes from use of a wind tunnel to design the car and cut down on that nemesis of EVs, wind noise. For instance, the highly-stylized headlamps with curves and lines that appear to go every which way are functionally manipulating oncoming air so it goes above and below the side mirrors, not right smack into it as on most cars and trucks. Even the radio antennae is specially shaped to cut noise and add to the vortex pushing the car along from the rear. These little things pay off as Leaf is very, very quiet; it’s like the local library. It’s so quiet, Nissan engineers tell us, that they had to engineer-in a certain amount of noise so pedestrians know there’s a car coming their way. We’re not kidding. The interior has a surprising amount of head room and that makes the entire car seem taller and wider than it really is from a passenger’s point of view. It’s a nice visual trick. Both front and rear seats do not offer what we would call “generous” legroom, but by no means would you think you’d be calling the chiropractor after a trip to Las Vegas in any seat on Leaf. You’ll have to go to a dealer to see the instrument panel up close and personal. Words simply can not do it justice. It’s colorful, animated and I understand the next-generation Leaf will come with 3D glasses. Well, it isn’t really that involved, so let’s just say the dash is, uh, “busy”. A single center tunnel mounted joystick-like appendage keeps Leaf in or out of its single forward gear. Leaf uses Nissan’s start system which allows engine start/stop by touching the brake and pushing a dash-mounted button with the key still in your pocket (or pocket book). Fit-and-finish inside and out was better than in most prototypes we’ve seen through the years. And with our test car not being a complete, sale-able Leaf, that bodes well for the car’s quality when it does go into production. As another Nissan engineer told us, “We’re still not through with it yet.” Steering is electrically boosted and was a little light for my tastes. I like to feel more connected to the road. Brakes are four-wheel anti-lock discs and seem up to the job, at least on the streets of Santa Monica. It is a bit surprising, though, the first time in the car, that due to the car’s heavyweight stance, drivers have to hit the brakes harder than they might in their previous compact car to slow or stop Leaf. That ABS braking system also creates battery-charging power through regenerative braking. Leaf gets off the line well as do all EVs and gas/electric hybrids. That’s because electric motors exhibit all their torque instantly, while a gas engine has a “torque curve” which brings the torque up gradually as the revs get higher. So Leaf drivers, like Prius owners before them, know that at the daily “Stop Light Grand Prix” they can take-on and beat just about any other car on the road. For the first 200 feet, at least. The audio system is superior for a car of this size and price (after tax credits and etc.) and allows plugging-in your iPod and all the other latest gizmos. Leaf has everything from 3D nav (not kidding this time) to Bluetooth. Let’s talk price. There are two Leaf models, a base (SV) and a step-up model called SL. Because SL is only $940 more than the SV, it seems the best bargain of the two. The SV is $25,280 while the SL rings the bell at $26,220. For both cars, there is a one-time $7,500 federal tax credit available (do the math yourself; I’m terrible at it), and, in California, the State Air Resources Board makes available another $5,000 tax credit. Your state may also offer similar credits, so check with your local Department of Motor Vehicles before buying an EV or hybrid to see what’s available. And $2,000 of the $2,200 cost of the installed home charger can be deferred; your dealer will fill you in. Similar to what Toyota did when their Prius first went on-sale, Nissan is using the Web to take “reservations” (a $99 “down payment” holds one for you) and let you stay in-touch with Leaf enthusiasts, get the latest news on technical highlights and Leaf availability, etc. Check-out www.NissanUSA.com and cruise around until you find “Leaf”. Finally, there’s an anomaly which not only Nissan but all companies making any kind of plug-in EV or hybrid need to think about: after a car-maker sells 200,000 units of whatever plug-in they’re making, that federal tax credit goes away. It’s almost a given that the new Prius plug-in hybrid and certainly the Leaf plug-in EV will fall victim to this rule. Nissan assures us their top execs are brainstorming to come up with a solution, so the woman who buys a Leaf one day and gets the $7,500 credit finds that her friend who bought one the next day does not get that credit. Nissan’s Leaf, GM’s Volt, Toyota’s plug-in gas/electric hybrid Prius and several other zero- or ultra-low-emission cars are about to go on-sale, all within about a year of each other. It’s an exciting time for those who are fascinated by the technology of these cars as well as their future possibilities, and Leaf will not be the butt of jokes using the words “glorified golf cart,” Leaf is a real car which will generate intense interest among the public worldwide.

Read the full article →

Steve Parker: Exclusive First Drive! Nissan’s 2011 Leaf EV

July 16, 2010

We have driven the future, and you can, too, sometime after the beginning of the new year. We took some short road test drives recently and one of the cars we flogged was Nissan’s 2011 Leaf EV. And while Toyota’s Prius gas/electric hybrid has been the Official State Car of Santa Monica for some years now, Leaf is definitely worthy of taking a shot at the title and could well prove successful in its efforts. In fact, the latest Leaf press preview was hosted at the Sheraton Miramar Hotel, smack in the center of the beach town. The challenge to Toyota has been made, and it might get ugly. Turns out all the excitement isn’t so much about the car’s performance, technology, styling or even interior design. It’s the car itself — the fact that it comes to life at a time so many other EVs, hybrids, extended-range hybrids and alternative fuel vehicles are hitting the marketplace. Customers will have a lot of info, maybe too much, to sort through when making their next vehicle choice. It’s bound to be shunned by some of the “holier than thou” who think cars should be banned entirely. But Leaf will be embraced by others, especially the so-called “hyper-milers,” who spend their days coming up with ways to suck even more energy out of every last atom in their batteries. Leaf is, without doubt, a history-making car. In terms of performance Leaf is about what we expected but it’s still, by default, a revolutionary and historic vehicle, the first EV to be mass-produced by a major car company in the “modern era” (post-WWII) and sold worldwide. Weighing in at a hefty 3,500 pounds (the battery pack alone is 600), Leaf will begin its U.S. sales sometime around the end of this year. Nissan announced this past week that Leaf’s on-board battery will be warranted for 8 years or 100,000 miles, whichever comes first. Nissan, along with Japanese battery-maker NEC, has formed a new corporation specifically to make Leaf’s batteries in Japan. For model year 2013, Nissan has plans to officially open its own dedicated battery-making facility in Tennessee for cars built in the U.S. Using laminated Lithium Ion batteries (Li-Ons for short), these batteries have been highly-developed by Nissan engineers to keep Leaf going for 100 miles after a charge, with a top speed of about 94 miles per hour. Now sit down, listen and learn something. Sorry, just wanted to see if you were still paying attention. There are three different charging methods for Leaf including “portable” charging, which uses a standard 110-volt wall plug-in charger which comes with the car. The portable method takes about 18 to 20 hours to make Leaf’s battery go from 0 to 100 per cent filled. “Installed charging” is the second method. When buying the Leaf, customers can also order an installed home charging unit. This method, using a 220-volt receptacle, takes around 8 hours to fully recharge Leaf. The home unit costs about $2,200, installed, but there are rebates and tax credits which can pay up to $2,000 of the total cost to encourage this option. Now, just as in auto racing, how fast you want to go depends on how much you want to spend, and this next option will be expensive, especially for Nissan and Aerovironment, the company working with Nissan on charger development and installation. “Quick charging” plans call for Leaf’s battery to be charged up to 80 per cent of capacity in only 30 minutes. Nissan engineers envision these quick chargers installed in busy shopping mall and office building parking lots, on major routes between cities ala truck stops and wherever else there might be a burgeoning population of EVs and plug-in hybrids needing a little love from the electric gods. We’ve gone over some of these specs before so let’s get down to it: How is Leaf on the streets? The Leaf we drove delivered about what we expected. The car is very intuitive; Nissan knows what we’re thinking when we get into the driver’s seat. All controls are in familiar places and operate accordingly, though, as on almost all the hybrids we’ve driven so far, there are some gimmicky eco-gauges and -controls that don’t seem altogether necessary (one allows the driver to “build a tree” as their eco-friendly driving style continues and improves for a period of time). The battery is under the car, as near the center as possible to help locate the center of gravity and help with handling. Nissan was smart to do this because they are going to catch a lot of hell for the car’s heft; perhaps Valerie Bertinelli and Jason Alexander can take fellow Jenny Craig clients to meetings and help Leaf lose a little bulk, too. Nissan Leaf interior Our test Leaf was, Nissan told us, about 90 per cent of what the final production version will look, feel and sound like. And the news is good in those areas: the car has an extreme style and much of that comes from use of a wind tunnel to design the car and cut down on that nemesis of EVs, wind noise. For instance, the highly-stylized headlamps with curves and lines that appear to go every which way are functionally manipulating oncoming air so it goes above and below the side mirrors, not right smack into it as on most cars and trucks. Even the radio antennae is specially shaped to cut noise and add to the vortex pushing the car along from the rear. These little things pay off as Leaf is very, very quiet; it’s like the local library. It’s so quiet, Nissan engineers tell us, that they had to engineer-in a certain amount of noise so pedestrians know there’s a car coming their way. We’re not kidding. The interior has a surprising amount of head room and that makes the entire car seem taller and wider than it really is from a passenger’s point of view. It’s a nice visual trick. Both front and rear seats do not offer what we would call “generous” legroom, but by no means would you think you’d be calling the chiropractor after a trip to Las Vegas in any seat on Leaf. You’ll have to go to a dealer to see the instrument panel up close and personal. Words simply can not do it justice. It’s colorful, animated and I understand the next-generation Leaf will come with 3D glasses. Well, it isn’t really that involved, so let’s just say the dash is, uh, “busy”. A single center tunnel mounted joystick-like appendage keeps Leaf in or out of its single forward gear. Leaf uses Nissan’s start system which allows engine start/stop by touching the brake and pushing a dash-mounted button with the key still in your pocket (or pocket book). Fit-and-finish inside and out was better than in most prototypes we’ve seen through the years. And with our test car not being a complete, sale-able Leaf, that bodes well for the car’s quality when it does go into production. As another Nissan engineer told us, “We’re still not through with it yet.” Steering is electrically boosted and was a little light for my tastes. I like to feel more connected to the road. Brakes are four-wheel anti-lock discs and seem up to the job, at least on the streets of Santa Monica. It is a bit surprising, though, the first time in the car, that due to the car’s heavyweight stance, drivers have to hit the brakes harder than they might in their previous compact car to slow or stop Leaf. That ABS braking system also creates battery-charging power through regenerative braking. Leaf gets off the line well as do all EVs and gas/electric hybrids. That’s because electric motors exhibit all their torque instantly, while a gas engine has a “torque curve” which brings the torque up gradually as the revs get higher. So Leaf drivers, like Prius owners before them, know that at the daily “Stop Light Grand Prix” they can take-on and beat just about any other car on the road. For the first 200 feet, at least. The audio system is superior for a car of this size and price (after tax credits and etc.) and allows plugging-in your iPod and all the other latest gizmos. Leaf has everything from 3D nav (not kidding this time) to Bluetooth. Let’s talk price. There are two Leaf models, a base (SV) and a step-up model called SL. Because SL is only $940 more than the SV, it seems the best bargain of the two. The SV is $25,280 while the SL rings the bell at $26,220. For both cars, there is a one-time $7,500 federal tax credit available (do the math yourself; I’m terrible at it), and, in California, the State Air Resources Board makes available another $5,000 tax credit. Your state may also offer similar credits, so check with your local Department of Motor Vehicles before buying an EV or hybrid to see what’s available. And $2,000 of the $2,200 cost of the installed home charger can be deferred; your dealer will fill you in. Similar to what Toyota did when their Prius first went on-sale, Nissan is using the Web to take “reservations” (a $99 “down payment” holds one for you) and let you stay in-touch with Leaf enthusiasts, get the latest news on technical highlights and Leaf availability, etc. Check-out www.NissanUSA.com and cruise around until you find “Leaf”. Finally, there’s an anomaly which not only Nissan but all companies making any kind of plug-in EV or hybrid need to think about: after a car-maker sells 200,000 units of whatever plug-in they’re making, that federal tax credit goes away. It’s almost a given that the new Prius plug-in hybrid and certainly the Leaf plug-in EV will fall victim to this rule. Nissan assures us their top execs are brainstorming to come up with a solution, so the woman who buys a Leaf one day and gets the $7,500 credit finds that her friend who bought one the next day does not get that credit. Nissan’s Leaf, GM’s Volt, Toyota’s plug-in gas/electric hybrid Prius and several other zero- or ultra-low-emission cars are about to go on-sale, all within about a year of each other. It’s an exciting time for those who are fascinated by the technology of these cars as well as their future possibilities, and Leaf will not be the butt of jokes using the words “glorified golf cart,” Leaf is a real car which will generate intense interest among the public worldwide.

Read the full article →

Steve Parker: Exclusive First Drive! Nissan’s 2011 Leaf EV

July 16, 2010

We have driven the future, and you can, too, sometime after the beginning of the new year. We took some short road test drives recently and one of the cars we flogged was Nissan’s 2011 Leaf EV. And while Toyota’s Prius gas/electric hybrid has been the Official State Car of Santa Monica for some years now, Leaf is definitely worthy of taking a shot at the title and could well prove successful in its efforts. In fact, the latest Leaf press preview was hosted at the Sheraton Miramar Hotel, smack in the center of the beach town. The challenge to Toyota has been made, and it might get ugly. Turns out all the excitement isn’t so much about the car’s performance, technology, styling or even interior design. It’s the car itself — the fact that it comes to life at a time so many other EVs, hybrids, extended-range hybrids and alternative fuel vehicles are hitting the marketplace. Customers will have a lot of info, maybe too much, to sort through when making their next vehicle choice. It’s bound to be shunned by some of the “holier than thou” who think cars should be banned entirely. But Leaf will be embraced by others, especially the so-called “hyper-milers,” who spend their days coming up with ways to suck even more energy out of every last atom in their batteries. Leaf is, without doubt, a history-making car. In terms of performance Leaf is about what we expected but it’s still, by default, a revolutionary and historic vehicle, the first EV to be mass-produced by a major car company in the “modern era” (post-WWII) and sold worldwide. Weighing in at a hefty 3,500 pounds (the battery pack alone is 600), Leaf will begin its U.S. sales sometime around the end of this year. Nissan announced this past week that Leaf’s on-board battery will be warranted for 8 years or 100,000 miles, whichever comes first. Nissan, along with Japanese battery-maker NEC, has formed a new corporation specifically to make Leaf’s batteries in Japan. For model year 2013, Nissan has plans to officially open its own dedicated battery-making facility in Tennessee for cars built in the U.S. Using laminated Lithium Ion batteries (Li-Ons for short), these batteries have been highly-developed by Nissan engineers to keep Leaf going for 100 miles after a charge, with a top speed of about 94 miles per hour. Now sit down, listen and learn something. Sorry, just wanted to see if you were still paying attention. There are three different charging methods for Leaf including “portable” charging, which uses a standard 110-volt wall plug-in charger which comes with the car. The portable method takes about 18 to 20 hours to make Leaf’s battery go from 0 to 100 per cent filled. “Installed charging” is the second method. When buying the Leaf, customers can also order an installed home charging unit. This method, using a 220-volt receptacle, takes around 8 hours to fully recharge Leaf. The home unit costs about $2,200, installed, but there are rebates and tax credits which can pay up to $2,000 of the total cost to encourage this option. Now, just as in auto racing, how fast you want to go depends on how much you want to spend, and this next option will be expensive, especially for Nissan and Aerovironment, the company working with Nissan on charger development and installation. “Quick charging” plans call for Leaf’s battery to be charged up to 80 per cent of capacity in only 30 minutes. Nissan engineers envision these quick chargers installed in busy shopping mall and office building parking lots, on major routes between cities ala truck stops and wherever else there might be a burgeoning population of EVs and plug-in hybrids needing a little love from the electric gods. We’ve gone over some of these specs before so let’s get down to it: How is Leaf on the streets? The Leaf we drove delivered about what we expected. The car is very intuitive; Nissan knows what we’re thinking when we get into the driver’s seat. All controls are in familiar places and operate accordingly, though, as on almost all the hybrids we’ve driven so far, there are some gimmicky eco-gauges and -controls that don’t seem altogether necessary (one allows the driver to “build a tree” as their eco-friendly driving style continues and improves for a period of time). The battery is under the car, as near the center as possible to help locate the center of gravity and help with handling. Nissan was smart to do this because they are going to catch a lot of hell for the car’s heft; perhaps Valerie Bertinelli and Jason Alexander can take fellow Jenny Craig clients to meetings and help Leaf lose a little bulk, too. Nissan Leaf interior Our test Leaf was, Nissan told us, about 90 per cent of what the final production version will look, feel and sound like. And the news is good in those areas: the car has an extreme style and much of that comes from use of a wind tunnel to design the car and cut down on that nemesis of EVs, wind noise. For instance, the highly-stylized headlamps with curves and lines that appear to go every which way are functionally manipulating oncoming air so it goes above and below the side mirrors, not right smack into it as on most cars and trucks. Even the radio antennae is specially shaped to cut noise and add to the vortex pushing the car along from the rear. These little things pay off as Leaf is very, very quiet; it’s like the local library. It’s so quiet, Nissan engineers tell us, that they had to engineer-in a certain amount of noise so pedestrians know there’s a car coming their way. We’re not kidding. The interior has a surprising amount of head room and that makes the entire car seem taller and wider than it really is from a passenger’s point of view. It’s a nice visual trick. Both front and rear seats do not offer what we would call “generous” legroom, but by no means would you think you’d be calling the chiropractor after a trip to Las Vegas in any seat on Leaf. You’ll have to go to a dealer to see the instrument panel up close and personal. Words simply can not do it justice. It’s colorful, animated and I understand the next-generation Leaf will come with 3D glasses. Well, it isn’t really that involved, so let’s just say the dash is, uh, “busy”. A single center tunnel mounted joystick-like appendage keeps Leaf in or out of its single forward gear. Leaf uses Nissan’s start system which allows engine start/stop by touching the brake and pushing a dash-mounted button with the key still in your pocket (or pocket book). Fit-and-finish inside and out was better than in most prototypes we’ve seen through the years. And with our test car not being a complete, sale-able Leaf, that bodes well for the car’s quality when it does go into production. As another Nissan engineer told us, “We’re still not through with it yet.” Steering is electrically boosted and was a little light for my tastes. I like to feel more connected to the road. Brakes are four-wheel anti-lock discs and seem up to the job, at least on the streets of Santa Monica. It is a bit surprising, though, the first time in the car, that due to the car’s heavyweight stance, drivers have to hit the brakes harder than they might in their previous compact car to slow or stop Leaf. That ABS braking system also creates battery-charging power through regenerative braking. Leaf gets off the line well as do all EVs and gas/electric hybrids. That’s because electric motors exhibit all their torque instantly, while a gas engine has a “torque curve” which brings the torque up gradually as the revs get higher. So Leaf drivers, like Prius owners before them, know that at the daily “Stop Light Grand Prix” they can take-on and beat just about any other car on the road. For the first 200 feet, at least. The audio system is superior for a car of this size and price (after tax credits and etc.) and allows plugging-in your iPod and all the other latest gizmos. Leaf has everything from 3D nav (not kidding this time) to Bluetooth. Let’s talk price. There are two Leaf models, a base (SV) and a step-up model called SL. Because SL is only $940 more than the SV, it seems the best bargain of the two. The SV is $25,280 while the SL rings the bell at $26,220. For both cars, there is a one-time $7,500 federal tax credit available (do the math yourself; I’m terrible at it), and, in California, the State Air Resources Board makes available another $5,000 tax credit. Your state may also offer similar credits, so check with your local Department of Motor Vehicles before buying an EV or hybrid to see what’s available. And $2,000 of the $2,200 cost of the installed home charger can be deferred; your dealer will fill you in. Similar to what Toyota did when their Prius first went on-sale, Nissan is using the Web to take “reservations” (a $99 “down payment” holds one for you) and let you stay in-touch with Leaf enthusiasts, get the latest news on technical highlights and Leaf availability, etc. Check-out www.NissanUSA.com and cruise around until you find “Leaf”. Finally, there’s an anomaly which not only Nissan but all companies making any kind of plug-in EV or hybrid need to think about: after a car-maker sells 200,000 units of whatever plug-in they’re making, that federal tax credit goes away. It’s almost a given that the new Prius plug-in hybrid and certainly the Leaf plug-in EV will fall victim to this rule. Nissan assures us their top execs are brainstorming to come up with a solution, so the woman who buys a Leaf one day and gets the $7,500 credit finds that her friend who bought one the next day does not get that credit. Nissan’s Leaf, GM’s Volt, Toyota’s plug-in gas/electric hybrid Prius and several other zero- or ultra-low-emission cars are about to go on-sale, all within about a year of each other. It’s an exciting time for those who are fascinated by the technology of these cars as well as their future possibilities, and Leaf will not be the butt of jokes using the words “glorified golf cart,” Leaf is a real car which will generate intense interest among the public worldwide.

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Steve Parker: Exclusive First Drive! Nissan’s 2011 Leaf EV

July 16, 2010

We have driven the future, and you can, too, sometime after the beginning of the new year. We took some short road test drives recently and one of the cars we flogged was Nissan’s 2011 Leaf EV. And while Toyota’s Prius gas/electric hybrid has been the Official State Car of Santa Monica for some years now, Leaf is definitely worthy of taking a shot at the title and could well prove successful in its efforts. In fact, the latest Leaf press preview was hosted at the Sheraton Miramar Hotel, smack in the center of the beach town. The challenge to Toyota has been made, and it might get ugly. Turns out all the excitement isn’t so much about the car’s performance, technology, styling or even interior design. It’s the car itself — the fact that it comes to life at a time so many other EVs, hybrids, extended-range hybrids and alternative fuel vehicles are hitting the marketplace. Customers will have a lot of info, maybe too much, to sort through when making their next vehicle choice. It’s bound to be shunned by some of the “holier than thou” who think cars should be banned entirely. But Leaf will be embraced by others, especially the so-called “hyper-milers,” who spend their days coming up with ways to suck even more energy out of every last atom in their batteries. Leaf is, without doubt, a history-making car. In terms of performance Leaf is about what we expected but it’s still, by default, a revolutionary and historic vehicle, the first EV to be mass-produced by a major car company in the “modern era” (post-WWII) and sold worldwide. Weighing in at a hefty 3,500 pounds (the battery pack alone is 600), Leaf will begin its U.S. sales sometime around the end of this year. Nissan announced this past week that Leaf’s on-board battery will be warranted for 8 years or 100,000 miles, whichever comes first. Nissan, along with Japanese battery-maker NEC, has formed a new corporation specifically to make Leaf’s batteries in Japan. For model year 2013, Nissan has plans to officially open its own dedicated battery-making facility in Tennessee for cars built in the U.S. Using laminated Lithium Ion batteries (Li-Ons for short), these batteries have been highly-developed by Nissan engineers to keep Leaf going for 100 miles after a charge, with a top speed of about 94 miles per hour. Now sit down, listen and learn something. Sorry, just wanted to see if you were still paying attention. There are three different charging methods for Leaf including “portable” charging, which uses a standard 110-volt wall plug-in charger which comes with the car. The portable method takes about 18 to 20 hours to make Leaf’s battery go from 0 to 100 per cent filled. “Installed charging” is the second method. When buying the Leaf, customers can also order an installed home charging unit. This method, using a 220-volt receptacle, takes around 8 hours to fully recharge Leaf. The home unit costs about $2,200, installed, but there are rebates and tax credits which can pay up to $2,000 of the total cost to encourage this option. Now, just as in auto racing, how fast you want to go depends on how much you want to spend, and this next option will be expensive, especially for Nissan and Aerovironment, the company working with Nissan on charger development and installation. “Quick charging” plans call for Leaf’s battery to be charged up to 80 per cent of capacity in only 30 minutes. Nissan engineers envision these quick chargers installed in busy shopping mall and office building parking lots, on major routes between cities ala truck stops and wherever else there might be a burgeoning population of EVs and plug-in hybrids needing a little love from the electric gods. We’ve gone over some of these specs before so let’s get down to it: How is Leaf on the streets? The Leaf we drove delivered about what we expected. The car is very intuitive; Nissan knows what we’re thinking when we get into the driver’s seat. All controls are in familiar places and operate accordingly, though, as on almost all the hybrids we’ve driven so far, there are some gimmicky eco-gauges and -controls that don’t seem altogether necessary (one allows the driver to “build a tree” as their eco-friendly driving style continues and improves for a period of time). The battery is under the car, as near the center as possible to help locate the center of gravity and help with handling. Nissan was smart to do this because they are going to catch a lot of hell for the car’s heft; perhaps Valerie Bertinelli and Jason Alexander can take fellow Jenny Craig clients to meetings and help Leaf lose a little bulk, too. Nissan Leaf interior Our test Leaf was, Nissan told us, about 90 per cent of what the final production version will look, feel and sound like. And the news is good in those areas: the car has an extreme style and much of that comes from use of a wind tunnel to design the car and cut down on that nemesis of EVs, wind noise. For instance, the highly-stylized headlamps with curves and lines that appear to go every which way are functionally manipulating oncoming air so it goes above and below the side mirrors, not right smack into it as on most cars and trucks. Even the radio antennae is specially shaped to cut noise and add to the vortex pushing the car along from the rear. These little things pay off as Leaf is very, very quiet; it’s like the local library. It’s so quiet, Nissan engineers tell us, that they had to engineer-in a certain amount of noise so pedestrians know there’s a car coming their way. We’re not kidding. The interior has a surprising amount of head room and that makes the entire car seem taller and wider than it really is from a passenger’s point of view. It’s a nice visual trick. Both front and rear seats do not offer what we would call “generous” legroom, but by no means would you think you’d be calling the chiropractor after a trip to Las Vegas in any seat on Leaf. You’ll have to go to a dealer to see the instrument panel up close and personal. Words simply can not do it justice. It’s colorful, animated and I understand the next-generation Leaf will come with 3D glasses. Well, it isn’t really that involved, so let’s just say the dash is, uh, “busy”. A single center tunnel mounted joystick-like appendage keeps Leaf in or out of its single forward gear. Leaf uses Nissan’s start system which allows engine start/stop by touching the brake and pushing a dash-mounted button with the key still in your pocket (or pocket book). Fit-and-finish inside and out was better than in most prototypes we’ve seen through the years. And with our test car not being a complete, sale-able Leaf, that bodes well for the car’s quality when it does go into production. As another Nissan engineer told us, “We’re still not through with it yet.” Steering is electrically boosted and was a little light for my tastes. I like to feel more connected to the road. Brakes are four-wheel anti-lock discs and seem up to the job, at least on the streets of Santa Monica. It is a bit surprising, though, the first time in the car, that due to the car’s heavyweight stance, drivers have to hit the brakes harder than they might in their previous compact car to slow or stop Leaf. That ABS braking system also creates battery-charging power through regenerative braking. Leaf gets off the line well as do all EVs and gas/electric hybrids. That’s because electric motors exhibit all their torque instantly, while a gas engine has a “torque curve” which brings the torque up gradually as the revs get higher. So Leaf drivers, like Prius owners before them, know that at the daily “Stop Light Grand Prix” they can take-on and beat just about any other car on the road. For the first 200 feet, at least. The audio system is superior for a car of this size and price (after tax credits and etc.) and allows plugging-in your iPod and all the other latest gizmos. Leaf has everything from 3D nav (not kidding this time) to Bluetooth. Let’s talk price. There are two Leaf models, a base (SV) and a step-up model called SL. Because SL is only $940 more than the SV, it seems the best bargain of the two. The SV is $25,280 while the SL rings the bell at $26,220. For both cars, there is a one-time $7,500 federal tax credit available (do the math yourself; I’m terrible at it), and, in California, the State Air Resources Board makes available another $5,000 tax credit. Your state may also offer similar credits, so check with your local Department of Motor Vehicles before buying an EV or hybrid to see what’s available. And $2,000 of the $2,200 cost of the installed home charger can be deferred; your dealer will fill you in. Similar to what Toyota did when their Prius first went on-sale, Nissan is using the Web to take “reservations” (a $99 “down payment” holds one for you) and let you stay in-touch with Leaf enthusiasts, get the latest news on technical highlights and Leaf availability, etc. Check-out www.NissanUSA.com and cruise around until you find “Leaf”. Finally, there’s an anomaly which not only Nissan but all companies making any kind of plug-in EV or hybrid need to think about: after a car-maker sells 200,000 units of whatever plug-in they’re making, that federal tax credit goes away. It’s almost a given that the new Prius plug-in hybrid and certainly the Leaf plug-in EV will fall victim to this rule. Nissan assures us their top execs are brainstorming to come up with a solution, so the woman who buys a Leaf one day and gets the $7,500 credit finds that her friend who bought one the next day does not get that credit. Nissan’s Leaf, GM’s Volt, Toyota’s plug-in gas/electric hybrid Prius and several other zero- or ultra-low-emission cars are about to go on-sale, all within about a year of each other. It’s an exciting time for those who are fascinated by the technology of these cars as well as their future possibilities, and Leaf will not be the butt of jokes using the words “glorified golf cart,” Leaf is a real car which will generate intense interest among the public worldwide.

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Toyota: Prius hybrid still No.1 selling car in Japan

May 11, 2010

Toyota: Prius hybrid still No.1 selling car in Japan

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Philip G. Baker: The Toyota Coverup

February 15, 2010

I’ve been involved in the development of scores of technology products, and I can safely say that most of the products were shipped in spite of having design flaws, performance issues, or quality problems. (I’m not referring to safety issues, which would prevent a product from being shipped by law.) Even in cases where we thought a product was perfect, problems would be discovered that we didn’t find until after thousands of them were sold and used by customers, often in ways and under conditions never anticipated. It’s the natural consequence of developing products with all of their complexities of electronics, mechanics and software, compounded by the pressure to ship products quickly, and never being able to perfectly predict all the ways a product will be used. In the case of most products, the serious problems are usually solved by improving the design once the engineers get feedback and figure out what to do. After all, it’s neither economical nor a good business practice to keep shipping a defective product and having to cover the cost of repairs and returns. This is true with automobiles, as well; they’re one of the most complex products we’ll ever buy. Even though a defect can be a life and death issue, and in spite of the best efforts of the engineers, even the most reliable cars are shipped with problems that surface after the sale, as we’ve recently seen with Toyota. If you have any doubt, look at the size of the auto dealers’ service departments. They are there to perform routine service, but also to fix unexpected issues that always occur. Some of the problems may take months to develop, may be experienced by only a tiny fraction of owners, and may surface only in unusual situations such as at extreme temperatures. While a huge amount of testing is done prior to the release of a new model, it can never cover all of the possible situations or detect a one-in-one-thousand occurrence. Thus, companies typically pay close attention to the performance of their new cars, particularly the complaints from the early buyers and any accidents that occur. Engineers sit in on some of the initial customer phone calls, visit repair facilities, and study the detailed data that’s compiled. Companies have whole departments called “sustaining engineering,” whose job is to continue to improve the design and address the products’ deficiencies after they go on sale. Most customers don’t expect perfection in their purchase, but they do expect problems to be promptly corrected. In the case of Toyota, its recent problems are not that they occurred, but that the company failed to take quick action to fix them once they were discovered. Instead Toyota risked its reputation, built up painstakingly over five decades, by minimizing the seriousness of these issues, by not being forthcoming, and by covering them up. From all of the evidence now coming to light, Toyota’s instinct was not to fix the problems, but to minimize them, even negotiating with (National Highway Traffic Safety Administration ) NHTSA to get them to ignore some of the reports. Safety of their customers was clearly not their top priority. So let’s call it what it was: a coverup. And the problem of unintended acceleration is not recent; it goes back seven years when the consumer complaints began, reaching 400 complaints in 2007, according to an analysis of NHTSA data by Reuters. Several earlier investigations by NHTSA resulted in two minor floor mat recalls. There were many things Toyota could have done as running changes over all these years to reduce the risk to the customer, even if it wasn’t sure of the cause of unintended acceleration. It could have moved the gas pedal higher to prevent any possibility of the car mats touching the pedal, or reduced the size of the mats themselves. It could have added a feature to disable the accelerator when the brake is hit with a high force, and it could have modified the starter button on keyless ignitions so you can turn the car off with a press of the button, and not the need to hold it for three seconds. But it did none of these because it never accepted the fact that there was a problem. It’s baffling that Toyota got into this situation. While some attribute it to Japanese culture, I don’t accept that. It’s the Japanese skills and perseverance in getting each detail right that has made their products so good. A coverup like this can just as easily occur in this country. Toyota’s reputation for building quality cars and holding the trust of its customers has now plummeted to a level that will cost it billions of dollars from recalls, the weakening of its brand, and lower sales. Their reputation will never return to where it once was. My daughter was about to buy a new Prius; our extended family owns three Toyotas. She told me that she can no longer buy a Toyota, not because of any recalls facing the Prius or defects that will be fixed, but because she’s disgusted with Toyota’s behavior and can never trust them. I expect this is being repeated thousands of times each day. What’s ironic is Toyota still makes some of the most reliable cars in the world, and nearly every automotive manufacturer has experienced similar problems. But that matters less than that simple fact that Toyota didn’t do the right thing when they were tested, and lost the public’s confidence that it will do the right thing in the future. Reprinted with permission from the San Diego Transcript Feb. 16, 2010

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Toyota adds Prius to recall list, US hearing delayed

February 10, 2010

Toyota adds Prius to recall list, US hearing delayed

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Bob Dowling: Rethinking Toyota

February 9, 2010

Toyota’s pummeling is long overdue. With some 8 million cars on recall, repair costs exceeding $2 billion and the Prius suffering brake problems, the easy days for its legendary arrogant American dealers are at least temporarily over. How arrogant? “Do you wish to order one” was the response I got when I asked to test a Prius at the Westport Ct. dealer in 2007. “I’d like to drive one first.” “That would be a month from now at 9.30 am. If you’re late you’ll miss the opportunity.” I bought a Subaru. This December. I went to Gettel Toyota in Sarasota, Fl about buying a Prius. Chris Crews, the young salesman got out a model after a 80 minute wait, then was sharply elbowed aside by his boss Sean as soon as I asked about an on the road price. “I’m going to put you in a Prius today,” said Sean. “You won’t be able to say no.” To get a price, you have to agree to buy. I walked out. Two sales managers followed me to my car. “Ninety percent of customers don’t return,” said Tom. “We have to pressure you.” Or thought they did. On Thursday I drove a Prius I bought privately to the John Pierson Toyota dealership in Stuart, Fl the day after the Prius brake problem was announced. The place was jammed with seniors eating free Subway sandwiches and wondering about their Priuses, Corollas and Camrys. The south lot was jammed with new Toyota’s waiting for the accelerator repair part to arrive. With little to sell, salesmen had hours to banter. Then suddenly out of the blue came a fresh idea. Remember the customer! “I’d like to see the company take a big chunk of the marketing, budget and give the money to our loyal customers,” said Kevin Peterson, a service manager. “Offer them say 10% of the value of their car. That would probably cover any resale loss and be offset by millions of dollars in goodwill and free PR. We don’t have to be at the Superbowl to sell cars. We have a massive marketing budget. This is time to show our customers we’re on their side.” According to valuations announced today Feb 8 by Edmonds.com a number of Toyota models have in fact lost 10% of their value since the recall. Ideas like this seldom make it up the ranks in larger corporations but the simplicity of the thing makes it revolutionary. How many businesses want to really take care of loyal customers? You can count them on one hand — Apple, Best Buy, Mercedes, BMW, Lexus, Honda, people who chose to or need to run the business on reputation and service. Most of the rest of sales is aimed at transaction marketing pioneered by Wall Street banks in the 1970s. Hook ‘em in — cram the teaser deposit rate, the cheap car, the iffy cable service, the unreliable flat screen or the hidden fee mutual fund down their throat. Then screw ‘em when they complain. And make sure they can’t complain to you. If you’ve wound up in a call center in India or the Philippines where the robotic help, through no fault of their own, has no way to make a decision, you know the drill. Bad offshore service was a key reason for the downfall of Dell, Circuit City and dozens of other companies who blew off once loyal customers. Toyota floated above the pack because the reputation of its vehicles for value and reliability and — with the Prius — hybrid innovation made buyers put up with its arrogant American dealers. Now that those days are over, Toyota needs a big rethink. Its Japanese dealers could never bash customers like they do in America because Toyota Japan lives off repeat buyers, same as the every 2 year trade in U.S car makers enjoyed in the 1950s? That kind of loyalty won’t come back and doesn’t need to for any carmaker, Detroit or foreign. But for Toyota, the choice it’s facing is to come up rebuilding plan that sticks or slide into the pack with everyone else. In the Stuart dealer’s showroom hangs a huge red banner that says 80% of Toyotas that are 20 years old are still on the road. Maybe those owners are a good place to start…

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Toyota files recall for best-selling Prius over brakes

February 9, 2010

Toyota files recall for best-selling Prius over brakes

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Toyota Extends Global Recalls to 437,000 Hybrids to Repair Faulty Brakes

February 9, 2010

By Yuki Hagiwara and Makiko Kitamura Feb. 9 (Bloomberg) — Toyota Motor Corp. will recall 437,000 hybrid vehicles globally to fix faulty braking systems on its four models, including the Prius, adding to almost 8 million vehicles the company is repairing for separate defects. The world’s biggest carmaker will halt sales of SAI, HS250h and Prius plug-in hybrids, said President Akio Toyoda , speaking at a Tokyo press conference. The action threatens to further tarnish Toyota’s reputation in its home market , where the Prius was last year’s top-selling vehicle, as the company grapples with its worst recall crisis. Toyota has lost about $31 billion in market value since Jan. 21, when it began recalling millions of vehicles for defects linked to unintended acceleration. “So far Toyota’s recalls have been overseas, but this time it’s in its home market,” said Tatsuya Mizuno , director of Mizuno Credit Advisory in Tokyo. “The Prius has been a rising star for the company, and Toyota won’t be able to avoid a worsening image. Toyota raised its full-year earnings forecast the other day, but it’s far too optimistic.” The vehicles to be repaired include 199,666 2010 Prius hybrids, 10,820 SAIs, 12,423 Lexus HS250h cars and 159 Prius plug-in hybrids, according to the filing to the ministry. U.S. Recall Toyota also intends to recall the 2010 Prius in the U.S., according to a person familiar with the plans, who declined to be identified as the information isn’t yet public. The carmaker will brief the press about measures it will take regarding the Prius in Japan and overseas at 3:30 p.m. in Tokyo, company spokeswoman Ririko Takeuchi said by phone. Toyoda, 53, will meet with Japan’s Transport Minister Seiji Maehara at 5:30 p.m., according to the ministry. Toyota rose 2.9 percent to 3,375 yen at the close of trading in Tokyo. The stock has declined 19 percent since Jan. 21. “Toyota is finally taking measures,” said Mamoru Kato , an analyst at Tokai Tokyo Research Center in Nagoya, Japan. “This is fueling optimism that Toyota is moving in a clear direction to avoid further consumer anxiety.” The U.S. Transportation Department is also investigating reports of Prius brake failures. The department’s National Highway Traffic Safety Administration received 124 reports from consumers, including four saying crashes occurred with two “minor” injuries, according to an investigation document. Europe Toyota plans to recall a total of at least 270,000 Prius cars in Japan and the U.S., according to the person familiar with the plan. Juergen Stolze , a Toyota spokesman in Cologne, Germany, said yesterday the carmaker will decide whether to recall Prius cars in Europe by Feb. 10. The Toyota City, Japan-based carmaker said last week it modified braking software on newly built Priuses in late January. The latest Prius model is built in Japan. The model, driven by U.S. actor Leonardo DiCaprio and Apple Inc. co-founder Steve Wozniak , is the world’s best-selling hybrid car. Toyota has sold 197,000 units of the latest version in Japan and 103,200 in the U.S., according to the company. Toyota has been investigating reports that Prius owners driving at low speeds on bumpy or icy roads may experience moments where the car continues to coast for about a second after the brakes are applied, because of the anti-lock brake system. The carmaker has said it received complaints about Prius brakes through dealers starting in the last few months of 2009. Unintended Acceleration Toyota said today it stopped shipments of the Lexus HS250h and SAI hybrids from a factory in southern Japan to inspect their braking systems. The vehicles included in today’s recall are Prius hybrids built between April 20, 2009 and Jan. 27, plug-in Prius hybrids built between Nov. 25, 2009 and Feb. 5, SAI hybrids built between Oct. 2, 2009 and Feb. 8, and Lexus HS250h hybrids built between June 10, 2009 and Feb. 8. The brake problems aren’t related to incidents of sudden acceleration in the U.S., according Toyota’s Takeuchi. Toyota has recalled almost 8 million vehicles on five continents to repair defects that have been linked to unintended acceleration. Those recalls may cut demand for the company’s vehicles by 100,000 units, Toyota said last week. The company on Feb. 4 predicted a return to profit in the fiscal year ending March 31, even as it said recalls may cost 100 billion yen ($1.1 billion). The full-year net income forecast of 80 billion yen takes into account recalls for flaws linked to unintended acceleration, though it doesn’t include potential Prius recalls, Toyota said at the time. Toyota faces at least 34 lawsuits filed on behalf of customers in the U.S. and Canada seeking a range of damages from loss of car value to a return of profits. It also faces at least 12 lawsuits brought by individuals claiming deaths or injuries caused by uncontrollable acceleration. Sudden acceleration of Toyota vehicles has been linked to 19 deaths in the last decade, according to Henry Waxman , the U.S. House of Representatives’ Energy and Commerce Committee chairman. To contact the reporters on this story: Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net

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Toyota Halts Lexus, SAI Hybrid Shipments on Same Brake Problems as Prius

February 8, 2010

By Makiko Kitamura and Tetsuya Komatsu Feb. 9 (Bloomberg) — Toyota Motor Corp. stopped shipments of its Lexus HS250h and SAI hybrids from a factory in southern Japan due to possible brake problems with the models, which use the same system as Prius hybrid cars. Shipments from the factory in Kyushu were stopped yesterday to inspect the models, Norifumi Wakikawa , a spokesman at Toyota Motor Kyushu, said by phone today. Toyota, the world’s biggest carmaker, is expected to recall the 2010 version of the Prius in Japan this week to repair a problem with the braking system. Scrutiny of the vehicles may further tarnish Toyota’s reputation after the Toyota City, Japan-based company recalled almost 8 million cars globally to repair separate defects linked to unintended acceleration. Those recalls have yet to include any cars in Japan, where the Prius was last year’s top-selling model. Toyota has been investigating reports that Prius owners driving at low speeds on bumpy or icy roads may experience moments where the car continues to coast for about a second after the brakes are applied because of the anti-lock brake system. The company plans to recall at least 270,000 Priuses in Japan and the U.S., a person familiar with the matter said, declining to be identified as the information isn’t yet public. Japan, U.S. Recalls Ririko Takeuchi , a Toyota spokeswoman in Tokyo, declined to say whether the company will recall the Prius. The carmaker may notify Japan’s Transport Ministry of plans to recall the model as early as today, followed by a similar action in the U.S., Nikkei English News said, without citing anyone. Juergen Stolze , a Toyota spokesman in Cologne, Germany, said yesterday the carmaker will decide by Feb. 10 whether to recall Prius cars in Europe. Toyota rose 1.8 percent to 3,340 yen as of 9:57 a.m. on the Tokyo Stock Exchange. The company has lost about $33 billion in market value since Jan. 21, when it announced a recall of 2.3 million U.S. vehicles for defects linked to unintended acceleration. To contact the reporter on this story: Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net

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Toyota Said to Recall Prius Cars to Fix Brake Flaw Wozniak Calls `Scary’

February 8, 2010

By Tetsuya Komatsu and Yuki Hagiwara Feb. 8 (Bloomberg) — Toyota Motor Corp. will recall its 2010 model Prius hybrid car in Japan this week to repair a problem with the vehicle’s braking system, two people familiar with the matter said, adding to global recalls of almost 8 million autos for separate defects. The world’s largest automaker plans to recall at least 270,000 of the gasoline-electric hatchbacks in Japan and the U.S., one person said, declining to be identified as the information isn’t yet public. Juergen Stolze , a Toyota spokesman in Germany, said the carmaker will decide whether to recall Prius cars in Europe by Feb. 10. A Prius recall may further tarnish Toyota’s reputation after the Toyota City, Japan-based company lost about $33 billion in market value amid expanding global recalls of other models to repair defects linked to unintended acceleration. Those recalls have yet to include any vehicles in Japan , where the Prius was last year’s top-selling model. “It’s really shocking,” said Koichi Ogawa , chief portfolio manager at Daiwa SB Investments Ltd. in Tokyo. “The damage to Toyota will be big.” Ririko Takeuchi , a spokeswoman for Toyota in Tokyo, said the company hasn’t decided whether to recall the Prius. Stolze, speaking by phone from Cologne, Germany, declined to say what the carmaker’s decision will be regarding recalls in Europe. There haven’t been any proven cases of brake failures in the Prius in Europe, he said. ‘Kind of Scary’ Japan’s government ordered Toyota to investigate the Prius after receiving complaints from drivers. The company has been looking into reports that Prius owners driving at low speeds on bumpy or icy roads may experience moments where the car continues to coast for about a second after the brakes are applied, because of the anti-lock brake system. “It sounds kind of scary,” said Steve Wozniak , co-founder of Apple Inc., who drives a 2010 Prius. “You sure don’t want your car to continue on, on an icy road, when it’s supposed to be stopping.” The New York Times reported that Toyota will recall at least 311,000 Priuses. Toyota has sold at least 332,000 units of the 2010 Prius, including 197,000 in Japan and 103,200 in the U.S., spokesman Takanori Yokoi said. The model is built in Japan. Sai, Lexus Toyota also plans to recall Lexus HS250h and Sai hybrid models in Japan this month, one of the people said. The company is considering steps dealers can take for current Prius owners, including exchanging some parts, the person said. Toyota fell 1.1 percent to close at 3,280 yen in Tokyo trading today. The stock has declined 22 percent since Jan. 21, when the carmaker began recalling vehicles to fix gas pedals linked to unintended acceleration. Wozniak, 59, who said earlier this month he had also experienced incidents of unintended acceleration in his Prius, said he would probably take the car to a dealer to have the brake system checked, “but not right away.” He said the reports that have led to recalls of Toyota vehicles aren’t statistically significant and that he remains a fan of the Prius because of its environmental benefits. “All these problems should get fixed, but they shouldn’t stop people from buying the Prius,” Wozniak said in a phone interview. “There are bugs in every product.” U.S. Investigation Toyota said last week it had received complaints about Prius brakes through dealers starting in the last few months of 2009. Toyota changed the design of the brake software at the end of January, the company said. The U.S. Transportation Department is also investigating reports of Prius brake failures. The department’s National Highway Traffic Safety Administration received 124 reports from consumers, including four saying crashes occurred with two “minor” injuries, according to an investigation document. Toyota told U.S. dealers to expect an update early this week on steps the company plans to take to address the complaints, according to John Hanson , a spokesman for the carmaker’s sales unit in the country. The brake complaints aren’t related to the reports of unintended acceleration, according to Toyota’s Takeuchi. Toyota has recalled at least 7.8 million vehicles on five continents to repair defects that have been linked to unintended acceleration. Those recalls may cut demand for the company’s vehicles by 100,000 units, Toyota has said. Return to Profit The company last week predicted a return to profit in the fiscal year ending March 31, even as it said recalls may cost 100 billion yen ($1.1 billion). The full-year net income forecast of 80 billion yen takes into account recalls for flaws linked to unintended acceleration, though it doesn’t include potential Prius recalls, Toyota said at the time. Toyota faces at least 29 lawsuits filed on behalf of customers in the U.S. and Canada seeking a range of damages from loss of car value to a return of profits. It also faces at least 10 lawsuits brought by individuals claiming deaths or injuries caused by uncontrollable acceleration. Sudden acceleration of Toyota vehicles has been linked to 19 deaths in the last decade, according to Henry Waxman , the U.S. House of Representatives’ Energy and Commerce Committee chairman. To contact the reporters on this story: Tetsuya Komatsu in Tokyo at tekomatsu@bloomberg.net ; Yuki Hagiwara in Tokyo at yhagiwara1@bloomberg.net

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Apple Co-Founder Wozniak Says Prius Brake Problems Shouldn’t Deter Buyers

February 8, 2010

By Pavel Alpeyev and Jeffrey Taylor Feb. 8 (Bloomberg) — Toyota Motor Corp. ’s trouble with the braking system of its Prius hybrid model shouldn’t deter buyers even though “it’s kind of scary,” Apple Inc. co-founder Steve Wozniak said. Wozniak, 59, last week said his 2010 Toyota Prius can unintentionally accelerate to as much as 97 miles (156 kilometers) per hour when he uses cruise control to increase his speed. Toyota will recall the 2010 model in Japan this week to repair the brake fault, two people familiar with the matter said. “All these problems should get fixed, but they shouldn’t stop people from buying the Prius,” Wozniak said in a telephone interview today. “There are bugs in every product.” The world’s largest automaker plans to recall at least 270,000 units of the gasoline-electric hatchback in Japan and the U.S. to repair braking systems, one person said, declining to be identified as the information isn’t yet public. Ririko Takeuchi , a spokeswoman for Toyota in Tokyo, said the company hasn’t decided yet whether to conduct a recall. While in cruise control, flicking the lever on the side of the steering wheel doesn’t always increase the speed of his car in increments as intended, Wozniak said last week. Instead, the vehicle would sometimes continue accelerating until the footbrake is used, he said at the time. The Japanese carmaker, based in Toyota City, has recalled at least 7.8 million vehicles on five continents, including the 2004-2009 Prius, to repair defects that have been linked to unintended acceleration. Wozniak’s 2010 Prius, which has a steering wheel-mounted dynamic radar cruise control, hasn’t been recalled by the company. “It sounds kind of scary,” Wozniak, who owns four Priuses, said of the brake-system problem. He said he’ll likely take his 2010 Prius in to have it checked, “but not right away.” Any deaths related to Toyotas under recall are not statistically significant, he said. Toyota fell 1.1 percent to close at 3,280 yen on the Tokyo Stock Exchange, in line with a 1.1 percent retreat by the benchmark Nikkei 225 Stock Average. To contact the reporter on this story: Pavel Alpeyev in Tokyo at palpeyev@bloomberg.net ; Jeffrey Taylor at Jtaylor48@bloomberg.net

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Toyota Tells U.S. Dealers to Expect Update This Week on Prius Brake Plan

February 7, 2010

By Alan Ohnsman Feb. 7 (Bloomberg) — Toyota Motor Corp. , grappling with record U.S. recalls, said it told U.S. dealers to expect an update early this week on steps the company plans to take to address complaints over brakes on the 2010 model Prius hybrid. “We notified dealers in a short letter yesterday that we believe we’ll have more specific information on our plans for Prius next week,” John Hanson , a spokesman for Toyota’s U.S. sales unit, said yesterday. “We know dealers have customers coming to them who are concerned and we’re trying to give them as much information as we can, as fast as we can.” Toyota, the world’s largest automaker, didn’t tell dealers it will make a formal “announcement” on a fix for Prius and hasn’t yet determined whether a recall is necessary, he said. Should the Toyota City, Japan-based company recall the latest version of Prius, the world’s best-selling hybrid car, it would add to the perception of quality problems at Toyota. The company has already recalled 5.6 million cars and light trucks in the U.S. since November to correct flaws linked to unintended acceleration, an issue Toyota says isn’t connected to Prius brakes. Japan’s Nikkei newswire reported that Toyota would recall 270,000 Priuses in Japan and the U.S. to correct software in the braking system. Toyota hasn’t confirmed that report. Complaints in U.S. The National Highway Traffic Safety Administration said it has 124 complaints from U.S. drivers about Prius brakes. Toyota has said it’s investigating reports that Prius owners driving at low speeds on bumpy or icy roads have experienced moments in which the car continues to coast for about a second after the brakes are applied because of the anti-lock brake system. NHTSA isn’t aware of a plan by Toyota to announce a fix for brakes on Prius hybrids this week, Olivia Alair , a spokeswoman for the agency, said in an e-mailed message. The company said last week it altered software on Priuses built in Japan in January to correct the issue. A class action suit against the automaker was filed in Canada Feb. 5 over alleged defects in the Prius braking system. Toyota’s U.S. sales unit is based in Torrance, California. To contact the reporters on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

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Toyota Prius Fix To Be Announced Next Week

February 6, 2010

DETROIT — Toyota has told dealers it’s preparing a plan to repair the brakes on thousands of hybrid Prius cars in the U.S. In a message sent Friday night to dealers, a Toyota group vice president, Bob Carter, said the company is working on a plan and will disclose more details early next week. More than 100 drivers of 2010 Prius cars have complained that their brakes seemed to fail momentarily when they were driving on bumpy roads. The U.S. government says the problem is suspected in four crashes and two minor injuries. Public awareness of the problem “has prompted considerable customer concern, speculation, and media attention due to the significance of the Prius image,” Carter said in the e-mail. “We want to assure our dealers that we are moving rapidly to provide a solution for your existing customers.” Toyota blames a software glitch and says it has already fixed vehicles in production. But it’s still deciding how to handle repairs on 270,000 Priuses that were sold in the U.S. and Japan starting last year. The company could announce a full-fledged safety recall or simply ask owners to bring their vehicles in for repairs, since the brakes aren’t failing completely. The problem isn’t related to separate recalls involving millions of Toyotas with defective gas pedals and floor mats that could cause unintended acceleration.

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Toyota Faces Canada Class-Action Suit Claiming Prius Defect, Law Firm Says

February 5, 2010

By Margaret Cronin Fisk Feb. 5 (Bloomberg) — Toyota Motor Corp. , the world’s largest automaker, was sued in Canada in a class-action case claiming defects in the braking system of its Prius and Lexus hybrid vehicles, a law firm said. Merchant Law Group said it filed a claim today in Victoria, British Columbia, against the automaker on behalf of Canadian owners of 2010 Toyota Prius and Lexus HS250h hybrids. The lawsuit , which seeks reimbursement of purchase prices or payment equal to a loss in resale value, claims the vehicles’ brake systems are defectively designed because they shut off brake power to save energy. “The energy reclaiming nature of these vehicles as part of braking makes them dangerous for use,” attorney Tony Merchant said in a statement sent to Bloomberg. “As the vehicle switches to the brake pad system, there is a lapse where the vehicle has no braking power.” Toyota is facing at least 30 class-action , or group, lawsuits in the U.S. and Canada connected to multiple recalls over sudden acceleration of its vehicles. More than half of these lawsuits blame Toyota’s electronic throttle control system for these events. The Canada hybrid lawsuit isn’t connected to those cases. Quebec Lawsuit The Merchant firm in Regina, Saskatchewan, said it also sued Toyota Canada Inc. and Toyota North America and that it filed a separate claim today in Quebec. Sandy Di Felice, director of external affairs with Toyota Canada in Toronto, said the company hasn’t been served and isn’t aware of either lawsuit. Toyota has been investigating reports that Prius owners driving at low speeds on bumpy or icy roads may experience moments in which the car continues to coast for about a second after the brakes are applied because of the anti-lock brake system. The company said this week that it changed the design of Prius brake software at the end of January to correct the situation. The carmaker said it is considering steps dealers can take for current Prius owners, including exchanging some parts. There has been no recall of the 2010 Prius or Lexus HS250h announced in the U.S. and Canada. The case is Marklely v. Toyota Canada Inc., 10-0540, Supreme Court, British Columbia (Victoria). To contact the reporter on this story: Margaret Cronin Fisk in Southfield, Michigan, at mcfisk@bloomberg.net .

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Video: Possible Prius Recall May Stir Interest in Other Hybrids: Video

February 5, 2010

Feb. 5 (Bloomberg) — Bloomberg’s Gigi Stone reports on the outlook for Toyota Motor Corp.’s Prius hybrid car, which is under investigation by the U.S. Transportation Department for reports of defective brakes in its 2010 model. (Source: Bloomberg)

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Toyota Scraps Loss Forecast, Saying Profit to Withstand Record Auto Recall

February 4, 2010

By Makiko Kitamura and Tetsuya Komatsu Feb. 4 (Bloomberg) — Toyota Motor Corp. , the world’s largest carmaker, forecast a return to profit this fiscal year as it predicts a 51 percent surge in North American sales this quarter even as the company faces its worst-ever recall crisis. The company expects net income of 80 billion yen ($880 million) in the year ending March 31, compared with an earlier forecast for a 200 billion yen loss, it said in a statement in Tokyo today. Toyota’s President Akio Toyoda , 53, predicted sales of 503,000 vehicles in North America this quarter even as the company has been forced to take its best-selling models off the market in the U.S. The global recall of almost 8 million vehicles due to cases of unintended acceleration will dent demand by 100,000 vehicles and cost 100 billion yen, the company said today. “There’s a huge possibility that Toyota won’t meet this forecast,” said Koji Endo , managing director of Advanced Research Japan. “The recalls will damage their reputation and if they widen, there will be costs which Toyota has not yet taken into account.” Toyota said today it may recall the latest version of its Prius hybrid car in Japan, after the government instructed the company to investigate complaints about braking problems. Toyota has accounted for the recall costs in its forecast, senior managing director Takahiko Ijichi told reporters in Tokyo today. The forecast does not include a possible Prius recall. The company’s shares fell 3.5 percent to 3,280 yen in Tokyo today, the lowest level in more than 10 months. Net Income The carmaker posted net income of 153.2 billion yen in the quarter ended Dec. 31 compared with a loss of 164.7 billion yen a year earlier. Vehicle sales in the quarter gained 12.4 percent to 2.065 million, led by gains in North America and Japan. Revenue in the quarter rose 10 percent to 5.29 trillion yen. The carmaker changed the brake design for the Prius in January, it said today. The Toyota City, Japan-based carmaker is also examining other hybrid models. The company raised its forecast for global vehicle sales to 7.18 million compared with an earlier prediction of 7.03 million. The carmaker sold 334,000 vehicles in North America in the fourth quarter of last fiscal year. Prius A recall of the Prius, driven by U.S. actor Leonardo DiCaprio and Apple Inc. co-founder Steve Wozniak , would bring the crisis to Toyota’s home market and tarnish the reputation of what President Toyoda has called the company’s flagship model. Outside of Japan, the company is recalling at least 7.8 million vehicles. The carmaker is fixing accelerator pedals on models including the top-selling Camry and Corolla models. That recall covers 2.57 million vehicles in the U.S. and Canada. It also includes 1.71 million in Europe, 80,000 in China, and 180,000 in Latin America, Africa and the Middle East, Toyota’s Sasaki told reporters earlier this week. Separately, Toyota is recalling 5.35 million vehicles in the U.S., because of floor mats that could jam pedals. The models involved include 2004-2009 Prius hybrids, 2007-2010 Lexus ES350s, 2006-2010 Lexus IS250s and 2006-2010 Lexus IS350s. Toyota has said 2.1 million cars were recalled for both mat and accelerator-related problems. To contact the reporter on this story: Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net

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Toyota: Prius Brakes Have Design Problems

February 4, 2010

TOKYO (Associated Press) – Toyota admitted design problems with the brakes in its prized Prius, adding to the catalog of woes for the world’s No. 1 automaker still reeling from a massive U.S. recall involving faulty gas pedals. Toyota Motor Corp. spokeswoman Ririko Takeuchi said Thursday that Toyota discovered there were design problems with the antilock brake system and corrected them for Prius models sold since late January, including those being shipped overseas. But the company said it was still investigating how to inform people who had bought the gas-electric hybrid cars. Nothing was decided on that front for Prius cars sold overseas, according to Toyota. Complaints about braking problems in the third-generation Prius have been reported in both the U.S. and Japan, combining to some 180, and come amid a global recall of nearly 4.5 million other top-selling vehicles for faulty gas pedals. “We are investigating whether there are defects in the Prius,” Toyota executive Hiroyuki Yokoyama told reporters at Toyota’s Tokyo. The company gave few details of the brake flaw. A major Toyota dealership in Tokyo said the automaker had informed dealers that Prius brakes can sometimes fail to work for less than a second but it had not told owners. “It is disappointing because the Prius was receiving such rave reviews,” said Hiroyuki Naito, a manager at the dealership. The latest model Prius hit showrooms last May. The problem with the Prius — the best-selling hybrid in the world and Toyota’s flagship model — is a big embarrassment for the automaker in its home turf Japan and another blow in the U.S., its biggest market. In recent weeks, the automaker had answered questions about its overseas recalls for gas pedals with assurances that problems didn’t extend to Japanese vehicles, implying that it was doing a better job with quality control in Japan. The transport minister is ordering an investigation and said a recall for the Prius should be considered. U.S. authorities are also investigating. Earlier in Washington, U.S. Transportation Secretary Ray LaHood startled the public with a comment, which he later retracted, that Americans should park their recalled Toyotas unless driving to dealers for accelerator repairs. The popular gas-electric Prius was not part of the most recent recall over sticking gas pedals in eight top-selling models including the Camry that spanned the U.S., Europe and China. Toyota senior managing director Takahiro Ijichi defended the automaker’s quality standards. “We have not sacrificed the quality for the sake of saving costs,” he said. “Quality is our lifeline. We want our customers to feel safe and regain their trust as soon as possible.” Toyota for the first time gave an estimate of the costs of the U.S. recall at up to $2 billion with $1.1 billion for the costs for the repairs and $770 million to $880 million in lost sales. The Prius, the world’s best-selling hybrid, has been extremely popular in Japan because of government incentives that made hybrids tax-free. More than 170,000 the new remodeled Prius cars were sold in Japan and about 103,000 have been sold in the U.S. since May. Despite snowballing problems with quality, Toyota said Thursday it returned to profit in the October-December quarter because of healthy sales of its green models including the Prius, and raised its forecast for the fiscal year through March. Net profit for October-December was about $1.7 billion. It forecast a $880 million annual profit compared with its previous forecast for a $2.2 billion loss. Toyota also raised its full year sales outlook to 7.18 million units from 7.03 million. The revised forecast remains lower than the 7.57 million vehicles it sold last fiscal year. And it is unclear how well Toyota sales and profits will hold up in coming months.

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Communications Expert Calls Toyota’s Recall ‘The Worst-Handled Auto Recall In History’

February 3, 2010

If you Google Toyota, among the first things that pop up is an ad slugged “Toyota Recall News.” That’s accompanied by links to Toyota.com and a Web site about the new Prius. With just a few more clicks, you’ll find hundreds of news reports that the car company’s faulty accelerators have been linked to 19 deaths.

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Communications Expert Calls Toyota’s Recall ‘The Worst-Handled Auto Recall In History’

February 3, 2010

If you Google Toyota, among the first things that pop up is an ad slugged “Toyota Recall News.” That’s accompanied by links to Toyota.com and a Web site about the new Prius. With just a few more clicks, you’ll find hundreds of news reports that the car company’s faulty accelerators have been linked to 19 deaths.

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Toyota Electronics Said to Be a Focus of U.S. Probe

February 3, 2010

By Angela Greiling Keane and Margaret Cronin Fisk Feb. 3 (Bloomberg) — Electronic throttle systems are under review by U.S. safety officials as a possible cause of sudden acceleration in Toyota Motor Corp. vehicles, as alleged in at least seven lawsuits . The agency is also examining the electronics of other automakers in response to complaints, Transportation Secretary Ray LaHood said today. Among the questions is whether electromagnetic interference from power lines could affect the computerized systems that help run today’s vehicles, LaHood told reporters in Washington. Toyota has said it ruled out electronics as a cause of sudden acceleration that has resulted in recalls of millions of its cars and trucks. The company’s credibility would be further damaged if it is proved wrong, said Rebecca Lindland , an analyst at IHS Global Insight. “Consumers would view that very negatively,” Lindland, based in Lexington, Massachusetts, said in a phone interview yesterday. “That group of diehard Toyota loyalists is being chipped away at as each new recall comes out.” The government is also considering civil penalties against Toyota, the world’s largest automaker, for its handling of the recalls, according to an official at the Transportation Department, who asked not to be identified while a review of Toyota’s actions continues. Shares Decline LaHood said today he will phone Toyota President Akio Toyoda to be certain his agency “pushed them over the line” so that Toyota is doing all it can to resolve defects. Separately, the Toyota City, Japan-based carmaker has been ordered by Japan’s government to investigate brake-related problems with the latest version of its Prius hybrid car, the nation’s transportation ministry said today. The ministry said it has received 14 complaints related to Prius brakes. It has also asked other carmakers to look into similar reports. Such requests are “routine,” said Masaya Ota , an official in the ministry’s recall division. Toyota’s American depositary receipts, each representing two ordinary shares, fell $3.06, or 3.9 percent, to $75.12 at 10:01 a.m. in New York Stock Exchange composite trading. The ADRs are down about 18 percent in the past two weeks. Toyota began shipping steel plates to U.S. dealers on Feb. 1 as a fix for sticky gas pedals that have caused the carmaker to recall about 2.57 million vehicles in the U.S. and Canada. “We know what the problem is,” Jim Lentz , Toyota’s president of U.S. sales, said in an interview on Bloomberg Television on Feb. 1. “We have the fix.” Recalled Models The U.S. recall for pedals that stick applies to model years 2009-2010 RAV4, 2010 Highlander and 2008-2010 Sequoia sport-utility vehicles, 2009-2010 Corolla and 2005-2010 Avalon sedans, some 2007-2010 Camry sedans, 2009-2010 Matrix hatchbacks, and 2007-2010 Tundra pickups, according to Toyota. Toyota also has recalled and plans to fix about 5.6 million Toyota- and Lexus-brand cars and trucks in the U.S. and Canada because of floor mats that might trap gas pedals and cause vehicles to speed out of control. Some Toyota brand vehicles are affected by both types of recalls. The investigation of the Prius in Japan could undermine sales in Toyota’s home market , where it hasn’t recalled any vehicles due to the sudden-acceleration issue. The model was Japan’s best-selling vehicle in 2009. “The Prius is Toyota’s flagship model, its key to the future,” said Ashvin Chotai , managing director of London-based Intelligence Automotive Asia Ltd., a consulting company. “If that model gets tainted, that would suggest Toyota’s crisis has moved on to the next level.” Lawsuit Allegations In the U.S., the National Highway Traffic Safety Administration, part of the Transportation Department, hadn’t found evidence as of Feb. 1 that anything other than sticky or trapped accelerators caused unintended acceleration, the Transportation Department official said. Mike Michels , Toyota’s U.S. vice president for corporate communications based in Torrance, California, said in an e- mailed statement yesterday that he had “no information” on a continuing investigation by NHTSA of the automaker’s electronic throttle control system. At least 15 lawsuits seeking class action status have been filed against Toyota on the acceleration issue, and seven of them claim an electronic throttle system called ETCS-i is at fault instead of the pedals. In cars with the ETCS-i system, the engine’s throttle is controlled by electronic signals, which are sent from a sensor that detects how far the gas pedal is depressed. The signals are transmitted to a computer module that controls how much the throttle opens. Lawyers claiming an electronic defect contend that floor mats or stuck pedals don’t explain the sudden-acceleration incidents that triggered their lawsuits. ‘Sitting Dead Still’ Edgar Heiskell , an attorney from Charleston, West Virginia, who represents the family of a Michigan woman who died when her 2005 Toyota Camry hit a tree at almost 80 miles an hour (129 kilometers per hour), said her car didn’t have a floor mat. She stood on the brake, attempting to stop the car after it accelerated from a speed of 25 miles per hour, he said. The suit was filed in November. Heiskell also has filed a West Virginia suit against Toyota seeking class-action status. In a Texas lawsuit filed on Jan. 29, plaintiff Alfred Pena said his 2008 Toyota Avalon unexpectedly accelerated at a stop sign on Jan. 14, causing a collision. He wasn’t injured, said Robert Hilliard , an attorney representing Pena. Pena’s wife, Sylvia, had a previous episode of unintended acceleration that didn’t result in an accident, Hilliard said. Sylvia Pena “was sitting dead still,” and the car accelerated as she released the brake before she touched the gas pedal, Hilliard, of Corpus Christi, Texas, said in an interview. “My belief is that fixed Toyotas with new pedals will still inadvertently accelerate,” Hilliard said. NHTSA tested throttle electronics last year in response to a petition from a 2007 Lexus ES 350 owner who had experienced sudden acceleration of his vehicle. The agency denied the petition in October after subjecting the same model of car to “multiple electrical signals” and “magnetic fields.” ‘Exhaustive Testing’ Toyota said at the time that the October decision marked the fifth in which the agency had rejected similar requests to investigate company vehicles for defects including electronics related to unintended acceleration. “In terms of electronics of the vehicle, we’ve done exhaustive testing and we’ve found no issues with the electronics,” Toyota’s Lentz said on a conference call with reporters Feb. 1. Toyota, as required by law, stopped selling eight vehicles recalled in the U.S. last week. The company said it will begin fixing accelerator pedals, which were supplied by Elkhart, Indiana-based CTS Corp. , this week, with some dealerships preparing to do repairs around the clock. The Transportation Department and its auto safety agency have been called to testify at two congressional hearings on the handling of the Toyota recalls. “While Toyota is taking responsible action now, it unfortunately took an enormous effort to get to this point,” LaHood said yesterday in an e-mailed statement. The department is “continuing to review possible defects.” House Hearings A House Oversight and Government Reform Committee panel will hold a hearing on the recalls on Feb. 10, followed by the House Energy and Commerce Committee on Feb. 25. Representative Bart Stupak , a Michigan Democrat who serves on both committees scheduled to question Toyota, said in a letter to Lentz that his public statements on Feb. 1 were “different than the representations” Toyota officials made to the Energy and Commerce Committee’s staff last week. Asked whether Toyota “could be certain that floor mat entrapment and sticking accelerator pedals fully explained” the causes of unintended acceleration, company officials said the “causes of unintended acceleration are ‘very, very hard’ to identify,” Stupak said in a letter today to Lentz. Toyota executives at the meeting also said sticking pedals are “unlikely to be responsible” for reports of drivers losing control as cars accelerated past 60 miles per hour, Stupak said in the letter. He asked Lentz to “clarify” the differing accounts. To contact the reporters on this story: Angela Greiling Keane in Washington at agreilingkea@bloomberg.net ; Margaret Cronin Fisk in Southfield, Michigan, at mcfisk@bloomberg.net .

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Apple Co-Founder Wozniak Says His Toyota Prius Accelerates Unintentionally

February 3, 2010

By Mehul Srivastava Feb. 3 (Bloomberg) — Count Apple Inc. co-founder Steve Wozniak among Toyota Motor Corp. car owners who say their vehicles accelerate unintentionally. Wozniak’s 2010 Toyota Prius can unintentionally accelerate to as much as 97 miles (156 kilometers) per hour when he uses cruise control to increase his speed, he said in an interview yesterday. Toyota and the U.S. National Highway Traffic Safety Administration haven’t responded to his complaints in the past two months on what may be a software-related glitch, he said. “It’s scary when it happens,” Wozniak, 59, said from San Jose, California. “I’ve had trouble getting both the government safety agency and getting Toyota to listen to me.” The world’s largest automaker has recalled millions of vehicles globally to fix mechanical flaws in accelerator pedals that could lead to sudden unintended increases in speed. The action led to a halt of U.S. sales and production of eight models and prompted Congress to schedule hearings. “I have never heard of this problem with cruise control on Priuses,” a Toyota spokeswoman, Ririko Takeuchi , said by phone from Tokyo Feb. 2. She said she doesn’t know whether the problem has been reported by anyone other than Wozniak or whether Toyota is investigating. The company began shipping to dealers on Feb. 1 steel attachments it says are a fix for sticky gas pedals, which will be replaced in as many as 2.57 million cars in the U.S. and Canada. The repairs will only fix possible mechanical flaws. U.S. Review “We know what the problem is,” Jim Lentz , Toyota’s president of U.S. sales, said in an interview on Bloomberg Television on Feb. 1. “We have the fix.” U.S. safety officials have started to probe electronic throttle systems in Toyota cars as a possible cause of sudden acceleration, as alleged in at least seven lawsuits, according to an official of the Transportation Department, who asked not to be identified while a review of Toyota’s actions continues. Toyota was ordered today by Japan’s government to investigate brake-related problems in the latest Prius hybrid model. The Transport Ministry has received 14 complaints about the model’s brakes since it was introduced in May, said Masaya Ota , an official in the ministry’s recall division. The ministry contacted the company about the issue in August, said Shunsuke Miyaoka , who works in the same division. Electronics are “not part of the issue,” Lentz said during a conference call this week. The company’s credibility would be further damaged if it is proved wrong, said Rebecca Lindland , an analyst at IHS Global Insight. ‘Diehard Loyalists’ “Consumers would view that very negatively,” Lindland, based in Lexington, Massachusetts, said in a phone interview yesterday. “That group of diehard Toyota loyalists is being chipped away as each new recall comes out.” The Japanese carmaker, based in Toyota City, has also recalled 5.35 million vehicles, including the 2004-2009 Prius, because of the risk of “floor mat entrapment” of the accelerator pedals, according to Toyota’s Web site. Wozniak’s 2010 model, which has a steering-wheel mounted dynamic radar cruise control, hasn’t been recalled by the company, but other Prius models he owns have. The safety agency as of Feb. 1 hadn’t found evidence that anything other than sticky or trapped accelerators caused the unintended acceleration, the transport department official said. Mike Michels , Toyota’s U.S. vice president for corporate communications based in Torrance, California, said in an e- mailed statement yesterday that he had “no information” on a continuing investigation by NHTSA of the automaker’s electronic throttle control system. Electronic Signals At least 15 lawsuits seeking class-action status have been filed against Toyota on the issue, seven of which claim an electronic throttle system called ETCS-i is at fault instead of the pedals. While in cruise control, flicking the lever on the side of the steering wheel doesn’t always increase the speed of the car in increments as intended, Wozniak said. Instead, the vehicle would sometimes continue accelerating until one steps on the brake, he said. Wozniak, who owns four Priuses, said he took his car to a dealership, contacted Toyota and called the NHTSA about the issue. He said he believes the acceleration may be caused by a software glitch because the issue occurs in cruise control. Wozniak said he would buy another Prius. Toyota fell 5.7 percent to close at 3,400 yen in Tokyo trading today, the biggest decline in Japan’s Nikkei 225 Stock Average, which gained 0.3 percent. Wozniak made the comments after a Web log posted on the CNET News Web site reported he spoke about his Prius’s cruise control at the Discovery Forum 2010 in San Francisco. “Is my software bug also some code that is in the other Priuses and related to the deadly problem?” he said. To contact the reporters on this story: Mehul Srivastava in New Delhi at msrivastava6@bloomberg.net ; Angela Greiling Keane in Washington at agreilingkea@bloomberg.net

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Toyota Motor Says Compact Hybrid Model May Be First of Expanded Prius Line

January 11, 2010

By Alan Ohnsman Jan. 11 (Bloomberg) — Toyota Motor Corp. , the largest seller of gasoline-electric autos, said a small hybrid car may be the first of a U.S. lineup using the Prius name and it will add eight of the fuel-efficient models within a few years. The compact FT-CH hatchback, 22 inches (56 centimeters) shorter in length than the current Prius, was unveiled today at the Detroit auto show. The car, aimed at young buyers and priced less than a mid-size Prius, may join a “Prius family,” said Jim Lentz , the Toyota City, Japan-based company’s U.S. sales chief. Toyota seeks to retain the lead in sales of advanced, fuel- saving vehicles it has held since the U.S. introduction of Prius a decade ago. Nissan Motor Co. and General Motors Co. plan to begin sales this year of plug-in cars powered by lithium-ion batteries, challenging Toyota to respond without diluting its hybrid sales. “The issue becomes how are they not going to take the steam out of their other hybrid vehicles,” said Paul Lacy , an analyst at forecaster IHS Global Insight in Troy, Michigan. “As for a compact hybrid, people already have this idea that hybrids are small, so going down in size may be a challenge.” Toyota didn’t say when a retail version of the FT-CH compact car would go on sale. The four-passenger model, designed at Toyota’s studio in Nice, France, would offer fuel economy that exceeds that of the 50 mile-per-gallon Prius, Toyota said. The company’s mid-size Prius is priced from $22,400. Fuel Economy “The strategy is still taking shape and obviously it will require additional models to qualify as a family,” Lentz said in a news conference at the North American International Auto Show. “Among others, the FT-CH is a concept that we are considering.” Toyota’s U.S. sales unit is based in Torrance, California. Toyota’s American depositary receipts rose 44 cents to $86.20 at 4:06 p.m. in New York Stock Exchange composite trading. They have gained 2.4 percent this year. About 20 million autos, or almost half of all global sales, will offer some form of electric propulsion by 2020, according to an estimate by market forecaster CSM Worldwide. Hybrid cars and light trucks gained U.S. market share in 2009 as sales of the fuel-efficient models declined at less than half the rate for all vehicles. Consumers bought 290,415 hybrids, led by Toyota’s Prius, according to data compiled by Bloomberg. That was an 8.1 percent drop from the previous year, as U.S. auto sales slid 21 percent. Hybrids accounted for 2.8 percent of deliveries, up from 2.4 percent in 2008. New Models CSM said North America may trail Europe and Asia in adopting such models, particularly those powered solely by batteries. Annual sales of electrified cars and trucks in the region may only climb to 1 million within a decade, and most will be gasoline-electric hybrids, CSM said. Carmakers have been adding gasoline-electric vehicles and developing models that can recharge from household electrical outlets as governments push for higher fuel economy. Toyota says it also aims to offer more advanced vehicles to counter the potential for an oil shortage. “Within the next 10 to 20 years, we will not only reach peak oil, we will enter a period where demand for all liquid fuels will exceed supply,” Lentz said. The industry must develop engines that reduce or eliminate petroleum use, he said. Lentz said consumer sales of a plug-in Prius hybrid, with 13 miles of range powered solely by a lithium-ion battery, and a new small electric car using only battery power, will begin with model year 2012. The company also aims to start sales of a separate electric model powered by hydrogen fuel cells in 2015, he said. To contact the reporter on this story: Alan Ohnsman in Detroit aohnsman@bloomberg.net

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Academic approach to the real estate industry

October 18, 2009

hardly projects the image of a man who’s spent the last 25 years building a $400 million real estate empire. Donning a ponytail and wearing blue jeans, Arsenault carries himself more like a scientist or university professor. He drives a Prius and spends

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Scott Burgess: Early Odds for Green Car of the Year

October 8, 2009

This week, the Green Car Journal released its finalists for the Green Car of the Year. Naturally, high mileage numbers equate to standings this year. The 2010 Audi A3 TDI: 30 mpg city / 42 mpg highway The 2010 VW Golf TDI: 30 mpg city / 42 mpg highway The 2010 Mercury Milan hybrid: 41 mpg city / 36 mpg highway The redesigned 2010 Toyota Prius: 51 mpg city / 48 mpg highway The all-new 2010 Honda Insight: 40 mpg city / 43 mpg highway For the 2010 model year consumers have lots to choose from, but my odds on favorite for this year’s award, which will be handed out Dec. 3 at the Los Angeles Auto Show is the Toyota Prius. Simply put, it is the only vehicle to get a combined 50 mpg. While I’m not a betting man, but if I worked in Vegas, here are my odds for winning the green honor. Prius: Even money (Big improvements inside and out. The only thing that could hurt it are those annoying Wizard of Oz commericals.) Milan: 3:1 (It would be a nice political nod to Ford’s efforts, and all awards are politics.) Insight: 2:1 (It’s affordable, kind of cute and the very first hybrid in America. But then it went away, so will this year’s award.) Golf TDI: 5:1 (Glad to see the Golf cross the Atlantic, but it’s not likely to take home an award so soon.) A3 TDI: 7:1 (Those cool TV commercials might sway a few judges, but not enough.) Really, this race comes down to the Insight and the Prius. The Milan is the sister of the Ford Fusion hybrid, so it may have the hottest spokesmodel, but it doesn’t have that much original to it. The A3 and Golf TDI vehicles are both fairly affordable and excellent choices, but VW picked up the honor last year with the Jetta TDI so diesel is just not going to win it this year. Last year, it was a pleasant surprise for people like me who like diesels. Now the Insight made a splash when it arrived in the spring because it has a starting price under $20,000 and offers both excellent city driving and highway numbers. But it also looks like a little Prius – so it doesn’t score too many points for originality. It’s a fine machine but lacks that punch to push it over the top. The Prius, however, entering its third generation, was redesigned with drivers in mind. It keeps its iconic shape but adds much needed refinement to its interior and high performance figures. During my test drive of the Prius, I intentionally tried to get the absolute worse gas mileage possible and still managed 26.8 mpg. The car is just that good.

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Toyota Prius, eco-friendly cars best-sellers in Japan

October 6, 2009

Toyota Prius, eco-friendly cars best-sellers in Japan

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Chevrolet Volt Hybrid to Get 230 Miles Per Gallon in City Driving, GM Says

August 11, 2009

By Katie Merx Aug. 11 (Bloomberg) — General Motors Co. expects its Volt electric car to earn a fuel-economy rating of at least 230 miles per gallon for city driving, more than four times that of Toyota Motor Corp.’s Prius hybrid. “Many Chevy Volt drivers may be able to be in pure electric mode on a daily basis without having to use any gas,” Chief Executive Officer Fritz Henderson said in a statement today. GM said in September it reached an agreement with the U.S. Environmental Protection Agency on a testing method that would yield a rating of at least 100 mpg for the Volt, which will be able to go 40 miles (64 kilometers) on battery power before tapping an onboard gasoline engine for a recharge. The automaker is counting on unproven technology to leapfrog the Prius, the world’s best-selling hybrid, which starts at $22,000. GM Vice Chairman Bob Lutz said in May that the Volt would probably cost about $40,000. The Volt will receive “a higher number than anyone would expect,” Lutz, 77, said by e-mail yesterday, when people familiar with the situation told Bloomberg that the Volt would get the rating of at least 230 mpg. The EPA rates the Prius as the most fuel-efficient car on U.S. roads. The 2010 Prius is rated at 51 mpg in city driving and 48 mpg on the highway, according to the agency’s vehicle- efficiency Web site . Electric Power Toyota sold 158,900 Priuses in the U.S. last year, 12 percent fewer than in 2007. The Volt may be produced in volumes of about 60,000 annually, once it goes on sale, GM has said. Real-world mileage varies depending on such things as driving style, weather and road conditions. Unlike conventional autos and hybrids such as the Prius, the 1.4-liter engine on the Volt won’t drive the wheels. Instead, it will only power the battery, which also can be recharged at a household outlet. The car is scheduled to go on sale late next year. The automaker, majority-owned by the U.S. government since it emerged from bankruptcy on July 10, is speeding to remake itself. Henderson has said the Volt and the development of advanced batteries are priorities for the Detroit-based company. To contact the reporter on this story: Katie Merx in Southfield, Michigan, at kmerx@bloomberg.net

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Toyota Prius top-selling car in Japan for 3 months

August 5, 2009

Toyota Prius top-selling car in Japan for 3 months

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