Tag Archives: auto industry

Toyota’s Electric RAV 4

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The joint venture between Toyota and Tesla Motors, will have us seeing an electric version of Toyota’s RAV4 on the roads as early as 2012. Toyota has made a limited number of electric RAV4’s in the past, but have never commercialized the vehicle. The few RAV 4 EV’s that have been running for the past ten years in fleets and in private hands has been considered a terrific workhorse for those driving it. In this new venture, Toyota gets to re-energize their once innovative small crossover vehicle, and Tesla can show that their style of battery and energy management can support large-scale usage.

Tesla is best known for their first and only electric car, the Roadster, which was introduced in 2008, but hopes to expand their market with their Model S sedan which it plans to start selling in 2012. With the e-RAV4 they hope to expand the market even further for electric vehicles by giving ‘soccer moms’ and small business owners a vehicle they can use on a daily basis.

GM, Chrysler Arbitrations Come To An End

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The Congress led arbitration hearings for almost 2,800 GM and Chrysler dealerships that were to be closed last year will soon come to an end. Since the hearings began, many of the cases have been resolved outside of arbitration. Some dealerships dropped out of the process on their own, others decided to start selling other brands, and some could still face months of litigation in state courts. While GM agreed that it would restore more than 660 dealerships and Chrysler about 80, the actual numbers will not be known until the arbitration is complete.

Toyota Restarts Construction On Plant

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Toyota’s Blue Springs, Mississippi plant that was suppose to be completed before 2010 to build the Prius hybrid, will continue construction in order to build Corolla cars. The Corolla, had originally been built in California, but was temporarily shifted to Japan when Toyota closed down their California factory, due to a joint venture between Toyota and General Motors gone ‘sour’.

Toyota has committed more than $10 million to the state to support road construction and extend water and sewer systems, and made donations to support local education, according to the governor’s office. The plant should be finished by fall of next year, providing almost 2,000 jobs for local residences.

The plan signals that Toyota is again getting ready to tackle a growth strategy after managing to return to the black. The previous year had been the automakers worst loss in its history of building automobiles, due to numerous safety recalls.

Yoshimi Inaba, president and chief operating officer of Toyota Motor North America, said the company couldn’t restart the plant until it was sure of a recovery. “With the return of stability to our existing operations in North America, it is time to fulfill Toyota’s promise in Mississippi,” said Inaba.

Tesla Motors Publicly Offered

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Tesla Motors Inc., a Palo Alto, Calif. based company, is scheduled to make a public offering to trade at the end of the month in hopes of raising as much as $178 million. The electric car maker, best known for its one and only all electric Roadster model, plans to sell 11.1 million shares at about $15 per share.

At the end of last month the company announced a $50 million investment from Toyota Motor Corp., and that they would be moving into the automobile plant recently closed by Toyota.

Tesla said it lost $25.5 million in the first quarter of 2010, compared to a quarterly loss of $16.0 million a year earlier. For all of 2009, it lost $55.7 million less than the loss in 2008. While electric automobiles are seen as an emerging technology, they are considered an early-stage industry that could take a decade to become more established, making the Tesla offering riskier.

Auto Sales Up – Motorcycle Sales Down

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After massive restructurings in the auto industry, things seem to be looking up. After ten consecutive money losing quarters, GM said that they have made an unexpected profit of $865 million in the first quarter. Even Toyota, still recovering from their biggest recall ever for unintended acceleration, said Tuesday that the January-March profit totaled $1.2 billion compared to a loss the year before. But when it comes to motorcycles and scooters, things are still looking grim.

Even though motorcycles and scooters are more economical to operate, their sales are down 4.6% in the first quarter compared to last year. Hard hit by a down economy that has tightened credit and by stable gasoline prices, motorcycle dealers are scrambling to find customers any way they can. With so few buyers in the market for new bikes dealers are focusing on parts, accessories and pre-owned motorcycles to survive. Many dealerships have also cut hours and staff.