Toyota Loses $7.7 Billion, Illustrates Global Auto Slowdown

Today, Toyota announced it lost $7.7 billion in the first quarter of 2009. Earlier this week, GM announced it lost $6 billion over the same time period. We’re not bringing this up as a slap to Toyota or a defense of GM, but to better illustrate the fact that the auto industry as a whole is hurting — it’s not a singular fault of U.S.-based automakers.

GM is obviously running on fumes in terms of money, while Toyota has billions on hand to weather the storm. The strength of the two companies is not equal, to say the least.

But if the company that many consider the strongest automaker in the world is suffering as badly in terms of sales and net profit, it’s harder to write off GM’s problems strictly as poor management.

The Weekend Athlete Compares Compact Cars

Compact cars usually garner attention for their low price tags and advantageous fuel economy numbers, but our Weekend Athlete, Bill Jackson, wants to put the spotlight on the utilitarian side of these vehicles. With this in mind, he lined up three of the most popular compacts: The Honda Fit, Nissan Versa and Toyota Yaris. Which vehicle best matches utility with economy? Read this Cars.comparison to find out.

Cars.comparison: Weekend Athlete Cars

Toyota May Incentives Don't Get Big Boost

Toyota saw its year-over-year sales drop more than 40% in April, which led to some speculation that it would greatly boost incentives in May. We checked a number of regions around the country today, though, and May’s incentives don’t appear to be greatly improved over April’s.

There’s up to $1,750 cash back on the 2009 Camry and up to $2,000 on the 2009 Camry Hybrid. There’s $1,750 on the Corolla, but only in New York; it’s $1,250 elsewhere. The 2009 Prius has up to $1,250 cash back, the Matrix and Yaris get $1,000, and there’s only $500 available on the RAV4 and $750 on the Highlander. All deals run through June 1. Here’s our post on April’s incentives, which weren’t noticeably different.

These incentives aren’t necessarily bad, and dealers will still negotiate lower prices than what’s offered along with consumer cash-back deals.

Unfortunately, Toyota makes it difficult to gauge national offers, and you must input your zip code to find out its current incentives. If you find anything higher than we’ve reported above, please let us know in the comments below.

April a Tough Month for Toyota

The sales numbers for April are in, and Toyota took a beating compared to last April’s sales. Down 42.2%, Toyota had a worse April 2009 than Ford (-31.6%), GM (-33.7%), Nissan (-37.8) and Honda (-24%).   

What’s causing the decline? Besides the fact that not one model posted a sales increase, we found these four factors within the sales numbers:

The New Toyota Corolla
When a company introduces an all-new model, it usually helps spur sales. Buyers happily gobbled up the old Corolla right up until the new model was released. The new Corolla’s sales, however, are down 42.9% from last April. Honda’s Civic — which was last redesigned three years ago — saw sales decline only 23.2% in the same time period. When your second-highest-volume vehicle sees such a sharp sales drop, it’s hard for new niche vehicles like the Venza to pick up the slack.

Cars.com Reviews the 2009 Toyota Yaris

This is the first time Toyota will offer its subcompact, the Yaris, as a four-door hatchback. Cars.com reviewer David Thomas test drove the hatchback to find out if it offered any advantages over the Yaris sedan or subcompacts from Nissan and Honda. What he took away from the 2009 Yaris will likely weigh on your car-buying decision. Hit the link for his full review.

2009 Toyota Yaris Review

2009|Toyota|Yaris

Recall Alert: 2008 Toyota Highlander, Highlander Hybrid

Toyota has issued a recall involving roughly 39,100 Highlander and Highlander Hybrid vehicles from the 2008 model year, according to the National Highway Traffic Safety Administration. The recall is due to a clamp used to secure an optional stainless-steel exhaust tip to the exhaust pipe.

Because of improper heat treatment, the clamp could potentially crack and allow the exhaust tip to fall off. Though the exhaust tip was only installed in 39,100 vehicles, the accessory was available after-market, and therefore all 121,000 ’08 Highlander and Highlander Hybrid owners will be notified.

The notification, which will arrive by mail sometime in early May, will give owners instructions on how to determine if their vehicles are affected. They will then be directed to their Toyota dealers for a repair.

Owners can call Toyota at 800-331-4331 or the NHTSA Vehicle Safety Hotline at 888-327-4236.

Hybrid Wars Come to NASCAR

The Ford Fusion Hybrid was supposed to be NASCAR’s first hybrid pace car back in November, but after the race began the Ford Fusion Sport took over. Now, Toyota has announced that the Camry Hybrid will become the first hybrid to serve a race through the finish line in the May 24 Coca-Cola 600.

Is it slightly bizarre that dueling hybrids can be found in a motorsport where the sole purpose is to burn through as much gasoline as possible to rack up a win? Sure, but welcome to the new order of things.

Some have seen Toyota’s move as a slight tweak to Ford. The two companies have been competitive before on issues like whether or not the Fusion Hybrid is the most efficient midsize “car,” or the amount of cargo room in the Sequoia versus the Expedition.

On the bright side, at least a hybrid battle could have some nice consequences for consumers.

Dueling Hybrid Pace Cars (Wheels)

Toyota Announces Pricing for 2010 Tundra

Toyota has released pricing information for the 2010 Tundra pickup truck. The Tundra starts with a base price of $22,960 for a regular cab, two-wheel-drive model. The top-of-the-line model, called the CrewMax Limited, comes with four-wheel-drive and a price of $42,155.

The 2010 Tundra goes on sale later this month. For a breakdown of full pricing information, go to our sister site, PickupTrucks.com.

2010 Toyota Prius Priced $1,000 Less Than Outgoing Model

When I reviewed the new 2010 Toyota Prius back in February, I marveled at all the terrific features it packed and guessed it would have to cost more than the outgoing model, but that it would be worth the extra cost. Today, Toyota has announced pricing of the new hybrid, which goes on sale next month, and it’s going to be at least $1,000 less than the current version.

The Prius will start at $21,000, before a $750 destination charge. This price is for a base model that the company hasn’t yet introduced, called the Prius I. The Prius II through Prius V, which we’ve already detailed in depth and which go on sale in late May, will also start at cheaper prices than the 2009.

The Prius II will start at $22,000 before destination, compared to the 2009’s $23,375 starting price. The top-of-the-line Prius V, however, gets costly, starting at $27,270. There are also new options, like a Solar Roof Package, that have also been priced. You can find all the pricing details below.

PickupTrucks.com Road Tests the 2010 Toyota Tundra

The 2010 Toyota Tundra is set to launch at the end of April, straight into a market reorganizing toward fuel-sippers. Toyota’s aim with the Tundra is to maintain the towing and hauling capabilities of a V-8 while squeezing out ever more efficiency through innovation and technical wizardry. PickupTrucks.com takes the ’10 Tundra with an all-new 4.6-liter V-8 engine for a road test to see how well Toyota accomplishes this goal. How many more mpg can Toyota’s engineers eke out of an engine built for power? Read PickupTrucks.com road test review to find out, and we’ll let you know when Toyota announces pricing for the new Tundra.

Road Test Review: 2010 Toyota Tundra 4.6-Liter V-8 Double Cab 4x4 (PickupTrucks.com)