Episode 886 – Toyota Posts Lukewarm Results, Adam Opel Adam, Audi Outsells BMW in April
May 9th, 2012 at 11:45am
Runtime: 7:25
Toyota announced its financial earnings for its fiscal year and it didn’t do all that well, but the company is very bullish for this year. Opel revealed that the name of its new small car will be the Adam, the same name as the company’s founder. Audi outsold its luxury rival BMW on a global basis in April. All that and more, plus John McElroy responds to your questions and comments in “You Said It!”
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Well, we’re halfway through the work week. It’s May 9th, I’m John McElroy and this is Autoline Daily.
TOYOTA POSTS LUKEWARM RESULTS (pdf)
Toyota announced its financial earnings for its fiscal year and it didn’t do all that well. No surprise there, what with the impact of the earthquake in Japan and the flooding in Thailand. Global vehicle sales hit 7.3 million units, an increase of 0.6 percent. Despite that increase, revenue dropped 2 percent to $232 billion. And net profits fell over 30 percent to $3.5 billion. But Toyota is very bullish on this year. It says global sales will jump 18 percent to 8.7 million vehicles. It forecasts that revenue will jump by the same percentage amount to $275 billion, and that profits will nearly triple to $9.5 billion. Even so, that would provide a net profit margin of only 3.5 percent, meaning Toyota even has more upside potential.
AUTO INDUSTRY BOOSTS RAILROADS
Like the saying goes, a rising tide raises all boats. U.S. railroads are enjoying a banner year thanks to strong car sales. Those cars and the parts needed to make them pushed train traffic up 21 percent in April. And it’s really a NAFTA story. The same sort of increases are happening in Canada and Mexico.
HYUNDAI UPDATES SONATA
As competition in the midsize-sedan segment heats up, Hyundai is making some minor changes to its hot-selling Sonata. For 2013, certain lower-level models get more content, including fog lamps and heated front seats. The range-topping Limited trim comes standard with a traditional sunroof, but a panoramic version is also available as an option. As strong as Sonata sales have been, I think Hyundai is running scared. Last month, John Krafick, the CEO of Hyundai Motor America said the competition is closing the gap with their advantage in fuel economy and styling. He said his message to the troops was they better react quickly, and I think this is part of that reaction.
ASTON MARTIN REVEALS NEW DBS
In an uncharacteristic move, Aston Martin went to the web to reveal the new DBS Ultimate. Usually automakers push out press releases, unveil vehicles at auto shows or invite the press to ride-and-drive events. But this time the company posted details on its public website. Is this an example of cost cutting? Maybe, but according to Autoblog this model is probably in its last year, so a proper introduction for what’s effectively a new trim line is arguably unnecessary.
ADAM OPEL ADAM
Opel revealed that the name of its new small car will be the Adam. It did so in a unique way on its media site with a comic strip as well as a prototype of the car driving a special route on the streets of Frankfurt to spell out its name. The car is expected to debut at the Paris Motor show in September. As you may know, Adam Opel was the founder of the automaker, which is also the formal name of the company. So I guess technically the car’s name is the Adam Opel Adam.
AUDI OUTSELLS BMW
And staying in Germany for the moment, Audi outsold its luxury rival BMW on a global basis in April. Audi sold just over 125,000 cars last month while BMW sold over 121,000 units. It was the first time in over a year that Audi outsold BMW. For the year, BMW has sold just 7,000 more vehicles than Audi.
Coming up next, it’s time for You Said It!
YOU SAID IT!
And now it’s time for some of your feedback.
Chuck Grenci pulled out an old rule of thumb to figure out the value of the newest Cadillac. “Entry level ATS at $33,990; at a dollar a pound (announced weight at sub 3400 lbs), sounds like a pretty good deal. Coincidence, maybe, but still a pretty nice correlation.”
You know, I think that dollar-a-pound rule has held true for nearly 50 years. Somebody check that out for me.
Kit Gerhart thinks he knows why the electric version of the Toyota RAV4 has that outrageous $50,000 price tag. “The RAV-4 EV, if it actually has 100 mile range in normal driving, would have a battery about 4 times as big as the one in a Volt or Leaf. No wonder it’s expensive.”
Why would anybody buy an electric RAV4 at 50 grand, which is nearly $13,000 more than a Nissan Leaf, and 25 grand more than a RAV4 with a gas engine? That’s why I get the feeling Toyota was forced into this project for political and public-relations reasons, not because it believed that working with Tesla would produce a superior EV.
W L Simpson saw our report of Formula One driver Nico Rosberg showing the driving position in an F1 car and had this comment: “Formula 1, a luge on wheels.”
No kidding, W L, I wonder why they just don’t drive head first!
A bunch of you reacted to our report about the plan to use aluminum wiring in cars to save weight compared to copper. There’s a lot of good feedback in the comments section on this one, but I think GPL captured it best. “Aluminum wire to save weight… Why don’t they just make thinner fuel and brake lines while they’re at it? What could go wrong?”
Thanks for your letters and comments, we really get a kick out of reading them.
We’re giving away a number of copies of Paul Ingrassia’s new book “Engines of Change,” which highlights some of the most historically important automobiles ever created. All you have to do to enter the contest is send your name and address to contest@autolinedetroit.tv. The winners will be selected at random and announced on Autoline After Hours since Paul is our guest on the show this Thursday night.
And that wraps up today’s report, thanks for watching, we’ll see you tomorrow.
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Comments (39)
May 9th, 2012 at 12:13 pm
The correct number for the Caddy ATS would be $10.00 per pound not a less than hamburger $1.00 per pound.
May 9th, 2012 at 12:14 pm
A dollar a pound would equate to $3400 !
May 9th, 2012 at 12:18 pm
“Why would anybody buy an electric RAV4 at 50 grand, which is nearly $13,000 more than a Nissan Leaf, and 25 grand more than a RAV4 with a gas engine? ”
I agree completely. If you need more room than a Leaf, you buy a car with more room, such as a standard RAV4, or if you are after fuel economy, maybe a Prius V. If you really want an electric car, the Leaf is a lot cheaper than the electric RAV4.
All I was saying is that it’s understandable that the RAV4 electric costs so much. As far as why anyone would buy it at that price, that’s not so obvious. I guess Toyota still has enough money to bring out products like this “just for fun.”
May 9th, 2012 at 12:25 pm
Are my math skills lacking in my older age? Doesn’t a dollar a pound compute to $3,400 on the Caddy?
May 9th, 2012 at 12:42 pm
Gene , that’s Washington swampmath.
May 9th, 2012 at 12:55 pm
Kit from yesterday’s last entry, do you also consider spending considerably more for a Lexus model when you can get the Toyota version on which is based for less money a bad idea? BTW that fellow I was referring to yesterday is no dummy, he just feels he’d rather save that money and travel.
May 9th, 2012 at 1:00 pm
TOYOTA 2011/12 A Change
Revenue $232,000,000,000 -2.2%
Profit $3,500,000,000 -30.5%
Profit % 1.51%
Sales 7,300,000 +0.6%
Profit PV $479.45
Revenue PV $31,780.82
PV= Per Vehcile
TOYOTA having average per vehicle revenue that is more than twice that of GM ?
And you think RAV EV at $50,000 is “expensive” ?
May 9th, 2012 at 1:09 pm
RAV EV price tag, Karma burning down, if only tj were still posting, somewhere.
May 9th, 2012 at 1:13 pm
Gene,
That’s what’s scary. The writer didn’t notice and neither did John. And like you, I did also.
May 9th, 2012 at 1:38 pm
If Opel is producing an “Adam” I pray GM won’t pay homage to its founder by using his nickname on a car.
Is Audi outselleing BMW a trend or is it just trendy?
Before anyone in Detroit gloats about Toyota’s troubles, they will be back.
These numbers from Toyota show how fragile any business is when facing the wrath of Mother Nature.
Looking at the new Ford Fusion and Chevy Malibu, John Krafick is right.
May 9th, 2012 at 1:39 pm
I sure hope John Krafick isn’t too surprised about the closing gap. Nothing ever lasts forever, and even their ballyhooed fluidic design will become static and stale after a while. Hyundai better be working on more than just a few added features, which is a common way some automakers refresh their offerings between redesigns. It’ll be interesting to see if they too take the play it safe approach to their next generation of cars.
May 9th, 2012 at 1:54 pm
Maybe Krafick is worried about the TTAC article on the questionable durability of GDI engines. If it does happens H/K will be up to their noses in claims with their 10y/10k engine warranty.
May 9th, 2012 at 2:25 pm
#6,
The Lexus that I consider a very bad buy is the ES. Also, while it looks different from the similar Highlander, the RX is a very similar vehicle. To me, the RX is also a “bad buy.”
That said, some people are willing to pay for a few more “luxury trappings,” or for a “premium” name plate. Also, in some cases, the luxury nameplates depreciate more slowly than the others, so cost per year may not be much higher for people who only keep cars 3-5 years.
Some Lexus models, particularly the LS, seem an ok buy for those who want a serious luxury car.
May 9th, 2012 at 2:27 pm
Here’s a link for the EV haters out there:
http://www.autoweek.com/article/20120508/CARNEWS/120509860?utm_source=DailyDrive20120508&utm_medium=enewsletter&utm_term=image1&utm_content=20120508-Official_claims_Fisker_Karma_to_blame_in_Texas_house_fire&utm_campaign=awdailydrive
May 9th, 2012 at 2:35 pm
After I posted the dollar/pound I realized (my mistake); no one mentioned it yesterday (when I posted it originally) but John ‘highlighted’ it in reader feedback and I got caught (misplacing my decimal); oh, the shame (and yes I am embarrassed). Oh well, if that’s the worse I ever post, I’ll be happy; I’ll try to get my facts more correct in the future. Still a nice correlation (that being, at ten dollars a pound). :”>
May 9th, 2012 at 2:35 pm
WOW! maybe they should rename it “Bad” Karma, and these EV’s make up only a minute % of all car sales, imagine when the numbers go up?
May 9th, 2012 at 2:38 pm
Kit #14
I wonder who pays restitution: Fisker, Auto Insurance or Home insurance?
May 9th, 2012 at 2:44 pm
#17,
Normally, it would be auto insurance for the car, and homeowner’s insurance for the house. In this case, I suspect there will be law suits against Fisker involved.
If these incidents are commonplace, I’d expect insurance companies to raise rates for homes with attached garages containing Fiskers.
May 9th, 2012 at 2:46 pm
So if Fiskers are parked outside garages, won’t they become targets for thieves, although I cant believe they’re so stupid as to risk going to jail for stealing such a POS!
May 9th, 2012 at 2:56 pm
#19,
Thieves used to mainly go after cars for parts. In the 70′s, Camaros were a hot item. Now, big pickups rule the most stolen lists. See:
http://money.cnn.com/2011/08/25/autos/most_stolen_cars/index.htm
May 9th, 2012 at 2:58 pm
True indeed, I met a client two weeks ago who had her Escalade’s stock rims stolen less than a week after she got it, right in front of her town-home with alarm and all, these guys are incredible.
May 9th, 2012 at 3:01 pm
I need to get a radiator cap for my Crapola and I found one model online for $7, dealer gets $26. I found an oem one online for $12 plus $11 shipping, I’ll just go to the dealer. No more Mickey Mouse parts for my baby! No Siree, only the best.
May 9th, 2012 at 3:02 pm
The wheels on my Prius should be safe. 15 inchers are definitely not fashionable these days.
May 9th, 2012 at 3:07 pm
Up and at ‘em, Atom Ant!
May 9th, 2012 at 3:11 pm
Despite their expensive parts, seems like Prius is a safe car to have without worrying about your local auto thief, however if you own a third gen Camry, watch out!!
May 9th, 2012 at 3:31 pm
Pedro, what’s your plan if the Corolla just platzes, dead? Is there a repair bill death number out there? You must have multiple scenarios bubbling in there.
May 9th, 2012 at 3:38 pm
HtG you know what? I would have to seriously consider my options, the body is in really good shape except for a big dent in the left rear quarter panel and the paint on the trunk is gone due to a crappy repaint job, but it has no rattles, no rust and interior is showing its age and the So Fla sun damage, If the engine goes, I need to consider looking for a junk car with a decent enough engine or take my chances and buying a used one that may be in worse shape than mine.
May 9th, 2012 at 3:45 pm
Yahoo finance reporting gas may drop to $3 a gallon, another hit for the EV / hybrid crowd folks. Hot fires and cool gas prices will even hurt the Prius C, not to mention it may mean the death of the Volt as well.
May 9th, 2012 at 3:45 pm
A couple days ago, I received a card from Toyota offering to pay me $30 to test drive any Toyota or Scion. I wanted to drive an FR-S, but since they don’t exist yet, I drove a Prius C.
I was pleasantly surprised with how it drove, given that it is sort of based on the Yaris which gets such bad reviews. The Prius C felt a little “sportier” than my regular Prius, not that it takes much to be sportier, but the steering felt a little more precise, and the suspension felt better in curves. The noise level seemed about the same as my car, but I only got up to about 60 mph, not interstate speeds. I don’t know how it would be at 75, or if lack of power would be an issue.
If I were buying now, I’d still buy the Prius Liftback, but mainly for the extra space, assuming the C would perform comparably to the regular Prius at higher speeds.
May 9th, 2012 at 3:49 pm
#27,
Are good used engines available for cars like yours? I’d think they might be, because they don’t seem to wear out very quickly, and there should be some wrecks as doner cars. Also, there might be engines up north where the road salt might destroy the car bodies well before the engines were out.
May 9th, 2012 at 4:00 pm
Kit the problem here is that most Toyotas that are not total wrecks get sent abroad where the US laws don’t apply and you can rebuild pretty banged up cars and sell them for a profit so it is really hard. I was curious a few months back and tried to find an engine in the tri-county junkyard search system just to know how easy or diff it could be, Zilch! only available from engine re-builders at a premium price
May 9th, 2012 at 4:03 pm
Kit, how did the Prius C feel when you lifted off the gas pedal?
May 9th, 2012 at 4:04 pm
From the dept of, What’s Happening Here? Yesterday I saw 4 Audi A4 Avant station wagons.
What’s happening here?
May 9th, 2012 at 4:11 pm
#32,
It felt about the same as my Prius. When you let off, they have it set to do a small amount of regenerative braking to make it feel more-or-less like lifting with a regular car.
May 9th, 2012 at 6:08 pm
Well its about damn time, how can Cadillac pretend to be on par with the Germans without a flagship, they’ve always had one. I asked a GM guy the other day and he said the Escalade was their flagship! What a joke a truck is the Cadillac flagship, really?
May 9th, 2012 at 6:48 pm
Keen to safeguard my investments,I’ve made the global economy an interest to me. Toyota’s qtr.profits were $1.5B,which is almost too hard to fathom. I hear they plan to update all their designs and to take a more agressive stance towards Hyundai. I think it will pay off,but like I said earlier,the Asian economy will take much of the fizzle out of future results. Do you guys realize youth unemployment(under 20 yrs.) in that area is about 30%!!?? And,remember, in that culture the youth take care of the aged,who created a real mess! Reminds me of us in a way,huh? Add southern Europe youth unemployment at ABOVE 50% and you should NOW see a real problem brewing. Their cost of borrowing(18%) will almost guarantee Greek,maybe Spain,Potrugal? exit of using the Euro. Add the “land of the leprecons”,too! For now,Canada and the US should make the most of it while it lasts,cuz it WILL slow down! Let me gather my thoughts and I will tell ya why Chry may become ahead of the pack,despite past perceptions.
May 9th, 2012 at 7:43 pm
Re Hyundai updates Sonata for 2013. I recently read that Hyundai has a update in 2014. I look at 2013 as a minor update and 2014 as a major update. I suspect the 2014 update will include an 8 speed transmission. This will put the Sonata at least a year ahead of GM, Ford,Toyota and Honda.Chrysler will have an 8 speed in the 200 by fall of 2013.
May 9th, 2012 at 9:27 pm
#10 C-Tech: The founder of GM had the nickname “Billy”. His real middle name was “Crapo”. but what’s in a name?
May 10th, 2012 at 7:55 am
@ #44
Thank you Bob. I always thought “Crapo” was a nickname! That ranks up there with the name “Sue” for a boy.