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Toyota plans ultra-low-cost car

01/22/2007, 1:25 PM

By admin

Toyota plans to build an ultra-low-cost car through a “radical” rethink in design and production, president Katsuaki Watanabe told Britain’s Financial Times. “The focus is on low-cost technology,” he said in an interview published Monday.

Watanabe said the vehicle would undercut Renault’s emerging-market Logan, which costs around $6,200 and is sold in China and Russia.

“Everything from design to production methods will be radically changed and we are thinking of a really ultra-low-cost way of designing, using ultra-low-cost materials, even developing new materials if necessary,” he said. Watanabe seemed to suggest the vehicles could be sold in more than just emerging markets.

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01/22, 1:30 PM

posted by:

calisto

I wonder how cheap that means. A new car for $3000 would be something.

01/22, 1:31 PM

posted by:

Kenny W

Yay, a car thats even more a piece of sh!t than the Yaris & Scions. If you take a close look at those you can easily see where they’ve cut costs & trimmed quality. I don’t see this as being a good thing for Toyota.

01/22, 1:41 PM

posted by:

Endurancevm

Woo!! A solid plastic cart with a tricycle pedals for propulsion, how did Toyota know what i want?

01/22, 1:51 PM

posted by:

Piablo

My prayers have been answered!!

Could it be the return of the old Corrolas and Civics? Bare bones cars that got 40mpg? This is what the market is calling for. Not a vehicle that forces one to calculate a cost benefit analysis factoring in larger payments vs less in gas.

01/22, 1:51 PM

posted by:

A.G.

Yea I do think it would be pretty damn cheap but I think it would sell. Im one of those struggling students and if I could get a brand new car for cheap I think I would and so would alot of other ppl.College students and what not.

01/22, 1:52 PM

posted by:

GMnumberone4ever

Because Toyota can’t compete in the REAL car world, they are going to be going after the toy car market with the Chinese and Koreans. Way to give up guys, and as a devoted GM fan, I am happy to see the American Revolution has put the fear in ya!

A desperate move by Toyota and one that will most likely backfire. Could we be seiing the eventual departure from the US market because it has gotten too expensive to compete?

01/22, 1:58 PM

posted by:

leviathan18

yes and you saw how manys cars from toyota in fire and ppl kickin at them today?

01/22, 2:01 PM

posted by:

roadmaster96

Toyota is no longer content to build appliances, now they wish to make the automotive equivalent of a red plastic cup and paper plates. You get what you pay for people. That rule shall never change.

01/22, 2:02 PM

posted by:

Fatstrat

gonna be tough to meet crash and safety standards of developed countries, especially the US/UK with the sort of vehicle they are describing.

01/22, 2:06 PM

posted by:

A4

^^ i agree, its a market segment much more necessary in the US than, for example, the, ahem, R-class.

01/22, 2:10 PM

posted by:

obsessedwithautos

I’d rather spend less than 6 grand on a larger, better used car at Carmax.

01/22, 2:10 PM

posted by:

A.G.

Such a good point

01/22, 2:13 PM

posted by:

joseph

Thanks Lambo…..my thoughts exactly. This is something that only Toyota could pull off and would be a perfect fit for those countries…including conjested cities.

01/22, 2:13 PM

posted by:

A.G.

I ment the R-class point.sorry

01/22, 2:18 PM

posted by:

rey323

Good points by Fatstrat and Lambo.

01/22, 2:28 PM

posted by:

bb_454

Totally agree with you Lambo, I know public transportation suck when I was in the Detroit area, didn’t matter to me though, I had three cars that all worked. I think its a great idea.

01/22, 2:42 PM

posted by:

edgarp

Toyota is, by far, the smartest of the major automakers. They are adapting their business model constantly to try match the market, and they are doing a very good job of it. They don’t wait for the market to beat them upside the head like GM and FMC do.

heck, if they want to design pieces of crap like you all are saying, they should just hire some GM and Ford quality engineers.

easy as pie.

01/22, 2:59 PM

posted by:

Fatstrat

Side Bar…
Something you people need to get straightend out once and for all…
Toyota Designers/engineers/Directors are not all Japanese. BMW Desingers/Engineers/Directors are not all German. GM and Ford Designers/Engineers/Directors are not all American. Etc…
Naturally the coporate ‘drive’ mentality is from the top down. But many decisions/processes etc… are handled by folks from all over the world in offices not always in countries of their origon.
Blaming/praising the Nations of the manufacturers hom office is getting to be a thinner and thinner scapegoat.
With a caveot…The UAW is probably most responsible for the quality of the American product than any other entity, regardless of nationality.
Ok, someone else can have the soap box now.
:-)

01/22, 3:08 PM

posted by:

Jazz

Too true edgarp. I agree with Lambo as well
What the average consumer can only hope is that this is a return of the old Corollas and Civics. This constant price march northward is getting ridiculous. Almost 20K for a Civic? c’mon. We laughed when the Yugo came and went but that car proved that there was a market at the low end. A very big market in fact. Maybe we’ll see a decline in average car prices if enough of these super cheap cars are sold. We could only hope.

01/22, 3:11 PM

posted by:

Kenny W

LamborghiniZ,
Your point could have been damn near perfect if you hadn’t thrown in all those useless insults. To respond though, how cheap do you think Toyota can go with this? $9,000….$8,000….lower? Honestly, how good do you think a BRAND NEW car at that price point can be? You mention people on minimum wage need good, reliable, and cheap transportation but what about certified pre-owned vehicles? They often times come with decent warranties, are low miles, and would most likely come with more options than a brand new $9,000 car. People earning minimum wage don’t NEED a brand new car. Trust me, I used to earn minimum wage and all I wanted was cheap (read sub-$5K) and reliable. I couldn’t afford 9 grand and neither can most of the other people I know that still earn minimum wage.

I can’t think of any tangible reason why someone should choose a brand new $9,000 Toyota vs. a used $9,000 Toyota. Both will undoubtedly last a very long time, and I’m willing to bet that the used car would have more features. If you want proof, just look at the base Yaris vs. a 9 grand used Toyota Corolla.

01/22, 3:14 PM

posted by:

kosai03

“…Toyota Designers/engineers/Directors are not all Japanese. BMW Desingers/Engineers/Directors are not all German. GM and Ford Designers/Engineers/Directors are not all American. Etc…”
Comment by Fatstrat, posted on January22 at 2:59 pm

Case in point, one of Honda of America’s engineering directors is a former Saturn engineer ;)

01/22, 3:16 PM

posted by:

Kenny W

Fatstrat,
Very well said.

I would also like to point out that the return of those old school economy cars as we know them wont happen. Did a 1990 Civic have duel air bags, CD player, ABS, electronic stability control, high strength reinforced door beams, DRL’s, VVT, etc? All of that stuff costs money, and adds weight. Weight is the enemy of fuel economy and unfortunately as much as people say otherwise, nobody would buy that when the competitor offers it in their vehicles.

01/22, 3:17 PM

posted by:

Gmnumbertwo2soon

Oh man, they’re going to get one step closer to taking the number one spot. How horrible!

They don’t make G6’s or any other cars that break down everyday. What is this?!

01/22, 3:24 PM

posted by:

bigjob

dang, finally a comment that makes sense coming from you, although I do have to agree, could have been stated without some of the wording…but what the heck…come to expect that from you. Just make sure and take your advice on future posts. Just because a GM or a Ford, or a Dodge makes a style of vehicle you do not like, go outside of your box, and maybe think about who it is being made for. There might be some hope for you Lambo.

01/22, 3:36 PM

posted by:

GMnumberDUHforever

I was driving along this morning in my GM exotic (Buick Reata for you uninformed readers) and jamming to Color Me Badd when I saw an entire parking lot of Toyotas on fire. That’s why Toyota cannot compete with the gift the Gods have delivered us from Mt. Olympus themselves: General Motors.

01/22, 3:43 PM

posted by:

mujician

That would make for a nice 4 wheeler, O’ wait, this vehicle is going to probably be 2wd. Never mind!

01/22, 3:43 PM

posted by:

Gmnumbertwo2soon

That’s nothing GMnumberDUHforever.

Today I saw 50,000 Toyota’s sprout wings and fly right into the sun, engulfing their owners in flames. GM’s would never do that! In fact, whenever GM’s cars decide to spread their wings, they take their owners on a wonderful voyage around all the world and they visit all the best places in the world.

01/22, 4:04 PM

posted by:

GMnumberone4ever

Toyota sucks and is going to be wiped out by the American Revolution. Get used to it.

01/22, 4:04 PM

posted by:

Brendino

Smart, smart, smart. Chevy talks about trying to go upmarket…if they can pull it off, then they lose all the people who buy Chevy for their price point. Someone needs to fill the gap…Kia, perhaps Chery or Geely would be the most likely, but Toyota could do it well. They have the advantage of volume sales which means cheaper prices on cars.

Oh and GMnumberDUHforever is better at mockery than GMnumber2soon. How many people like this are we gonna have, anyways?

01/22, 4:19 PM

posted by:

dthx1138

if Toyota can make a $6,000 new car i’ll be impressed, but I bet it can be done. People will actually be able to choose between purchasing a Hummer or 8 new Toyotas. I could drive 7 of them into a volcano and still have a more reliable vehicle for my $50,000 than the Hummer.

01/22, 4:23 PM

posted by:

Blakkarr

Toyota wants to build YUGOs now?

Brendino, I agree GM is trying to hard to play a balancing act with making high performance and high content work in Chevrolet. For High Performance they have Pontiac, and High content they have Buick and Cadillac, with Saturn growing to split the difference between the three. Chevy should remain on the budget end of things, aside from the Corvette (OK “Budget Super car”).

Toyota should stop growing so fast and just let it come. They’ll have fewer problems that way. Besides They can’t compete against Korea for cheap cars done right. They’ll just get burned bad.

01/22, 4:27 PM

posted by:

CTS DRIVER

way too many bernardo way too many, all intellegent conversation has left this site, its streetfire all over again. there is nothing americans can do to make the haters here even slightly like american brands. but please dont bash the imports the haters really hate that. remember the people on this site are all global marketing geniuses, with phd`s in advanced automotive design, they really know all the trade secrets and are tasked with bringing the knowledge to the people. ha ha ha ha ha, what a friggin joke lln is becoming. oh yeah and by the way, whats wrong with a cheapo toyota that some people can actually afford…..nothing, build it and they will buy it.

01/22, 4:32 PM

posted by:

Kaptain75329

Brendino : good point. I’m not understanding GM’s strategy with Chevy (isn’t this supposed to be Saturn’s deal – moving upscale?) but I’m gonna wait and see how it plays out. If indeed GM wants to move Chevrolet up, then it could leave a gap in the low-cost/value market since it appears that Ford is trying to do the same thing. The case with Ford is different to me though – I see better products for basically the same prices as of late.

01/22, 4:37 PM

posted by:

moogleii

The American Revolution is coming folks. The everyday American wants the Ultimate Driving Machine: a car with the reliability Like A Rock, but with Zoom-Zoom performance.

Get used to it folks.

01/22, 5:08 PM

posted by:

LamborghiniZ

Kenny W: I recognize you mentioning certified used vehicles, but as I said before, no matter what used cars are a gamble, and maybe that is what Toyota is looking for, those people that want a new car but don’t want to deal with possible issues with buying used, like warranty problems, etc. Those are just some thoughts.

bigjob: It’s not the types of cars coming from the big 3 that I hate on, it is the quality OF these cars, why don’t you get that. I’m not hating a Malibu because I’m not in the market for a family sedan, I hate it because it’s made with cost cutting materials and has a lack of quality compared with the Japanese competition. Personally I’m not in the market for a family sedan, but I still like the Subaru Legacy because it is GOOD at what it does, it’s quality, it’s fun to drive, whereas the Malibu fails in all of those regards. So you see, telling me to open my mind and think out of the box to American products that I might not be interested in is pointless, because I’m not disliking them on that level, it’s their quality, or lack thereof, that I have a problem with

01/22, 7:15 PM

posted by:

Hal

off topic but I wish people would stop rolling out “blame the UAW” for every problem US automakers have. US automakers made huge profits in the 90s. Most of the problems they have now are because the beancounters that run them failed to invest those profits in new models and plants, and failed to anticpate the change in the market due to higher gas prices and environmental concerns.

01/22, 7:59 PM

posted by:

Fatstrat

With all due respect Hal,you cannot sugar coat the UAW. They have run the US automakers into the ground, and will never stop with the strong arm tactics they are famous for, until the last nipple on the corporate pig has gone dry. I guaran-damn-tee you that you and many others here have cursed athletes for their union based exploites. Same difference, just the decimal places per individual are different. Unions tend to create the same bad work enviroments these days. They had their day, they did their job, now its time for them to take a seriously diminished role before our public schools, and previously grand companies like GM/Ford are all but destroyed.

01/22, 10:14 PM

posted by:

GMkixassforev-a

Hey, Brendino! Here I am!
And it has nothing about mockery on this! I swear I was near that parking lot with my Chevy Corvair, and I saw all of that Toyotas melting and sparkling. It was VERY funny!

01/22, 11:20 PM

posted by:

Egbert Souse

I could trust Toyota on this one, hopefully I will never have to buy this car, but lets face it, as boring as they are Toyota makes some of the best cars when it comes reliability, I think this is a good move by Toyota

01/23, 12:57 AM

posted by:

SevereSpeed

I agree with some people here.

Toyota will get rich selling these small cars in America, since most immigrants and low class people can’t afford a new car, and a used one will be a cost multiplier.

I say good move, toyota!

wonder what’s it going to cost?

01/23, 1:56 AM

posted by:

Veda

deantj, wtf are you talking about Peugeot? I used to own 50 Peugeots in the late 90’s. Nice ride and all but highly overpriced and it took them 3 months to replace a single broken window. Citroen was memorable but it has all but disappeared in the world market. It’s still much better to buy a used 2004 Volvo S40 with its loaded safety gadgets than a stripped down brand new tin can from Toyota that’s selling for about $12K.

But really, if it’s cheap and has Toyota on it, it will sell. The mid 90’s Toyota Corolla was hella cheap and proven reliable, if they can make something like that for let’s say $7K, it will still sell. Though the required safety features of today will be the main reason for the higher price.

01/23, 2:43 AM

posted by:

Brendino

What they could do is have a $7,000 car and then add a ton of features. So they can say “starting at just 6.999″ (as shown 15,625. destination and delivery charges not included) or something like that.

01/23, 4:33 AM

posted by:

Parth

hey guys…..my names Parth n from india, have been reading u peoples comments bout the latest news n releases of cars over the globe n was really interested to join in….
wanted to let u know that in India (dunnno if u have heard of TATA motors an indian car company) TATA motors is trying to make a Rs. 1 lakh car…. thats bout a $2000 car for India….
Its true that they are trying in the more developing countires to make such cars that can be easliy affordable to the masses and i think toyota has taken this idea too from them( Tata announced this project 2 years ago…)
But as many of u say, the major down side of this is that how safe will they be able to make these cars??
they will be more like suicide machines.. n i know the safty standards are much lesser here in india as compared to US or UK…. something to think about.

P.S. sorry for any english errors. thanks

01/23, 7:43 AM

posted by:

silviumc

BTW, the Dacia Logan is the brand owned by Renault that is mentioned in the article.
Price is between 6400-10200 Euro.

01/23, 8:14 AM

posted by:

bigjob

I’m diggin’ it Lambo….making points…..like I said, there is some hope for you, in my opinion :)

I think if you check out the FusionChallenge web-site, you might see a Ford Fusion that is competing, and in many areas, passing the Camary and Accord. It is a start for the Ford world, well hopefully a start and not just a blip.

01/23, 9:32 AM

posted by:

mmargus

Dacia Logan is also sold in Eastern Europe (Baltic States, Bulgaria, Romania etc.) as well as in Germany and France, for example.

01/23, 10:53 AM

posted by:

buenos

Could Toyota be re-inventing the 2CV?

It makes sense, and was part of the reson that Hnda intorduced the Fit, Nissan the Versa, etc. what originally had been entry-level vehicles have been creeping up-market since their introduction, and therefore losing some of the entry-level buyers that can become brand-loyal. For those for whom a car is simply a trnasportation appliance to move them from point A to point B, or for whom the cost is a real mitigating factor, an inexpensive but well made vehicle would be an obvious choice.

01/23, 11:25 AM

posted by:

55amg

pocket money rides

01/23, 5:00 PM

posted by:

fenglong

i thought that toyota has blanketed virtually all possible vehicle segments…i guess they’re now ready to penetrate into the lower-end market. and also it seems like they’re just trying to test their research/theories/leanings to see if they actually work when applied to real business. like, how they used ‘unconventional’ marketing tactics when launching the scion brand, and applying it to a couple other model launches?

01/23, 6:17 PM

posted by:

Detroit Dude !

Will this be before or after they (Toyota) quit recalling vehicles for front suspension / steering failures ?

01/24, 1:27 AM

posted by:

kingpinracer

This is a great Idea for students, low income families, or even people that want a low priced new car for in town errands or to get to work that is nearby. Also a great idea for congested cities where cars get banged around and damaged… such as NYC. I would see $100,000 cars getting bumped all the time – what a shame. Anyway, great idea and I hope they get it done… they won’t make as much money as Porsche does with every 911 sold… but they will be helping a lot of people.

01/24, 3:24 PM

posted by:

maximus

I thought the Yaris was low cost. How much lower can you go?

01/24, 8:51 PM

posted by:

Veda

“I thought the Yaris was low cost. How much lower can you go?”

Toyota has a model called the Avanza which they made together with Daihatsu that’s quite a reliable little car and it’s much cheaper than a Yaris. Toyota makes some crap but hella durable models for markets outside the US but they’ll never pass the US safety regulation. Same as Honda with the Edix, Elyssion, and other cool but unreliable models which would definitely taint their reputation if sold in US regardless of how cool they are. Nice toys though for those who can afford the repairs.

01/25, 12:35 AM

posted by:

350zfairlady

Parth wrote, “u don know bout economies except u own. which that too i have a doubt about… for ur general knowledge indias economy is growing faster than u know n will overtake americas by 2020…..thats what ur “american economist” say.thats number 1″ I’ll call that bluff, in 1999, according to Goldman Sachs they have predicted that India’s GDP in current prices will overtake France and Italy by 2020, Germany, UK and Russia by 2025 and Japan by 2035. By 2035 it is expected to reach as 3rd largest economy of the world behind US and China. Read that dip**** IN 2035 IT WILL BE THIRD BEHIND THE US AND CHINA!! So next time you state some facts ensure that you have sources to back it up. Secondly you stated, “tata is an indian company n its sorta sucks =true” so there you admitted it why would you compare it to powerful car company such as toyota.
P.S. the word and is not spelled n

01/25, 3:19 AM

posted by:

Veda

That is correct. India’s economy is growing like crazy and if you’ve dealt business with them you’ll probably rack them third behind the Jews and Koreans in shrewdness.

01/25, 6:57 AM

posted by:

silviumc

Is shrewdness defined as the ability to screw you? Now that is something to hold in high regard…

01/25, 9:21 AM

posted by:

mujician

Perception is reality and Toyota’s reality is the quality is not as good as
many customers think they are!! We have to change perception in your
markets!!

Competitive Connection
January 2, 2007

A look at the competition
Toyota recalls more vehicles in the U.S. than it sold last year prompting
study of Vehicle Development Process
Last year, Toyota recalled 2.38 million vehicles in the U.S. — more than
the 2.26 million vehicles Toyota sold in that year. This statistic resulted
in a formal review by Toyota to determine what needed to change. After a
two-month review of its product development process, the significant lessons
learned include:
1. Engineers in some cases may have rushed out products without conducting
enough quality checks, nor building a sufficient number of physical
prototypes.
2. Toyota also concluded that it outsourced engineering perhaps more than it
should have, and relied on computer-aided engineering and other computer
analysis too much.
3. Toyota is determined to build more physical prototypes in the future to
quell recalls and quality glitches.

Other actions taken as a result of the study include the decision to slow
down Toyota’s ambitious growth plans around the world. Each product plan
in every market was reviewed to determine whether to delay, cancel,
reallocate or proceed. This review was in response to product recalls and
other quality problems.

Even as it slows down the pace of new product introductions, Toyota still
wants to extend its business in every segment (of the auto market) in every
region of the world. Toyota sees its growth coming from three key efforts:
1. To transform its Lexus premium brand, a North American-only franchise
today, into a more global premium franchise;
2. To launch low-cost $6,000 to $7,000 cars in emerging markets around the
world;
3. To develop commercial vans that would compete globally, including in
Europe and North America. (Source: Wall Street Journal 12/11/2006)

Despite the recalls at Toyota, GM brands still lag behind most of our
transplant competition when it comes to the public’s “trust” perception,
according to Strategic Vision Inc.

01/25, 4:23 PM

posted by:

LamborghiniZ

Every Toyota myself and my family has ever owned, which is multiple, have been perfect. Every person I’ve ever met that has owned a Toyota says their’s have been perfect. Consumer Reports rates Toyota/Lexus as one of, if not the, top brand(s). Show whatever studies you want, (JD Power is one of the favs of the domestic crowd), but Toyota quality is still tromping the domestics.

mujician I’d like you to, comparatively, post all the dozens and dozens and dozens of articles that show domestics to have awful reliability compared with the Japanese, that’d well, only be fair (also include their recalls, thanks)

01/25, 5:54 PM

posted by:

mujician

Look at the Fusion their smarty pants, the Impala while your at it. O, go ahead and compare it to a 500 even, or the Malibu. Fact is these cares are actually rated higher than a Carolla and Avalon on every other site other than consumer reports. Wait the Fusion beat the Camry on consumer reports as well????

01/25, 5:54 PM

posted by:

mujician

That includes recalls.

01/26, 5:53 PM

posted by:

buddy

My entire family gave up on domestics about ten years ago after giving them years of tries. Those wonderfully designed, wonderfully made, Saturns were the last chance we gave to U.S. auto makers. We’ve had nothing but Toyotas and even a few Hyundais since then, with NO…complaints! Great warranties and NO more constant trips to the dealer to get stupid B.S. problems repaired on a regular basis. If Chevy or Ford said they were going to make a super cheap car, I’d laugh and steer way clear of it. But when Toyota says it, I believe they can do it. If Anyone can design and build a competent vehicle for such little money, Toyota can.

Just like Toyota went out there on a limb with Hybrid tech while stodgey Americans scoffed, well look who now has to “license” that tech from Toyota to use it in their “oh my God, we better get some of those to the market too” hybrids from Ford. Toyota could easily do this. They could simply build the Corolla in China, under strict oversight. Tah Dah!… A Toyota designed and engineered product made by people who work for a 2.00 an hour and don’t get health care. This is definately doable. The American auto industry is quickly going the way of the American electronics industry. In a couple of years it won’t exist at all. The name plates may still be around, bought and sold by companies with names like Chang Feng, Great Wall, Cherry, etc. but it’ll just be a way to market a foreign product to older Americans. I hope no one thinks all those products carrying the monikers of old American companies like Fischer, White Westinghouse, RCA are actually American products from American companies?

Heck, just a few years ago, Haier (a Chinese appliance company) came within a breath of purchasing the iconic Maytag name. Simply to brand Haier made products and sell them in the U.S. to your grandma…who “trust the Maytag name”. The big three ought to just close up shop. Have you seen Fords earnings for 2006? Please. It’s not realy even the big 3 anymore, it’s the big 2. Everyone forgets that Chrysler is now a German company. One down, two to go.

 
 
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