Toyota Will Double Hybrid Output, Make Money Selling Them
Toyota plans to roughly double its global production of hybrid vehicles to 1 million units in 2011, The Nikkei writes. Toyota alerted parts suppliers that it intends to roll out about 800,000 hybrids domestically in 2010, around 900,000 in 2011 and roughly 1.1 million in 2012.
Toyota currently produces about 90 percent of its hybrids in Japan, the remainder in China and the U.S. and elsewhere are included.
Toyota plans to boost production of existing vehicles and launch new hybrid minivans, subcompacts and luxury cars.
In 2011, hybrids will likely account for about 30 percent of all automobiles that Toyota manufactures in Japan, up from the projected figure of about 20 percent for 2009.
But will they make money with the hybrids?
In a separate report, The Nikkei says that Toyota now sees hybrids as a core profit maker, after having brought down its production costs. A limited supply of batteries had hampered output. Toyota’s new battery joint venture with Panasonic is expected to be able to supply batteries for 1.1m vehicles a year by fall.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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their cars are bland... but they are the only ones on the right track with modern power trains in mass production. Once gas goes to $ 4 or $5 everyone laughing at them now will be really quiet and crying. With 1 million hybrids a year they easily cover research and overhead. their lean production will keep cost down further. and unlike Honda's IMA, they actually save gas.
You certainly don't win the market share of the future by investing in yesterday's technology. GM proved that - they have the most sophisticated pushrod engines in the world, but managed to go bankrupt. Toyota knows that it has a technology that will only get more valuable as countries like China, India, and Brazil develop, buy more cars, and use more gasoline.