#ToyotaMotorNorthAmerica

Toyota Motor Corp. looks to be the next automaker that will have exhausted its allotment of EV tax credits for the U.S. market.

While the quota for $7,500 rebates has already been reached by Tesla and General Motors, Toyota is closing in with 190,000 plug-in sales of its own. The government has limited federally backed incentives to just 200,000 vehicles per manufacturer. Once the Japanese manufacturer reaches that limit, credits go into a cool-down period where it can continue benefiting from the full sum six months after the relevant quarter ends. From there, incentives will be halved for the next two quarters until the company is no longer eligible.

The Dodge Dart is dead. The Ford Fiesta is likely on its last legs in the United States. Ford Focus production is moving to China, off the North American continent where demand for Ford small cars is rapidly declining. General Motors is scaling back production at the Chevrolet Sonic’s Orion Township, Michigan, assembly plant.

That’s the Detroit small car picture, or at least part of it. From Japan’s perspective, however, small cars are entirely worth it, not just because of the sales success enjoyed by the Honda Civic (currently America’s best-selling car through 2017’s first seven months) and Toyota Corolla, but because of the demographic small cars target.

Toyota Motor North America’s executive vice president for sales, Bob Carter, is not ready to rain down doom and gloom on the state of the U.S. auto market.

From Toyota’s perspective, even the July results — 2017’s seventh consecutive month of decline, and the worst decline yet — didn’t represent the end of the American auto industry as we know it. In fact, total Toyota/Lexus U.S. volume actually increased 4 percent despite a shorter sales month than in July 2016.

While aware of the overall climate, in which Toyota sales are down more than 2 percent this year, Toyota’s U.S. sales boss says he’s “energized,” according to Automotive News. “The industry is not at a pace where it was in 2016 — we didn’t expect it to be at the pace of 2016,” Carter says, “but it’s still very healthy.”

And not without good reason.

Toyota has released a statement (below the fold) on the reorganization of its North American business operations and the consolidation of most of those functions at a new regional headquarters to be built in Plano, Texas. Approximately 4,000 employees of four different business units will be relocated, mostly to Texas, though some functions will be relocated to Toyota facilities in Georgetown, Kentucky and near Ann Arbor, Michigan. Toyota Motor Sales, U.S.A. and Toyota Financial Services in Torrance, Calif., Toyota Motor Engineering and Manufacturing North America in Erlanger, Ky., and Toyota Motor North America in New York City will be moved between now and early 2017, when the Plano campus and new facilities near Ann Arbor and Georgetown are expected to be completed.