Posted by cocochip on February 24, 2012
TOKYO—Toyota Motor Corp. lifted its full-year net income forecast to a level that even after the increase will remain nearly half that of the prior year, and below the profitability projections of its smaller Japanese rivals, Honda Motor Co. and Nissan Motor Co.
Citing a faster-than-expected recovery in demand at home and abroad, as well as the benefits of cost cuts, Japan’s biggest car maker by volume raised its net profit outlook for its fiscal year ending March to ¥200 billion ($2.61 billion), from an earlier forecast of ¥180 billion.
Yet that is still 51% lower than the previous year, something Toyota attributed to the yen’s appreciation against the dollar and euro, along with natural disasters that severely disrupted production. Company officials said Toyota has been resilient in adjusting to the yen’s strength and has begun to make up for production lost due to flooding in Thailand and to the March earthquake in Japan.
“Even at a level of ¥78 yen to the dollar, if not for the production disruptions…we would have been on track to post a full-year profit of ¥540 billion,” senior managing officer Takahiko Ijichi said at a news conference. “Inside the company, we view that as a truer reflection of our competitiveness.”
Toyota’s projected profit trails the ¥215 billion Honda said last week it expects in the year through March, and the ¥290 billion that Nissan, which releases earnings on Wednesday, has forecast. Both auto makers have faced a similar operating environment, leading some analysts to conclude Toyota’s cost structure is still too high.
“Of the three major auto makers, Toyota will be the slowest to achieve an acceptable recovery in profitability,” Credit Suisse auto analysts Issei Takahashi and Kunihiko Shiohara noted in a Jan. 11 report. “A genuine rally in the share price will likely hinge on Toyota greatly improving its resilience to yen appreciation, as well as on heightened prospects for volume growth,” they reported
Toyota’s stock, which has recently traded near 15-year lows, closed unchanged at ¥2,986 on Tuesday before the company announced its earnings revision.
While Toyota makes nearly half the cars it sells globally at its Japanese plants, Honda and Nissan manufacture only about one-third of their total output in Japan. President Akio Toyoda has said the company is committed to manufacturing at least 3 million vehicles a year in its home market.
That reliance on domestic output in the face of the yen’s rise to record levels against the dollar is reflected in the hemorrhaging of Toyota’s bottom line on a parent company-only basis, which includes its Japan-built export models. It now expects a fourth consecutive year of operating income losses to the tune of ¥490 billion at the parent, or unconsolidated, level.
Mr. Ijichi said special teams have been tasked with increasing production of more vehicles in overseas markets where they are sold, and that Toyota plans to use more imported parts in Japan.
“It’s very tough to do overnight, but make no mistake that we’re headed in that direction,” Mr. Ijichi said, noting that Toyota officials have met with potential suppliers in Korea.
Sales at the company are now estimated at ¥18.3 trillion, higher than ¥18.2 trillion previously projected. By volume, Toyota now estimates group vehicle sales will total 7.41 million for the full business year, up from an earlier projection of 7.38 million.
In the U.S., the company’s largest market, Toyota says it will debut 19 new or refreshed models this year, including the Lexus GS luxury sedan, the Prius C compact hybrid and Scion FRS sports coupe. All three are made in Japan.
For the three months ended in December, the auto maker on Tuesday posted a net profit of ¥80.94 billion, down 13.6% from ¥93.63 billion in the year—earlier quarter. Toyota attributed the drop to accounting rule changes that resulted in a heavier tax burden. Still, the figure beat the ¥60.61 billion mean estimate in a survey of five analysts compiled by Thomson Reuters.
Sales rose 4.1% in the three-month period to ¥4.865 trillion from ¥4.673 trillion in the same quarter last year. Operating profit jumped 51% to ¥149.68 from ¥99.07 billion.
The company’s earnings are based on U.S. accounting standards.
Posted by cocochip on
Think small. Think fuel efficient. That is the theme at this year’s Detroit auto show, also known by the official name North American International Auto Show. This year’s expo does not have the kind of heart-pounding displays of horsepower and luxury of past years. But there are some very significant models that tell us where higher fuel prices and tougher emissions regulations are pushing the cars of tomorrow.
Judging by the new models and concepts on display, carmakers are trying to make the case that you can have a hot car and a bit of fun driving it but without having a panic attack at the pump. There are compact Buicks and a subcompact from Chevrolet. Ford has a small people mover. Honda has the new Civic and both Mini and Hyundai are trying to give us more fun in a small package. Here are seven cars worth checking out.
- Most significant: Honda showed off a new concept car that is, more or
less, going to be the new 2012 Civic when it goes on sale this spring. You can tell by the aggressive curves in the car that Honda is trying to get its mojo back. Honda’s market share fell to 10.6% in 2010 from 11% the year before. The Civic is a perennial winner for the company and vital to its success. Styling has never been the Civic’s calling card. This one takes a bold step with a fast backward-sloping roofline and some curves in the side panels that reminded me a bit of a Hyundai Tiburon. More important for Hondaphiles, the car has the company’s vaunted i-VTEC engine and a hybrid option will be available. We’ll see if its bold new look will get any love from outside Honda’s loyal followers.
- Biggest turnabout: You’ve heard the cliché “as big as a Buick.” It comes
from a description of a spider in Woody Allen’s film “annie Hall.” I doubt anyone will say “as small as a Buick” when the compact Verano goes on sale late this year, but the 2012 Verano compact tells us where carmakers think the market is headed. General Motors figures fuel will only get more expensive and that luxury buyers will want creature comforts without shelling out a fortune for gasoline. The car’s 177-horsepower engine will get 31 miles per gallon on the highway with the 2.4-liter engine. A 2-liter turbo model comes later. The Verano will be an interesting test. Can Buick, which grew 52% last year, sell small cars to younger luxury buyers? On the surface it’s a tough sell. But who would have thought a year ago that the Lacrosse sedan would be one of the hottest cars on the market?
- Pick of the show: The Mini Paceman is my pick for the best design at the
show. It’s Mini’s future crossover SUV and it probably it is dead one for the brand. It’s stylish, sporty, has a bit more space than a Mini Cooper but can go off-road. Stylistically, the two-door Paceman is an athletic version of the Countryman, Mini’s existing crossover suv. The two-door Paceman doesn’t look as upright as its more practical forebear. In the rear, it has haunches like it’s going to pounce. The concept had Mini’s 1.6-liter turbo engine used in the John Cooper Works performance cars and the ALL4 all-wheel drive system. That’s a strong hint that the Paceman will offer both as options. That will make it an off-roader with tire-burning potential. One bonus: They will probably ditch the Paceman name. Mini USA President Jim McDowell said in an interview that, onfortunately, consumers associate it with ’80s video-game sensation Pac Man.
- The comeback kid: Beating up on Toyota is a favorite pastime these days,
what with their quality woes, lost market share and fallen image. I’ll give the company some accolades. The Prius c concept takes a hybrid franchise known for its egg-shaped fuel sippers and takes it out on the edge. The car leans forward like it’s in motion. The headlights are pushed up the hood and closer to the windshield as if the car is barreling down the highway. The car has shoulders, which makes it look more muscular. This car will come to market in the first half of 2012. One word of caution: There is no telling how much of the concept car’s edgy design will make it to the showroom.
- Ford gets in the game: Nissan and GM have a jump on Ford in the green-
car game. Next year, Ford will make a big statement with theC-Max Energi, a five-passenger plug-in hybrid small SUV that the automaker says will get better fuel economy that the Chevy Volt. Untested fuel economy ratings are always suspect; the Volt gets 37 mpg if it runs the gas tank dry. GM may even upgrade the Volt before the C-Max Energi goes to market. But it still looks like a good package. It’s more spacious that the other EVs and hybrids on the market and can go 500 miles using a full battery charge and tank of gas.
- Hyundai makes a bold statement: The Hyundai Veloster will go on sale in
2012 as a boldly-styled three-door coupe that promises to be a fun ride that gets 40 mpg on the highway. It doesn’t need a hybrid-electric system to do it, either. It mates a dual-clutch transmission with a direct-injection 1.6-liter engine to maximize fuel economy. The interior is inspired by sporty motorcycles. This could be a hit with younger buyers given the curvy styling and fuel economy. Hyundai has moved well beyond selling just on price
- Biggest snoozer: And last, the newVolkswagen Passat is the German
carmaker’s attempt to offer more value and become a big-volume seller in the U.S. market. The company only has 2.2% of the market, so it is dropping the price of the Passat by some $7,000 to get close to $20,000. The cabin looks like a VW, with well-crafted appointments and a certain German precision to the construction. On the outside? There isn’t much to it. The sides of the car are pretty flat. The back end reminds me of a Saab. Overall, the Passat is undistinctive. The selling point is affordable German engineering with options like a 2-liter diesel engine that is expected to get 43 mpg on the highway. That will have to win buyers because the design won’t turn many heads.
Posted by cocochip on
The fuel system feed your engine the gasoline/diesel it needs to run. If anyone of the parts in the system break down your engine will not run. Let’s look at the major parts of the fuel system,
- Fuel tank: Basically a holding tank for your fuel. When you fill up at a gas station the gas travels down the filler tube and into the tank. In the tank there is a sending unit, which tells the gas gauge how much gas is in the tank.
- Fuel pump: On newer cars the fuel pump is usually installed in the fuel tank. Older cars have the fuel pump attached to the engine or on the frame rail between the tank and the engine. If the pump is in the tank or on the frame rail then it is electric and is run by your cars battery. Fuel pumps mounted to the engine use the motion of the engine to pump the fuel
- Fuel filter: Clean fuel is critical to engine life and performance. Fuel injectors have tiny openings, which clog easily so filtering the fuel is the only way to prevent this. Filters can be before or after the fuel pump, sometimes both.
- Fuel injectors: Most domestic cars after 1986 and earlier foreign cars came from the factory with fuel injection. Instead of a carburetor to mix the fuel and air, a computer controls when the fuel injectors open to let fuel into the engine. This has resulted in lower emissions and better fuel economy. The fuel injector is basically a tiny electric valve, which opens and closes with an electric signal. In the picture below you can see the injectors towards the outer part of the intake. By injecting the fuel close to the cylinder head the fuel stays atomized ( in tiny particles ) so it will burn better when ignited by the spark plug.
- Carburetors: A carburetor takes the fuel and mixes it with air without computer intervention. While simple in operation, they tend to need frequent tuning and rebuilding. This is why most newer cars have done away with carburetors in favor of fuel injection.
Common Problems:
I would say the most common problem is a clogged fuel filter. Make sure you follow your manufacturers recommendations as to when you should change the fuel filter. This information should be in your owner’s manual. Symptoms include sputtering at high speeds or engine not starting at all. Always check the ignition system first, if that’s ok then the next suspect is the fuel filter.
Next most common problem is the fuel pump failing. Most modern electric fuel pumps can be heard when you turn the key on. If you don’t hear the pump running and your car will not start, it could be your fuel pump. The first thing a mechanic will check is the relay, which sends power to the pump. If this is operating correctly then the pump will have to be replaced.
Last but not least are dirty injectors. While the fuel filter does a good job of filtering the fuel, it’s not perfect. Over time deposits and tiny particles lodge themselves in the injectors. This can clog and injector and prevent it from delivering the fuel the engine needs. It can also cause an injector to stick open and send too much fuel into the engine. A regular addition of fuel system cleaner like STP Injector Cleaner, or Techtron fuel system cleaner can help keep your injectors clean. Most gas stations, department stores and all automotive parts stores will have a good cleaner available. Add it to your empty tank right before you fill up and it will clean as you drive. I recommend doing this every 3 months to keep your injectors performing like new. Mechanics also offer a cleaning service where they actually disconnect the fuel line and flush cleaner through the engine. This is only necessary when you let your injectors get to a point where they can not be cleaned by a store-bought product. Regular use of a good in-tank cleaner will keep you from having to pay for this service.
Where do you buy your gas?
Believe it, or not, it can make a difference. Always buy from a well know national brand service station. Gas stations, which are not affiliated with one brand of gas, tend to get whatever is left at the end of the day from the delivery truck. One day them might get Texaco, and Exxon another. Also water mixed with gas will cause problems with your engine. The engine will not run right, plus the water will promote rust in the fuel system. I have experienced this when I purchased gas at some no-name gas stations. Your car will feel sluggish and sometimes refuse to run if there is enough water in the gas.
Octane rating tip!!!!
Putting super in the tank will not get you any more performance or gas mileage unless specifically recommended by your cars manufacturer. If your owners manual says put in 87 octane…… DO IT. You are throwing money out the window if you are filling up on Super or Premium and you only need Regular.
Posted by john on October 31, 2011
Nitrogen filled tyres:
Nitrogen has been used for decades in the tyres of aeroplanes, as well as in motorsport. Nitrogen is an insert gas and remains in the gaseous state at very low temperatures and so it doesn’t liquefy at high altitude where temperatures range close to -40 degrees. Since nitrogen doesn’t freeze at those temperatures, it doesn’t cause any issues when an aircraft lands. Now, even some passenger cars use nitrogen to inflate their tyres. Nitrogen is used because:
- There is a reduction in corrosion
- Pressure loss is reduced
- Pressure variation with temperature is reduced
The outer section of the tyres have steel , so using compressed air isn’t much of a problem as the amount of moisture in contact with the metal is minimal. Pressure loss is reduced with usage of nitrogen. Nitrogen should be used only for certain applications, it isn’t worth the trouble and money to use nitrogen in normal passenger cars.
Puncture sealant:
When the tyre rolls, the sealant is spread uniformly on the inside surface of the tyre. If a nail punctures the tyre, then it pierces through the tread to this inside surface. The air pressure forces the sealant to close the opening. Thus, the tyre opening is sealed within a couple of rotations of the tyre and the driver doesn’t realize about the incident. When the nail is inspected and removed, the sealant is capable of sealing the tyre again, usually without any loss of pressure.
Alloy Wheels:
Most passenger cars come equipped with steel rims. These rims are heavy and hence increase the weight of the wheel-tyre combination. Alloy wheels are lighter and look better than regular rims and wheelcaps, making your car look more attractive.
Before buying alloy wheels, find out what their maintenance costs are and the problems they face. Studies have shown that alloys have a greater inclination to undergo corrosion resulting in the leakage of air. The one advantage that the alloys have is that they can be repaired regardless of the damage.
![[TOYOTA]](http://si.wsj.net/public/resources/images/AM-AR368_TOYOTA_NS_20120207130303.jpg)
