Global demand, demographic trends and a growing consumer desire for hybrid vehicles ensures the US automotive industry continues to be vibrant despite recent headlines, according to the president of Toyota Motor North America, Jim Press.
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Speaking at the National Press Club in Washington, Press pledged that Toyota would be proactive in helping the government solve the major environmental and vehicle safety issues that confront America.
He said Toyota is strongly considering introducing a flex-fuel vehicle programme in the US.
“We’re already developing vehicles that can operate in ethanol-rich Brazil and we’re optimistic that we can offer similar vehicles to American consumers.”
He said Toyota is also pursuing a plug-in hybrid vehicle that would be capable of travelling greater distances without using its petrol engine, with the ultimate goal of conserving more oil, reducing smog and greenhouse gases to near zero emissions levels.
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By GlobalDataPress added: “It’s time for us to stop being the ‘against’ industry and to come out strong ‘for’ something important, like a better earth and a better quality of life.”
“I believe the time is right to enlist the immense talent and might of our industry to help solve some of the key issues resulting from a car-loving world, including oil dependency, air pollution, traffic accidents and global warming.
“Here in the US, business is steady, and as America’s population approaches 300 million the future is full of promise. The US auto industry is coming off its third best year in history and sales so far this year are nearly on the same pace,” he said.
Press predicted that US industry sales would total about 17m this year, making 2006 among the top annual sales years in history.
“Challenges remain, of course, volatile gas prices, rising interest rates and increasing raw material costs, but overall the industry is successfully responding to the market and is still growing,” Press said.
Press challenged automakers to work with government to set reasonable goals to improve fuel economy standards and reduce greenhouse gases in a way that doesn’t severely damage the health of the auto industry, which he said is “one of America’s most vital industries.”
He pointed out that global sales are rising because people in major developing countries like China, India, Russia and Brazil are gaining a higher standard of living and discovering the freedom that cars provide.
He noted that as automakers continue to sell vehicles on a global basis they would continue to form global alliances.
“All major companies are looking for creative ways to meet the challenge of increasing competitive pressure and the escalating costs of developing new technologies,” he said. Such alliances illustrate just how tough and expensive it is to compete on a global basis as well as the constant need for efficiency in operations.
Press said it also points to the fact that international auto companies are helping change the face and direction of the auto industry.
“In fact, international automakers have contributed almost all of the growth in the US motor vehicle industry for the past 10 years, according to a study by the Michigan-based Centre for Automotive Research.”
On hybrids, Press stressed the importance of moving technology forward. “Toyota is not backing off its strong commitment to hybrids. We know they are absolutely essential to the future success of this industry no matter what fuel we use or cars we drive.”
He said Toyota’s target is to offer hybrid options throughout its entire range of cars and trucks. To lower costs, the company is working toward reducing the size of components by 75%.
“Americans realise hybrids are a simple way to make an important difference in curtailing foreign oil dependence, air pollution and greenhouse gases, all at once. Plus, they are a heck of a lot of fun to drive,” he said.
Currently, the company sells five Toyota or Lexus hybrids in the US, including a Camry that will be built at its Georgetown, Kentucky plant.
Next year, Press said Toyota would offer a sixth, the world’s first V8 hybrid in a Lexus LS sedan.
Toyota has sold more than 351,000 hybrids in the US since first introducing the Prius hybrid in 2000. “The Prius has been so popular that we can’t keep it in stock,” Press said. “There’s still a two-month wait to get one, nearly three years after we started selling the current model.”
As good as hybrids are, he said, the automaker is not stopping there. Press said the dream of Toyota’s global president, Katsuaki Watanabe, is to create cars of the future that can travel across the US on one tank of fuel, clean the air while they are being driven and prevent accidents and injuries.
He estimated that Toyota hybrids sold in America have saved more than 155million (US) gallons of petrol, enough to fill five tanker ships and eliminate more than three billion pounds of greenhouse gases.
Press noted that since half of all the vehicles bought by Americans are trucks, vans or SUVs, the challenge is to find new ways to make all vehicles more efficient. “We can’t disregard the needs of our earth, nor can we afford to ignore the needs of our customers.”
He said automakers must strike a balance in their line-ups from big trucks and SUVs to gas/electric hybrids, clean diesels, flex-fuel vehicles, plug-in hybrids and eventually hydrogen fuel cells.
In the area of safety, Press said global automakers are offering more safety features than ever, including vehicle stability control. “And it’s working. Traffic fatalities on US roads today are the lowest since the government began tracking them 40 years ago.”
Press pledged that Toyota, which celebrates its 50th anniversary in the US next year, would continue to work with the rest of the world to help create real solutions to the issues facing society.
