Positive contributions to operating income totaled 330.0 billion yen, consisting of 150.0 billion yen from changes in foreign exchange rates, 130.0 billion yen from marketing efforts and 50.0 billion yen from cost reduction efforts. Negative factors totaled 151.3 billion yen.

TMC also announced an interim cash dividend of 65 yen per share for the first half of the fiscal year, an increase of 15 yen per share compared with the same period last fiscal year.

Commenting on the results, TMC Executive Vice President Mitsuo Kinoshita said, “For this period, we posted record results in both revenues and profits. We believe our efforts to build a globally balanced operational foundation contributed to these results. Net income has increased by nearly 70 percent over the last two years, due to a substantial increase in earnings by companies accounted for under the equity method, as well as increase in operating income.”

Consolidated vehicle sales for this period reached a record high of 4.301 million units, an increase of 156 thousand units over the same period last fiscal year.

In Japan, vehicle sales decreased by 67 thousand units, to 1.006 million units. Operating income increased by 88.9 billion yen, to 773.3 billion yen, mainly due to improvements in the model mix of domestic and export sales, including strong sales of the Lexus LS models.

Vehicle sales in North America totaled 1.497 million units, an increase of 33 thousand units, due to steady sales including the redesigned Tundra and the Prius. Operating income increased by 3.6 billion yen, to 254.1 billion yen.

In Europe, vehicle sales increased by 46 thousand units, to 635 thousand units, due to strong sales of the redesigned Corolla and the Auris which has been manufactured locally since early 2007. Operating income increased by 2.3 billion yen, to 68.3 billion yen. Strong Russian sales of Lexus models, the Camry and the Corolla contributed to this result.

Sales in Asia increased by 70 thousand units, to 452 thousand units. Operating income increased by 55.4 billion yen, to 116.7 billion yen, mainly due to brisk sales recovery in the Asian markets including Indonesia. Our consolidated subsidiaries in China also made a substantial contribution to the results, due to strong sales of Lexus models.

In other regions, including Central and South America, Oceania and Africa, vehicle sales increased to 711 thousand units, an increase of 74 thousand units, due to steady sales of the IMV series and the redesigned Camry. Operating income increased by 35.6 billion yen, to 71.7 billion yen.

TMC estimates that consolidated vehicle sales for the fiscal year ending March 31, 2008 will be 8.93 million units, which is an upward revision from TMC’s initial forecast of 8.89 million units announced in May 2007. Additionally, consolidated net revenues were revised to 25.5 trillion yen (from 25.0 trillion yen), operating income to 2.30 trillion yen (from 2.25 trillion yen) and net income to 1.70 trillion yen (from 1.65 trillion yen).

Commenting on the outlook for consolidated profit for the fiscal year ending March 31, 2008, Kinoshita said, “We aim to achieve higher levels of revenues and profits through further increase of vehicle sales and cost reductions.”

Source: Toyota Pressroom

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Toyota Announces Semi-Annual Results

The Ford Focus ST500 is based on the top-of-the-range Focus ST3 with the addition of unique features. All models are finished in metallic black with classic silver bonnet, roof and side stripes which are designed to echo the livery of the winning GT40 in the 1-2-3 victory at Le Mans in 1966.

Power comes from the Focus ST’s acclaimed 20-valve five-cylinder Duratec 2.5 engine, which develops 225PS at 6,100rpm and 320Nm of torque at just 1,600rpm. Since its introduction in 2005, the Focus ST has established itself as one of the finest “hot hatchbacks” ever made and received critical acclaim from the specialist media and enthusiast customers alike.

With sales of over 13,500, the Ford Focus ST is now firmly positioned as the most sought after performance hatchback in the UK, and reflects the motorsport success of the all-conquering Focus RS WRC, which saw Ford take the 2006 WRC manufacturer’s title, and which currently heads the 2007 World Rally Championship.

Included in the Focus ST500′s unique specification are scarlet leather Recaro sports seats and matching upholstery, special ST500 badging, automatic Xenon high-intensity headlamps, auto-dimming rear view mirror, rain-sensing wipers and solar-reflect windscreen.

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FOCUS LAUNCHES UNIQUE FOCUS ST500

“The 2008 awards prove once again that compelling design, high quality manufacturing and disciplined pricing and volume programs are essential to achieve the highest residual value,” said John Blair, Automotive Lease Guide’s Chief Executive Officer.

Land Rover’s Range Rover Sport and other award winners are featured on ALG.com as well as other automotive publications and websites dedicated to bringing the industry’s best-performing models into the public eye.

Source / Full Story: Ford Press Releases

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RANGE ROVER SPORT PREDICTED TO RETAIN HIGHEST RESIDUAL VALUE FOR THE SECOND YEAR IN A ROW

WHITE MARSH, Md. – General Motors’ Baltimore Transmission Plant today officially began production of the auto industry’s most technologically advanced hybrid transmission – the only hybrid transmission designed and built in the United States by a major automaker.

The 2-Mode Hybrid transmission will debut in the 2008 Chevrolet Tahoe Hybrid and 2008 GMC Yukon Hybrid, the industry’s only full-size hybrid SUVs. GM’s Arlington, Texas, assembly plant will begin building the hybrid vehicles next month. For more information: http://media.gm.com/us/chevrolet/en/product_services/r_trucks/r_c_tahoe_hybrid/index.html.

“This 2-Mode Hybrid transmission is not only shifting the gears in the 2008 Chevrolet Tahoe and GMC Yukon Hybrids, it’s also helping shift GM’s efforts to reduce gasoline consumption and emissions into overdrive,” said John Buttermore, GM Powertrain vice president, global manufacturing. “Better yet, here in Baltimore we are showing that an American workforce is up to the task and can take the lead in advanced technology.”

More than 500 highly trained U.S.-based GM engineers and more than 350 highly skilled United Auto Workers members are assigned to the 2-Mode program, researching, developing, validating and manufacturing the most technologically advanced hybrid system in the auto industry.

In addition to GM designing and producing the 2-Mode transmission in the United States, more than 75 percent of the program’s suppliers are U.S.-based in 16 states.

Source and Full Story: GM Media Online

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GM’s Baltimore Transmission Plant Begins Production Of 2-Mode Hybrid

For many years, Japan had the world’s biggest percentage of elderly citizens and one of the smallest birth rates. But in 2005, its population began to decline for the first time since records were compiled in 1899, reported the Detroit News. If the decline persists, experts in the industry predict Japan’s population will get smaller by a third within 50 years, to fewer than 90 million inhabitants.

The demographics have forced Japanese automakers to concentrate on exportation where the market is promising. Experts added that in mature markets like the United States and Europe sales are expected to amplify over the long term.

Japan is still the world’s second-largest passenger car market, and third-largest in total vehicle sales after the U.S. and China. Japan’s bubble burst but the economy is gradually improving to the exception of car sales. Statistics say auto sales were down in September for an 18th consecutive month.

“The combination of the population decline and the economy, which has been slower than expected in picking up, is dampening the market for longer than we expected,” said Yuki Funo, a Toyota Motor Corp. board member and chairman of its U.S. sales operation. “It’s not good.”

The Japanese market is important for the Toyota Motor Corp., which has a dominant 42 percent share. But it is not as important as the U.S. market to Toyota’s bottom line. Honda Motor Co., Japan’s second biggest automaker, produces less than a fourth of its global auto sales in Japan.

“It’s not as profitable as other markets, but it’s valuable,” said Honda spokesman David Iida. “Because it’s a hyper-competitive market, you have to keep coming out with new products, so you have to keep refining your product development cycles and develop new technologies very quickly. It’s the Japanese market that strengthens Honda for the U.S. market.”

Japan’s auto giants all have increased their U.S. market share this year, to a combined 37 percent, from 34.7 percent a year ago. Analysts estimate the U.S. market accounts for between 50 percent and 60 percent of their earnings. On the contrary, American automakers have given up on Japan, where imports are mostly German premium cars and account for only around five percent of total sales.

General Motors Corp. recently sold its equity stakes in three Japanese automakers and is concentrating on the booming Chinese market. Ford Motor Co. owns a controlling stake in Mazda Motor Corp., which develops car platforms for Ford. But Ford sells only 5,000 Ford-brand vehicles in Japan annually.

At the opening of the Tokyo Motor Show this week, the Dearborn-based automaker will showcase a few “all-American” models such as the Mustang and Explorer. It will also launch the muscular Escape Adventure concept.

“There’s a core group of consumers who do want to be different, who want something that reflects the adventurous American lifestyle,” said Randy Krieger, the president of Ford Japan.

But Japanese shoppers are moving toward smaller cars and mini-vehicles, such as the Subaru Stella, Daihatsu Tanto, and the Nissan Moco. These compact cars appeal to empty-nesters and young, entry-level shoppers.

The fascination with electronic gadgetry may reflect a desire to escape crowded, stressful conditions in Japanese cities, said Honda spokesman Iida. “You can go into your own world.” It is like using Active Brakes Direct to put a halt to something undesirable.

“People like to distance themselves from that age – it’s viewed as having been too extravagant,” Lapuz said. “Now, combined with the green movement, people are less concerned with status and image - that’s why they go for mini-cars.” That helps explain Japan’s lead in hybrid technology as well as other environmental auto innovations.

About the Author: Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.

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Japan’s Auto Market Bubble Bursts