“politics Won't Affect Business Plan” - Toyota

The Toyota Motor Corp. is wary that its profits at thelast year in comparison to the 2005 figures.
expense of Detroit automakers could have politicalPress said Toyota is in the process of adding the
implications however the company's top Northcapacity to build 600,000 more units in North America,
American executive says that would not change itsor a total of 2.15 million vehicles, by 2010. He added that
business plan.the company would like two-thirds of its vehicles sold
In an interview, Jim Press, Toyota's North Americanin North America to be made there by 2010, but that
president, said last Tuesday that the Japanesewill depend on sales. "People want to invest in
automaker always is looking at the consequences ofAmerica," Press said. "Money flows here. These are
the disparity between its performance and itsthe kind of dynamics that affect currency."
U.S.-based competitors. He added, "The way the issueStressing health care issues, he said Toyota provides
is played out doesn't affect the business. The businesshealth insurance to its U.S. workers in a way that it
is you take care of customers. You makemaintains benefits and maintains fiscal responsibility.
investments. Our philanthropy is up. We're doing more"We build cars here," he said. "People in Kentucky
for the community."have good health care."
Sen. Debbie Stabenow, D-Mich., and other lawmakersHe said Michigan remains the center of automotive
from other states have charged that the Japaneseexpertise, and Toyota plans to capture that by
government has kept the yen artificially low. Thisdoubling its employment in the Ann Arbor area to
makes exports cheaper in the United States and otheraround 1,000 with a new technical center that is now
places.under construction south of the city.
However, Press said criticisms that Toyota benefitsIn addition, Press said that incentives placed on the
from currency manipulation and also from Japan'snew Tundra full-sized pickup truck were planned
taxpayer-financed health care system are unfair.responses to those offered by competitors, not a
“There are so many forces governing currencyresponse to slow sales. The Toyota Tundra pickup
that the values would be difficult to manipulate,” hetruck which has been made available in five
continued. “Among the factors, he said is that theconfigurations is equipped with outstanding safety
U.S. still is attractive to investors. Toyota isn'tfeatures such as four-wheel disc brakes; Volant cold
encroaching on the Detroit Three's territory, it's merelyair intake; front, side, and curtain airbags; traction control;
satisfying demand for its products, which recently haveand a full ABS.
been a better match for consumer tastes.”Press noted that competitors have incentives of up to
In 2006, Toyota’s sales increased by 12.9 percent$7,000 on 75 percent of their pickups, and customers
to more than 2.5 million vehicles thus giving thehave come into Toyota dealerships asking what its
company the opportunity to enjoy a 15 percent USincentives are. Incentives on the Tundra averaged
market share. The automaker’s gains came at the$1,647 per vehicle in February, according to data
expense of other auto giants, namely General Motorscompiled by Edmunds.com, a research site for car
Corp., Ford Motor Co. and DaimlerChrysler. This isbuyers.
because the overall US auto market lost 2.6 percent