Toyota trims loss forecast

Toyota, the world’s biggest carmaker, has cut its operating loss forecast for the financial year to 350 billion yen (£2.36bn) from 750bn yen.

It comes as the manufacturer revealed quarterly net profits of 21.8bn yen for the three months to October, against 139.8bn yen in 2008.

In May, Toyota reported its worst annual loss, of 436.94bn yen, in the year to March 31.

The global economic downturn and strong yen, which make it expensive for exporters such as Toyota, have hit the Japanese carmaking sector in the past year.

However, Toyota’s latest figures – showing a return to profit – are the latest in a series of recoveries seen at Japanese carmakers, including Honda and Nissan, which have also reported healthier earnings. (BBC.co.uk: November 5).

Government announces funding for ‘sustainably made’ electric vehicle

A UK government funded project to develop a new all-electric and affordable urban car, manufactured using what is described as an ‘innovative and sustainable production process’ has been announced.

The development of the T.27 – the brainchild of Gordon Murray Design and Zytek Automotive Technology – has been made possible through a £4.5 million investment from the government-backed Technology Strategy Board.

With a total cost of £9m, a new research and development project will allow the consortium to develop four prototypes of the vehicle by February 2011.

Science and Innovation Minister Lord Drayson said: “The T27 is a great example of smart engineering and sustainable design. It’s timely too, as the UK must demonstrate its readiness to exploit the emerging low-carbon vehicles market. The challenge is far greater than simply meeting stricter EU emissions targets. We need to expand our car industry through green innovation.

“The T.27 is a sustainable vehicle, which means it will be designed in a way that minimises the use of materials and keeps the vehicle’s embedded carbon as low as possible. The aim is to ensure that the environmental impact of the materials and energy used are as low as can be. The production process is also highly-efficient and flexible, thereby helping to reduce costs.”

The aim of the 16-month project is to develop prototypes that will put the consortium in the position where they can further explore the possibility of scaling up and building a manufacturing facility, with the ultimate goal of making the car widely available on the open market. (Just-auto.com: November 5).

Deloitte predicts ‘perfect storm’ of challenges brewing for automotive sector

Huge challenges lie ahead in the coming months for the UK automotive industry despite latest new car sales figures showing a 31.6% rise in registrations last month.

David Raistrick, UK manufacturing leader at Deloitte said that while the sales figures were ‘wonderful news’ for the automotive sector and proved that the scrappage scheme had met expectations in terms of stimulating demand for new cars a ‘perfect storm’ was brewing on the horizon.

This will see the automotive sector affected by a combination of factors that could come into play in the first quarter of next year.

He said: “Within a short period of time we will see the scrappage scheme end and the VAT rate return to 17.5%. Meanwhile the government’s proposed showroom tax of £950 per vehicle could be implemented in March and interest rates may also increase in this period. Furthermore, car manufacturers may find themselves needing to implement price rises due to the low value of sterling increasing the cost of imported cars and parts.

“At a time when the industry is showing promising signs of recovery, it is important the sector does not lose sight of the challenges ahead in 2010.” (Deloitte: November 5).