AUTO INDUSTRY : Toyota Scales Back Outlook for Gains in U.S. Market : Automobiles: A top executive says Detroit is winning back share against Japanese auto makers.
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DETROIT — Japanese auto makers are losing ground to their Detroit competitors in the near-stagnant U.S. auto market, and the outlook is unlikely to improve any time soon, a top Toyota executive said Wednesday.
George E. Borst, vice president of Toyota’s American subsidiary, Toyota Motor Sales USA Inc., said Japan’s biggest auto maker expects U.S. sales of light vehicles to rise only 5.5% in 1992 to 13.0 million units, and a large chunk of that will go to Detroit.
At last year’s 1992 vehicle preview, Toyota was predicting light vehicle sales would top 14.2 million units this year, but it has been steadily revising its outlook as sales have sputtered.
Last week, Toyota reported profit for its 1992 fiscal year ended June 30 tumbled 40% to $3.47 billion from $5.76 billion in 1991.
Toyota has felt the effects of the slow recovery in the United States, but it has also had to contend with a slowdown in its home market and a falling U.S. dollar.
Borst said U.S. car sales, including imports, are expected to edge up only 3% in 1992 to 8.4 million units, while truck sales are predicted to jump 11% to 4.6 million.
Meanwhile, Toyota unveiled a new Corolla, which looks like a smaller version of its popular Camry. It will be offered as a four-door sedan and a five-door wagon, ranging in price from $11,298 to $13,778.
In 1993, Borst said light vehicle sales are expected to rise only 6% to 13.8 million units, down from a previous forecast of 14.2 million.
The surge in truck sales this year is expected to translate into better market penetration for Detroit because General Motors Corp., Ford Motor Co. and Chrysler Corp. dominate the truck market.
“In the light vehicle market for 1992, we forecast that the Big Three should finish 2.2 (percentage) points higher, at 72.7%, than they did in 1991,” Borst said.
Borst added that the biggest gain--3.3 percentage points--will come in trucks.
Based on a total market of 13 million units, one point of market share is worth about 130,000 vehicles.
At the same time, Borst said Japanese manufacturers will sell fewer cars and trucks in the United States this year.
He said Japanese auto makers will lose two points of market share in 1992 and 0.2 percentage point in 1993.
However, Borst added that Toyota’s share of the U.S. car market is expected to rise slightly in 1992 and will grow again in 1993, in line with higher sales of its new Corolla and continued strength of the mid-sized Camry.
Toyota hopes to sell about 205,000 Corollas in the United States in 1993, up slightly from the 200,000 units forecast for 1992. A similar version of the Corolla sedan will also be sold as the Geo Prizm.
On a comparably equipped basis, the 1993 Corolla will cost about 3.9% more than the 1992 version.
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