Toyota sees stronger U.S. sales into 2003

DEARBORN, Mich., Oct 10, 2002 Michael Ellis writing for Reuters reported that Toyota Motor Corp. expects its mass-market Toyota division to increase its sales and market share in the United States next year even though industry-wide sales are expected to drop, a top official said on Thursday.

The Japanese automaker sees sales next year for the Toyota division increasing by 50,000 to 60,000, mostly sport utility vehicles, to over 1.6 million vehicles, said Don Esmond, general manager of the Toyota division for the company's U.S. arm.

Further growth could push Toyota's market share over the 10 percent threshold, up from about 9.1 percent so far this year, Esmond said. Last year, Toyota surpassed Dodge as the third-largest vehicle brand in the United States, behind only Ford Motor Co.'s Ford division and General Motors Corp.'s Chevrolet.

"We're looking to grow next year, which would also grow our share, probably another 50,000 or 60,000 (vehicles)," Esmond told reporters after a press conference about the new Toyota 4Runner mid-size SUV in Dearborn, Michigan.

Esmond said he sees U.S. sales across the industry slipping slightly next year to about 16.8 million cars and light trucks, down from a projected 16.9 million this year.

Much of Toyota's growth next year will result from the new 4Runner and stronger sales of Toyota's Highlander mid-size SUV, Esmond said.

Sales for the Toyota division are up 3.5 percent through the first nine months this year. Sales for Toyota Motor Corp.'s other U.S. brand, the Lexus luxury vehicle division, are up 9 percent so far this year.

Toyota is scouting southern U.S. states for another manufacturing plant as part of plans to boost U.S. sales for its Toyota and Lexus divisions to more than 2 million vehicles annually over the next five years.

"We've got plans to grow," Esmond said. "In order to make that kind of growth, we're going to need more production here in the U.S. The manufacturing side is looking at several steps."

Esmond said Toyota could possibly have a decision ready by the end of the year on another U.S. plant site, but he declined to elaborate further.

The recent lockout of port workers on the West Coast, which caused Toyota to temporarily suspend some car and truck production due to parts shortages, could hurt its sales results for October by 10 percent to 15 percent, Esmond said. Sales could be down 10,000 to 15,000 units or more as a result, he said.

"It will certainly put a crimp in sales this month," he said.

Toyota's new 4Runner officially goes on sale at U.S. dealerships this week. The new SUV does not have a third-row of seats, which is increasingly common in the mid-size segment. Edmonds said Toyota is considering adding a third row to the Highlander mid-size SUV.