Latest news with #DavidChrist
Yahoo
a day ago
- Automotive
- Yahoo
Tariffs Threaten Toyota's 2025 U.S. Lineup as Prices and Plans Hang in Balance
Tariffs Threaten Toyota's 2025 U.S. Lineup as Prices and Plans Hang in Balance originally appeared on Autoblog. Toyota has a big year ahead, with fully two dozen new models set to debut under the Toyota and Lexus brand names. But the Trump administration's tariffs has left the carmaker in a state of limbo, while a new ruling by a federal trade court has only complicated matters. The Japanese automaker is stuck in a 'wait and see mode,' David Christ, group vice president and general manager of the Toyota Division, told Autoblog during an interview at Toyota headquarters. Under the tariffs announced in April, and formally enacted on May 3, automakers like Toyota face a 25% hit on imported autos and auto parts, potentially putting many products 'out of reach for a lot of Americans,' said Mark Templin, executive vice president and chief operating officer, Toyota Motor North America. How to respond to the new tariffs is a question Toyota is still trying to figure out, Templin and other senior executives told Autoblog. The answer could affect pricing, marketing, and manufacturing plans. Toyota has to rethink whether some base models should remain available in the US. Trying to figure out how to respond to the tariffs is no easy task, as manufacturers have yet to get clear guidance from the White House. The new sanctions are supposed to cover imported autos and auto parts. But how will parts and components that repeatedly cross the border be handled? How will they be applied to parts produced in Mexico and Canada covered by the USMCA trade deal signed during the first Trump administration? Meanwhile, Trump has signaled he might tweak the auto tariffs. He's already rolled back duties on imported computers and smartphones, rolled back tariffs on China, and delayed other sanctions. If those weren't complicating matters enough, the Court of International Trade on Wednesday ruled that the president didn't have authority to impose his sweeping tariffs under the International Emergency Economic Powers Act, as Trump claimed. But that ruling has been paused while it's reviewed by a federal appeals court. 'We need to understand the rules,' one Toyota executive said during a meeting at the automaker's headquarters in Plano, Texas last week. The new legal twist makes that even more challenging – and makes it more difficult for Toyota to move forward on its plans for the coming year, and beyond. One big question: is the product roll-out it has scheduled this coming year still viable? Among other things, Toyota has to figure out how much tariffs might add to each of its vehicles – and whether to pass higher prices onto consumers. It may also have to consider whether to shift production of some parts, components and vehicles to avoid or, at least minimize, the impact of tariffs. Toyota builds roughly 50% of the vehicles it currently sells in the United States at 11 U.S. plants. That climbs to 80% if you include three Canadian and Mexican assembly lines. But even those could be impacted by the new trade sanctions due to their reliance on imported parts and components. Last year saw U.S. auto sales nip the 16 million mark for the first time since the pandemic – though that remained well behind the 17.5 million record set in 2016. Nonetheless, the trajectory seemed bound to keep climbing. Toyota's target for the industry this year was 16.1 million, with some bullish estimates as high as 16.5 million. But there's widespread expectation that this will drop sharply should the tariffs remain in effect for an extended period. Cox Automotive now forecasts a figure of around 15 million and as low as 14 million should the new trade sanctions trigger a recession. While Trump has warned automakers not to pass tariff costs onto consumers, Christ said that would be difficult for even the most profitable manufacturers. Rival General Motors, for one, has forecast it could see a $5 billion impact from the new sanctions. For its part, said Christ, how much it passes on to consumers likely will vary by model line and market segment. For one thing, it needs to see what the competition is doing. No matter what product, 'a 25% increase hurts' buyers, he said, though 'maybe the higher-end customer has a little more flexibility in their budget than a low-end customer.' Toyota is particularly vulnerable at the low end, the executive acknowledged, noting that it has six product lines available under $30,000, starting with the Corolla which carries a base price of $22,035. The problem is that for entry-level buyers, even 'a 1% increase (in price) could take away 10% of the market' for affordable vehicles, said Jonathan Smoke, chief economist at Cox Automotive, during a meeting of the Automotive Press Association. Toyota's policy is to build as many vehicles as possible in the markets where they are sold, noted Templin. And it isn't averse to adding even more capacity. But that isn't as easy as simply throwing a switch. 'You can't simply move production facilities overnight,' cautioned Templin. It could take years to see new assembly plants added to the 11 Toyota already operates in the U.S. Tariffs Threaten Toyota's 2025 U.S. Lineup as Prices and Plans Hang in Balance first appeared on Autoblog on May 30, 2025 This story was originally reported by Autoblog on May 30, 2025, where it first appeared.
Motor Trend
2 days ago
- Automotive
- Motor Trend
New, 8th-Gen Toyota Celica In Development, and It Might Get an Engine
The renderings of a revived Toyota Celica sprinkled across the internet don't have the coupe's look quite right, according to Toyota executives. But they're not denying that work continues on a new vehicle that would bring back the storied Celica name. If you're scratching your head, it's because you might not have been born when Toyota last offered a sporty two-door Celica coupe, which went out of production in 2006 at the end of the seventh-generation model's run (pictured at top). 0:00 / 0:00 'Bottom line is we are working on a product that could theoretically go by the Celica name If we can figure out how to pull it off and it gets approved,' says Toyota senior vice president of Product Planning and Strategy for Toyota North America Cooper Ericksen. But all the AI renderings to date are wrong and fake, he added in an interview with MotorTrend. What is not fake is that development continues on a would-be Celica. Prototypes and ideas have been shown to dealers. Mules are running around testing powertrains. Last November an executive in Japan, at a fan event at Rally Japan, told the crowd Toyota was making the Celica. But the North American executives have not been told that officially. And it is possible that a new Celica has been approved for sale in Japan first. Celica Name Has Cache 'We'll see if it gets finally approved,' said David Christ, general manager of the Toyota Division for TMNA. 'Obviously the brand name has a lot of good history in the U.S. We'd love to have more offerings that are fun to drive.' 'People are talking about it,' Ericksen says. 'It's a pretty advanced development.' Toyota has development prototypes running around, testing future powertrains for GR products and yes, there is a running mule for a future Celica. Asked if the Celica would have some degree of electrification—after all, Honda's revived Prelude coupe, a natural competitor for a new Celica, is a hybrid—the product planner said Toyota has unique powertrains for many different purposes. 'Akio [Toyoda, chairman of Toyota Motor Corp.] has said when it comes to specialized GR performance products, it is very difficult to replicate that emotional driving feel out on track with something other than traditional ICE (internal combustion engine). So, while there could be a motor in a future Celica, 'I'm not closing the door to a vehicle that is ultra lightweight, that has a super advanced system but is still a traditional ICE. It could be something that does not have an electric drive.' Ericksen does not know when we will see the Celica, in part because it is a global product and is not being developed in North America. 'It's a big wait and see. I'm just hopeful that we can get something.' So are we. It'd be yet another push in a sporty new direction for Toyota, which has been steadily upping the dynamic game of its mainstream Camry sedan while bringing out hot stuff like the turbocharged, all-wheel-drive GR Corolla hatchback, keeping the GR86 sports car alive, and hinting that there will be a next-generation Supra.
Miami Herald
3 days ago
- Automotive
- Miami Herald
Tariffs Threaten Toyota's 2025 U.S. Lineup as Prices and Plans Hang in Balance
Toyota has a big year ahead, with fully two dozen new models set to debut under the Toyota and Lexus brand names. But the Trump administration's tariffs has left the carmaker in a state of limbo, while a new ruling by a federal trade court has only complicated matters. The Japanese automaker is stuck in a "wait and see mode," David Christ, group vice president and general manager of the Toyota Division, told Autoblog during an interview at Toyota headquarters. Under the tariffs announced in April, and formally enacted on May 3, automakers like Toyota face a 25% hit on imported autos and auto parts, potentially putting many products "out of reach for a lot of Americans," said Mark Templin, executive vice president and chief operating officer, Toyota Motor North America. How to respond to the new tariffs is a question Toyota is still trying to figure out, Templin and other senior executives told Autoblog. The answer could affect pricing, marketing, and manufacturing plans. Toyota has to rethink whether some base models should remain available in the US. Trying to figure out how to respond to the tariffs is no easy task, as manufacturers have yet to get clear guidance from the White House. The new sanctions are supposed to cover imported autos and auto parts. But how will parts and components that repeatedly cross the border be handled? How will they be applied to parts produced in Mexico and Canada covered by the USMCA trade deal signed during the first Trump administration? Meanwhile, Trump has signaled he might tweak the auto tariffs. He's already rolled back duties on imported computers and smartphones, rolled back tariffs on China, and delayed other sanctions. If those weren't complicating matters enough, the Court of International Trade on Wednesday ruled that the president didn't have authority to impose his sweeping tariffs under the International Emergency Economic Powers Act, as Trump claimed. But that ruling has been paused while it's reviewed by a federal appeals court. "We need to understand the rules," one Toyota executive said during a meeting at the automaker's headquarters in Plano, Texas last week. The new legal twist makes that even more challenging – and makes it more difficult for Toyota to move forward on its plans for the coming year, and beyond. One big question: is the product roll-out it has scheduled this coming year still viable? Among other things, Toyota has to figure out how much tariffs might add to each of its vehicles – and whether to pass higher prices onto consumers. It may also have to consider whether to shift production of some parts, components and vehicles to avoid or, at least minimize, the impact of tariffs. Toyota builds roughly 50% of the vehicles it currently sells in the United States at 11 U.S. plants. That climbs to 80% if you include three Canadian and Mexican assembly lines. But even those could be impacted by the new trade sanctions due to their reliance on imported parts and components. Last year saw U.S. auto sales nip the 16 million mark for the first time since the pandemic – though that remained well behind the 17.5 million record set in 2016. Nonetheless, the trajectory seemed bound to keep climbing. Toyota's target for the industry this year was 16.1 million, with some bullish estimates as high as 16.5 million. But there's widespread expectation that this will drop sharply should the tariffs remain in effect for an extended period. Cox Automotive now forecasts a figure of around 15 million and as low as 14 million should the new trade sanctions trigger a recession. While Trump has warned automakers not to pass tariff costs onto consumers, Christ said that would be difficult for even the most profitable manufacturers. Rival General Motors, for one, has forecast it could see a $5 billion impact from the new sanctions. For its part, said Christ, how much it passes on to consumers likely will vary by model line and market segment. For one thing, it needs to see what the competition is doing. No matter what product, "a 25% increase hurts" buyers, he said, though "maybe the higher-end customer has a little more flexibility in their budget than a low-end customer." Toyota is particularly vulnerable at the low end, the executive acknowledged, noting that it has six product lines available under $30,000, starting with the Corolla which carries a base price of $22,035. The problem is that for entry-level buyers, even "a 1% increase (in price) could take away 10% of the market" for affordable vehicles, said Jonathan Smoke, chief economist at Cox Automotive, during a meeting of the Automotive Press Association. Toyota's policy is to build as many vehicles as possible in the markets where they are sold, noted Templin. And it isn't averse to adding even more capacity. But that isn't as easy as simply throwing a switch. "You can't simply move production facilities overnight," cautioned Templin. It could take years to see new assembly plants added to the 11 Toyota already operates in the U.S. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Scottish Sun
3 days ago
- Automotive
- Scottish Sun
Iconic carmaker discontinues fastest EVER model branded ‘agile & smooth'.. but firm's boss is already teasing its return
END OF ROAD Iconic carmaker discontinues fastest EVER model branded 'agile & smooth'.. but firm's boss is already teasing its return Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) AN ICONIC carmaker is set to discontinue production of its beloved fastest-ever model. Toyota has confirmed it will cease making its "agile and smooth" Supra early next year, although one of the carmaker's bosses has already hinted at the iconic car's successor. 4 Toyota has announced its GR Supra will cease production in Spring 2026 Credit: Supplied 4 The current version has been in production since 2019 Credit: Toyota GB 4 Toyota's GR Supra is the fifth generation of the vehicle since its introduction in 1978 Credit: Handout The Supra has a rich history among car enthusiasts, with five generations of the sports car having been produced since its introduction in 1978. Toyota's fifth-generation Supra entered production in March 2019, a staggering 17 years after production ended on the fourth-generation A80 cars. Described as a "handsome" vehicle, the Supra is powered by a 3-litre six-cylinder turbo engine, which packs a whopping 340hp with 500Nm of torque - helping it to sprint from 0 to 62mph in just 4.3 seconds. However, the iconic motors, which are produced at a Magna plant in Austria, will cease being made from Spring 2026, reports Motortrend. A Toyota boss explained it was "not cost-effective" to give the low-volume car the upgrades needed to meet new and pending global regulations. However, not all hope is lost for Supra enthusiasts, as there have been hints of a next-gen Supra entering the market, although it is unclear when this will be. Senior Vice President of Product Planning and Strategy for Toyota Motor North America Cooper Ericksen said: "It would be logical that we would have a next-gen Supra - but when and how is still TBD." He confirmed that there would "definitely" be a gap between the end of the current GR Supra's production and the start of the next motor's manufacturing. However, he said the company aims to have a gap that is "significantly less" than the 17 years seen previously between the A80 and GR Supra. It is also unclear whether Toyota will continue to keep its partnership with BMW to develop the next Supra, having collaborated with the German carmaker for the current GR motor. Inside Toyota's UK production plant as it builds five MILLIONTH motor since first Carina E rolled off the line in 1992 General Manager of the Toyota Division for Toyota Motor North America David Christ said the company would "love to build a next generation Supra", but the company has not officially announced plans to do so. Toyota is at a busy stage currently, having just introduced the 2026 RAV4, which includes a number of new technologies which will eventually be rolled out to countless of its other models. Explaining the end of the Supra's production, Ericksen said: "A product like Supra, it's made it to a point where now we have a Final Edition and the reason is it's just not cost effective with all the new regulations and investment we have to make." In a review for The Sun last year, the Supra was described as a "chunky beast" that "packs a punch". It retails for £58,580 and can reach a top speed of 155mph, albeit with a fuel economy of 34mpg and CO2 emissions of 183g/km. TOYOTA TO INVEST £40 MILLION IN UK PLANT This comes as Toyota is reportedly planning to invest a whopping £40 million to build a new vehicle assembly line in the UK. The Toyota plant at Burnaston could be in line for a major investment, as the company weighs moving production for the US market from Japan to Derbyshire. The car maker plans to invest around £41 million to set up a new production line dedicated to making GR Corollas, according to Reuters. Toyota has denied that Trump tariffs are behind the potential shift, despite taxes on Britain being 10 per cent compared to Japan's 25 per cent. In light of the potential move, Japanese automaker Toyota revealed that new cars could be added to the European market. Currently, the GR Corolla is only available in Japan and is exported to North America and select other markets. Burnaston plant currently produces the Corolla hatchback and estate for the UK and European markets, but production rates could significantly improve with the proposed investment. A new production line could be operational within 12 months, with reports suggesting that Japanese engineers may temporarily relocate to Derbyshire to assist with the transition.
The Irish Sun
3 days ago
- Automotive
- The Irish Sun
Iconic carmaker discontinues fastest EVER model branded ‘agile & smooth'.. but firm's boss is already teasing its return
AN ICONIC carmaker is set to discontinue production of its beloved fastest-ever model. Toyota has confirmed it will cease making its next year, although one of the carmaker's bosses has already hinted at the iconic car's successor. 4 Toyota has announced its GR Supra will cease production in Spring 2026 Credit: Supplied 4 The current version has been in production since 2019 Credit: Toyota GB 4 Toyota's GR Supra is the fifth generation of the vehicle since its introduction in 1978 Credit: Handout The Supra has a rich history among car enthusiasts, with five generations of the sports car having been produced since its introduction in 1978. Toyota's fifth-generation Supra entered production in March 2019, a staggering 17 years after production ended on the fourth-generation A80 cars. Described as a "handsome" vehicle, the Supra is powered by a 3-litre six-cylinder turbo engine, which packs a whopping 340hp with 500Nm of torque - helping it to sprint from 0 to 62mph in just 4.3 seconds. However, the iconic motors, which are produced at a Magna plant in Austria, will cease being made from Spring 2026, reports Read More on Motors News A Toyota boss explained it was "not cost-effective" to give the low-volume car the upgrades needed to meet new and pending global regulations. However, not all hope is lost for Supra enthusiasts, as there have been hints of a next-gen Supra entering the market, although it is unclear when this will be. Senior Vice President of Product Planning and Strategy for Toyota Motor North America Cooper Ericksen said: "It would be logical that we would have a next-gen Supra - but when and how is still TBD." He confirmed that there would "definitely" be a gap between the end of the current GR Supra's production and the start of the next motor's manufacturing. Most read in Motors However, he said the company aims to have a gap that is "significantly less" than the 17 years seen previously between the A80 and GR Supra. It is also unclear whether Toyota will continue to keep its partnership with BMW to develop the next Supra, having collaborated with the German carmaker for the current GR motor. Inside Toyota's UK production plant as it builds five MILLIONTH motor since first Carina E rolled off the line in 1992 General Manager of the Toyota Division for Toyota Motor North America David Christ said the company would "love to build a next generation Supra", but the company has not officially announced plans to do so. Toyota is at a busy stage currently, having just introduced the 2026 RAV4, which includes a number of new technologies which will eventually be rolled out to countless of its other models . Explaining the end of the Supra's production, Ericksen said: "A product like Supra, it's made it to a point where now we have a Final Edition and the reason is it's just not cost effective with all the new regulations and investment we have to make." In a review for The Sun last year, the Supra was described as a "chunky beast" that "packs a punch". It retails for £58,580 and can reach a top speed of 155mph, albeit with a fuel economy of 34mpg and CO2 emissions of 183g/km. TOYOTA TO INVEST £40 MILLION IN UK PLANT This comes as Toyota is reportedly planning to The Toyota plant at could be in line for a major investment, as the company weighs moving production for the US market from Japan to . The car maker plans to invest around £41 million to set up a new production line dedicated to making GR Corollas, according to Reuters. Toyota has denied that Trump tariffs are behind the potential shift, despite taxes on Britain being 10 per cent compared to Japan's 25 per cent. In light of the potential move, Japanese automaker Toyota revealed that new cars could be added to the European market. Currently, the GR Corolla is only available in Japan and is exported to North America and select other markets . Burnaston plant currently produces the Corolla hatchback and estate for the UK and European markets, but production rates could significantly improve with the proposed investment. A new production line could be operational within 12 months, with reports suggesting that Japanese engineers may temporarily relocate to Derbyshire to assist with the transition. 4 Toyota bosses have hinted that a next-generation Supra will be on the way eventually Credit: Getty
