Latest news with #MarkTemplin
Yahoo
3 days 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.
Yahoo
3 days ago
- Automotive
- Yahoo
2026 Toyota RAV4 goes all-hybrid: New models, more power and bold design
America's bestselling non-pickup will switch to an all-hybrid lineup when the 2026 Toyota RAV4 compact SUV goes on sale later this year. The dramatic move follows Toyota's change to all-hybrid last year with the Camry, America's No. 1 midsize sedan. Toyota is dramatically increasing sales of hybrid and electric vehicles at the same time the company says U.S. tariffs will raise prices and make it harder for people to afford a new vehicle. 'A 25% tariff is not sustainable long term without significant price increases,' Toyota North America Executive Vice President and Chief Operating Officer Mark Templin said at the company's sprawling headquarter complex in Plano, Texas. 'They put a new car out of reach of many consumers.' The new RAV4 lineup will include plug-in hybrid (PHEV) and performance GR-Sport models as the automaker looks to expand sales of its franchise vehicle. The PHEVs will produce 320 horsepower, up from 302 for the 2025 RAV4. The sporty GR-Sport will be a PHEV. More Toyota reviews: I took Toyota's 2025 Land Cruiser out for a second look ― and loved it more For the first time, hybrids will be available on front- and all-wheel models. An outdoorsy new Woodland model will be available as a hybrid or PHEV. AWD will be standard. Toyota will announce electric range, fuel economy and prices closer to when sales begin. Key features: DC fast charging port for PHEVs Nine-speaker JBL audio Head-up display Standard Apple CarPlay and Android Auto Toyota's "hammerhead" grille and front lights are new, along with LED taillights. The interior features a 10.5- or 12.9-inch touch screen, depending on trim level. Digital climate controls are integrated into the bottom of the screen. A 12.3-inch digital instrument replaces 7-inch mechanical gauges. Upper trim levels will get a toggle-switch gear selector. The RAV4's dimensions don't change, but the body grew stiffer to reduce noise and improve ride and handling. Contact Mark Phelan: mmphelan@ Follow him on Twitter mark_phelan. Read more on autos and sign up for our autos newsletter. Become a subscriber. This article originally appeared on Detroit Free Press: 2026 RAV4 lineup goes all-hybrid as Toyota warns of tariff price hikes
Daily Mail
7 days ago
- Automotive
- Daily Mail
America's favorite carmaker confirms everyone's worst fears on tariffs
Toyota has a warning for car buyers: popular products are about to get more expensive. Mark Templin, Toyota's chief operating officer for North America, said the company is planning price hikes in response to President Donald Trump's 25 percent tariff on imported vehicles and parts. '[Business is] not sustainable longer term without significant price increases,' he said in a recent event with Ward's Auto. 'And the industry already has an affordability problem.' The comment confirms what consumer advocates have been warning for months: that shoppers should expect to see higher car prices and increasing insurance premiums. Toyota expects to pay $1.3 billion in tariff costs in April and May alone — and it's already forecasting a 20 percent drop in profits for the upcoming year. Templin said the impact won't stop at the dealership. Because the tariff targets imported parts as well as vehicles, service costs for existing Toyota owners are likely to rise too. 'Levies on parts will negatively impact the automotive supply chain and will make repairing vehicles more expensive for customers,' he said. Toyota's pricing update comes as the brand dominates the global auto market. In 2024, the company sold 10.8 million vehicles worldwide, making it the best-selling automaker on the planet. In the US, the RAV4 SUV became the country's top-selling passenger vehicle. Toyota became the most-loved brand in the US this year, according to a study by iseecars. Still, the mood inside the company is cautious. About half of Toyota's US sales come from vehicles assembled outside the country — mostly in Japan, Canada, and Mexico — leaving the brand exposed to a potential price shock. And Toyota is not alone. Toyota's CEO, Koji Sato, has led the company to huge sales heights - the company snatched the crown for world's best-selling automaker Toyota is not alone: other carmakers, including Ford and VW, have announced policy and pricing changes to keep up with the 25 percent tariffs GM's CEO, Mary Barra, warned that the American manufacturer is expecting to pay between $4 billion and $5 billion in tariffs annually. Ford, which builds 80 percent of its vehicle lineup in the US, predicts it'll spend $1 billion. Ford has already announced some price increases on popular models, though the company attributes the increase to design updates rather than tariffs. Templin said the broader problem is structural. 'It's important to understand that supply chains are global,' he said. 'They're complex and they're very fragile.' Recent disruptions to that supply chain also lead to Americans spending a lot more on vehicles. Last year, the average American new vehicle buyer spent more than $48,000 to get a fresh set of wheels. The average financing for that loan gave most US buyers a monthly bill over $700. Those pricing shocks were largely attributed to distribution shocks after port, train, and freight workers rebuilt the supply chain after the pandemic. Meanwhile, drivers were more prone to getting into accidents after the pandemic. Cars, now equipped with increasing safety technology, also became more expensive to repair. These factors also led car insurance rates to skyrocket. In 2019, the average American spent less tha $1,500 a year to insure tha median $38,259 vehicle.
Miami Herald
27-05-2025
- Automotive
- Miami Herald
Toyota's Secret Weapon? Why a Compact Pickup Could Shake Up the U.S. Market
It's been a hot minute since Toyota has had a small pickup in the United States market, but rumor has it that's going to change in the next few years. Currently, there are just two small trucks available: the Ford Maverick and Hyundai Santa Cruz. With midsize and full-size trucks growing in size and increasing in price, there's a massive gap waiting to be filled-and there's a reason no automaker has closed it. The lack of a small pickup in the Toyota lineup has its roots in the Chicken Tax of 1964, which insulated domestic automakers from foreign light-duty vehicle imports. As I've discussed previously, the U.S. light truck market is still feeling the ramifications of the tariff 60 years later. While South Korean automakers are exempt from the 25% tariff due to the U.S.-Korea Free Trade Agreement, hence the Hyundai Santa Cruz, Japanese manufacturers aren't as fortunate. As a result, Toyota's compact pickup would likely be produced in the United States. Toyota isn't exactly shy about using the Corolla nameplate, and rightly so, considering it's the best-selling vehicle of all time, as well as a household name. So far, we have four iterations of the moniker, including a crossover, hot hatch, hatchback, and sedan. If Toyota were to emblazon the Corolla's name on a compact truck, it'd be the fifth in the lineup. Regardless of the name, the Japanese automaker has been listening to dealer requests for a smaller truck to slot beneath the Tacoma for some time now. "We're looking at it," Mark Templin, Toyota's U.S. Chief Operating Officer, told Bloomberg. Considering Toyota is shifting towards hybrid powertrains, odds are a new compact truck would follow suit. After all, the best-selling Toyota Camry is only available with a hybrid powertrain, as is the Toyota Sienna and a handful of other models. Ford has already set a precedent for a hybrid powertrain within the segment as well. When the Maverick debuted back in 2021, a 191-horsepower hybrid powertrain came standard, while a turbocharged four-cylinder engine was available as an upgrade. For the sake of speculation, if Toyota were to release a Corolla-based compact truck, can we expect a performance model similar to the GR Corolla hot hatch? It'd certainly fill a niche, but whether such a thing is worth exploring is questionable at best. Despite their prowess and dedication to the full-size truck segment, Chevrolet and Ram have yet to introduce a compact truck. To make matters more confusing, while Chevrolet offers the Colorado, Ram has yet to introduce a midsize truck of its own. There is a glimmer of hope from Ram, though, as according to the automaker, a midsize pickup will join the ranks as early as 2027. That still leaves the compact pickup segment in a rather interesting state, though. Ford and Hyundai are the only two manufacturers with a small truck in their lineups. Whereas the Ford Maverick sold more than 130,000 units in 2024, the Hyundai Santa Cruz lagged behind with around 32,000 units sold. While it doesn't tell the whole story, badging plays a role in the compact truck segment's performance. Ford is known for making trucks, Hyundai isn't, and that alone could be the difference for Toyota, too. Toyota has been building trucks for years, and its reputation for reliability and longevity speaks for itself. If the Japanese automaker were to introduce an affordable compact pickup at Corolla-level pricing, it could end up taking the entire segment by storm. While Nissan could introduce a compact truck alongside the Frontier, it doesn't seem like the automaker is in the financial position to do so. Nissan is in a precarious position, and considering it ended production of the full-size Titan, I wouldn't hold my breath on a new compact model. Then again, Nissan did reaffirm its dedication to the United States market, so there's a chance, right? "North America is a key market, and we are taking quick actions to get us back to growth and set the stage for the exciting products to come," said Christian Meunier, chairman, Nissan Americas. It's no secret that midsize and full-size trucks have grown exponentially compared to a decade or two ago. Having recently driven a Chevrolet Colorado and Ford F-150, I can see why consumers might opt for a compact truck. Interestingly, while Ford has introduced the Maverick to fill that void, Chevrolet and Ram have been slow on the uptake. Now that Toyota seemingly has plans to introduce its own compact truck, I can't help but wonder if the two American truck brands will add a compact pickup of their own in the near future. Then there's a wild card in the mix: Slate. What effect could the compact all-electric pickup have on the segment? Currently, electric trucks are limited to full-size models, like the Ford F-150 Lightning, and are often on the more expensive side. The introduction of an electric compact truck could turn the entire segment on its head, provided it's a good offering. No matter how you look at it, the compact truck segment is picking up steam, and it's only a matter of time before it boils over. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
24-05-2025
- Automotive
- Yahoo
Toyota Reveals Plans for Brand New Truck - Here's the Latest
Small utility pickups are making a big comeback, and with the demand for inexpensive compact trucks surging, Toyota decided it was time to launch its own line of pickups to rival the wildly popular Ford Maverick and the Hyundai Santa Cruz. According to a report from Automotive News, Toyota is working on plans for a line of back-to-the-basics compact pickup trucks to slot below the bestselling Toyota Tacoma. 'Decisions have been made," Cooper Ericksen, head of planning and strategy for Toyota Motor North America said in an interview with MotorTrend. "The question is when we can slot it in. It's not a matter of 'if,' at this point. We've studied it a lot. We're dedicated to it. We're going to figure out how to make it work.' When asked about Toyota's plans, Mark Templin, Toyota's chief operating officer in the United States, told Bloomberg that they were "looking into it," and that the company would be gearing the line of trucks toward buyers looking for an affordable entry-level pickup, but little else is known about the automaker's plan for the vehicle. Although Toyota has yet to release details about pricing, specs or a launch date, it's safe to assume the company will be competing with Ford on price. According to Motor1, Ford sold 131,142 Mavericks in 2024, an increase of nearly 40 percent over the year prior. So the demand is definitely there, and with the price of vehicles skyrocketing over the last few years, Toyota should have no problem appealing to customers looking for an affordable option on a new truck. Toyota Reveals Plans for Brand New Truck - Here's the Latest first appeared on Men's Journal on May 23, 2025
