Toyota Motor Corp. (TM) intends to woo the market by rolling out its new 2012 Camry sedan. The redesigned model has a lower price tag and boasts an improved fuel economy and some added features. It will arrive at dealerships in early October.
The basic version of the new Camry would cost $21,955, which is $710 more than the current model. However, most other versions would cost less than the existing model. The top version would cost $24,725, which is $2,000 less than the existing one, while the hybrid Camry would start at $25,900, which is $1,150 cheaper than the same.
The new Camry’s four-cylinder engine will deliver 35 miles per gallon (mpg) on the highway, up from 32 mpg of 2011 Camry. Meanwhile, the hybrid version would deliver 41 mpg both in city and highway, making it one of the most fuel efficient sedans among its peers.
The first Camry was launched in 1983 and the automaker sold more than 15 million units of the vehicle since then. In 1997, Camry outsold Ford Motor Co.’s (F) Taurus and became the best selling car in the U.S. since then due to appreciable gas mileage and reliability, except in 2001, when it was dethroned by Honda Motor Co.’s (HMC) Accord.
The launch comes at a time when Toyota is struggling with waning sales in the U.S., its most important market, due to the production disruptions resulted from the twin disaster in Japan. It has already lost its No.1 position to General Motors Company (GM) in terms of sales. In the first seven months of the year, its sales fell 7% in the U.S.
Recently, the automaker signed a memorandum of understanding with Ford on the equal product development collaboration in order to develop a gas-electric hybrid engine for pickup trucks and sport utility vehicles.
The development of electric hybrid engines would help both the companies meet stringent fuel economy and pollution standards in the U.S. and elsewhere in the near future. The U.S. fuel economy standards require vehicles to deliver 56.5 miles per gallon (mpg) by 2025.
The Zacks #2 Rank (Buy) company posted a profit of ¥1.16 billion ($14.21 million) or 37 yen cents per share for the first quarter of its fiscal year ended March 31, 2012, which plummeted from ¥190.47 billion ($2.33 billion) or ¥60.74 per share a year ago.
The sharp fall in profit was attributable to a substantial decline in vehicle sales all over the world, especially North America and Europe due to disruptions in supply of parts caused by the earthquake and tsunami in Japan on March 11.
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