Toyota Motor Corp. (TM) has decided to boost monthly output of its new Prius hybrid wagon, Prius Alpha, to about 70% above its initial target due to escalating orders for the vehicle. The automaker will raise monthly output to 5,000 units from 3,000 units to shorten the waiting period for the customers.
Prius Alpha is a hatchback wagon that is derived from the third generation Prius model. It features over 50% more cargo space compared with its predecessor and boasts of a fuel economy of 42 miles per gallon (mpg) in the city and a 38 mpg on the highway.
The 5-seater version of Prius Alpha, Prius V, was debuted in Japan on May 13. Priced at ¥2.35 million ($29,000), the vehicle is equipped with nickel-metal hydride (NiMH) batteries like its predecessor.
Toyota plans to start selling Prius V in North America within a year. It also plans to sell the 7-seater version of Prius Alpha in Europe as Prius+ in mid-2012.
Prius+ will be priced at ¥3 million ($37,000) in Japan. It will be equipped with lithium-ion (Li-on) batteries that take less space, allowing for more cabin room. Li-on batteries will be used for the first time in a Toyota hybrid. The automaker intends to sell 2,000 units of the new Prius per month in North America and 2,000 units per month in Europe.
Toyota, a Zacks#3 Rank (Hold) stock, posted a profit of ¥408.18 billion ($5.07 billion) or ¥130.16 ($1.60) per share for its fiscal 2011, ended March 31, 2011, that almost doubled from ¥209.46 billion or ¥66.79 per share a year ago.
The increase in profit was attributable to positive impact of ¥490.0 billion due to marketing efforts and ¥180.0 billion due to cost reduction measures, partially offset by a negative impact of ¥110.0 billion due to the earthquake in Japan and ¥290.0 billion due to unfavorable exchange rates.
Consolidated revenues in the fiscal year rose marginally by 0.23% to ¥18.99 trillion ($235.80 billion) from ¥18.95 trillion, driven by a growth in unit sales in Asia (28%) and Other regions (15%), offset partially by a decline in unit sales in Japan (11.5%), North America (3%) and Europe (7%). Total unit sales increased 0.98% to 7.31 million units during the fiscal year.
Meanwhile, Toyota’s domestic competitor, Honda Motor Co. (HMC) revealed a 38% fall in profit to ¥44.55 billion ($536 million) or ¥24.72 per share (30 cents per share) in the fourth quarter of the fiscal year ended March 31, 2011 from ¥72.18 billion or ¥39.78 per share in the same quarter of prior fiscal year.
The decline in profit was attributable to unfavorable currency translation effects, higher selling, general and administrative expenses and the natural calamity in Japan. These more than offset the positive impact from cost reduction measures, lower R&D expenses, increase in sales volume (except in the Automobile segment) and model mix, and operating income made based on licensing agreements.
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