Although Toyota has remained the dominant automaker in hybrid vehicle sales thanks to the popular Prius, the automaker has been slow to produce extended range plug-in hybrid vehicles or electric vehicles. In an effort to change that Toyota will begin leasing 150 plug-in Prius hybrids in the U.S. shortly in preparation of thousands of units in retail sales within two years.

In February, Toyota will be releasing only 600 of these plug-in Prius models globally. The vehicle will be in direct competition with the Chevrolet Volt plug-in hybrid, which will be available next year.

This new Prius will have a longer electric-only range compared to that of the current Toyota Prius. The electric-only range is good for 14.5 miles, still shorter than the Volt’s 40 mile range. After the plug-in Prius surpasses its electric-only range, it will continue to operate as a standard Prius.

Introducing the plug-in Prius hybrid via leasing in limited numbers will provide Toyota with ample field data about the vehicle as it undergoes every-day driving conditions. When it goes on sale, Toyota asserts that the car will be “affordable,” but retail or leasing pricing has yet to be released.

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Learn more about plug-in hybrids here.

Month after month, automakers and car dealers have seen dismal sales numbers have driven plenty of people out of business. However, June sales may be a turning point, as the month showed glimmers of hope for sales. The question remains whether this glimmer of hope is a sign that the worst is over.

General Motors finished the month with a 33 percent decline in sales, down only slightly more than analysts predicted. In addition, Toyota and Chrysler both faced declines that were worse than predicted. The only automaker to perform better than expected was Ford.

While auto sales data from June is by no means overwhelmingly positive, Florida Commercial Trucks points out that the sales numbers have improved compared with other months earlier in the year. June sales overall slipped from 9.9 million cars to 9.7 million cars. But despite the declines, June still marked the second best performing month yet this year, which again may not be too exciting, but it’s something.

The auto industry has a long way to go before it can return to its former health. Rather than a sharp bounce back, auto sales are likely to recover only gradually over a long period of time suggests Yonkers Used Cars. But analysts with Edmunds.com suggest that the leveling off of sales declines seen in the month of June is at the very least a sign of stabilization.

Other analysts have been even more optimistic, stating that current auto sales suggest that the worst is now over. A sign that this optimism is warranted is the fact that GM saw a 10 percent increase in sales in the U.S. compared with last year. Peoria Chevy says that the overall decline at GM was actually attributed to a huge hit to fleet sales. With Chrysler already out of bankruptcy, its partnership with Italian automaker Fiat has yet to have an effect on its lineup. Meanwhile, a used cars Saginaw dealer suggests that fleet sales have also hurt Chrysler’s overall sales figures.

As already mentioned Ford has fared better, both increasing market share and performing better than predicted. It still faced a sales decline, but the drop was not nearly as bad as recent months. In another encouraging sign of momentum according to Jersey City Lincoln Mercury, Ford has also noted declines in inventories and will also be increasing production for the third quarter of this year.

Typically, Korean and Japanese automakers have been far more resilient when compared with the Big Three. However, automakers such as Toyota have not been immune to the devastating effects the economy has had on the auto industry. Toyota June sales were worse than predicted. Both Honda and Nissan saw significant sales declines as well, but were relatively aligned with predictions.

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Look for recent auto sales information here.

On news of dramatic losses on the close of the most recent fiscal year, Toyota looks to be tightening its belt and its budgets with various cost-cutting initiatives. It was only recently that Toyota was pouring money into its manufacturing operations, but even more recently Toyota has had to forgo innovative ideas for more resourceful ideas to streamline its manufacturing operations in an effort to save cash.

Nearly every Toyota manufacturing facility is undergoing some type of cost cutting initiative. After years of steep profits, Toyota now must rethink every level of its operations to account for evaporating sales. In addition to dwindling sales, Chrysler’s bankruptcy may bring a ‘Buy American’ political climate that Toyota will have to overcome as well.

Toyota is no doubt learning valuable lessons from the current economic environment according Used Cars Santa Barbara. Like with other automakers, last year may have been the most difficult for Toyota since coming to the U.S. market nearly 40 years ago. One outcome of recent struggles is that sales and manufacturing operations are now working closer together compared to past years. This move was made in an effort to establish long-term stability and help control issues that are fixable.

One of the most immediate issues affecting Toyota is product inventories. Currently, dealers are bloated with unsold inventory as Toyota is supplying more inventory today compared to better years. In direct response to supply concerns, Toyota shut down a number of plants this year and at the end of last year to curb output.

Not all is bad for Toyota. Sales of specific models at one Toyota dealer St Paul, such as the compact RAV4 crossover, have been doing well. But still Toyota is relying on attractive incentives to maintain U.S. sales momentum. These incentives include rebates and attractive deals on leasing. Unfortunately, Toyota’s recent incentives remain a bit tamer than the ones currently offered by Korean and American manufactures, which may change in the coming weeks.

Regardless, it’s the market than has handicapped Toyota according Tustin Toyota Repair, not its operations. Consumers are no longer eager to replace aging vehicles as worries about job security and the economy weigh heavily on the minds of American consumers.

With the potential of a ‘Buy American’ campaign coming from Washington, Toyota may be losing some allies on Capitol Hill. That being said, Conicelli Toyota Parts points out that Toyota has been investing in the U.S. for years and will only continue to do so. As such, Toyota doesn’t appear to be concerned about such political maneuvers.

Problems aside, Toyota is focusing on innovative new vehicles that will be heading to showrooms, such as the all-new Toyota Prius hybrid and the Lexus HS 250h luxury hybrid, both of which are highly anticipated at San Diego Prius dealers and elsewhere. Expect to see bold advertising campaigns soon hyping the unique traits of these cars.

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Understand what’s going on in the automotive market right here.

Times have been tough for the Detroit Big Three, but times have also been tough on the Japanese Big Three. In recent months, the largest Asian automakers, Toyota, Honda, and Nissan, have been forced to cut production, cut jobs, and alter product releases due to dismal financial results and poor sales. Clearly, the economic concerns extend well beyond Detroit and truly involves everyone from around the world.

While the slip in Japanese sales and profits has not been quite has steep as those of the domestic automakers, the time has come for Japanese automakers to follow the same path. This week Nissan has announced it will be cutting just over 8 percent of its workforce, thanks to a $2.9 billion loss expected for this fiscal year.

Despite steep losses, Nissan plans to uphold its current aggressive product development schedule. Included is Nissan’s upcoming electric vehicle, which Hartford Nissan says remains a high priority according to Nissan management.

Honda also has forecasted trouble ahead, reducing its earnings forecast by about 57 percent. While a profit is still expected according to Honda Philadelphia, Honda has preemptively cut salaries among board members and senior managers. Toyota, now the world’s largest automaker, has also shed salaries, cut production, and expects a loss of about $5 billion. Further cutbacks are also expected. That being said, Westminster Toyota dealers see new vehicles such as the Venza crossover and the all-new Toyota Prius hybrid to boost sales momentum. Already, Irvine Toyota dealers have seen demand for the Venza due to heavy Superbowl advertising and other current incentives.

While all automakers are hurt by dwindling sales here in the U.S., the automotive markets in Europe and Japan are also seeing declining auto sales. Even popular vehicles, such as the Toyota Prius hybrid, are facing declining sales as potential car buyers steer away from new car showrooms. In fact, a Toyota plant in Mississippi cut production of the Highlander in order to produce additional Prius vehicles. However, production there has been postponed, even as interest in the Prius has remained high.

With the U.S. auto market being particularly challenging these days, this year is looking to be a tough one for automakers and car dealers alike. While forecasts already look grim, many industry analysts are expecting the worst, with even more declines ahead in 2009.

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The latest headlines from Toyota dealers can be found here.

General Motors, after reining as the 77 years as the world’s largest automaker, has lost its title after 2008 sales figures have stalled. GM’s sales had put the automaker in second place behind that of Toyota. GM sales in 2008 were 8.36 million vehicles, while Toyota sold 8.97 million vehicles.

After losing its long-held title, GM realizes that the future will be long and arduous, and sales within its core market, North America, have declined dramatically, and show no sign of improving any time soon. For GM dealers like Detroit Chevrolet dealers, they too realize the road ahead will  hold plenty of challenges. In addition, GM’s sales marked the first point since 1982 that annual sales have fallen below 10 million vehicles, making this a historic decline for the automaker.

Auto sales in the U.S. have plummeted as demand for new cars have weakened along with the economy. Aside from consumer sales, Hartford Chevrolet dealers have also noted that fleet sales and the rental car business have also suffered in recent months. Based on these numbers, it’s also expected that GM, Chrysler, and Ford may also be reducing production further.

The federal stimulus packages from the government are increasingly seen as vital lifelines to keep the automakers, including GM, afloat. Even Los Angeles Ford dealers see federal aid as a vital component to keeping the domestic auto industry alive. However, despite poor sales in the vital North American and European markets, GM did see sales gains in developing regions in Asia, Latin America, Africa, and the Middle East. Despite sales declines in Toyota sales as well, it was no surprise that Toyota was able to rise above GM this year.

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Find more domestic automakers news here.

The bailout package for Detroit has sparked controversy and mixed feelings as some have felt that the Big Three brought trouble on to themselves. But with many others hoping the government will step-in soon to provide vital financial help, it isn’t only American drivers hoping for a bailout. Toyota and other Japanese automakers also endorse the use of federal aid to keep General Motors, Chrysler, and Ford out of bankruptcy and in the marketplace.

Toyota recently released statements that uphold the notion of a bailout for the Big Three. Toyota is in support of any initiative that helps the automotive industry. While this may seem unusually for a competitor of the Big Three to hope for their survival, a Toyota dealer Cheyenne say it makes much more sense than it may initially seems.

The dynamics of the auto industry are such that the fate of each are intertwined with each other, and as such as Toyota and Honda hope for the survival of GM and Chrysler, even if it seems counter intuitive on the surface. First, Asian automakers produce 3 million vehicles per year at facilities within the U.S. If the Big Three fell into bankruptcy, the Asian automakers fear that their own production may be in jeopardy, as a Cleveland used Toyota notes Toyota accessory and parts suppliers may also be sucked into financial peril with a Big Three bankruptcy.

With a great amount of overlap between those supplying the automakers, Birmingham Honda dealers think it will be inevitable that the production will be disrupted due a potential bankruptcy.  It could take months before Toyota or another automaker would be able to stabilize production and return operations back to normal.

Asian automakers have made steady gains in the North American market in recent years. With manufacturing and dealer operations working in their favor, one used car dealer boston believes that Japanese automakers don’t want to mess with a good thing and see Detroit place strain on their manufacturing output.

But manufacturing isn’t the only area where a Big Three bankruptcy will cause intense strain. Dealers in the U.S. often sell a combination of domestic and overseas brands such as Spokane Chevy. Not only would inventory be affected, but dealers also believe that a Big Three failure would also eat away at the already low demand for new cars. November auto sales saw substantial declines in demand, causing a 26-year low for auto sales.

The U.S. remains the largest market for Toyota, Honda, and Nissan, which is why a stable market, with the Big Three alive and well, is essential to helping theses automakers maintain momentum. Already, weak overall demand in the U.S. has forced Japanese automakers to lower their sales projections, which is why the automakers,  points out one Pittsburgh Honda dealer, are hoping for any measure that will bring stability to the industry and bring about consumer confidence.

With weak sales and a poor economy, Toyota and other automakers are simply not immune to sales and production issues. For example, this week Toyota cut its plans to open a new manufacturing facility in Mississippi. The plant was scheduled to produce the next generation Toyota Prius, which has previously been in high demand at Toyota Albuquerque and elsewhere across the country.

It’s expected that the Japanese automakers would gain greater market share should a Detroit automaker fail. However, Nissan Tacoma fears that having to sell inventory of the failed brand would depress the prices of new cars throughout the inventory, at least in the short term.

While the failure of a U.S. automaker could place strain on Japanese automakers, it could open doors for others. An Indian or Chinese automaker, for example, could purchase assets of the failed company and become a low cost option for American consumers. India’s Tata and China’s Geely are two such automakers that are gaining ground in developing markets, and may see such an opportunity to enter the lucrative U.S. market cost effectively. Regardless, Acura Auto Service Pittsburgh and others in the auto industry feel that a ripple effect will eventually reach them from the fall out of a Big Three bankruptcy.

Having upstart companies from overseas compete within the U.S. is nothing new. Korean automakers have slowly been carving out their own market share for years, with more even greater moment in recent years thanks to attractive, high-value models says Hyundai Chicago dealers. But by piggybacking off of the assets, design, and dealer network of a U.S. automaker, an Indian or Chinese automaker would have the opportunity to grab market share at a quicker pace than their Korean rivals.

To prevent upstarts maintain the inroads they’ve gained over decades of hard short, Japanese automaker such as Toyota are hoping for the survival of GM, Chrysler, and Ford. They also don’t want to see an upstart automaker make inroads in the wake of a domestic automaker’s failure.

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Learning more about the Detroit bailout right here.