(Source: NPR & SFChronicle.com)

Several hundred auto workers rallied near New United Motor Manufacturing Inc. in Fremont Thursday afternoon in support of an incentive plan, backed by Gov. Arnold Schwarzenegger, designed to persuade Toyota to keep building cars at the plant.

The rally drew local business leaders and elected officials who are working with the governor’s office and state legislators, as well as with the Port of Oakland and PG&E, on a plan that includes tax breaks, improved transportation facilities, and lower electricity costs to make it economical for Toyota to stay in Nummi.

During the boom years of the U.S. car business, California was dotted with auto plants. Now the sole survivor may be on the verge of closing.

The New United Motor Manufacturing Inc., or NUMMI, was a unique joint venture between General Motors and Toyota, but the partnership is now history, and thousands of jobs are on the line in Fremont, which can’t afford to lose them.

The NUMMI plant sits in the middle of Fremont, a bedroom suburb of San Francisco. It has cranked out cars such as the Toyota Corolla and, until recently, the Pontiac Vibe for the past 25 years.

It is a point of pride among members of the United Auto Workers that their plant, which can produce abut 400,000 vehicles a year, is known for its high-quality cars. NUMMI began as an experiment tying unionized U.S. workers with Japanese management practices.

“It was a big question for both sides,” says Harley Shaiken, a labor expert at University of California, Berkeley. “The result was NUMMI, and the result was an extraordinary success story.”

Toyota could now decide, however, that the cost of going it alone is too much to bear.

Ever since GM went bankrupt, Toyota has been left negotiating with what’s left of the U.S. automaker. News reports in Japan say that Toyota is ready to pull out, though the company insists no decision has been made.

NUMMI is Toyota’s only unionized shop in the U.S. and also the only factory in North America where Toyota would have to deal with the UAW, and industry observers have suggested that union concessions would have to be part of any deal to keep the plant open and is widely believe that this fact could affect Toyota’s decision.

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(Source: Green Car Congress, AP, Wall Street Journal & The Japan Times Online)

Toyota’s Prius was the top-seller in Japan in July, with 27,712 units sold—almost quadruple the 7,058 units sold in July 2008, up nearly 25 percent from June, according to data from the Japan Automotive Dealers Association (JADA).

Image Courtesy: Green Car Congress - Monthly Prius Sales in Japan Since Jan 2007

For a second straight month, Prius has bagged the top-seller title, underscoring robust demand for fuel-efficient vehicles.  Demand for gasoline-electric vehicles has surged in Japan, helped by tax breaks and subsidies under a government initiative to promote cleaner automobiles. Toyota has said customers placing orders now for the Prius will have to wait until at least April for delivery due to surging demand.

Toyota Motor Kyushu Inc. said Thursday that orders for the hybrid version of its luxury Lexus sedan have been robust, leading the Toyota unit to expand production of the model.

Orders for the HS250h Lexus hybrid launched July 14 have reached 8,600 units, far more than the monthly target of 500, Seiichi Sudo, president of the Toyota unit, said in Fukuoka.

“Orders are very brisk as customers endorse its environmental performance,” he said.

The company is making employees work 30 to 90 minutes of overtime a day to meet demand, Sudo said, warning, however, that delivery of many ordered cars could be delayed beyond the March 31 expiry for the government’s subsidy program.

Overall auto sales in Japan declined 4.2% to July to 289,927. Toyota sales decreased 3% to 135,535 according to JADA.  This decline in Japan’s auto sales for July was the smallest since the world’s third biggest auto market started shrinking last August.

This was the 12th straight month of decline, but it was much smaller than the 13.5% drop in June.

The results for the April-June quarter showed that Toyota Motor Corp. is getting some traction from aggressive cost-cutting and Japanese government incentives that have boosted sales of green cars like the Prius. Analysts surveyed by Thomson Reuters had forecast a fiscal first quarter loss of 210 billion yen.

Booming sales of the Prius hybrid helped the world’s No. 1 automaker Toyota deliver a smaller-than-expected 77.82 billion yen ($819 million) quarterly loss and narrow its forecast of red ink for the full year.

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(Source: Green Car Congress & Wired)

Toyota’s third-gen Prius is already a huge hit in Japan (topping the sales numbers for May), and the automaker plans to lease a plug-in version to corporate and municipal customers by the end of the year.

Just 200 are slated for release in Japan under a joint program with the Ministry of Economy, Trade and Industry aimed at promoting the adoption of plug-in hybrids and EVs. Although the new Prius – like all those that came before – uses a nickel metal hydride battery, the plug-in features a lithium-ion pack.

“Toyota Motor Corp. believes that, in response to the diversification of energy sources, plug-in hybrid vehicles are currently the most suitable environmentally considerate vehicles for widespread use,” the company said in a statement. “TMC therefore intends to encourage the marketing of plug-in hybrid vehicles while introducing a total of 500 vehicles globally—primarily to fleet customers—to further use and understanding of the vehicles.”

TMC will introduce approximately 150 plug-in hybrid electric vehicles in the United States, as well as more than 150 vehicles in Europe, including 100 in France. TMC is also considering introducing plug-in hybrid vehicles in the United Kingdom, the Netherlands and Germany.

(Source: Forbes)

Automaker’s finance unit is believed to have requested $2 billion loan from Japanese state-backed bank.

Finding it difficult to raise money in the U.S., Toyota Motor is reportedly seeking emergency funding of about 200 billion yen ($2 billion) in dollars from a governmental institution in Japan to support its U.S. auto-financing operations.

Commercial banks have been cautious to grant loans amid the credit crunch, particularly to the slumping auto industry, and Toyota (nyse: TM – news –people ) and several of its financing affiliates have had their credit ratings reduced, hurting their ability to raise money on the capital markets. As a result, Toyota Financial Services, an auto-financing unit of Toyota Motor, is turning to the Japan Bank for International Cooperation as a last resort for low-interest dollar loans, various Japanese media reported Wednesday.

In response to the global financial turmoil, the government funded an emergency JBIC program late last year to provide loans and debt guarantees to help Japanese firms finance operations overseas.

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