Toyota announces plan to sell 9.85M vehicles in 2008

Toyota (TM - Cramer's Take - Stockpickr) said Tuesday that it expects to increase worldwide vehicle sales by 5% to 9.85 million in 2008.

That figure includes the company's Daihatsu and Hino units. Toyota estimates that total worldwide production also will rise by 5%, to 9.95 million vehicles.
In a news release, Toyota also published expected results for all of 2007 and estimated worldwide sales of 9.36 million, up 6% from 2006.

Toyota plans to sell 9.85 million vehicles worldwide in 2008, the company said Tuesday, setting itself an ambitious target despite worries about a slowing U.S. car market as it tries to become the world's top automaker.
Toyota also said it plans to produce 9.95 million vehicles worldwide next year, up 5% from this year — the same projected on-year percentage jump for Toyota's global sales.
Its recent growth has put Toyota Motor Corp. on track to beat U.S.-based General Motors to become the world's biggest automaker by sales. GM has said it estimates this year's sales to total 9.3 million vehicles, against Toyota's estimate of 9.36 million sales.
Toyota's growth has been based in large part on the popularity of models such as the Camry sedan, Corolla subcompact and the Prius gas-electric hybrid.
Soaring gas prices have dramatically boosted the appeal of smaller fuel-efficient models that are Toyota's main strength.

General Motors has been fiercely fighting back, boosting its overseas business and could yet maintain the top industry spot which it has held for 76 years.
GM has not given a forecast for the number of vehicles it expects to produce or sell in 2008. But the Detroit automaker has the industry record for annual global vehicle sales at 9.55 million vehicles, sold by GM in 1978.
Toyota executives acknowledged Tuesday worries about the U.S. market, which has been hit by the subprime mortgage crisis and soaring oil prices. But they remained upbeat about increasing sales in the key U.S. market — projecting 2.64 million vehicles, edging up 1% from this year.
They were also bullish about prospects for emerging markets such as China, Russia and South America, while being conservative in expectations for Europe at a 2% increase to 1.27 million vehicles, and seeing sales in Japan remain flat at 1.6 million next year.
But Koji Endo, auto analyst with Credit Suisse in Tokyo, said next year will likely prove a challenge even for Toyota, as U.S. economic woes weigh on sales and profits.
But he said the overall optimism for sales growth was "reasonable," given Toyota's recent performance.
"These are targets Toyota is giving, not forecasts, and so they are reasonable," he said.
After the first nine months of this year, Toyota was — at 7.05 million vehicles sold worldwide — trailing GM's sales of 7.06 million vehicles for the same period. The final tally for this year's numbers won't be out until January next year.
GM's spokesman in Tokyo Michihiro Yamamori declined to comment, citing company policy to refrain from commenting on its rivals' targets.
Toyota also said it was preparing to start mass producing lithium-ion batteries for low-emission vehicles.
Lithium-ion batteries, already widely used in laptops and other gadgets, are smaller yet more powerful than the nickel-metal hydride batteries used in gas-electric hybrids like the Prius now.
Lithium-ion batteries will not be used in the Prius, on sale for a decade and the most popular hybrid on the market, according to Toyota.
The lithium-ion battery will be used in a plug-in hybrid, which would recharge from a regular home socket, and travel longer as an electric vehicle than the Prius. Toyota has started tests on its plug-in hybrid, but has not shown a model using the new battery.
Executive Vice President Masatami Takimoto, who oversees technology, said Toyota had developed the lithium-ion battery to a level that it is almost ready for mass production, although that won't start until sometime after next year.
Toyota President Katsuaki Watanabe said the hybrid will be a pillar of Toyota's growth in the years ahead, and he reiterated the plan to offer hybrid versions of all its models sometime after 2020.
As part of its strategy to be ecological and super-efficient in manufacturing — as well as with its products — Toyota will use solar energy and wind power to reduce global-warming emissions at what it called five "sustainable plants." The facility being built in Mississippi, set to be up and running in 2010, will be one such plant, Toyota said.

Deal: 8 TV stations to sell for $1.1 billion by News Corp.

Tribune Co.'s new venture to spread the costs of some television operations across its 23 stations and those of Oak Hill Capital Partners' Local TV LLC will get to spread those costs over an even wider swath than first announced.
News Corp., the media company controlled by Rupert Murdoch, will sell eight of its Fox network-affiliated television stations in the U.S. to Oak Hill Capital Partners for about $1.1 billion in cash.
The sale in small markets will leave News Corp. with 27 stations in major markets including New York, Boston and Los Angeles.
The media conglomerate, which owns the New York Post, a controlling stake in BSkyB satellite TV service, and 20th Century Fox movie studio, recently closed a $5.6 billion deal to buy the Wall Street Journal publisher, Dow Jones.
The sale will probably be completed in the third quarter, News Corp. said in a statement Saturday. The purchase will help Oak Hill, the buyout firm founded two years ago by Robert Bass, a Texas oil billionaire, create a broader U.S. network. In May it paid $575 million to acquire stations in Oklahoma, Pennsylvania, Iowa and Arkansas from The New York Times Co.
"It is part of News Corp.'s strategic decision to shed low-growth, noncore assets," said Richard Dorfman, managing director of the investment firm Richard Alan.
For Oak Hill, the purchase is "a classic private equity play," Dorfman said. "Ad dollars are migrating to the Web, but it's a government-licensed franchise that can throw off good cash flow and reliably service debt."
Oak Hill will get WJW in Cleveland; KDVR in Denver; KTVI in St. Louis; WDAF in Kansas City, Missouri; WITI in Milwaukee; KSTU in Salt Lake City, Utah; WBRC in Birmingham, Alabama; and WGHP in Greensboro, North Carolina, according to the News Corp. statement confirmed by Teri Everett, a spokeswoman.
Oak Hill has expanded into leveraged buyouts, high-yield debt and hedge funds, raising more than $4.6 billion from investors, including Bill Gates, the founder of Microsoft.
News Corp. hired the New York investment banking firm Allen & Co. to advise it on the sale of the TV stations in June. Two months later, it agreed to buy Dow Jones, publisher of Dow Jones Newswires, Barron's and The Wall Street Journal, after months of negotiations with the controlling Bancroft family.
Murdoch plans to use the Wall Street Journal brand to attract viewers to its television networks and Internet users to Web sites.
"News Corp.'s focus today is much more on Internet properties, such as MySpace, and cable," said Dorfman. The sale of the stations "will help News Corp. raise capital. News Corp. is not walking away from the healthy broadcast world."