July 2012 Sales Conference Call
Wednesday, August 1, 2012
Toyota National Manager of Business and Field Communications Celeste Migliore:
Good day and thank you for joining us to review Toyota’s July sales.
Speaking today will be:
•Bill Fay, group vice president and general manager of the Toyota Division;
•And Mark Templin, group vice president and general manager of Lexus.
As you may know, Bob Carter, who has participated on many of these calls in the past, was promoted to Senior Vice President of Automotive Operations in July, replacing Don Esmond, who is retiring.
And as this is Bill Fay’s first sales call since being named to head the Toyota Division, I’d like to take a minute and introduce him to those of you who might not have met him yet.
Bill has been with TMS for 30 years and is certainly no stranger to the Toyota brand, having served most recently as Group Vice President of Toyota marketing, responsible for advertising, merchandising, incentives, sales promotions, motor sports — including NASCAR — and Internet activities.
He also has worked extensively in our field operations, holding sales positions in New York, Boston, Cincinnati and as vice president of the Los Angeles region.
Following the call, our communications team will be available to field any additional questions you may have.
Now I’d like to turn it over to Bill for a look at July results.
Thank you Celeste, and thank you all for joining us today.
I look forward to talking with you in the months ahead about Toyota’s sales results and meeting those of you I don’t already know in the near future.
Industry sales should come in at more than 1.15 million vehicles for July, up nearly 9 percent from last year on an unadjusted basis, and the best July for the industry since 2007.
As a result it looks like the seasonally adjusted annual rate will come in at 14.1 million, the sixth time this year we’ve topped the 14 million mark.
Toyota, Lexus and Scion dealers just about tripled the industry results, with sales of 164,898, up 26 percent from last year, when we were dealing with the aftermath of Japan’s earthquake and tsunami.
TMS sales got a nice boost from the 4th of July holiday, slowed somewhat at mid-month, then closed strong.
And although both industry and TMS sales are down from June on an unadjusted basis, it’s important to note there were three additional selling days in June and sales were actually up slightly when that is taken into account.
For the Toyota Division, July sales of 146,663 were up 26 percent from last year.
As expected, fleet sales made up a smaller portion of the mix, just about 4 percent in July.
As a result, Toyota was once again the industry’s number one retail brand, for the fifth consecutive month.
Passenger car sales accounted for a slightly larger portion of the increase, up 32 percent.
As it has all year, Camry led the way with sales of nearly 30,000 units up 11 percent from last year.
The midsize segment is probably the most competitive in the industry right now and Camry was actually able to stretch its lead — not only as the best-selling midsize car, but as the best-selling car in America.
Corolla sales continue to grow thanks in part to an improving inventory situation. Sales are up 34.5 percent for July and Corolla was the fastest turning vehicle in our lineup.
And Prius family sales are up 110 percent for the month and are now running 92 percent ahead of last year.
At Scion, the FR-S is drawing people to showrooms and although it remains in a sold-out position, with sales of more than 1,600 in July, it helped push total sales for the brand up 97 percent.
xB sales were up 43 percent, the xD nearly 37 percent and the tC 26 percent.
Over on the truck side, the RAV4 also is benefitting from improved inventories, with sales up 73 percent in July.
And pickup trucks topped 20,000 for the third consecutive month, with combined Tacoma and Tundra sales up 23 percent.
Finally, Toyota Certified Used Vehicle sales recorded another strong month at more than 27,000.
For August, the Toyota Division will be holding its annual Nationwide Clearance sales event marking the end of the model year.
Consumers are responding to long-term, low interest rate financing and low lease rates and we’ll be focusing on the value and affordability of our products this month.
Zero percent financing will be available on seven models including Corolla, Avalon, Tundra, Venza, RAV4, Highlander and Sienna.
Camry will head a list of other models with available 1.9 percent financing.
And thanks to strong residuals, great lease rates are available across the board.
While leases vary by region, Camry, for instance, will be available in most markets with leases under $200 a month.
Thank you again for joining us today and I look forward to answering you questions in a few minutes.
Now I’d like to turn this over to Mark Templin for a look at the Lexus results.