Toyota Spending Money in the U.S. On a Conventional Passenger Car

Steph Willems
by Steph Willems

Those fools — don’t they know the Corolla sold *just* 329,196 examples in the United States last year?

Alright, not everything has to be about Ford. But as the Blue Oval plans a retreat from the affordable passenger car market, other automakers stand to gain the company’s lost customers. Some of them, anyway. And Toyota seems to have no qualms about continuing to sell small, affordable cars that bring buyers into the showroom — so much so, that it’s spending $170 million to bring more jobs (and a new Corolla) to Mississippi.

In the context of this week’s news, the Corolla’s factory retooling and platform swap makes one marvel at what name recognition and a simple bodystyle can do for a model.

For its 12th generation, the Corolla moves onto the modular TNGA platform shared by many of its stablemates. Some 400 new jobs will be created at the company’s Blue Springs, Mississippi assembly plant to complete the transition, as well as increase the plant’s output. Toyota needs to free up plant space in Cambridge, Ontario to make room for the 2019 RAV4, so it’s sending extra output south of the border.

“We will be able to respond quicker and be more flexible in order to meet market demands down the road,” said Toyota Mississippi President Sean Suggs in a statement.

The next-generation Corolla appears next year as a 2020 model. Joining the outgoing model for the 2019 model year is the new Corolla Hatchback, formerly the iM. (We’ll have a review for you on April 30th.) That particular model originates overseas, where it’s sold as the Auris.

With that out of the way, let’s take a look at the Corolla’s domestic health. In a nutshell, the Corolla is in tip-top shape, all things considered. The 11th-generation model debuted for the 2014 model year, with sales (including that of the iM) hitting a post-recession peak in 2016. A mild refresh followed for 2017.

For a model that’s fairly long in the tooth, and one in need of more power and panache, last year’s sales numbers would be right at home in, say, 2003. Sales of the Corolla line fell 4 percent in March, with first quarter volume down 4.4 percent, year-to-date, but that’s hardly the kind of losses seen at other automakers.

With a new Corolla hatch replacing the slow-selling iM later this year and a new sedan arriving next year, Toyota is in as good a position as it can be with its compact car nameplate.

[Image: Toyota]

Steph Willems
Steph Willems

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  • Carrera Carrera on Apr 28, 2018

    They kept this latest generation as simple as possible, but that's why they are more reliable than Civics. No direct injection, no turbos and still get 40 mpg hwy.

  • John Horner John Horner on Apr 28, 2018

    Corollas sell themselves. When was the last time you saw an expensive TV commercial for the Corolla? When was the last time you saw multiple thousands of dollars in cash back incentives for a Corolla? Ford is giving up on sedans because there hasn't been a Ford sedan which sells itself since the first two generations of the Ford Taurus. Meanwhile, Toyota might consider giving up on the Tundra. Er, it sort of has. Same basic design since 2007 with a mild refresh in 2014.

  • Probert They already have hybrids, but these won't ever be them as they are built on the modular E-GMP skateboard.
  • Justin You guys still looking for that sportbak? I just saw one on the Facebook marketplace in Arizona
  • 28-Cars-Later I cannot remember what happens now, but there are whiteblocks in this period which develop a "tick" like sound which indicates they are toast (maybe head gasket?). Ten or so years ago I looked at an '03 or '04 S60 (I forget why) and I brought my Volvo indy along to tell me if it was worth my time - it ticked and that's when I learned this. This XC90 is probably worth about $300 as it sits, not kidding, and it will cost you conservatively $2500 for an engine swap (all the ones I see on car-part.com have north of 130K miles starting at $1,100 and that's not including freight to a shop, shop labor, other internals to do such as timing belt while engine out etc).
  • 28-Cars-Later Ford reported it lost $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. The sales were down 20 percent from the first quarter of 2023 and would “drag down earnings for the company overall.”The losses include “hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.” [if they ever are recouped] Ford is the only major carmaker breaking out EV numbers by themselves. But other marques likely suffer similar losses. https://www.zerohedge.com/political/fords-120000-loss-vehicle-shows-california-ev-goals-are-impossible Given these facts, how did Tesla ever produce anything in volume let alone profit?
  • AZFelix Let's forego all of this dilly-dallying with autonomous cars and cut right to the chase and the only real solution.
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