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May 2014 Sales Conference Notes
June 03, 2014
May 2014 Sales Conference Call
Tuesday, June 3, 2014
May 2014 Sales Conference Call (Audio Clip)
Good day and thank you for joining us to review May sales results for Toyota, Scion and Lexus.
Speaking today will be:
Bill Fay, Group Vice President and General Manager of the Toyota Division
And Jeff Bracken, Lexus Group Vice President and General Manager
A recording of the call will be available at Toyota.newsroom.com about one hour after its conclusion and of course our communications team also is available to field any additional questions you may have at (310) 468-5297.
Now I’d like to turn it over to Bill for a look at TMS and Toyota Division May results.
Toyota Division Group Vice President and General Manager Bill Fay:
Thank you Mike,
Hello everyone, and thank you for joining us today.
May was one of those months…
Where everything came together for the industry
With five weekends
Including an early Memorial Day
One extra selling-day
And improving consumer confidence
Resulting in the industry’s best volume month in nine years
Total industry sales
Coming in at 1.6 million vehicles
Up 11 and a half percent from last year
Best May since 2004
Translates to a SAAR of about 16.8 million
Third straight month with a SAAR of 16 million or better
First time since 2007 we’ve seen that consistency
Brings YTD SAAR to 15.9 million
Toyota, Lexus and Scion dealers
Helped lead the way
Sales of 243,236
Up 17% from last year
Well above the industry average
Making TMS #1 in retail sales
By more than 12,000 units
That’s also more vehicles than we’ve sold in any one month
Since May of 2008
For the Toyota Division
Big month for our core products
Camry, Corolla, hybrids and RAV4
All posting significant gains
Passenger car sales were up 21%
As our cars outperformed trucks for the first time in 7 months
Light Truck sales were still up 11%
Continue to work through inventory challenges with several vehicles in our lineup
Total Toyota Division sales of 216,315
Up 17% from last year
Toyota was #1 in retail sales
By a wide margin
For the fifth consecutive month this year
Camry sales
Hit nearly 50,000 units
49,584 to be exact
And up 26 and half percent for the month
Put it in perspective, Camry has exceeded 50,000 monthly sales only four times in its history
Camry also was involved in another milestone during May
It became the 10 millionth car built at our plant in Kentucky over the past 26 years
The all-new Corolla
Best month in nearly five years
Sales of 36,600 units
Up 31%
Stretched its lead as the best-selling subcompact in America
Hybrid Lineup also did very well
With total Toyota Division sales of nearly 34,500
Up 11%
That’s the most hybrids we’ve sold in month in two years
Prius Family led the way with sales of more than 26,800 units
Up 14%
Both Camry and Avalon hybrids posted double-digit gains
Prius story was especially strong in California
Where our total car sales were up 22%
Prius sales were up 30%
Southern California had its best Prius month ever
In fact, 1 out of every 3 Toyota cars sold in California was a member of the Prius family
And it looks like we sold more Prius in California in May
Than the #2 hybrid nameplate
The Fusion, sold nationwide
On truck side
RAV4 volume leader
At nearly 23,500
Up 13% from last year
Best May ever
The compact sport utility segment remains red hot
RAV4 is limited only by inventory levels
The New 4Runner and Highlander models
Continue to perform very well
As they combined for sales of nearly 20,000
Highlander up 8.5%
While 4Runner jumped 70%
And Sienna had a good month
Up 12 and half percent
With more than 13,300 sold
Combined pickup sales
Topped 25,000 units
Up two and half percent
As a drop in Tacoma sales because of inventory constraints
Was offset by a 14.5% gain in Tundra sales
Finally, Toyota Certified Used vehicles
Sold more than 32,000 vehicles in May
As the demand for used vehicles remains strong
A further indication of the overall strength of the market
Looking Ahead
Although we may see some payback in June as a result of the May results
Expect overall momentum to continue
Driven by new products,
including the new Camry coming later this year
Near record-low financing options
And the recent uptick in consumer confidence
This past weekend
Was our 2nd best non-holiday weekend in the 6 years
and the strength of the passenger car market
And retail sales are also good signs for the summer selling season
So there’s every indication the market stability
And solid growth we’ve seen the last three months will continue through the summer
Now I’d like to turn this over to Jeff Bracken for a look at Lexus results.
Lexus Group Vice President and General Manager Jeff Bracken:
Hello everyone. Thanks for calling in.
The luxury vehicle market
Has been outperforming the overall industry so far this year
that trend continued last month
At Lexus we had a very good month in May
Sales of 26,921
Up 16.6% (DSR)
That’s our best May since 2008
Third straight month of double digit gains
Sales of our newest models
The IS and GX,
more than doubled
And our core models,
the ES and RX,
both showed solid gains
On the passenger car side,
ES posted sales of more than 6,500 units
Up nearly 7% (DSR) from last year
IS was the big gainer as it has been all year
Sales of 4,400
Sixth straight month sales have more than doubled
For our Luxury Utility Vehicle lineup
We saw total sales rise 20%
All three models posted gains
The new GX continues to provide the growth
While the RX provides impressive volume
GX sales more than doubled to 1,958 units
Best volume since in nearly four years
7th consecutive month sales have doubled since launch
RX was up nearly 5% (DSR)
RX continues to be the best-selling luxury utility vehicle
Lexus Certified Pre-owned
Further validating the strength of the luxury market
Our Certified Pre-owned program sold more than 7,000 vehicles
A record for May
Second best month ever
In closing: YTD Lexus sales
Now up 18% for the year
Looking to keep momentum through the summer
And into the fall
When we’ll be adding several news products
Including the RC and RC F on the passenger car side
And NX 200t and 300h luxury utility vehicles
Thank you for joining us today and now I’d like to open this up for any questions you may have.
June 03, 2014
May 2014 Sales Conference Call
Tuesday, June 3, 2014
May 2014 Sales Conference Call (Audio Clip)
Good day and thank you for joining us to review May sales results for Toyota, Scion and Lexus.
Speaking today will be:
Bill Fay, Group Vice President and General Manager of the Toyota Division
And Jeff Bracken, Lexus Group Vice President and General Manager
A recording of the call will be available at Toyota.newsroom.com about one hour after its conclusion and of course our communications team also is available to field any additional questions you may have at (310) 468-5297.
Now I’d like to turn it over to Bill for a look at TMS and Toyota Division May results.
Toyota Division Group Vice President and General Manager Bill Fay:
Thank you Mike,
Hello everyone, and thank you for joining us today.
May was one of those months…
Where everything came together for the industry
With five weekends
Including an early Memorial Day
One extra selling-day
And improving consumer confidence
Resulting in the industry’s best volume month in nine years
Total industry sales
Coming in at 1.6 million vehicles
Up 11 and a half percent from last year
Best May since 2004
Translates to a SAAR of about 16.8 million
Third straight month with a SAAR of 16 million or better
First time since 2007 we’ve seen that consistency
Brings YTD SAAR to 15.9 million
Toyota, Lexus and Scion dealers
Helped lead the way
Sales of 243,236
Up 17% from last year
Well above the industry average
Making TMS #1 in retail sales
By more than 12,000 units
That’s also more vehicles than we’ve sold in any one month
Since May of 2008
For the Toyota Division
Big month for our core products
Camry, Corolla, hybrids and RAV4
All posting significant gains
Passenger car sales were up 21%
As our cars outperformed trucks for the first time in 7 months
Light Truck sales were still up 11%
Continue to work through inventory challenges with several vehicles in our lineup
Total Toyota Division sales of 216,315
Up 17% from last year
Toyota was #1 in retail sales
By a wide margin
For the fifth consecutive month this year
Camry sales
Hit nearly 50,000 units
49,584 to be exact
And up 26 and half percent for the month
Put it in perspective, Camry has exceeded 50,000 monthly sales only four times in its history
Camry also was involved in another milestone during May
It became the 10 millionth car built at our plant in Kentucky over the past 26 years
The all-new Corolla
Best month in nearly five years
Sales of 36,600 units
Up 31%
Stretched its lead as the best-selling subcompact in America
Hybrid Lineup also did very well
With total Toyota Division sales of nearly 34,500
Up 11%
That’s the most hybrids we’ve sold in month in two years
Prius Family led the way with sales of more than 26,800 units
Up 14%
Both Camry and Avalon hybrids posted double-digit gains
Prius story was especially strong in California
Where our total car sales were up 22%
Prius sales were up 30%
Southern California had its best Prius month ever
In fact, 1 out of every 3 Toyota cars sold in California was a member of the Prius family
And it looks like we sold more Prius in California in May
Than the #2 hybrid nameplate
The Fusion, sold nationwide
On truck side
RAV4 volume leader
At nearly 23,500
Up 13% from last year
Best May ever
The compact sport utility segment remains red hot
RAV4 is limited only by inventory levels
The New 4Runner and Highlander models
Continue to perform very well
As they combined for sales of nearly 20,000
Highlander up 8.5%
While 4Runner jumped 70%
And Sienna had a good month
Up 12 and half percent
With more than 13,300 sold
Combined pickup sales
Topped 25,000 units
Up two and half percent
As a drop in Tacoma sales because of inventory constraints
Was offset by a 14.5% gain in Tundra sales
Finally, Toyota Certified Used vehicles
Sold more than 32,000 vehicles in May
As the demand for used vehicles remains strong
A further indication of the overall strength of the market
Looking Ahead
Although we may see some payback in June as a result of the May results
Expect overall momentum to continue
Driven by new products,
including the new Camry coming later this year
Near record-low financing options
And the recent uptick in consumer confidence
This past weekend
Was our 2nd best non-holiday weekend in the 6 years
and the strength of the passenger car market
And retail sales are also good signs for the summer selling season
So there’s every indication the market stability
And solid growth we’ve seen the last three months will continue through the summer
Now I’d like to turn this over to Jeff Bracken for a look at Lexus results.
Lexus Group Vice President and General Manager Jeff Bracken:
Hello everyone. Thanks for calling in.
The luxury vehicle market
Has been outperforming the overall industry so far this year
that trend continued last month
At Lexus we had a very good month in May
Sales of 26,921
Up 16.6% (DSR)
That’s our best May since 2008
Third straight month of double digit gains
Sales of our newest models
The IS and GX,
more than doubled
And our core models,
the ES and RX,
both showed solid gains
On the passenger car side,
ES posted sales of more than 6,500 units
Up nearly 7% (DSR) from last year
IS was the big gainer as it has been all year
Sales of 4,400
Sixth straight month sales have more than doubled
For our Luxury Utility Vehicle lineup
We saw total sales rise 20%
All three models posted gains
The new GX continues to provide the growth
While the RX provides impressive volume
GX sales more than doubled to 1,958 units
Best volume since in nearly four years
7th consecutive month sales have doubled since launch
RX was up nearly 5% (DSR)
RX continues to be the best-selling luxury utility vehicle
Lexus Certified Pre-owned
Further validating the strength of the luxury market
Our Certified Pre-owned program sold more than 7,000 vehicles
A record for May
Second best month ever
In closing: YTD Lexus sales
Now up 18% for the year
Looking to keep momentum through the summer
And into the fall
When we’ll be adding several news products
Including the RC and RC F on the passenger car side
And NX 200t and 300h luxury utility vehicles
Thank you for joining us today and now I’d like to open this up for any questions you may have.
