Toyota's green image is suddenly black-and-blue
Mark Rechtin
Automotive News
December 10, 2007 - 12:01 am ET
LOS ANGELES - For years, Toyota's environmental reputation has been
beyond reproach. But now it seems everyone from the Detroit 3 to the
Sierra Club is questioning the green credentials of the company that
gave America the Prius.
In fact, environmental activists are distancing themselves from
Toyota - especially since the company sided with General Motors, Ford
and Chrysler on the subject of how much and how fast to raise CAFE
standards.
And Toyota's bigger redesigns of the Tundra pickup and Sequoia and
Land Cruiser SUVs have not endeared the automaker to green advocates.
Is Toyota worried? Not so you could tell.
"We don't get caught up in the rhetoric," says Jim Lentz, president of
Toyota Motor Sales U.S.A. "We have thick skin."
Environmentalists have begun piling on. The Natural Resources Defense
Council has launched a Web site titled "How Green Is Toyota?" The site
underlines what it calls the company's hypocrisy, calling out Toyota
for "trying to move America backward on fuel economy."
3-point message
Toyota's new corporate advertising campaign emphasizes these ideas.
1. Green vehicles
2. Local production
3. Social responsibility
Joining the club
In the past, Sierra Club leaders held Toyota up as an example of a car
company willing to exceed standards. But more recently it has called
the automaker's alignment with the Detroit 3 in this year's
congressional fuel economy debate "deeply disappointing."
Unlike Honda and Nissan, Toyota opposed legislation before Congress
that would boost fuel economy for all new vehicles to 35 mpg by 2020.
Meanwhile, Toyota's competitors, especially GM, have been pushing
their own green credentials hard - and tweaking Toyota along the way.
The Chevrolet Tahoe Two Mode Hybrid has nine decals and badges
proclaiming its hybrid status - including a strip of decals 3 inches
high running along the sides of the hulking SUV.
At the recent Los Angeles auto show, GM Vice Chairman Bob Lutz told
reporters that the Two Mode Tahoe gets the same fuel economy in city
driving - 21 mpg - as the four-cylinder Toyota Camry.
An advertising campaign will tout GM's environmental steps, in an
attempt to close the automaker's green perception gap with Toyota. GM
also is continuing its drumbeat about the Chevrolet Volt hybrid, which
is expected to start production in 2010.
And GM is boasting that the publication Green Car Journal named the
Tahoe Two Mode Hybrid its "Green Car of the Year" at the Los Angeles
auto show. The automaker neglected to mention that no Toyota vehicles
were eligible this year because they had won the award in the past.
Art Spinella, president of CNW Marketing Research in Bandon, Ore.,
said GM's tactics are smart.
"Hybrids are a revenue godsend," Spinella says. "They raise the
average MSRP, raise the average transaction price, can potentially
raise or at least add profits. Everyone wants a lick from this
particular frog."
But Toyota isn't panicking. The U.S. umbrella company, Toyota Motor
North America, recently launched its own green advertising as part of
a larger corporate image campaign touting the company's environmental
stewardship, social responsibility and U.S. economic impact.
But the green portion of the campaign has been in the works for seven
months and is not a reaction to recent changes in the political winds,
a Toyota spokesman said.
Lentz says neither Toyota nor Lexus plans a hybrid marketing push to
boost sales.
Still short of Priuses
"Our hybrid intention numbers continue to rise," he says. "We still
can't build enough Priuses. We're at 16 days' supply, but we'll be
back into single digits by month's end."
Environmental magazines such as Plenty still gush over the Prius. And
the American Council for an Energy Efficient Economy listed four
Toyotas in its top 10 "greenest" vehicles.
Bill Reinert, Toyota's resident alternative- fuels guru, said the
company will not trumpet future technological developments before they
are ready for the public. He compares Toyota's restraint to GM's
active hyping of the Volt hybrid.
"In 1997, no one had ever heard of a hybrid, even though Toyota had
been working on it secretly since 1992," Reinert said. "We didn't say
anything. We didn't show clay models. We just did it.
"You can't let competitive
PR pressure affect your own long-term plans
because then you become reactionary rather than progressive."