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First Drive: 2009 Toyota Venza

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Consider it to be ill-advised to dismiss the 2009 Toyota Venza as simply a Camry station wagon or just another crossover in a market flooded with crossovers.

Venza isn’t a styling stunner, a high-performance sport wagon or an off-road rally machine. It won’t add considerable volume to Toyota’s sales totals, and it only slightly widens the company’s product portfolio in North America. But the vehicle still represents a major step for the Japanese company.

Why? First of all, this all-new product for Toyota was conceived and engineered in the United States, and it will be produced here primarily for the U.S. market.

Second, despite fits and starts with the Tundra, and setting aside American market bias against station wagons, Toyota rarely stubs its toe when entering a new segment. Venza isn’t expected to garner huge volume right out of the chute. It is slated for about 60,000 sales in its first full year of production.

Previewed as the FT-SX “crossover sedan” concept at the 2005 Detroit auto show, the 2009 Venza goes on sale in early December in the United States, Canada and Puerto Rico. V6 models arrive first, with the full line including four-cylinder cars in January. A gas-electric hybrid reportedly arrives in the 2012 model year, but Toyota hasn’t confirmed that timing.

So what exactly is this Venza–a name Toyota says is an amalgamation of Monza (for its sporting intentions) and Venture (as in the “adventure” of an active lifestyle)? Toyota marketing manager Tim Morrison says some buyers will look at Venza and call it a station wagon–and that’s OK. Others will see a crossover, and some will just view it as a car. In Toyota marketing speak, it’s a “car optimized,” meaning it is roughly 70 percent car and 30 percent sport-utility vehicle, Morrison says.

In reality, Venza draws on the Highlander for its front chassis, MacPherson struts and all-wheel drive and Camry for its center section, and it has Venza-unique parts for its rear third, including a fully independent dual-link MacPherson strut suspension. V6 models come with 20-inch wheels and tires, while four-cylinders get 19s.

In the Toyota lineup, the Venza fits between the Camry and the Highlander, where it has a six-inch higher roofline than a Camry but is six inches lower at the roof than a Highlander. Step-in height is identical to the Highlander’s, but ingress and egress is eased by something Toyota calls a “sweeping rocker” panel that is the same height as the floor and narrower than typical rocker panels.

The net effect is a car/wagon with high sills and a shortened greenhouse, which gives the Venza a stylish but decidedly SUV appearance. Morrison notes that if Toyota merely wanted a Camry station wagon, it could have just boxed in the rear of a Camry sedan. Clearly, Venza is something more than that.

Toyota will offer four versions of Venza, including V6 and four-cylinder models with front- or all-wheel drive with either engine. A six-speed automatic transmission is the sole gearbox. The V6, which Venza shares with the Camry and the Highlander, is a 3.5-liter all-aluminum, four-valve-per-cylinder unit that produces 268 hp and 246 lb-ft of torque. The four-cylinder, a new 2.7-liter bored-out version of the Camry 2.4 liter, also is an all-aluminum, four-valve-per-cylinder engine making 182 hp and 182 lb-ft of torque.

We drove all powertrains, with the four-cylinder AWD model clearly the highlight. The four was surprisingly capable, even at 75 mph on long, uphill mountain grades, where the engine held steady at 3,000 rpm and the transmission never downshifted in search of another gear. Though the V6 is obviously stronger–Toyota says the V6 front-driver will run 0-60 mph in 6.7 seconds (versus 8.8 seconds for the I4 FWD)–unless you need to tow 3,500 pounds (versus 2,500 pounds for the towing-equipped I4). The four is more than adequate for most driving, while providing overall better fuel economy. Regardless of engine choice, we found the electronic power steering far more linear, predictable and properly weighted in the all-wheel-drive models versus a duller, almost chunky steering feel in the front-drivers. And all-wheel drive adds only $1,450 to either sticker.

The five-seater offers reasonable space at each seat position, with substantial rear-seat leg room even with the front seat moved well rearward. Toyota scatters plenty of storage, cupholders and cubbies throughout the cabin, though the sliding front-center console lid and cupholder location seem to function at cross purposes.

All but the base 2.7-liter front-drive Venza with cloth seats come with keyless entry and push-button start. All models come with an array of standard features such as dual-zone climate control, auxiliary audio jack, tilt and telescoping steering wheel, a six-disc audio system, split-folding rear seat with 14-degree rear-seat recline, seven air bags, Hill-Start Assist Control, fog lights and chrome exhaust tips. Two JBL audio upgrades are available, along with a DVD navigation system and rear-seat entertainment system. A rear-mounted backup camera also is an option.

It’s hard to say what Venza really is–car, station wagon, crossover or SUV. But Toyota says what really matters is what the customer sees–and buys.

2009 Toyota Venza

ON SALE: January (V6 in December)

BASE PRICE: $26,695

DRIVETRAIN: 2.7-liter, 182-hp, 182-lb-ft I4; FWD, six-speed automatic

CURB WEIGHT: 3,760 lb

0-60 MPH: 8.8 sec (mfr)

FUEL ECONOMY: 23 mpg (EPA)

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November 3rd, 2008

Analysts in Japan Predicting 40% Drop for Toyota

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According to predictions by analysts reported in Japanese newspapers and compiled in an Automotive News report, Toyota is facing a 40 percent decline in annual profits, proving that even the world’s largest automaker is not immune to weak sales in the U.S. and increasingly around the world.

Estimates are suggesting that Toyota’s operating profit will come in at around 1.3 trillion yen ($12.8 billion). The company had forecast a figure of 1.6 trillion yen. Additionally the company is likely to fall short of its projected global sales target of 9.5 million units considering it has already lowered 2008 and 2009 sales targets already.

Toyota has declined to comment on the reports, but Koichi Ogawa, chief portfolio manager at Daiwa Asset Management, said the report would not be likely to cause a “free fall” of shares in the company.

“In a market like this, the key decision is what you unload and what you hold. You will end up selling everything if you sell companies with weaker earnings,” Ogawa said.

“Given that the price of fuel and some raw materials is falling, earnings in the auto sector are likely to start to recover in six months to a year. This could be a good buying opportunity for long-term investors.”

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October 11th, 2008