New 2012 Toyota Camry debuts

2011-08-24

Automaker cuts price on some models to fend off rivals

Toyota Motor Corp. expects its Camry sedan to remain the most popular car in America after rolling out a new, seventh-generation model offering more technology and equipment for less money.
Toyota revealed the new Camry on Tuesday at simultaneous events in Dearborn, Hollywood, and at the Georgetown, Ky., plant where the car is built.
"The launch of the new Camry is very important to our company," said Toyota President Akio Toyoda, who drove a Camry off a line at the Georgetown factory.
"The vehicle has become a symbol of Toyota's success over the years," said Toyoda, the grandson of the automaker's founder. "This is an opportunity to show the world again what Toyota is all about."
The new Camry strongly resembles its predecessors, which have been derided for being bland and conservative. But although the car doesn't thrill enthusiasts, it appeals consistently to consumers drawn by its reliability and comfort. For 13 of the past 14 years, the Camry has been not only the best-selling midsize car, but the best-selling car in the United States.
The new model is riding into a tougher competitive environment, however, with some rivals challenging the notion that midsize car buyers prefer conservative vehicles.
Hyundai Motor Co.'s new boldly styled Sonata sedan has nearly doubled its sales in the past two years and now ranks among the top five midsize cars.
Detroit's automakers have increased their share of the segment, too, after fielding appealing models such as the Chevrolet Malibu and Ford Fusion. This year, Nissan Motor Co.'s stylish Altima has risen to second place in the segment.
In this increasingly competitive field, the new Camry represents "a very conservative, evolutionary change," said George Peterson, president of AutoPacific Inc. in Tustin, Calif.
"It's like, let's sell these cars to people who don't demand exciting transportation, and there are a lot of those out there."
But Toyota's pricing strategy will help it fend off challengers, he said. "They are really trying to protect their No. 1 car in the USA."
Sticker prices have been cut by as much as $2,000 on Camry cars with trim levels accounting for more than 90 percent of the model's U.S. sales, said Bob Carter, general manager of the Toyota division of Toyota Motor Sales.
While the price of the base Camry L model is up $710 at $21,955, the Camry LE costs $200 less at $22,500, the sporty SE costs $965 less, and hybrid Camrys start at $25,900, $1,150 less.
"Nothing else in the midsize sedan segment offers more value," Carter said. "We expect Camry will continue to earn its position as America's best-selling car."
The new Camry also offers improved fuel efficiency and easy-to-use multimedia technology.
Since Toyota introduced the Camry in 1983, it has sold more than 15 million worldwide, and nearly 10 million in the United States.
Even in its last months, the outgoing Camry has remained No. 1 in its segment despite a run of misfortunes at Toyota, the collapse in 2008-09 of the U.S. auto market, record safety recalls and then a devastating quake this year in Japan.
In this context, Toyota has a lot riding on the new Camry rolling into showrooms in October.
A successful launch would help Toyota reassert its standing as a dynamic competitor. A sluggish start, on the other hand, would reinforce the perception that the normally sure-footed Japanese are stumbling. The launch of Honda's Civic compact was derailed by the quake, and it is getting mixed reviews.
Analyst Jesse Toprak at TrueCar.com expects the Sonata and Honda Accord will be the Camry's biggest competitors. But he believes consumers will engage in more cross-shopping of domestic rivals, such as the Chevrolet Malibu, which is being replaced next year, and the Ford Fusion.
Both cars are more popular and command higher prices than their predecessors, which were designed at a time when Detroit's automakers were focusing on their light trucks.
Now everyone's battling for a bigger share of the midsize car segment, which is growing as drivers switch out of full-size cars, said analyst Masaki Taketani at IHS Automotive.
IHS predicts sales in the segment will rise to 2.5 million in 2015 from 2.1 million this year.
With the segment set to expand, there might be room for more variety, said Jeff Schuster, Troy-based director of global forecasting at J.D. Power.
"The success of the Sonata does suggest an appetite for more assertive design," he said, "without compromising demand for the standard midsize entry that the Camry has become."

CHRISTINE TIERNEY
/ The Detroit News