Kizashi Killed: Suzuki Reportedly Canceling Large Car Plans

Suzuki Motors will reportedly scrap its plans for a larger, more upscale sedan based on its trio of Kizashi concepts in an effort to cut costs and production. In a report last week by Reuters citing Nikkei, Suzuki will focus on reducing its expenditures rather than investing in the development an all-new car in an ever-shrinking segment already occupied by well-established players. Its larger, more luxurious models were slated to make their debut sometime in 2010, but as global demand dwindles on all segment levels, such a huge project was deemed too much for the Japanese automaker. In concept form, the Kizashi cars utilized highly fuel efficient powertrains ranging from a 2.0L turbo diesel four-cylinder to a more powerful 3.6L V-6 engine The Nikkei also reported that Suzuki officials have opted to delay the 2010 opening of plants in Russia and Thailand as a result of lackluster sales. Source: Reuters

Four-cylinder Toyota Highlander priced at $25,705

Toyota has just announced pricing on the 2009 Highlander SUV with its new 4-cylinder engine. The latest entry-level model in the Highlander lineup will arrive at the dealership with a base MSRP of $25,705. That figure cleanly undercuts the price of the Highlander V6 FWD ($27,600) and the Highlander Hybrid ($34,700). The new 4-cylinder engine displaces 2.7-liters and is rated at 187 hp and 186 lb-ft of torque. Mated to an all-new 6-speed electronically-controlled automatic, it's enough motivation to get the SUV to 60 mph in a claimed 9.7 seconds, yet still return an EPA estimated 20 mpg city and 27 mpg highway (22 MPG combined). For comparison, the Highlander V6 is rated at 18/24 and the Hybrid at 27/25... yes, the new gasoline-fed inline-4 is more efficient than the hybrid on the highway. Look for the new four-cylinder Highlander at Toyota dealers in January.

As sales slump, Toyota cuts bonuses and vehicle production

Management bonuses will be slashed 10 percent at Toyota as a result of the global economic slowdown. About 5,000 managers will take cuts as the Japanese automaker reels from falling global sales that are hitting its local market hard. Toyota vehicle sales in Japan dropped 27 percent in November (excluding 660cc minivehicles) and Lexus sales dipped 24 percent -- mirroring the same sales issues that both brands are having in the United States. As a result, the Japanse Juggernaut will halt production for two days on one of the Tahara production lines manufacturing the Lexus LS, GS and IS models, which will prevent about 5,000 luxury cars from being built, and idle another factory in southern Japan for two days, as well. Toyota is also expected to announce lower sales and production estimates at its year-end press conference that happens at the end of this month. That news will follow the 1 trillion yen ($10.7 billion) yanked just last month from its annual operating profit forecast.

[Source: Automotive News, subs. req'd]