KEY POINTS:
Toyota NZ chairman Bob Field has been asking himself a few questions since Fortune magazine named six oil companies in its top 10 list of the world's most profitable corporations.
"Should we be worried that oil companies are getting bigger and richer on our insatiable thirst for fossil fuels while many motor companies are not in the financial positions to design their way out of their dependence on fossil fuels? I believe we should," he said at the launch of two new Toyota models this week.
Why? Because while the oil companies dominate the annual rich companies' list, they slip-slide away when it comes to best brand values. And Field likes brand values best. Toyota is among the world's top 10. Coca-Cola is number one. The highest oil company brand value is BP at 76.
"Brand value is like a trust mark at retail level and this evaluation suggests people will trust Coca-Cola more than they do anything else - and a huge amount more than oil companies," says Field.
"Unfortunately, your car will drink a lot more fossil fuel than you can ever drink Coca-Cola and the fossil fuel does far more damage."
United States oil giant Exxon Mobil earned US$39.5 billion ($57.8 billion) last year, the largest-ever profit in American corporate history. It topped the previous record of US$36.1 billion, also set by Exxon Mobil in 2005.
Another oil company, Chevron, earned US$17.1 billion in 2006, up 22 per cent on 2005. It's the second biggest oil outfit in the US, behind Exxon Mobil.
The third largest oil company in the US - and the fifth in the world - is ConocoPhillips. Record crude oil prices in 2006 helped it to boost profits by 15 per cent to US$15.5 billion.
There are no oil companies among New Zealand's 100 most trusted brands, in a survey done by Readers' Digest. Cadbury is number one. Mercedes-Benz is 25 and Toyota is 26.
"One could expect that brand reputation should correlate with sales results but only Toyota delivers that expectation," says Field.
"One reason is that luxury car brand reputations are inflated by aspiration rather than from personal experience.
"Another reason is that some marques sell above their reputation because of lower pricing. In the long term, however, the brand value represents perceived customer value and is a strong indicator of growth potential."
Field says an automotive franchise brand is worth the value that customers place on four basic things - products, services, value for money, pricing - and the contribution that brand makes to society.
Among Toyota's contributions here is the push for a cleaner and greener car fleet.
"It is clearly obvious we are lagging behind other developed countries in many areas, particularly in terms of automotive policies.
"Perhaps the biggest test of the Government's commitment to carbon neutrality will be the implementation of a vehicle emission rule to apply from January 2008.
"However, the draft rule allows significant time delay concessions for used import compliance and, thereby, guarantees we will continue to lag behind the rest of the developed world on vehicle emissions."
Field believes a vehicle emission rule will have less impact than a carbon tax on fossil fuels, a measure he has been pushing for some years. He says that, without the carbon tax, the Government has no option but to adopt the "greening the fleet" proposal put forward by the Business Council for Sustainable Development.
"This table of incentives and penalties is designed to shift car buyers into more sustainable vehicle choices," says Field.
The two new, petrol-powered Toyotas are cleaner and greener than the models they replace, says the company. The 1.5-litre Corolla stationwagon emits 135grams of CO2 emissions per kilometre. This puts it among the top 15 cleanest vehicles on local roads. The 3.5-litre V6 Highlander emits 259g/km, an improvement over the previous model's 270g/km.
The Highlander meets Euro4 emission levels and is aimed at the segment dominated by the Ford Territory, a thirsty but capable vehicle. The Ford uses a 4-litre straight-six engine that will be replaced in the next couple of years to meet Australian emissions standards.
Toyota knows this and wants to capitalise on it. Field says: "The Highlander will be a lot friendlier to the planet than the volume seller in this market sector during the past two years."
Despite the awareness of climate change, the SUV market in New Zealand continues to grow, from 8 per cent of the market in 1998 to 17 per cent last year. Most of this growth has been in the luxury sector and the so-called soft-roader range. Sales of the traditional mud-plugging four-wheel-drives have declined. Toyota has 22 per cent of the SUV market.
The new Highlander is bigger overall than its predecessor, with wider front and rear tracks and more ground clearance. It has more interior room and, with a standard seven seats, more versatility in its seating arrangement. In a nutshell, it is an all-round, more complete vehicle.
The line-up consists of three models with one body style. Buyers get the choice of two- or four-wheel drive. The entry-level 2WD Highlander is priced at $49,990. The standard 4WD is at $53,990 and the top-range Ltd 4WD at $61,990. All models are powered by a reworked version of the 3.5 litre V6 engine found in the Toyota Aurion and Previa V6. It delivers 201kW of power at 6200rpm and 337Nm of torque at 4700rpm and is mated to a five-speed automatic transmission with sequential shift. The suspension system has also been revised.
Toyota claims fuel consumption of 11 litres/100km (25.6mpg) for the 2WD and 11.6 litres/100km (24.3mpg) for the 4WD. The engine runs on 91 octane petrol.
Safety features include multiple airbags, three-point seat belts for all seats, and pre-tensioners and force limiters for the front seat belts. Active headrests on the front seats help reduce whiplash injuries in the event of a rear collision.
Active safety includes anti-lock brakes, traction and stability control and uphill and downhill start aids.
The Corolla GX wagon is built in Japan and powered by a 1.5 litre engine producing 81kW of power at 6000rpm and 140Nm of torque at 4400rpm and mated to a five-speed manual transmission. An automatic is not yet available.
New Zealand is the only destination for this model outside Japan and it enters the market at $25,990.
Safety features include anti-lock brakes with electronic aids. Driver and passenger front air bags are standard with front seat side, and front and rear curtain shield air bags available as an option.
The Corolla wagon comes with air conditioning, one touch power windows and an MP3 compatible in-dash single CD system with four speakers.
The 60/40 folding rear seats have a one-touch folding mechanism and recline function. The load area has 403 litres of space, increasing to 1642 litres with the seats folded down.
It has a 50-litre fuel tank and runs on 91 octane petrol. Fuel consumption is 5.8 litres/100km (48.7mpg).
