If I were the guy in charge of the Ford 500 or the any of the forgettable GM sedans out there, the Avalon would definitely be my Green Kryptonite.
Without a doubt, it was the most impressive 'bread and butter' car at the Detroit and an absolute steal starting at $28K.
And it was finished as nice as any currently shipping Lexus model...well, maybe not the SC430.
It even has reclining rear seats like the S500 Mercedes-Benz!
Speech:
Donald Esmond
Senior Vice President and General Manager
Toyota Division
North American International Auto Show, Toyota Avalon and FT-SX Press Conference
Detroit, Michigan
Monday, January 10, 2005
Thank you, Irv.
Good afternoon everyone, and thanks for joining us today at what has become the single-most important, exciting and enlightening automotive event of the year.
Every year, Detroit gives the industry a fresh new start. It allows us to look back and to look forward. It helps us keep tabs on each other and somehow helps us keep everything in perspective.
2004 was a very good year for the Toyota division. We set a record for total sales for the ninth year in a row. Although I like to think it's all about good marketing, it really comes down to the product. Camry was the best-selling passenger car in America. Prius sold more than 50,000 units last year, and we could have sold twice that many. This year, with added production, we will. And, we launched an all-new Tacoma pickup, which has already been named Motor Trend's Truck of the Year.
As great as 2004 was for new products, moving forward it will pale in comparison with what we have planned for the next 12 months. By this time next year, we will have introduced six all-new or fully re-designed models. Although I'm not quite ready to discuss the specifics of this aggressive roll-out plan, I can confirm that we plan to launch the Highlander hybrid SUV in mid-June. And next month, we will bring to market, the full-size flagship of our division - Avalon.
As Irv mentioned, our press conference today will be a double world premiere as we unveil the third-generation Avalon and a new crossover concept vehicle, the FT-SX.
These two vehicles have much more in common than the fact that they are sharing the stage here this afternoon.
That's because both vehicles were created to appeal to customers who are looking to move-up from a mid-size sedan or SUV.
What they seek is a "reward" vehicle that offers roominess, comfort and refinement in a stylish package that conveys success, without moving to a luxury brand.
Not only are the Avalon and FT-SX linked strategically, both were sculpted by the same artist - a 30-year-old designer from our Calty Design Studio in Newport Beach California. Mr. Ian Cartabiano. Ian, please stand up and be recognized for a job well done.
I find it interesting, and just a little disheartening, that Ian was 19-years-old and entering his first year of design school when the first-generation Avalon debuted in the fall of 1994.
A lot, besides Ian, has changed in the last ten years. Ten years ago, I was the Lexus Division Vice President of Sales.
My hair wasn't as grey, and I had fewer wrinkles, and a bit more glide-in-my-stride.
And ten years ago, Toyota was a very different company. In 1994, the Toyota division sold about a million vehicles. This year, we sold nearly 1.8 million cars and trucks. Our market share in '94 was 6.5 percent. It's now up four points to 10.5 percent. In '94, we had 12 vehicles in our lineup. This year we have 17 different models, plus three more from Scion.
In 1994, the full-size domestic sedan market was also, a much different environment. Column shifters and front bench seats,
were still common denominators in a competitive set that included Crown-Vic, Caprice, LeSabre and Grand Marquis.
Through two generations, Avalon has served us well. Within the full line of Toyota division cars and trucks, Avalon owners are among the most loyal and the most satisfied.
They like what owning an Avalon says about them - that they are confident enough to buy a sedan with luxury features, without needing to buy a luxury nameplate. Owning an Avalon, they tell us, shows that they spent their money wisely.
The entirely-new, third-generation Avalon was designed to appeal to this loyal core of Avalon owners. However, the primary focus of the development program was very different from past generations.
Our goal was to develop a car that would deliver on levels never-before addressed by the first-two generations of Avalon.
The new Avalon is much more than just a full-size domestic sedan. It is distinctive and stylish, with a bold presence and a new level of refinement that you can both see and feel.
And although it is a truly large sedan, both inside and out, the new Avalon moves with a new measure of agility, quickness and grace.
It is a large-sedan concept redux, re-considered, revised and most importantly, re-imagined
Ladies and gentlemen, the all-new, 2005 Toyota Avalon.
The 2005 Avalon was developed by Americans, for Americans, and is, by far the most American vehicle we have ever developed. "Styled by Ian" at our Calty studio in California, Avalon will be built at our Georgetown, Kentucky production facility.
Most importantly - and for the first time ever for any Toyota vehicle - all phases of a Avalon's engineering development,
including the drivetrain and powertrain, were the lead-responsibility of the Toyota Technical Center, right down the road in Ann Arbor, Michigan.
And the man in charge of it all is with us today. Ladies and gentlemen, it is my pleasure to introduce Executive Chief Engineer, Shigeki Terashi.
Terashi-san.
Thanks to Mr. Terashi and his engineers, the 2005 Avalon is significantly roomier and more comfortable, and substantially more powerful, with handling that is more agile and more balanced.
Its exterior styling is more elegant and more substantial, with a stronger individual presence.
Its interior was re-designed for maximum comfort and convenience, with a cleaner look and more upscale level of refinement.
Its model offerings have increased from two to four. The new "Touring" grade will attract younger buyers at one end of the spectrum, while the new "Limited" grade will provide a new level of advanced technology and passenger conveniences at the other.
Powering the Avalon is an all-new 3.5-liter V6 engine, matched to a five-speed sequential automatic transmission. The new V6 produces an impressive 280 horsepower and 260 pounds of torque, a performance improvement of more than 30 percent over the previous generation.
Not only is this engine the most powerful V6 ever offered by Toyota in its U.S. model line-up, it is the most powerful V6 engine offered in the full-size sedan class. Even with the additional power, the new Avalon achieves an improved and impressive estimated EPA fuel economy rating of 22 city/31 highway.
Finally, every Avalon is now equipped with front-passenger, seat-mounted side airbags, front-and-rear passenger side-curtain airbags, as well as a driver's knee airbag as standard equipment.
By now, you might be wondering, with the dramatic new design, the significant upgrades in power and drivetrain and all new levels of standard comfort, convenience and safety features, how much more will the new Avalon cost?
When it hits showrooms in February it will carry a base price of $26,350, a mere $205 higher than the MSRP on the vehicle it replaces. Like never before, the 2005 Avalon is smart money spent wisely.
The median age should fall just under 60 and we anticipate that there will be virtually no gender bias.
While the goal of most auto manufacturers these days is to lower the median age of their buyers as much as possible, we are quite content with the mature age profile of the Avalon buyer.
To be honest, I don't think I would have been comfortable with that number when we launched Avalon 10 years ago.
But with the launch of Scion, the all-new Toyota Tacoma and the Corolla XRS, we are bringing new and younger buyers into the Toyota family at an impressive rate.
For all of our emphasis on youth, we cannot ignore the size and influence of the mature-boomer consumer group. It is an ever-evolving and dynamic consumer base that is constantly looking for products that are new and different. Not only do they have money, they are willing to spend it. I assure you, Toyota will continue to look for new ways to address their needs…and their wants.
In fact, we think we have a concept that will do just that. And here to tell you more about it is Kevin Hunter, the vice president of design at Calty Design Research. Kevin…
Hunter remarks:
Thank you Don.
As Don mentioned, our research for the all-new Avalon led us to develop what we see is an all-new genre for Toyota.
In looking at the different buyer groups for the Avalon concept we came to realize that as Baby Boomers become "empty nesters." their lifestyles tend to change as well. Many of these maturing couples begin to revert to a lifestyle that resembles one they experienced in their 20s.
They go out with friends, enjoy "date nights," they go on road trips and are open to new ideas that will enhance their lifestyles. With their kids out of the house, they become more active.
The traditional reward for this customer had always been a move from a sedan to a coupe. But with this increased level of activity, and a decade of these consumers becoming accustomed to the SUV lifestyle, a coupe or small sports sedan is no longer a practical choice.
But empty nesters still want that life-stage reward, a vehicle that inspires passion and at the same time offers surprising room and versatility. We also discovered that the desire for this type of a vehicle would also be shared by young families with children who desire a vehicle that satisfies a certain amount of expected practicality while still offering an emotional appeal that minivans, SUVs or wagons might not.
Now we've all been witness to the explosion of the SUV market. What may not be so apparent however is the increased flow back and forth between sedans and SUVs.
We thought it would be interesting to explore creating a vehicle for these buyer groups that would combine the best attributes of a sedan - those being performance and sophisticated styling, with those of an SUV - versatility, utility, and a bold attitude.
The vehicle you are about to see is the result of our exercise in defining a new genre and potential product direction for Toyota.
Ladies and gentlemen, it is my great pleasure to introduce the Toyota FT-SX crossover concept.
We believe that the FT-SX will inspire new consumers with surprising utility, powerful design, innovative features, and luxurious comfort.
The FT-SX concept is lower and wider than an SUV, yet taller, more comfortable and more versatile than a sedan. It provides better overall handling and steering response and better ingress/egress than a typical SUV, while offering better visibility and a more commanding view than a typical sedan.
The ample power provided by its V6 engine is controlled by a full-time all-wheel drive system. A multi-function glass roof, four doors and an innovative rear hatch add unheard of functionality in this new class.
Here now, in their own words, are the two Calty designers who were responsible for crafting the exterior and interior of the FT-SX. Ian Cartabiano and Al Palma.
As Don mentioned earlier, for all of our emphasis on youth, we cannot ignore the size and influence of the mature-boomer consumer group.
After all, these are the same consumers that bought-in to an idea 35 years ago that a small company from Japan was capable of building dependable, high-quality cars and trucks that were as affordable as they were fun to drive.
These are also the buyers who became loyal owners, who continue to look to Toyota for innovation, quality and value. With concepts like the FT-SX, we plan to keep them coming back for more, for many years to come.
Thanks for your kind attention this afternoon. It's now my pleasure to turn the meeting back-over to Irv Miller.
Irv Miller closing remarks:
I'd like to thank Kevin Hunter, Ian Cartabiano, Chief Engineer Terashi and all of the folks at Calty for a job well done developing the all-new Avalon and the FT-SX, and for assisting with our presentation today.