In the Driver's Seat with Jim Colon, Part II

As a result of the Wall Street debacle, the credit crisis and the recent hurricane in Texas, the auto industry wrapped up another dismal month. While the auto industry sales dipped by a whopping 27 percent in September, Toyota Motor Sales USA Inc. new vehicle sales slid 32 percent, comparing the same time period last year. According to industry officials, the last time Toyota posted such gloomy numbers were in June 1987. During that same year, we experienced Black Monday - the name given to Monday, October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short period. The terms Black Monday and Black Tuesday are also applied to October 28 and 29, 1929, which occurred after Black Thursday on October 24, which started the Stock Market Crash of 1929. Moreover, the Stock Market Crash triggered the beginning of the Great Depression. With this being the month of October, its eerie to think we're experiencing another major financial crisis. In the second part of our candid one-on-one interview with Jim Colon, Toyota's first African American vice president of sales, we shift gears - talking about the state of Toyota and the auto industry. (To read part one of Colon's interview, click here.)

JeffCars.com: Now that sales are in a free for all, because of the economy and consumers shift to fuel-efficient vehicles, what is your biggest challenge today?

Jim Colon: Reacting quickly and effectively to the changing trends affecting the marketplace is key in today’s automotive climate. Fortunately this plays into our strengths. When demand for our fuel-efficient, passenger-car line went up, we were well poised to respond quickly by right-sizing our inventory and product mix. For instance, we added additional production of high-demand vehicles like Corolla and Yaris and took the necessary steps to begin building Prius in the U.S. at the under construction Mississippi plant in 2010. The automotive industry is an ever-changing business and we plan for seasons like this.

JeffCars.com: With gas prices hovering above $3.50 a gallon, what will be in Toyota’s portfolio in five years – plug in hybrids, electric cars similar to GM’s Volt expected to launch in 2010?

Jim Colon: Well, next year, at the Detroit Auto Show, we look forward to expanding our conventional hybrid line-up by staging world premiers of two all-new, dedicates hybrids - one for Toyota and one for Lexus. Plug-in hybrid technology is also something we’re actively pursuing, but there is much work to do, both technologically and with regard to market preparedness, before these products are ready for the public. We would like to be first to market with these technologies but, it is more important to be best in market, exceeding customer expectations rather than just meeting them.

JeffCars.com: Lately every automaker has been affected by the return of off-lease SUVs, trucks and luxury cars not holding their values – causing significant losses- due to the market shift toward fuel-efficient vehicles. Why do you think some automakers are choosing to shy away from leasing, while others such as Toyota continues to remain in the game despite taking losses? And do you foresee a future in leasing?

Jim Colon: While I can’t speak for other manufacturers, I can tell you that Toyota plans to stay in the lease market. We recognize that leasing is a financing option that in many cases presents customers with a more affordable plan to get into a vehicle. Dealers also appreciate leasing, as it helps bring customers back into the showroom more often. Given the current market, we have had to make some adjustments, up or down, as we set our residual values. But we look forward to staying in the lease market in order to support our dealers and create greater affordability for our customers.

Toyota's family of hybrids (left to right): Highlander, Camry, and Prius

JeffCars.com: In 2007, while overseeing the sales division for Lexus, you appeared on The Oprah Winfrey Show – demonstrating to her how to use the new automatic parking system in the LS 460. How would you describe the experience, appearing on the show?
Jim Colon: Oprah’s producers reached out to us after seeing the LS Advance Parking Guidance System demonstrated on our commercials and in several news segments. We couldn’t have been more excited to receive the invitation. As it turned out, I was scheduled to be in my hometown of Chicago when the show was to be taped. Oprah and her staff were wonderful to work with. It was great showing Oprah how to use the system and, though Oprah doesn’t drive much herself, she parked it perfectly.

JeffCars.com: Looking in the rearview mirror, what is the one thing you wish you would have accomplished under your leadership at Lexus?
Jim Colon: There is always room for improvement in every aspect of the business - from product innovation and quality to sales and customer service, we’re never satisfied with past accomplishments.

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To read the final series of Colon's interview, click here.