Automaker Toyota launches new up-market hatchback in Japan

TOKYO (AP) - Toyota Motor Corp. on Thursday launched an up-market hatchback in Japan targeting aging baby boomers, as the carmaker's president said domestic sales for 2006 "were slightly behind" sales for the previous year. The Blade hatchback, powered by a 2.4-litre engine, is its highest-class hatchback to date and carries a price tag of 2.2 million yen (US$19,000) to 2.8 million yen (US$23,460).

The world's second-biggest automaker said the main targets of the Blade are those who have already finished raising their children - a rapidly growing consumer group in aging Japan. The model will be available only in Japan, according to the company.

At the launch, Toyota President Katsuaki Watanabe said domestic sales "were slightly behind" last year's unit sales. He said he would speak in more detail at a press conference scheduled for Friday.

Analysts say Toyota is on track to surpass General Motors Corp. in the coming years to become the world's No. 1 automaker.

Last month, Toyota announced plans to boost global sales to 9.8 million vehicles in 2008. GM sold 9.2 million vehicles worldwide in 2005, the second-largest volume it that company's history.

© The Canadian Press, 2006