Toyota booming in world's No. 2 spot over US rival Ford

[Ming]

Toyota booming in world's No. 2 spot over US rival Ford
Tuesday, March 08, 2005
http://thestar.com.my



TOKYO (AP) - Back in the 1970s, workers at Japanese automaker Toyota Motor Corp. were taught to never turn down an order because good times couldn't be counted on to last forever.

These days, Toyota cars are in such demand, workers are exhausted just keeping up.

"My mentors didn't teach me how to solve this problem,'' President Fujio Cho said, adding that he looks forward to confronting them at the Gates of Heaven about today's challenges, including ways to spend money as good corporate citizens - not just rake in profits.

"But I already know what they're going to say. They're going to say, 'You idiot, go figure it out yourself,' " Cho said recently in Tokyo as he received the 2004 Asian Business Leader of the Year award from Fortune magazine.

The usually unpretentious Cho, who is being succeeded by another Toyota veteran later this year, was in a bit of a gloating mood - and with good reason: Toyota is on a roll.

Toyota achieved an important milestone in 2003 by overtaking Ford Motor Co. of the United States as the world's No. 2 automaker in annual global vehicle sales.

The Japanese automaker, based in Toyota city, kept its No. 2 position last year.

Although it's still early in the year and Toyota is not without its share of risks, it's expected to do the same this year and probably the next.

Toyota, which is targeting 15 percent global market share sometime after 2010, may even overtake Detroit-based General Motors Corp. as the world's top automaker.

"Over the last several years, Toyota has been carrying out its strategy surely, rising one step at a time,'' said Nobuaki Yanachi, auto analyst at UFJ Tsubasa Securities Co. in Tokyo.

"It's in a stage now when it's preparing for its next big jump.''

Last year, Toyota sold 7.52 million vehicles around the world, including its truck subsidiary Hino Motors Ltd. and Daihatsu Motor Co. Ltd., which makes tiny cars. Ford sold 6.80 million vehicles in 2004.

In 2003, Toyota's worldwide sales totaled 6.78 million vehicles, including Hino and Daihatsu, while Ford's sales stood at 6.72 million vehicles.

The Ford tally includes Lincoln, Mercury, Aston Martin, Volvo, Jaguar and Land Rover, but it does not include sales for Mazda Motor Corp., a Japanese automaker 33.4 percent owned by the Dearborn, Michigan-based automaker.

At this pace, Toyota could overtake Ford on its own, even without Daihatsu and Hino.

Toyota alone sold 6.07 million vehicles in 2003, and 6.71 million vehicles in 2004.

General Motors is still the world's No. 1 automaker, producing 9.1 million vehicles in 2004, up from 8.8 million in 2003.

Full Article Here: http://thestar.com.my/news/story.asp...boo&sec=latest

[AdmiralViscen]

**************** it, I can't believe how far behind Ford is falling, and the rate that Toyota is accelerating.

If GM can continue to improve in Asia, Europe and Australia, and shape up on our shores, Toyota can't hope to pass them. It'd be nice if Ford could catch up with either of them.

[mbukukanyau]

the only way GM can stay in the lead is take all its brands global... all of them... and give them with exception of luxo brands AKA, Cadillac, Buick, saab and pontiac full and I mean full portfilios of products, Push Cadillac up, Keep Buick where BMW Lexus MB is, and bring pontiac up to Acura level, bring saab upto Audi level, Bring Opel to America, sartun to europe, Vauxhaul to the world.. Holden global etc....

[dav305z]

Part of me wonders if Toyota is just going to keep on steam rolling past GM, but another makes me think that this will be hard fought battle that GM has a chance of winning.
First, lets look at the things GM is doing that Ford - at least to my knowledge - has not. Ford has put a lot of time and effort into their new product releases, no doubt about it. Indeed, the Five Hundred, Mustang and perhaps the upcoming Fusion all edge out their GM counterparts. However, Ford has NOT from what I have seen taken the major steps necessary to make them competitive in the future. In the past 5 years, GM has cut out a brand, reorganized their corporate structure, and generally taken important steps towards streamlining their once bloated and unweildly corporation. GM has in fact made all of its brands global: Deawoo's are all over Europe now as Chevy's; Holdens are all over the world as Buicks, Chevys and Pontiacs, Opels are coming even coming to the US - as Saturns. That's a lot of progress for a company that basically operated as twenty independent small companies just a few years ago. They are consolidating operations - building Saabs and Opels in Europe as opposed to fully operating two factories that produce essentially the same product.
These moves will put GM in a financial position to produce more cars in the future. Indeed, the last I checked, they have more products in the pipeline than does Ford. If they then do these products right - and that is a BIG if - they can compete with Toyota.

[hudson32]

Based on what I hear, I have this feeling that Toyota will continue to rise and dominate. We can rag on their cars all we want, but the fact is they are doing a lot of things right. I think undermining our competitors doesn't play well for GM. GM clearly is doing a lot of good things as far as product is concerned. This is a hotly contested market, and GM will have to fight harder than ever to hold its ground.

[mbukukanyau]

Originally Posted by dav305z

Part of me wonders if Toyota is just going to keep on steam rolling past GM, but another makes me think that this will be hard fought battle that GM has a chance of winning.
First, lets look at the things GM is doing that Ford - at least to my knowledge - has not. Ford has put a lot of time and effort into their new product releases, no doubt about it. Indeed, the Five Hundred, Mustang and perhaps the upcoming Fusion all edge out their GM counterparts. However, Ford has NOT from what I have seen taken the major steps necessary to make them competitive in the future. In the past 5 years, GM has cut out a brand, reorganized their corporate structure, and generally taken important steps towards streamlining their once bloated and unweildly corporation. GM has in fact made all of its brands global: Deawoo's are all over Europe now as Chevy's; Holdens are all over the world as Buicks, Chevys and Pontiacs, Opels are coming even coming to the US - as Saturns. That's a lot of progress for a company that basically operated as twenty independent small companies just a few years ago. They are consolidating operations - building Saabs and Opels in Europe as opposed to fully operating two factories that produce essentially the same product.
These moves will put GM in a financial position to produce more cars in the future. Indeed, the last I checked, they have more products in the pipeline than does Ford. If they then do these products right - and that is a BIG if - they can compete with Toyota.

Toyota has only one little problem, Buick is gainnig on Lexus, Toyota has slipped way below Buick, Cadillac is closely following, and Chevy is improving tremedously with all other GM divisions, in a little area called Quality...

Before Long GM is going to be on top

[GM_Guy81]

I hope to hell GM can hold onto the top spot. The world just wouldnt be right without GM being tops.

[GM_Guy81]

At some point the US government has to step in and support our industry. All over the world governments are actively trying to boost up their industries to overtake US counterparts. The EU, subsidizing airbus industries which overtook boeing in marketshare, japans government which holds its currency artificially low compared to the dollar which directly benefits toyohondanissian, letting them make huge profits in the US.

its bull****************. we need to fight back since the WTO obviously wont do anything.

[mbukukanyau]

I do not agree, government help will only kill innovation and competitiveness... I think GM has shown it can lead overtaking VW in china and bringing back cadillac to the play, right now in Asia GM is growing faster than toyota could ever dream, and with Chevy hitting europe, comibned with Cadillac, we will see

In the US sartun is going to steal some of scions sales, but Gm has one small flaw, lack of a small compact player in the US
Which it could easily fix with opel's portfolio

[dav305z]

Originally Posted by mbukukanyau

I do not agree, government help will only kill innovation and competitiveness... I think GM has shown it can lead overtaking VW in china and bringing back cadillac to the play, right now in Asia GM is growing faster than toyota could ever dream, and with Chevy hitting europe, comibned with Cadillac, we will see

In the US sartun is going to steal some of scions sales, but Gm has one small flaw, lack of a small compact player in the US
Which it could easily fix with opel's portfolio

GM is doing better as I said above, but some help from the government may still be necessarily and at any rate would be very welcoome IMO. The biggest difference between GM and Toyota right now is that GM pays its workers a hell of a lot more to build cars than does Toyota. If the government could help with insurance - as Japan insures Japanese workers - GM and other American manufacturers would have a more level playing field on which to compete.

[ByTheLake]

Simply put, as long as Toyota does a better focusing on the customer, it will pass GM globally. GM must focus tirelessly on customer desires, interests, preferences, etc., instead of focusing on its competition, like making 'Accord fighters', or 'Camry fighters', etc.

If GM wants to focus on its competition instead of its customer, that's like driving while looking in the rear view mirror. Toyota is looking ahead.

[nsap]

Well, this is deppressing news.

GM, you better get your it in gear if you want to remain number one. You have the products, now become the leader in qaulity.

Honestly, I think GM will be passed by the end of next year unless Toyota goes to hell, or GM really kicks it up.

[Cassie]

Toyota's success is from years and years of 1) dominating markets ignored by GM 2) building well made (but boring) cars 3) marketing the well made "aura" of the cars and trucks to the public. GM has tended to market the "power" "American pride" kind of thing and it will only go so far. Both companies build some darn good cars (each company has there lemons and poor designs) but it's the "Perceived Value" of any product that will take it to the next level in growing the brand, and adding customer base. It's that same perception that makes people by huge SUV's to go get groceries they FEEL they are safer, even if they are an awful driver or can't see over the steering wheel.

[tgagneguam]

I lament the fact that Toyota will ovetake GM; it seems an inevitability by the end of 2007, though, for a variety of reasons. Part of the failure will rest with GM, and part of it will rely on issues less directly connected to the automaker - pension liabilities are killing GM, as one example.

...The growth for the Asian makes, analysts say, can be attributed in part to reputations for quality as well as new products - such as Toyota's Scion brand which targets younger buyers and the Nissan Titan, that Japanese company's first entry in the full-size pickup category.

Some readers may misinterpret the above statement; where's the quality example? Neither Scion or the Titan are examples of quality products. They're just examples of new products entering new segments for their respective companies, if anything. I think Nissan Division would be hard pressed to put forth an example of their quality vehicles - they don't seem to possess any.

"As your piece of the pie gets smaller, there's always a ripple effect. It affects your customers, your dealers, your workers - every facet of your business.''

This is the problem I have with Ford's strategy. I wish they would become more proactive. As mentioned previously, I cannot think of a single company that downsized to success and profits, can you?

[gmsickofan]

Toyota's attention to detail in quality is where they so often beat GM. GM gives you 80% great products so much of the time that are hindered by some flaw like an outdated engine or a 4-speed transmission, or a garish gray plastic interior - when the competition has moved past that.