Toyota narrows gap on industry king GM in plan to become World Leader

[Ming]

Toyota narrows gap on industry king GM
After displacing Ford, the automaker has tightened its grip on the No. 2 spot and could become the world leader.
By Associated Press
Published March 18, 2005



When General Motors Corp. warned this week that it will lose money in the first quarter of 2005, the No. 1 automaker cited reasons including disappointing sales in North America.

Another explanation, one not mentioned publicly: Japan's Toyota Motor Corp., a company on a roll, is helping to steal GM's market share.

After overtaking Ford Motor Co. in 2003 as the world's No. 2 automaker in annual global vehicle sales, Toyota held that spot last year and is expected to solidify its position this year and in 2006. And it's conceivable that Toyota, which has set a goal of a 15 percent global market share sometime after 2010, might overtake GM as the world's top automaker.

GM controls about 15 percent of the global auto market. If Toyota, now at about 10 percent global market share, succeeds in reaching its 15 percent target, it will match GM, which is losing share to other Japanese automakers as well.

"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."

In North America, Toyota will begin producing pickups at a plant in Texas that will be up and running next year. It is considering still another plant in North America, the world's largest auto market, although it hasn't said where.

Toyota, which has consistently tried to produce cars wherever they are sold, has five other car plants in North America, including a joint venture with GM. The Japanese company is expanding in other growing markets; it is set to open a plant in the Czech Republic this year for the European market, as well as considering a plant in Russia.

Toyota is also making headway in China, a market all the world's automakers have their eyes on. Toyota's fourth car-assembly plant in China is set to start production next year.

Good mileage, ecological features and reliability are key to Toyota's global reputation

Fumio Otsuka, a 54-year-old computer engineer in Japan, said he has always driven Toyotas.

"It's not about looking cool. The Toyota car appeals to the regular person," he said.

But Toyota has also managed to keep a relatively fresh and innovative image. Its Scion brand, which targets younger buyers with its adventurous designs and marketing gimmicks, is one example.

Another is Toyota's push in the automotive ecological technology called hybrids. Hybrid cars, including the Prius sold in the Unites States, Japan, Europe and Australia, deliver a more efficient drive by switching back and forth between a gasoline engine and an electric motor, relying on the electric motor at slow speeds and then kicking in the engine as speed picks up.

Toyota has sold 343,000 hybrid cars so far, a tiny portion of its overall sales but more than any other automaker. Toyota started selling its first hybrid in 1997.

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 minicars. GM, meanwhile, produced 9.1-million vehicles and Ford sold 6.8-million vehicles.

In 2003, Toyota's worldwide sales totaled 6.78-million vehicles, including Hino and Daihatsu, while GM produced 8.8-million and Ford's sales stood at 6.72-million.

According to most forecasts, U.S. automakers will continue to lose ground in North American sales to Toyota and other Asian brands.

Full Article Here: http://www.sptimes.com/2005/03/18/Bu...s_gap_on.shtml

[vdoh182]

toyota only passed Ford because ford doesnt count mazda, countig mazda ford is still ahead, and to pass GM they would need to increase thier sales by 50% from where they are now which isnt going to happen anytime this decade.

[yoblues]

I am GM I sold 100 cars. Your Toyota you sold 90 cars. We're #1, We're #1, We're #1 goes the GM chant. What a load. The #1 car company is the one with the BIG FAT PROFIT MARGIN, that allows that company to do what it wants when it wants. Guess which company that one is? These clown GM suits think as long as they sell one more car than Toyota they are in charge. It's so pathetic. This is a business not a basketball game. It's not about numbers it's about profit margin.

[AMcA]

I know it's happening, but I still don't get it. How can Toyota become the world's largest ar company when they have yet to build a car that I find even remotely desirable?

[vxl]

What would GM's global numbers be if it added in its shares in Isuzu, Suzuki, Subaru and Daewoo (or are they already added)?

[Maverick]

Originally Posted by Ming

"It's not about looking cool. The Toyota car appeals to the regular person," he said.

Lord knows I wouldn't want anything cool. Sign me up for a Camry, please.

[ethayes]

Profits don't mean a thing they are cyclical in a cyclical industry. Everyone forgets just 5 short years ago Chrysler was the most profitable automaker in the world now they don't even exist anymore.

And sales, look a $70,000 Cadillac XLR is equal to a Daihatsu Minicar for $7,000. Toyota sells four of them and GM sells just one XLR. Okay now Toyota has an 80% market share while GM has 20%. But wait a minute. GM's revenues are $70,000 and Toyota's revenue is $28,000.

In short, volume is important but it is only part of the bigger picture. Profits are important but it is also only a part of the picture.

Now about these 20 new factories that Toyota must open to displace GM, or ten huge complexes. Where is this thirst for all these plain vanilla Toyotas coming from?

You have 20 different automakers making that same plain vanilla flavor, GM makes the difference. Give me a rocky road Hummer and a rum raisin Cadillac. Ill take that dulce de leche Saab over the 20 vanilla automakers anyday. May God Save the Neapolitan.

[Globalist]

Toyota is very disciplined and strategic.
Its discipline is the heart of the Japanese "Samurai Code." And its strategy is a perfect execution of "The Art of War" written By Sun Tzu thousands years ago.

GM needs to regroup, and redefine its strategy. It may lose a battle in the short-term, but it will be well positioned to win the War.

[ethayes]

Originally Posted by Globalist

Toyota is very disciplined and strategic.
Its discipline is the heart of the Japanese "Samurai Code." And its strategy is a perfect execution of "The Art of War" written By Sun Tzu thousands years ago.

GM needs to regroup, and redefine its strategy. It may lose a battle in the short-term, but it will be well positioned to win the War.

Is it that same art of war book that Mitsubishi was reading when it went bankrupt? Or the book Subaru, Isuzu and Nissan used when the foreign automakers had to step in to save them from oblivion? Is it that same book Mazda was reading and Suzuki before they also needed to be rescued. Maybe Honda was studying that book when their sales declined 20% so far this year. PLEASE.

[Globalist]

Originally Posted by ethayes

Is it that same art of war book that Mitsubishi was reading when it went bankrupt? Or the book Subaru, Isuzu and Nissan used when the foreign automakers had to step in to save them from oblivion?

Not all readers are equal

The way you reacted to my posting is the proof.

[ethayes]

Originally Posted by Globalist

Not all readers are equal

The way you reacted to my posting is the proof.

Your right maybe GM needs to overreact like I did.

[Globalist]

Originally Posted by ethayes

Your right maybe GM needs to overreact like I did.

When you overreact you make mistakes.

On the product side, GM is attacked in all fronts:
- cars
- Trucks
- Conventional engines
- Hybrids

On the operation side:
- market share loss
- over-capacity
- health care and pensions burdens
- UAW

On the economical side:
- stock price fall
- high oil price
- raising interest rates
- downgrade

And guess what? Your biggest competitor still have ammunitions, like incentives, he could use to push you futher down.

These are too many fronts to defend at once. If GM decides to defend all of them it will lose. You have to make strategic choices and stick to them. If it means shrinking the company. Why not?

[spudglo08]

Originally Posted by ethayes

Is it that same art of war book that Mitsubishi was reading when it went bankrupt? Or the book Subaru, Isuzu and Nissan used when the foreign automakers had to step in to save them from oblivion? Is it that same book Mazda was reading and Suzuki before they also needed to be rescued. Maybe Honda was studying that book when their sales declined 20% so far this year. PLEASE.

GM has orderd the books on tape version.

[AdmiralViscen]

Ford and GM's global market share is continuing to rise, though. Not as fast as Toyota, but look at the percentages for 2003 and 2004. All three companies rose. Toyota rose faster, but not ridiculously so.

[xioix]

Originally Posted by vdoh182

toyota only passed Ford because ford doesnt count mazda, countig mazda ford is still ahead, and to pass GM they would need to increase thier sales by 50% from where they are now which isnt going to happen anytime this decade.

in some other articles it says that even if they count mazda they would still be behind