Toyota sputters as market shifts; Like Big 3, has too many Trucks, Lacks Small Cars

[MaxLegroom]

Toyota sputters as market shifts
Like Big 3, automaker has too many trucks, too few cars
Christine Tierney / The Detroit News

When U.S. auto sales slumped last month to their lowest levels in more than a decade, Toyota Motor Corp. suffered as much as anyone else.

Unusual for the Japanese automaker, its U.S. sales tumbled 21.4 percent, even more than the overall market.

As the manufacturer of the Corolla, Yaris and other popular small cars and the leading seller of hybrids, Toyota should have benefited from soaring fuel prices. Instead, its U.S. dealers found themselves stocked with Toyota and Lexus trucks they couldn't sell, and short of small, fuel-efficient cars...http://www.detnews.com/apps/pbcs.dll...7090377/&imw=Y

[Ambalanche]

FINALLY!!!

This is the first time I've actually seen an article state it as it is!!

[AMERICA 123]

Its more than possible that the next six months at an ever increasing rate are going to be some of the worst they've ever had here.

And then there is Europe..........

Also wouldn't be surprising to see Honda go past them (8 - 24 months) and Hyundai pull in right behind them ( 24 - 48 months ) in NA.

[steinravnik]

All automakers are sputtering in this environment. Toyota is no exception.

[FenixII]

Only 40 billions in cash?????? I think it´s very low for a company like Toyota....

[Ming]

Honda, Hyundai and KIA at least are well positioned to steal sales from Toyota.

Suzuki could have been well positioned if they weren't trying so hard to emulate Detroit/Toyota and had a lineup here that more accurately reflected their strengths overseas (small, ultra fuel efficient cars).

[2002 Caddy]

Of course the unfortunate truth that we are missing is
1) Toyota "sputtered" GM is "crashing" and
2) Toyota makes money on small cars and trucks... GM only makes money on their trucks

The shift to small cars will be an annoyance to Toyota and Honda... it is killing GM.

Get the Beat here and get it here NOW.

[goblue]

Originally Posted by Ming

Honda, Hyundai and KIA at least are well positioned to steal sales from Toyota.

Suzuki could have been well positioned if they weren't trying so hard to emulate Detroit/Toyota and had a lineup here that more accurately reflected their strengths overseas (small cars).

While this is technically correct, all of you are missing the key point in the article.

Toyota suffered because their product mix in the dealership was wrong. A relatively easy thing to fix.

GM suffered because their small cars are not competitive and their midsize cars just became competitive. The only place GM has significant advantage is in large crossovers. IE people dumping BOF SUVs who still want space.

In other words, Toyota can use their newer, more flexible plants to fix the problem. GM can't sell competitive cars that it doesn't even have ready to go, let alone in plants currently.

Toyota and GM didn't fall victim to anything. Neither one did anything stupid in regards to SUVs / Trucks. No one could predict the tipping point ahead of time with any certainty. Everyone knew they'd take a bath when it finally hit, but there was lots of money to be made in the interim. This is where the media gets it totally wrong. The companies were taking calculated risks, thats what you do in business. They both have hedges - GM has the VOLT, 2 Mode, E-Flex, mild hybrids, E85, diesels, excellent large crossovers. Toyota has hybrids, great small cars, a fantastic midsize reputation.

What happened is the tipping point came a little too soon for GM, and simply surprised Toyota which in 2008 was better setup to deal with it. Had this happened in 2010, it might be different.

[mbukukanyau]

I am really angry becouse of you all. How DARE you say these nasty things about a Good kind and green company like Toyota?

[FenwickHockey65]

YAAAAAAAAAAAAAAAAAAAAYYYY!!!!
I've wanted to hear this for soooo long!

[chevydlrmn]

Toyota is going to lose their @$$ in the 2008 Trucks. Good thing production of the Tijuana built Tacoma will be increased!

I have such little 08 truck inventory, even fewer cars.

[KingElvis]

Originally Posted by Ambalanche

FINALLY!!!

This is the first time I've actually seen an article state it as it is!!

Somebody tell bigAlz28 about this...although if it's detroit news then maybe the charge bias can't be made.

[paul8488]

Originally Posted by goblue

Toyota suffered because their product mix in the dealership was wrong. A relatively easy thing to fix.

Exactly. I hate being a Toyota apologist, because I don't like them, but they just have to ramp down truck production and ramp up car production. May not happen in a day, but it's a whole lot easier than redesigning a new car like GM has to do in many cases.

[A Bum In A Bus]

I hope and pray everyday that Toyota goes bankrupt, out of business, broke, implodes and goes up in a cloud of rice dust.

[Slideways]

Originally Posted by goblue

Toyota and GM didn't fall victim to anything. Neither one did anything stupid in regards to SUVs / Trucks. No one could predict the tipping point ahead of time with any certainty. Everyone knew they'd take a bath when it finally hit, but there was lots of money to be made in the interim. This is where the media gets it totally wrong. The companies were taking calculated risks, thats what you do in business. They both have hedges - GM has the VOLT, 2 Mode, E-Flex, mild hybrids, E85, diesels, excellent large crossovers. Toyota has hybrids, great small cars, a fantastic midsize reputation.

What happened is the tipping point came a little too soon for GM, and simply surprised Toyota which in 2008 was better setup to deal with it. Had this happened in 2010, it might be different.

Thank you. Everyone seems to think that 18 months ago GM knew gas prices were going to double by summer 2008 or that they're stupid for not anticipating it. The thing is, nobody knew, otherwise consumers wouldn't have been blind-sided either.