GM Inside News Forum banner
1 - 20 of 52 Posts

·
Registered
Joined
·
2,227 Posts
Discussion Starter · #1 ·
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/article?AID=/20080709/AUTO01/807090377/&imw=Y
 

·
Registered
Joined
·
6,021 Posts
Re: Toyota sptters as market shifts...

FINALLY!!!

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

·
Registered
Joined
·
15,633 Posts
Re: Toyota sptters as market shifts...

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..........:D

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.
 

·
Registered
Joined
·
228 Posts
Re: Toyota sptters as market shifts...

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

·
Premium Member
Joined
·
14,692 Posts
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).
 

·
Registered
Joined
·
8,904 Posts
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.
 

·
Registered
Joined
·
7,170 Posts
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.
 

·
Premium Member
Joined
·
34,366 Posts
I am really angry becouse of you all. How DARE you say these nasty things about a Good kind and green company like Toyota?
 

·
Registered
Joined
·
1,803 Posts
Toyota is going to lose their @$$ in the 2008 Trucks. Good thing production of the Tijuana built Tacoma will be increased! :rolleyes:

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

·
Premium Member
Joined
·
23,621 Posts
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.
 

·
Registered
Joined
·
6,710 Posts
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.
 

·
Registered
Joined
·
1,194 Posts
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.
I disagree. As toyota has been introducing new compact cars, their gas mileage ratings have been going down. Check out scion as a perfect example. toyota will need to revamp their product line if they want to be class leading with the mpg area.

Besides the prius, there is no toyota that is class leading in the gas mileage area.
 

·
Registered
Joined
·
2,979 Posts
All automakers were blindsided by the rapid change in market conditions, even Toyota. But the fact is Toyota will likely remain profitable during these tough times which gives it far more flexibility in adjusting.
 

·
Registered
Joined
·
6,957 Posts
Toyota does not "lack small cars" in the sense that GM lacks small cars. GM does not competitive enough small cars, while Toyota can't build enough Corollas and Yarises. The Corolla and Yaris may not be the most appealing cars in their class and are certainly not the best, but Toyota did something right with those models to have them seel so fervently.
 

·
Registered
Joined
·
8,904 Posts
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.
The truth is that we all knew this day was coming for YEARs not months
even CNN first ran "we were warned" (an editorial warning about an oil crunch) in 2006. Economist have been talking about "peak oil" since late 1999.

We knew it was coming... we just didn't know exactly WHEN...
So when as a CEO you face this uncertainty you have two options:
1) The first goes like this... We are making a ton on trucks. Lets milk it for all it worth for as long as we can. Small cars aren't profitable or easy to sell. forget about them. No one likes small cars. Or
2) Option two Lets balance out product mix so that our butts are covered... Lets build a good small car and get as much out of trucks as we can, keep the company nimble and be ready to change the product mix in a heat beat.

GM Management picked option 1... Toyota Management picked option 2
GM is about 15 Billion away from Chapter 11 (and is loosing about 800 million a month... do the math we are a year and a half from the abyss) and Toyota would have to lose about 100 Billion to be in the same spot and even then they are making money (about 500 million a month).
 
1 - 20 of 52 Posts
Top