Toyota: How the Hybrid Race Went to the Swift

jkash · 01-19-2007, 04:21 PM

Toyota: How the Hybrid Race Went to the Swift

As Toyota prepares to motor past Ford as the world's second-largest carmaker, it has become a textbook case on how a green reputation delivers a competitive edge. In the five years since the Prius' U.S. debut, Toyota's brand value has surged by 47%, to $28 billion, according to Interbrand. In the same period, Ford has been beset with numerous troubles, including a failure to meet its goals for SUV mileage gains or to exploit its well-regarded Escape hybrid. Its brand value fell 70%, to $11 billion.

How did Detroit blow it? More than anything, through inertia. For 20 years, GM and Ford earned outsize profits on supersize trucks and SUVs. And following the infamous failure of GM's EV1 electric car, a high-tech, high-cost econo-box seemed like anything but a good bet.

Detroit simply didn't see the potential for Toyota's odd little electric-gas car when the Prius made its debut in Japan 10 years ago. When energy prices spiked, Toyota was ready with a high-tech offering that many consumers embraced. Today, even if hybrids aren't exactly cost-effective, consumers keep buying them. From a few thousand sold in the U.S. in 2000, Toyota expects to move 250,000 hybrids next year. "We didn't appreciate the image value of hybrids," concedes GM's research and development chief, Larry Burns. "We missed that."

Read more.

JimN · 01-19-2007, 09:25 PM

"Today, even if hybrids aren't exactly cost-effective, consumers keep buying them."

This is the only statement I really take exception to. If most people chose the "most cost effective" vehicle the used car market would be booming and all of the maufacturers would be drowning in red ink. I would really like to know the author's formula to determine "cost-effective" but since this is a "throw away" line in a general interest article I doubt he knows what he's talking about.

CMonster · 01-21-2007, 07:27 PM

The last line is my favorite.

Quote:

The value of green, it seems, only accrues when the rubber meets the road.[/b]

Exactly.

DaveinOlyWA · 01-22-2007, 10:26 PM

according to NBC Nightly News, sometime last week, Toyota passed GM to become #1... not #2....

afaik, Toyota passed ford about 2 years ago. did anyone do any fact checking for this article??

**Tideland Prius** · 01-22-2007, 11:16 PM

someone's bitter.

esp. fordman which has no basis on his arguments whatsoever other than saying buy GM or Ford.

LanceinOregon · 01-23-2007, 03:25 AM

<div class='quotetop'>QUOTE(DaveinOlyWA @ Jan 22 2007, 07:26 PM) [snapback]379292[/snapback]</div>

Quote:

according to NBC Nightly News, sometime last week, Toyota passed GM to become #1... not #2....

afaik, Toyota passed ford about 2 years ago. did anyone do any fact checking for this article??
[/b]

Both of these statements that you have made here are definitely not true. And you have not offered any sources to back them up.

In fact, I went to the NBC Nightly news web site, and found this news story from last week that you refer to. In the story, NBC news reported that Toyota is now positioned so that it COULD replace GM as the world's #1 auto maker SOMETIME LATER THIS YEAR. They never said anything claiming that Toyota already had passed them, as you claim. Here is a link to this NBC Nightly News story for everyone to view:

NBC News Reports on Toyota's Growing Market Share

And as far as your statement that Toyota passed Ford 2 years ago in auto production, I can post links to numerous recent news stories reporting that Toyota just recently did this. I don't see how you could possibly dispute this. Do you really think that BusinessWeek engages in such slopping and inaccurate reporting? Here are links to two other recent examples, although one can easily find dozens of such articles using various search engines:

Forbes Magazine reports Toyota about to Pass Ford

USATODAY newspaper reports Toyota passes Ford for First Time

I'm not sure how you could become so confused as to post such false info like this to the board. I think you may need to follow you own advice about doing more research.

Lance

Duffer · 01-23-2007, 07:26 AM

"Cost-effective" is right up there with "skin is out this year." People like to think that they buy autos smartly but most get over turned by the hype. When I went looking for a "green car" GM,Ford,DB, had nothing to offer me. It is their job to have the vehicle on the market that I want and need, that is the reason that they are in business. That is the reason that upper management makes super big bucks. Don't blame me or call me foolish for the big three's mistakes.

**TonyPSchaefer** · 01-23-2007, 08:58 AM

Did anyone notice that the article is dated next week?

Proco · 01-23-2007, 09:00 AM

<div class='quotetop'>QUOTE(TonyPSchaefer @ Jan 23 2007, 08:58 AM) [snapback]379446[/snapback]</div>

Quote:

Did anyone notice that the article is dated next week?
[/b]

Does that mean it was actually next Monday when I was reading the article?

qbee42 · 01-23-2007, 09:13 AM

<div class='quotetop'>QUOTE(TonyPSchaefer @ Jan 23 2007, 08:58 AM) [snapback]379446[/snapback]</div>

Quote:

Did anyone notice that the article is dated next week?
[/b]

Talk about being scooped!

Tom

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01-19-2007, 04:21 PM	#1
jkash Senior Member Join Date: Nov 2003 Location: West Hills, CA Posts: 857 My Car: 2004 Prius Package: #9 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Toyota: How the Hybrid Race Went to the Swift As Toyota prepares to motor past Ford as the world's second-largest carmaker, it has become a textbook case on how a green reputation delivers a competitive edge. In the five years since the Prius' U.S. debut, Toyota's brand value has surged by 47%, to $28 billion, according to Interbrand. In the same period, Ford has been beset with numerous troubles, including a failure to meet its goals for SUV mileage gains or to exploit its well-regarded Escape hybrid. Its brand value fell 70%, to $11 billion. How did Detroit blow it? More than anything, through inertia. For 20 years, GM and Ford earned outsize profits on supersize trucks and SUVs. And following the infamous failure of GM's EV1 electric car, a high-tech, high-cost econo-box seemed like anything but a good bet. Detroit simply didn't see the potential for Toyota's odd little electric-gas car when the Prius made its debut in Japan 10 years ago. When energy prices spiked, Toyota was ready with a high-tech offering that many consumers embraced. Today, even if hybrids aren't exactly cost-effective, consumers keep buying them. From a few thousand sold in the U.S. in 2000, Toyota expects to move 250,000 hybrids next year. "We didn't appreciate the image value of hybrids," concedes GM's research and development chief, Larry Burns. "We missed that." Read more. __________________ Jeff Mr. Kash's Prius Page

01-19-2007, 09:25 PM	#2
JimN Certified Prius Advisor Join Date: Nov 2006 Location: South Jersey Posts: 2,188 My Car: 2006 Prius Package: #3 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	"Today, even if hybrids aren't exactly cost-effective, consumers keep buying them." This is the only statement I really take exception to. If most people chose the "most cost effective" vehicle the used car market would be booming and all of the maufacturers would be drowning in red ink. I would really like to know the author's formula to determine "cost-effective" but since this is a "throw away" line in a general interest article I doubt he knows what he's talking about.

01-22-2007, 10:26 PM	#4
DaveinOlyWA Opps !! I Did it Again!! Join Date: Apr 2004 Location: South Puget Sound, WA Posts: 9,543 My Car: 2006 Prius Package: #4 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 4	according to NBC Nightly News, sometime last week, Toyota passed GM to become #1... not #2.... afaik, Toyota passed ford about 2 years ago. did anyone do any fact checking for this article??

01-22-2007, 11:16 PM	#5
Tideland Prius Super Moderator Join Date: Oct 2004 Location: Canada Posts: 13,771 My Car: 2005 Prius Package: B Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 11	someone's bitter. esp. fordman which has no basis on his arguments whatsoever other than saying buy GM or Ford.

01-23-2007, 07:26 AM	#7
Duffer Join Date: Jan 2007 Posts: 114 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	"Cost-effective" is right up there with "skin is out this year." People like to think that they buy autos smartly but most get over turned by the hype. When I went looking for a "green car" GM,Ford,DB, had nothing to offer me. It is their job to have the vehicle on the market that I want and need, that is the reason that they are in business. That is the reason that upper management makes super big bucks. Don't blame me or call me foolish for the big three's mistakes.

01-23-2007, 08:58 AM	#8
TonyPSchaefer Ruler of Omicron Persei 8 Join Date: May 2004 Location: Far-North Chicagoland Posts: 8,341 My Car: 2004 Prius Package: #9 Nominated 4 Times in 2 Posts TOTM Awards: 0 Friends: 15	Did anyone notice that the article is dated next week?