Why Toyota is Becoming the World's Top Carmaker

rufaro · 03-07-2007, 03:05 AM

Comin' Through!
Toyota is on track to pass General Motors this year as the world's No. 1 auto company. How GM plans to fight back.

By Keith Naughton and Allan Sloan
Newsweek

March 12, 2007 issue - General Motors and Toyota were once neck-and-neck when it came to developing high-mileage gasoline-electric hybrid cars. About a decade ago, you see, both firms had cracked the code on how to engineer a hybrid, and GM even had a running prototype. But the new technology was so costly that the automakers would have had to initially sell hybrids at a loss to build a market for them. The differing paths the two companies took symbolize why Toyota has become wildly profitable in the United States while GM has been losing its shirt in its home market. And why Toyota, riding GM's bumper, is likely to pass it this year to become the world's biggest car company.

LINK TO FULL ARTICLE

toad · 03-07-2007, 09:40 AM

Interesting article.

Everything I read in the article and from other people I've heard from says that the domestic car makers suffer from an image problem. Mostly self induced.

If they would just make a quality car instead of trying to sell there cars at the lowest prices they would be fine. Everyone wants a quality car and obviously they are willing to pay for it. What I don't see is that the domestics want to do anything about it. They just want the quick buck, even if it hurts their image. Toyota on the other hand look for the the long term solution.

My brother rode in my car for the first time last week and said he can see why Toyota is out selling the other car companies.

P.S. I like your sig, Rufaro. Much better than the other one.

SomervillePrius · 03-07-2007, 09:58 AM

Interesting read. I'm not convinced that the Prius is really a big part of the overall success of Toyota (more of a side effect of their strategy, that is now paying dividends). I also don't think most people see Toyota as a "green" company. Sure they have now has the greenest car but the rest of their line-up is not that green and the Tundra.... sigh :-(

dbermanmd · 03-07-2007, 10:26 AM

<div class='quotetop'>QUOTE(SomervillePrius @ Mar 7 2007, 09:58 AM) [snapback]401615[/snapback]</div>

Quote:

Interesting read. I'm not convinced that the Prius is really a big part of the overall success of Toyota (more of a side effect of their strategy, that is now paying dividends). I also don't think most people see Toyota as a "green" company. Sure they have now has the greenest car but the rest of their line-up is not that green and the Tundra.... sigh :-(
[/b]

Here's why:
1. they compete in every segment of the car market including some segments where there is no other competition or very little (hybrids)
2. they enjoy non-unionized labor
3. they adhere to stricter quality standards
4. they use highly efficient and newer factories than can handle many models of cars instead of just one
5. they are tighter with their suppiers and work more efficiently with them
6. they LISTEN BETTER to the marketplace where they are competing
7. they tend to care about their customer and product better (especially their Lexus line)

I own 4 Toyota products currently and one german
07 RAV4
06 Prius
04 Sienna
02 LS430

JimN · 03-07-2007, 10:59 PM

IMO long term planning beats short term vision. GM's philosophy of "if we build it, they will buy it" has just about run its course. GM just about abandoned the small car market. GM abandoned the hybrid and electric markets. Now they have to play catch up without the resources to reinvest in the company. Their solution? Buy market share by buying Chrysler. That's real innovation. I don't think they have the talent or commitment to design and produce a high quality product.

NineToez · 03-07-2007, 11:51 PM

I've heard this as well and it will be interesting as the new Corolla and Highlander come in later in the year in addition to a redesigned xB and all new xD Scions coming out very soon. It should be a great year for Toyota, however I still don't think they'll make #1 for just a little while more longer.

03-07-2007, 09:40 AM	#2
toad Join Date: Jan 2007 Posts: 41 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	Interesting article. Everything I read in the article and from other people I've heard from says that the domestic car makers suffer from an image problem. Mostly self induced. If they would just make a quality car instead of trying to sell there cars at the lowest prices they would be fine. Everyone wants a quality car and obviously they are willing to pay for it. What I don't see is that the domestics want to do anything about it. They just want the quick buck, even if it hurts their image. Toyota on the other hand look for the the long term solution. My brother rode in my car for the first time last week and said he can see why Toyota is out selling the other car companies. P.S. I like your sig, Rufaro. Much better than the other one. __________________ 2007 Toyota Prius, Silver Pine Mica

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03-07-2007, 03:05 AM	#1
rufaro WeePoo, Gen II Join Date: May 2006 Location: Palms, Los Angeles Posts: 2,836 My Car: 2006 Prius Model: N/A Package: #3 Thanks: 39 Thanked 24 Times in 17 Posts Friends: 39	Comin' Through! Toyota is on track to pass General Motors this year as the world's No. 1 auto company. How GM plans to fight back. By Keith Naughton and Allan Sloan Newsweek March 12, 2007 issue - General Motors and Toyota were once neck-and-neck when it came to developing high-mileage gasoline-electric hybrid cars. About a decade ago, you see, both firms had cracked the code on how to engineer a hybrid, and GM even had a running prototype. But the new technology was so costly that the automakers would have had to initially sell hybrids at a loss to build a market for them. The differing paths the two companies took symbolize why Toyota has become wildly profitable in the United States while GM has been losing its shirt in its home market. And why Toyota, riding GM's bumper, is likely to pass it this year to become the world's biggest car company. LINK TO FULL ARTICLE

03-07-2007, 09:58 AM	#3
SomervillePrius Senior Member Join Date: Jan 2006 Location: Somerville, MA Posts: 946 My Car: 2006 Prius Model: Package: #9 Thanks: 0 Thanked 1 Time in 1 Post Friends: 0	Interesting read. I'm not convinced that the Prius is really a big part of the overall success of Toyota (more of a side effect of their strategy, that is now paying dividends). I also don't think most people see Toyota as a "green" company. Sure they have now has the greenest car but the rest of their line-up is not that green and the Tundra.... sigh :-(

03-07-2007, 10:59 PM	#5
JimN P719 of ??? Join Date: Nov 2006 Location: South Jersey Posts: 2,702 My Car: 2006 Prius Model: N/A Package: #3 Thanks: 0 Thanked 30 Times in 28 Posts Friends: 2	IMO long term planning beats short term vision. GM's philosophy of "if we build it, they will buy it" has just about run its course. GM just about abandoned the small car market. GM abandoned the hybrid and electric markets. Now they have to play catch up without the resources to reinvest in the company. Their solution? Buy market share by buying Chrysler. That's real innovation. I don't think they have the talent or commitment to design and produce a high quality product.

03-07-2007, 11:51 PM	#6
NineToez Join Date: Sep 2006 Posts: 26 My Car: Model: Package: Thanks: 0 Thanked 0 Times in 0 Posts Friends: 0	I've heard this as well and it will be interesting as the new Corolla and Highlander come in later in the year in addition to a redesigned xB and all new xD Scions coming out very soon. It should be a great year for Toyota, however I still don't think they'll make #1 for just a little while more longer.