Toyota's won't celebrate overtaking GM

[RAV4EVR]

http://www.hamiltonspectator.com/NAS...=1112101662835

By Martin Zimmerman
The Los Angeles Times
(Apr 26, 2007) Since the Great Depression, General Motors Corp. has been the world's largest automaker, a symbol of American economic power.
But this week, the Detroit company lost its crown to Toyota Motor Corp. of Japan, which has been relentlessly chipping away at GM's global dominance.
"I've been in this business for 37 years, and what I'm seeing now is the continuation of a trend that I've observed for 37 years," said Jim Hossack, senior a consultant with AutoPacific Inc. in Tustin, Calif. "Toyota is getting stronger and stronger, and the Detroit Three are getting weaker and weaker."
Barring a merger of major automobile-producing rivals, it's unlikely that Toyota's leadership position will be seriously challenged anytime soon. Years of missteps by Detroit's Big Three automakers allowed Toyota to grab the lead by efficiently producing high-quality cars that are a hit with motorists.
"I don't see that there's any other company that will be able to exceed Toyota in terms of scale in the near future," said Marvin Lieberman, professor of policy at Anderson School of Management at the University of California, Los Angeles.
The Japanese automaker said Tuesday that it had sold 2.35 million vehicles worldwide during the first three months of the year. That topped the 2.26 million cars and light trucks sold by General Motors Corp.
Toyota has been gaining on GM and other American rivals for several decades, as motorists have sought out cars that are better built, have higher resale value and, increasingly, better gas mileage.
The event wasn't marked by celebrations at the automaker's global headquarters in Toyota City, near Nagoya, Japan, or at its many U.S. assembly plants and sales and design offices. The key worldwide sales number wasn't even included in the company's announcement of its first-quarter vehicle production.
"It's only a quarter," deadpanned Mark Templin, vice president of Toyota USA's Scion division in Torrance, Calif. "It's just really not our focus. We never talk about it."
Toyota entered the U.S. market in 1957 with a boxy, pokey four-door called the Toyopet Crown, which was met with skepticism, if not outright derision. Fifty years later, the company is wary of appearing too successful -- fearful of a possible backlash in the United States as it grabs buyers from GM, Ford Motor Co. and Chrysler Group.
Although Toyota still ranks third in U.S. sales, its share of the American market has jumped to 15.6 percent from 7.3 percent since 1995. GM's domestic market share has fallen from almost 33 percent to 23 percent during that period.
Toyota's growth in North America comes as payrolls at Detroit's Big Three shrink. The American automakers are saddled with billions more in health-care costs for workers and retirees than their Asian rivals.
A year ago, GM was in such sad shape that investor Kirk Kerkorian was trying to force it into an alliance with auto companies from Japan and France.
A restructuring of its North American operations that will slash 34,000 jobs, shutter 12 plants and cut $9 billion in structural costs has helped GM get a second wind. The automaker, which lost $10.6 billion in 2005, managed to turn a profit in the fourth quarter last year and is expected to report another profit when it releases it first-quarter results May 3.
GM's first-quarter worldwide vehicle sales, while runner-up to Toyota, were a personal best for the American automaker, boosted by double-digit sales gains in Asia and Latin America. A good chunk of the company's fall-off in U.S. market share was the result of its decision to drastically reduce low-profit sales to rental companies and corporate fleets.

[05MonteSSSC]

Great news for Toyota. But I wouldn't count the General out just yet. I am curious to see the fleet data. If the rumors are correct, Toyota just stepped in and picked up the fleet sales that GM voluntarily let go. And if I remember correctly, sales are generally fleet-heavy the first quarter. But on the other hand, if this is not true, then I see no way for GM to immediately retake the #1 position.

I welcome the fact that Toyota overtook GM in the first quarter. Hopefully, this will drive both companies to continue to improve their products and quality, making the ultimate winners us, the consumer.

[andy82481]

Toyota's total fleet sale is only about 10%. That is nowhere near GM figure which is still hovering around 25 to 26%. I think Chrysler and FORD will pick up the slack left behind by GM more than TOYOTA. HYUANDAI is also fleeting a lot to get their sales number up.

[nyscene911]

Originally Posted by andy82481

Toyota's total fleet sale is only about 10%. That is nowhere near GM figure which is still hovering around 25 to 26%. I think Chrysler and FORD will pick up the slack left behind by GM more than TOYOTA. HYUANDAI is also fleeting a lot to get their sales number up.

You're definately right about Hyundai. The new Sonata is a Fleet QUEEN! They are rented out everywhere!

[Bakemono]

Im not ready to count the General out either. They typically offer great inventives in the summer months to bolster sales and that could put GM in the lead again.
To me personally, I could care less whether or not Toyota is #1 in sales. Its something cool to brag about, but Im more worried about them keep the quality, durability and reliability that made Toyota famous than I am about Toyota staying #1 in sales.

[Lasse D]

I could see GM giving extreme discounts the rest of the year in order to receive this pseudo title* that we hear so much about.
The funny part is that Toyota should keep silent about this, or at least act as if they didn't even care about the "title".

There is no magic about it. To be able to sell more products than a competitor doesn't suddenly make you change the structure of your business.



*Imagine if car maker A sells 1000000 Aveos with a loss while car maker B sells 999999 LS600hL's with a huge profit. These are the only cars sold. Would you then really call car maker A the larger one?