Toyota is losing its halo

Toyota is losing its halo

Guido Reinking
Automotive News Europe

October 20, 2008 14:59 CET

When senior Volkswagen executives said the Wolfsburg-based automaker
intended to overtake Toyota in global sales, profit and quality, more
than a few industry watchers thought they had lost touch with reality.
I was one of the skeptics.

Overtake Toyota - the industry's gold standard for productivity,
quality assurance, efficiency and customer orientation - to say
nothing of global profit- and sales leader? Impossible!

But look again: The top dog is losing its aura of invincibility.

In Germany, sales are off 22 percent this year. In the U.S., Toyota
has been hit even harder. Its sales there collapsed 32.3 percent in
September, worse even than the fall taken by sickly General Motors.

Contrary to popular perception, Toyota's dazzling growth over the past
10 years has been led by light trucks, not the gas-sipping small cars
and hybrids that are so associated with its brand. Sales of its large
vehicles - SUVs, crossovers, pickups and luxury Lexus sedans - have
more than doubled in the past decade.

That is why the current automotive crisis is hitting Toyota harder
than many other manufacturers. Its profit is projected to decline by
as much as 40 percent this fiscal year, which would yield a margin of
barely 6 percent. That would put it on VW's level.

There is little doubt that Toyota will remain the global sales leader
for some years to come. But there is danger in that success. Becoming
No. 1 demands different qualities than staying No. 1. Can the company
do both?

In that sense, it may be fortunate for Toyota that Volkswagen has
vowed to overtake it. That's because Toyota, without meaningful
competition, may have stopped striving for perfection.

On Oct 21, 9:01*am, "C. E. White" >
wrote:

> In that sense, it may be fortunate for Toyota that Volkswagen has
> vowed to overtake it. That's because Toyota, without meaningful
> competition, may have stopped striving for perfection.

Who writes this tripe?

Further, who actually believes it?

Peter Wieck
Melrose Park, PA

> wrote in message
...
On Oct 21, 9:01 am, "C. E. White" >
wrote:

>> In that sense, it may be fortunate for Toyota that Volkswagen has
>> vowed to overtake it. That's because Toyota, without meaningful
>> competition, may have stopped striving for perfection.

> Who writes this tripe?

Guido Reinking - Automotive New Columnist

> Further, who actually believes it?

Not sure it matter. Just interesting commentary.

Ed

On Oct 21, 9:44*am, "C. E. White" >
wrote:

> Not sure it matter. Just interesting commentary.

I guess so, at that.

But it is right up there with sjmmail2000 in terms of over-the-top
blather of dubious utility.

Peter Wieck
Melrose Park, PA

> wrote in message
...
On Oct 21, 9:44 am, "C. E. White" >
wrote:

>> Not sure it matter. Just interesting commentary.

> I guess so, at that.

> But it is right up there with sjmmail2000 in terms of over-the-top
> blather of dubious utility.


I thought the point about the source of Toyota growth was well taken.
I have stated this myself several times. Toyota has been growing by
doing exactly the same sort of things that have gotten GM and Ford
into trouble - increasing vehicle size, concentrating on trucks and
SUVs, etc.

Ed

On Oct 21, 10:06*am, "C. E. White" >
wrote:
> > wrote in message
>
> ...
> On Oct 21, 9:44 am, "C. E. White" >
> wrote:
>
> >> Not sure it matter. Just interesting commentary.
> > I guess so, at that.
> > But it is right up there with sjmmail2000 in terms of over-the-top
> > blather of dubious utility.
>
> I thought the point about the source of Toyota growth was well taken.
> I have stated this myself several times. Toyota has been growing by
> doing exactly the same sort of things that have gotten GM and Ford
> into trouble *- increasing vehicle size, concentrating on trucks and
> SUVs, etc.
>
> Ed

Sure, and VW has been countering with the Phaeton, Tuareg 10-cyl. TDI
fuel guzzler and other equally stupid vehicles for exactly the same
reasons. Not to mention that they still have a VERY long way to go
with their QC before they are the equal of or can possibly compare
themselves with Toyota.

Peter Wieck
Melrose Park, PA

C. E. White wrote:
> Toyota is losing its halo
>
> Guido Reinking
> Automotive News Europe
>
> October 20, 2008 14:59 CET
>
> When senior Volkswagen executives said the Wolfsburg-based automaker
> intended to overtake Toyota in global sales, profit and quality, more
> than a few industry watchers thought they had lost touch with reality. I
> was one of the skeptics.

Well most in the U.S. don't realize that VW is currently the #3
automaker world wide because VW doesn't sell much in the U.S. any more.

Quality wise, VW has a long way to go, especially in the U.S. where
owners expect their vehicles to endure a lot more abuse in terms of lack
of maintenance. I've owned both VWs and Toyotas. The VWs tended to last
longer, but I am fastidious about maintenance. The Toyotas that my
relatives have owned have been abused to levels that VWs would not
tolerate. Currently I have two Toyotas. Unexciting vehicles to be sure.
I'd much rather have a Passat than a Camry in terms of performance, but
the Passat is much more expensive, gets poorer mileage, and has some
engine and power train issues that I don't want to deal with.

VW seems to want to return in force to the U.S. and they're building a
factory here. VW hasn't built in the U.S. since they closed their
Westmoreland Pennsylvania factory in 1988.

> before they are the equal of or can possibly compare
> themselves with Toyota.
> Peter Wieck

Traitor!!!

"Ears" > wrote in message
...
>> before they are the equal of or can possibly compare
>> themselves with Toyota.
>> Peter Wieck
>
> Traitor!!!

Are you the same Ears who's on amps, maybe??

Cathy

On Tue, 21 Oct 2008 08:54:05 -0700, SMS wrote:

>> When senior Volkswagen executives said the Wolfsburg-based automaker
>> intended to overtake Toyota in global sales, profit and quality, more
>> than a few industry watchers thought they had lost touch with reality. I
>> was one of the skeptics.
>
> Well most in the U.S. don't realize that VW is currently the #3
> automaker world wide because VW doesn't sell much in the U.S. any more.
>
> Quality wise, VW has a long way to go, especially in the U.S. where
> owners expect their vehicles to endure a lot more abuse in terms of lack
> of maintenance. I've owned both VWs and Toyotas. The VWs tended to last
> longer, but I am fastidious about maintenance. The Toyotas that my
> relatives have owned have been abused to levels that VWs would not
> tolerate.

Dude, even on cars we disagree!

I bought an '85 Jetta brand new for my wife. I had an '80 Corolla.

In 1986 the Jetta was two years old, and the Corolla was 6. I had three
times more work orders for the Jetta than for the Corolla. I wasn't as
'savvy' then as I am now, but I was still a car nut, and although I loved
the car we traded it (at the end of the 2 year/Unlimited Mileage warranty)
for yet another trouble-free Corolla. Then, we traded that for a
trouble-free Honda Accord.

I also had a '73 Volvo P1800ES that nickled me into the poor house, but
then, who cared? I wasn't passing myself on Main Street! Worst car I ever
loved.

No more European cars for me, thanks.