Topic: Toyota 'losing its shine', says The Economist

[The Mighty Duck]

The Economist is the one magazine that I find worth subscribing to, and the only magazine I read every week. This week's issue made Toyota their cover story, and their analysis of Toyota's troubles is quite telling (if, admittedly, nothing a shrewd follower of automotive news hadn't already concluded).

I found these comments rather astute, however:

Underlying all these problems is an uncomfortable truth: Toyota’s rivals have now caught up. They now offer cars that are just as reliable but far more exciting than the rather dull vehicles Toyota has concentrated on producing in ever-larger numbers.

If Toyota can no longer rely on its superior quality to give it an edge, its vehicles will inevitably be judged increasingly on more emotional criteria, such as styling, ride, handling and cabin design. In America, Toyota is likely to face much more consistent competition from at least two of Detroit’s Big Three, while both Hyundai and VW are starting to snap at its heels.

What should be worrying Mr Toyoda more than the firm’s short-term financial position—its cash pile is an enviable ¥2.65 trillion—is the loss of its once seemingly unstoppable market-share momentum. In 2002 the then president, Fujio Cho, declared that Toyota was aiming for 15% of the global market by 2010. It chased volume at almost any price. By 2007 Toyota’s sales had reached nearly 9m cars, 13.1% of the world total. Last year that share was stable, but this year it seems likely to fall to 11.8% (see chart 1). It has been flat or falling in every important region except Japan, where it has benefited from generous tax breaks on hybrid vehicles, in which it is stronger than its domestic rivals.

Leader and Full Article.

[rrocket]

Hmmmm...if this is published weekly, how could they omit the profit Toyota turned this recent quarter?  You think that would be important for this article if it was impartial.   

[Mitlov]

The Economist is the one magazine that I find worth subscribing to, and the only magazine I read every week.

Then you'll looooooooove this 
http://www.theonion.com/content/node/34138

In other automotive-news-permeating-mainstream periodicals, GQ declared the GTI their car of the year 

In all seriousness, I think the Economist hit the nail on the head.

[rrocket]

In other automotive-news-permeating-mainstream periodicals, GQ declared the GTI their car of the year 

So did Automobile.

Although my pick would have been the Genesis Coupe.

[The Mighty Duck]

Hmmmm...if this is published weekly, how could they omit the profit Toyota turned this recent quarter?  You think that would be important for this article if it was impartial.   

Maybe you should read the article before jumping to conclusions. They don't ignore the last quarter:

In the most recent quarter Toyota made a surprise net profit of ¥58 billion. It also raised its sales forecast for the year from 6.6m units to 7m. Much, however, depends on the yen-dollar exchange rate. The yen has been climbing, and a rise of ¥1 can subtract ¥30 billion from Toyota’s bottom line.

[The Mighty Duck]

Then you'll looooooooove this 
http://www.theonion.com/content/node/34138

That counterpoint is hilarious. And I have met people who say they "love" the Economist, even they probably don't understand half of what's being said. I've studied Economics for 3.5 years now, and a fair bit of what they say still goes over my head... heh.

[rrocket]

Hmmmm...if this is published weekly, how could they omit the profit Toyota turned this recent quarter?  You think that would be important for this article if it was impartial.   

Maybe you should read the article before jumping to conclusions. They don't ignore the last quarter:

In the most recent quarter Toyota made a surprise net profit of ¥58 billion. It also raised its sales forecast for the year from 6.6m units to 7m. Much, however, depends on the yen-dollar exchange rate. The yen has been climbing, and a rise of ¥1 can subtract ¥30 billion from Toyota’s bottom line.

LOL...I did.  I was specifically looking for the USD figures.  LOL  Thanks for the heads up.  I think that was the only figure where they didn't have the USD in brackets beside it.

[articsteve]

It has been flat or falling in every important region except Japan, where it has benefited from generous tax breaks on hybrid vehicles, in which it is stronger than its domestic rivals.

 


Toyota Thrives in Korea

11-29-2009 18:54

Toyota has established itself as one of Korea’s most popular imported auto brands, thanks to the strong sales of its premium vehicles made by Lexus, its luxury vehicle division.

And in recent months, Toyota has been successfully leveraging its presence to the mid-priced segment, which has been traditionally dominated by Hyundai and other domestic carmakers.

The company introduced four new models in Korea last month, including mid-sized sedan “Camry” and the hybrid-electric car “Prius,” and needed just three weeks to sell more than 5,000 units of the newly-released products

http://www.koreatimes.co.kr/www/news/biz/2009/11/123_56372.html


Canadian new-vehicle sales fell 3 percent in November from November 2008 to 102,188 units. It was the fifth straight single-digit decline, after eight straight prior months of double-digit drops.

Through the first 11 months of the year, Canadian sales fell 13 percent to 1,349,608 units.

Ford took first place among automakers in sales in November. Its sales eased 1 percent to 16,379. Ford’s car sales rose 4 percent to 3,925, but its truck sales fell 3 percent to 12,454.

Toyota ranked No. 2 as its November sales jumped 26 percent to 16,112. Toyota brand sales rose 27 percent while Lexus sales climbed 11 percent.

GM’s sales tumbled 30 percent to 14,983. Cadillac brand sales rose 24 percent to 499, but sales fell at every other GM brand.



In all seriousness, I think the Economist hit the nail on the head.

 

[carcrazy]

Korea and Canada are not REGIONS and they are not event IMPORTANT markets.

[vdk]

I was actually waiting for The Economist's take on the recent developments at Toyota. Good read, as always.

[articsteve]

Korea and Canada are not REGIONS and they are not event IMPORTANT markets.

This article is a rehash of every other anti Toyota article under the sun and it's primary purpose is to boost sales of a dying magazine.

The article hinges on US sales.  Here is how they try and slant the facts:

And whereas Toyota’s sales have fallen by 23.8% in America so far this year, VW’s sales have dropped by only 6.6%.

VW is such a bit player in the US market, but of course they gotta find a friendly factoid.  They fail to disclose that Nissan was -47%, GM -31.6, Chrsyler -38%, Honda -22.2%, Ford -18.9%   

What they really fail to disclose is the fact that Toyota owns 50% of the US Hybrid market and that along with EV is the future.  VW; not even in the game. 
 

[Mitlov]

The article hinges on US sales.

The world's two largest car markets are US and China.  Would you have preferred that the article compared Toyota and VW sales in China? 

Here is how they try and slant the facts:

And whereas Toyota’s sales have fallen by 23.8% in America so far this year, VW’s sales have dropped by only 6.6%.

VW is such a bit player in the US market, but of course they gotta find a friendly factoid.  They fail to disclose that Nissan was -47%, GM -31.6, Chrsyler -38%, Honda -22.2%, Ford -18.9%   

What they really fail to disclose is the fact that Toyota owns 50% of the US Hybrid market and that along with EV is the future.  VW; not even in the game. 

Don't be all pouty just because my Fast peed in your oatmeal 

[rrocket]

I think the point Steve was trying to make, was why bother comparing sales with VW, since they only sell what...~300,000 cars per year in the USA?  They sell about as much as KIA does.  Yes, KIA.


Toyota (and others) sell more cars in 2-3 months as VW does all year.

[vdk]

The article hinges on US sales.

The world's two largest car markets are US and China.  Would you have preferred that the article compared Toyota and VW sales in China? 

Here is how they try and slant the facts:

And whereas Toyota’s sales have fallen by 23.8% in America so far this year, VW’s sales have dropped by only 6.6%.

VW is such a bit player in the US market, but of course they gotta find a friendly factoid.  They fail to disclose that Nissan was -47%, GM -31.6, Chrsyler -38%, Honda -22.2%, Ford -18.9%   

What they really fail to disclose is the fact that Toyota owns 50% of the US Hybrid market and that along with EV is the future.  VW; not even in the game. 

Don't be all pouty just because my Fast peed in your oatmeal 

[articsteve]

The world's two largest car markets are US and China.  Would you have preferred that the article compared Toyota and VW sales in China?  

That would have been informative rather than this rehash of what every other auto mag has reported.



Yale Zhang, a Shanghai-based analyst with U.S. consulting firm CSM Worldwide, thinks Toyota's goal to increase sales by 14% next year is achievable.

"They were stuck in neutral for a good part of the year this year and have had plenty of time to make adjustments to focus more on cars with smaller engines, so most of the structural problems they faced earlier this year are gone," Mr. Zhang said.

Toyota's sales in China actually contracted in the first four months of this year, before starting to turn around in May as the company responded, belatedly, to surging demand for cars with smaller engines.

Next year, Toyota is aiming for part of its boost to come from a similar adaptation by its Lexus unit. The luxury segment was one of the few areas of China's car market to experience unspectacular demand this year, averaging 14% growth through September. Mr. Nozaki said he expects Lexus sales in China to total about 33,000 vehicles this year, compared with 32,150 in 2008.

Relatively weak sales growth of upscale cars like Lexus was due in part to slower growth in China's export-dependent coastal regions, which were hit by the global downturn, meaning people couldn't afford pricey vehicles.

But a bigger reason was the Chinese government's decision last year to promote fuel savings by raising sales taxes for vehicles with engines bigger than three liters.


http://online.wsj.com/article/SB10001424052748704498804574559312932158076.html

 

[articsteve]

I think the point Steve was trying to make, was why bother comparing sales with VW, since they only sell what...~300,000 cars per year in the USA?  They sell about as much as KIA does.  Yes, KIA.

Toyota (and others) sell more cars in 2-3 months as VW does all year.

This Economist "article" is a classic case of giving ppl in the USA what they want to hear.  Namely, that one day America will rise from the economic toilet because the other guy sucks worse.     It will continue like this to no avail until GM and Chrysler finally pass away and then ppl might start to comprehend that the American era of economic and industrial dominance is over.

Sh*t happens.

[Mitlov]

The world's two largest car markets are US and China.  Would you have preferred that the article compared Toyota and VW sales in China?  

That would have been informative rather than this rehash of what every other auto mag has reported.

Okay, here's a quick primer.  VW sales:



Toyota sales:

[Mitlov]

This Economist "article" is a classic case of giving ppl in the USA what they want to hear.

A highbrow British news magazine publishes articles based solely on what Americans what they want to hear?  I'm pretty sure they think that us colonials are still refining the art of house-training

[vdk]

Shh Mitlov don't tell them it's British, we had them fooled...

[articsteve]

A highbrow British news magazine publishes articles based solely on what Americans what they want to hear?  I'm pretty sure they think that us colonials are still refining the art of house-training

Who else is going to buy it, the British?  They have no industry, they have no automobile industry, they have no economy.  Well I suppose it's impossible not to have an economy.   Gee, not a place you'd want economic opinion from though regardless of how "highbrow" it is. 

‘Lost Decade’ Feared for British Economy 

Britain may finally be emerging from recession, but many analysts warn that it is a false dawn. In fact, they argue, the economy here is so ravaged by growing debts and ruined banks that it could well be following in the steps of Japan’s lost decade of the 1990s.



http://www.nytimes.com/2009/11/21/business/global/21pound.html