It's Official - Toyota Now World's Best Selling Automaker
01-23-2009, 01:08 PM
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It's Official - Toyota Now World's Best Selling Automaker GM loses sales title to Toyota
GM's sales fell 10.8% in 2008. GM sold 610,000 fewer cars than Toyota, making it the first time in nearly 80 years that GM was not top in global sales.
Last Updated: January 21, 2009: 10:46 AM ET
NEW YORK (CNNMoney.com) -- General Motors lost the title of world's largest automaker to rival Toyota Motor in 2008, according to sales figures released Wednesday by the troubled U.S. automaker. It was the first time in nearly 80 years that GM did not sell the most cars in the world.
GM reported that global sales plunged 10.8% for the year to 8.36 million vehicles. That allowed Toyota to move ahead of GM with sales of 8.97 million vehicles worldwide.
GM executives tried to play down the significance of the company losing the title it had held for 77 years.
"I don't think being No. 1 in global sales means much at all to the average consumer," said GM sales analyst Mike DiGiovanni during a conference call Wednesday. "What matters most to the consumer is strong brands and strong products."
A spokesman for Toyota also downplayed the shift in the global sales leader title. "Being No. 1 in volume has never been our goal. Being No. 1 in quality and customer experience has been our goal," said spokesman Steven Curtis.
DiGiovanni said GM is much more focused on stemming losses in its auto business and proving that the company can be viable for the long-term.
The company was in danger of running out of the cash it needed to continue to operate last month before it received approval for $13.4 billion in loans from the federal government. GM has until Feb. 17 to provide the government with a long-term plan to remain viable or it risks having to repay the loan.
But for the short-term at least, there are no signs that sales will improve anytime soon. DiGiovanni said that the seasonally-adjusted annual U.S. sales rate will fall below 10 million vehicles in January. That would be the first time below that benchmark since 1982.
Industrywide U.S. sales came in just over the 10 million sales pace in each month of the last quarter of 2008 despite a sharp plunge in demand that left sales down 35% from year ago levels.
Investors seemed concerned by the bleak outlook. Shares of GM fell 2% Wednesday morning even though the broader market rallied following Tuesday's big plunge.
DiGiovanni attributed the new low for U.S. industrywide sales to a sharp drop in fleet sales to businesses, such as rental car companies, rather than further weakness in consumer sales.
He added that the decision by GM, Chrysler LLC and Ford Motor (F, Fortune 500) to trim first quarter production due to weak sales is leading to the drop in fleet sales, and that retail sales should be at or slightly above sales seen in the fourth quarter.
Another rough year ahead
DiGiovanni said the company is hopeful that economic stimulus plans being considered in the United States as well as in other nations should hopefully help sales later this year. But he cautioned that "2009 will be a very difficult year."
GM's sales in Europe fell 6.5% while sales in North America plunged 21%. The company did post full-year sales gains in its Asia-Pacific region, as well as in its Latin America-Africa-Middle East region.
The loss of the No. 1 automaker title came as no surprise. Toyota finished 2007 only 3,101 vehicles behind GM, as its sales rose and GM's fell that year.
But Toyota's sales fell 4% in 2008 as all automakers were hurt by high oil prices earlier in the year and the global recession. Toyota has already said that, due to the sharp drop in global demand for autos, it will report its first operating loss as a public company during its current fiscal year.
Toyota's sales declines are a more recent problem, however. GM has been losing market share in the U.S. to Toyota and other import brands for decades.
Still, DiGiovanni would not concede that Toyota will hold the No. 1 sale title for the foreseeable future.
He pointed out that GM is still ahead of Toyota in sales in the United States and Western Europe, the two markets most hurt by the global recession and credit crisis, and he pointed out that GM is also ahead of Toyota in many growing markets, such as China, India and Brazil.
http://money.cnn.com/2009/01/21/news...ion=2009012109
GM's sales fell 10.8% in 2008. GM sold 610,000 fewer cars than Toyota, making it the first time in nearly 80 years that GM was not top in global sales.
Last Updated: January 21, 2009: 10:46 AM ET
NEW YORK (CNNMoney.com) -- General Motors lost the title of world's largest automaker to rival Toyota Motor in 2008, according to sales figures released Wednesday by the troubled U.S. automaker. It was the first time in nearly 80 years that GM did not sell the most cars in the world.
GM reported that global sales plunged 10.8% for the year to 8.36 million vehicles. That allowed Toyota to move ahead of GM with sales of 8.97 million vehicles worldwide.
GM executives tried to play down the significance of the company losing the title it had held for 77 years.
"I don't think being No. 1 in global sales means much at all to the average consumer," said GM sales analyst Mike DiGiovanni during a conference call Wednesday. "What matters most to the consumer is strong brands and strong products."
A spokesman for Toyota also downplayed the shift in the global sales leader title. "Being No. 1 in volume has never been our goal. Being No. 1 in quality and customer experience has been our goal," said spokesman Steven Curtis.
DiGiovanni said GM is much more focused on stemming losses in its auto business and proving that the company can be viable for the long-term.
The company was in danger of running out of the cash it needed to continue to operate last month before it received approval for $13.4 billion in loans from the federal government. GM has until Feb. 17 to provide the government with a long-term plan to remain viable or it risks having to repay the loan.
But for the short-term at least, there are no signs that sales will improve anytime soon. DiGiovanni said that the seasonally-adjusted annual U.S. sales rate will fall below 10 million vehicles in January. That would be the first time below that benchmark since 1982.
Industrywide U.S. sales came in just over the 10 million sales pace in each month of the last quarter of 2008 despite a sharp plunge in demand that left sales down 35% from year ago levels.
Investors seemed concerned by the bleak outlook. Shares of GM fell 2% Wednesday morning even though the broader market rallied following Tuesday's big plunge.
DiGiovanni attributed the new low for U.S. industrywide sales to a sharp drop in fleet sales to businesses, such as rental car companies, rather than further weakness in consumer sales.
He added that the decision by GM, Chrysler LLC and Ford Motor (F, Fortune 500) to trim first quarter production due to weak sales is leading to the drop in fleet sales, and that retail sales should be at or slightly above sales seen in the fourth quarter.
Another rough year ahead
DiGiovanni said the company is hopeful that economic stimulus plans being considered in the United States as well as in other nations should hopefully help sales later this year. But he cautioned that "2009 will be a very difficult year."
GM's sales in Europe fell 6.5% while sales in North America plunged 21%. The company did post full-year sales gains in its Asia-Pacific region, as well as in its Latin America-Africa-Middle East region.
The loss of the No. 1 automaker title came as no surprise. Toyota finished 2007 only 3,101 vehicles behind GM, as its sales rose and GM's fell that year.
But Toyota's sales fell 4% in 2008 as all automakers were hurt by high oil prices earlier in the year and the global recession. Toyota has already said that, due to the sharp drop in global demand for autos, it will report its first operating loss as a public company during its current fiscal year.
Toyota's sales declines are a more recent problem, however. GM has been losing market share in the U.S. to Toyota and other import brands for decades.
Still, DiGiovanni would not concede that Toyota will hold the No. 1 sale title for the foreseeable future.
He pointed out that GM is still ahead of Toyota in sales in the United States and Western Europe, the two markets most hurt by the global recession and credit crisis, and he pointed out that GM is also ahead of Toyota in many growing markets, such as China, India and Brazil.
http://money.cnn.com/2009/01/21/news...ion=2009012109
01-23-2009, 01:09 PM
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Not only does Toyota now sell more vehicles than anyone else globally, they've also been by far the wealthiest automaker globally for a very long time now. Even in a global economic downturn Toyota is still a juggernaut and has more than enough cash and management willing to make the cuts necessary to keep the company at the top of it's game.
01-24-2009, 01:41 AM
#3
Let's not forget that it is also the first time in almost as many years as GM had been on top (yes, over 70 years) that Toyota itself has not turned a profit. 
Apparently things are tough all over.
Apparently things are tough all over.
01-24-2009, 11:40 AM
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And before people bitch about how it's America's fault for not supporting Ford/GM, General Motors was still #1 in America. And before you bitch that people in Asia don't buy American, they posted full-year sales gains in the Asia/Pacific region too .
.
01-24-2009, 01:53 PM
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GM And Toyota. A Tale Of Two Losers
By Bertel Schmitt
January 24, 2009
General Motors hasn’t made money on its core auto business since 2004 - and did nothing. Same cars, same talk, same mismanagement. GM is in the government’s intensive care, hangs on a the tax payer’s money drip, and still hasn’t changed.
Contrast that to Toyota. Toyota will announce its first operating loss in its history - approx $1.6b, less than GM’s monthly cash burn - and Toyota went to battle stations months before the announcement.
Toyota does everything GM failed to do. They changed the management. Akio Toyoda, grandson of the founder, will take over as president. Even before he’s officially taking the job, Toyota “appears ready to overhaul its entire operations, from development to production to its sales network,” the Nikkei (sub) reports. Nothing is sacred. Plants are idled worldwide. Output is slashed. A few days ago, the company held a meeting in Nagoya that was attended by 1,000 representatives from Toyota dealerships across the country. Toyoda made it clear that he would not hesitate to drastically revise the firm’s domestic sales structure. And that’s just the beginning. More drastic moves afoot.
Toyoda has already started spearheading a team of employees charged with devising new corporate visions, including making decisions on future domestic and overseas lineups, production system and sales networks.
While GM is painting rosy pictures about pent-up demand and sales which will soon rebound, Toyota is preparing for the worst.
Total global output capacity for all carmakers is 100 million units a year. Actual demand is estimated at only about 60 million cars worldwide. According to industry figures, capacity utilization below 80 percent spells trouble. With capacity utilization of 60 percent (and falling) the world’s auto industry is in deep trouble. Toyota alone has excess capacity of more than a million units.
While GM was betting on SUVs and available credit, Toyota aims to take the lead in the industry by introducing not only the most environmentally friendly cars but also budget vehicles for emerging countries and slick models that can spark young people’s interest in cars.
While GM was fleecing its suppliers and even drove its own Delphi into bankruptcy, Toyota is worried about the health of its suppliers. Toyota has conducted an emergency poll of around 50 parts suppliers, to grasp their fundraising situations. The upshot is that their financial health is rapidly worsening. “We will possibly need to help them secure necessary funds,” said Senior Managing Director Atsushi Niimi, who is in charge of procurement.
While GM coddled the UAW, Toyota slashed most temporary workers, and may let unionized workers go also.
Toyota officially replaced General Motors Corp. as the world’s No. 1 automaker in 2008. At Toyota, this is already regarded as an embarrassing non-event. Everybody knows that the reason is GM’s poor performance, rather than Toyota’s strong results. There were no celebrations at Toyota. Actually, it is an irritation. As the Nikkei says: “Staff are simply left without a new goal to shoot for and a bit weary from frequent changes in production schedules. To raise the morale of its people and suppliers, Toyota needs a new goal other than just “growing bigger” or “becoming No. 1.”
http://www.thetruthaboutcars.com/gm-...-of-two-loser/
By Bertel Schmitt
January 24, 2009
General Motors hasn’t made money on its core auto business since 2004 - and did nothing. Same cars, same talk, same mismanagement. GM is in the government’s intensive care, hangs on a the tax payer’s money drip, and still hasn’t changed.
Contrast that to Toyota. Toyota will announce its first operating loss in its history - approx $1.6b, less than GM’s monthly cash burn - and Toyota went to battle stations months before the announcement.
Toyota does everything GM failed to do. They changed the management. Akio Toyoda, grandson of the founder, will take over as president. Even before he’s officially taking the job, Toyota “appears ready to overhaul its entire operations, from development to production to its sales network,” the Nikkei (sub) reports. Nothing is sacred. Plants are idled worldwide. Output is slashed. A few days ago, the company held a meeting in Nagoya that was attended by 1,000 representatives from Toyota dealerships across the country. Toyoda made it clear that he would not hesitate to drastically revise the firm’s domestic sales structure. And that’s just the beginning. More drastic moves afoot.
Toyoda has already started spearheading a team of employees charged with devising new corporate visions, including making decisions on future domestic and overseas lineups, production system and sales networks.
While GM is painting rosy pictures about pent-up demand and sales which will soon rebound, Toyota is preparing for the worst.
Total global output capacity for all carmakers is 100 million units a year. Actual demand is estimated at only about 60 million cars worldwide. According to industry figures, capacity utilization below 80 percent spells trouble. With capacity utilization of 60 percent (and falling) the world’s auto industry is in deep trouble. Toyota alone has excess capacity of more than a million units.
While GM was betting on SUVs and available credit, Toyota aims to take the lead in the industry by introducing not only the most environmentally friendly cars but also budget vehicles for emerging countries and slick models that can spark young people’s interest in cars.
While GM was fleecing its suppliers and even drove its own Delphi into bankruptcy, Toyota is worried about the health of its suppliers. Toyota has conducted an emergency poll of around 50 parts suppliers, to grasp their fundraising situations. The upshot is that their financial health is rapidly worsening. “We will possibly need to help them secure necessary funds,” said Senior Managing Director Atsushi Niimi, who is in charge of procurement.
While GM coddled the UAW, Toyota slashed most temporary workers, and may let unionized workers go also.
Toyota officially replaced General Motors Corp. as the world’s No. 1 automaker in 2008. At Toyota, this is already regarded as an embarrassing non-event. Everybody knows that the reason is GM’s poor performance, rather than Toyota’s strong results. There were no celebrations at Toyota. Actually, it is an irritation. As the Nikkei says: “Staff are simply left without a new goal to shoot for and a bit weary from frequent changes in production schedules. To raise the morale of its people and suppliers, Toyota needs a new goal other than just “growing bigger” or “becoming No. 1.”
http://www.thetruthaboutcars.com/gm-...-of-two-loser/
01-24-2009, 02:14 PM
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............ Trending Topics
01-24-2009, 02:59 PM
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GM And Toyota. A Tale Of Two Losers
By Bertel Schmitt
January 24, 2009
General Motors hasn’t made money on its core auto business since 2004 - and did nothing. Same cars, same talk, same mismanagement. GM is in the government’s intensive care, hangs on a the tax payer’s money drip, and still hasn’t changed.
Contrast that to Toyota. Toyota will announce its first operating loss in its history - approx $1.6b, less than GM’s monthly cash burn - and Toyota went to battle stations months before the announcement.
Toyota does everything GM failed to do. They changed the management. Akio Toyoda, grandson of the founder, will take over as president. Even before he’s officially taking the job, Toyota “appears ready to overhaul its entire operations, from development to production to its sales network,” the Nikkei (sub) reports. Nothing is sacred. Plants are idled worldwide. Output is slashed. A few days ago, the company held a meeting in Nagoya that was attended by 1,000 representatives from Toyota dealerships across the country. Toyoda made it clear that he would not hesitate to drastically revise the firm’s domestic sales structure. And that’s just the beginning. More drastic moves afoot.
Toyoda has already started spearheading a team of employees charged with devising new corporate visions, including making decisions on future domestic and overseas lineups, production system and sales networks.
While GM is painting rosy pictures about pent-up demand and sales which will soon rebound, Toyota is preparing for the worst.
Total global output capacity for all carmakers is 100 million units a year. Actual demand is estimated at only about 60 million cars worldwide. According to industry figures, capacity utilization below 80 percent spells trouble. With capacity utilization of 60 percent (and falling) the world’s auto industry is in deep trouble. Toyota alone has excess capacity of more than a million units.
While GM was betting on SUVs and available credit, Toyota aims to take the lead in the industry by introducing not only the most environmentally friendly cars but also budget vehicles for emerging countries and slick models that can spark young people’s interest in cars.
While GM was fleecing its suppliers and even drove its own Delphi into bankruptcy, Toyota is worried about the health of its suppliers. Toyota has conducted an emergency poll of around 50 parts suppliers, to grasp their fundraising situations. The upshot is that their financial health is rapidly worsening. “We will possibly need to help them secure necessary funds,” said Senior Managing Director Atsushi Niimi, who is in charge of procurement.
While GM coddled the UAW, Toyota slashed most temporary workers, and may let unionized workers go also.
Toyota officially replaced General Motors Corp. as the world’s No. 1 automaker in 2008. At Toyota, this is already regarded as an embarrassing non-event. Everybody knows that the reason is GM’s poor performance, rather than Toyota’s strong results. There were no celebrations at Toyota. Actually, it is an irritation. As the Nikkei says: “Staff are simply left without a new goal to shoot for and a bit weary from frequent changes in production schedules. To raise the morale of its people and suppliers, Toyota needs a new goal other than just “growing bigger” or “becoming No. 1.”
http://www.thetruthaboutcars.com/gm-...-of-two-loser/
By Bertel Schmitt
January 24, 2009
General Motors hasn’t made money on its core auto business since 2004 - and did nothing. Same cars, same talk, same mismanagement. GM is in the government’s intensive care, hangs on a the tax payer’s money drip, and still hasn’t changed.
Contrast that to Toyota. Toyota will announce its first operating loss in its history - approx $1.6b, less than GM’s monthly cash burn - and Toyota went to battle stations months before the announcement.
Toyota does everything GM failed to do. They changed the management. Akio Toyoda, grandson of the founder, will take over as president. Even before he’s officially taking the job, Toyota “appears ready to overhaul its entire operations, from development to production to its sales network,” the Nikkei (sub) reports. Nothing is sacred. Plants are idled worldwide. Output is slashed. A few days ago, the company held a meeting in Nagoya that was attended by 1,000 representatives from Toyota dealerships across the country. Toyoda made it clear that he would not hesitate to drastically revise the firm’s domestic sales structure. And that’s just the beginning. More drastic moves afoot.
Toyoda has already started spearheading a team of employees charged with devising new corporate visions, including making decisions on future domestic and overseas lineups, production system and sales networks.
While GM is painting rosy pictures about pent-up demand and sales which will soon rebound, Toyota is preparing for the worst.
Total global output capacity for all carmakers is 100 million units a year. Actual demand is estimated at only about 60 million cars worldwide. According to industry figures, capacity utilization below 80 percent spells trouble. With capacity utilization of 60 percent (and falling) the world’s auto industry is in deep trouble. Toyota alone has excess capacity of more than a million units.
While GM was betting on SUVs and available credit, Toyota aims to take the lead in the industry by introducing not only the most environmentally friendly cars but also budget vehicles for emerging countries and slick models that can spark young people’s interest in cars.
While GM was fleecing its suppliers and even drove its own Delphi into bankruptcy, Toyota is worried about the health of its suppliers. Toyota has conducted an emergency poll of around 50 parts suppliers, to grasp their fundraising situations. The upshot is that their financial health is rapidly worsening. “We will possibly need to help them secure necessary funds,” said Senior Managing Director Atsushi Niimi, who is in charge of procurement.
While GM coddled the UAW, Toyota slashed most temporary workers, and may let unionized workers go also.
Toyota officially replaced General Motors Corp. as the world’s No. 1 automaker in 2008. At Toyota, this is already regarded as an embarrassing non-event. Everybody knows that the reason is GM’s poor performance, rather than Toyota’s strong results. There were no celebrations at Toyota. Actually, it is an irritation. As the Nikkei says: “Staff are simply left without a new goal to shoot for and a bit weary from frequent changes in production schedules. To raise the morale of its people and suppliers, Toyota needs a new goal other than just “growing bigger” or “becoming No. 1.”
http://www.thetruthaboutcars.com/gm-...-of-two-loser/
01-24-2009, 03:49 PM
#9
No no, you have it wrong. It wasn't really GM's fault, it was the American people's fault for not buying American cars for the simple fact that they are American. It doesn't matter if they didn't provide what they thought would be the best value, or even a car to fit their needs at all. And it doesn't matter that they completely ignored consumer needs and demands for two decades. They're American made, so everyone in America should buy them. That's the definition of a free market... free to buy American!!
---------------------------------------------------------
I find it very interesting how Japan won't let us sell our cars in their country, but they are allowed to sell as many cars as they want in our country. How is that fair at all??
What we should simply do is make an offer to the japanese - they either let us sell our cars there or they stop selling cars in our country. Toyota would probably go under if we banned japanese cars from the US, the vast majority of their sales are in the United States, and its extremely profitable for them. I don't know why this hasn't been done yet.
01-24-2009, 04:42 PM
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Shutup. You drive an S2000, you are the last person who should be making any comments about the current state of affairs
---------------------------------------------------------
I find it very interesting how Japan won't let us sell our cars in their country, but they are allowed to sell as many cars as they want in our country. How is that fair at all??
What we should simply do is make an offer to the japanese - they either let us sell our cars there or they stop selling cars in our country. Toyota would probably go under if we banned japanese cars from the US, the vast majority of their sales are in the United States, and its extremely profitable for them. I don't know why this hasn't been done yet.
---------------------------------------------------------
I find it very interesting how Japan won't let us sell our cars in their country, but they are allowed to sell as many cars as they want in our country. How is that fair at all??
What we should simply do is make an offer to the japanese - they either let us sell our cars there or they stop selling cars in our country. Toyota would probably go under if we banned japanese cars from the US, the vast majority of their sales are in the United States, and its extremely profitable for them. I don't know why this hasn't been done yet.
01-25-2009, 05:27 AM
#11
No no, you have it wrong. It wasn't really GM's fault, it was the American people's fault for not buying American cars for the simple fact that they are American. It doesn't matter if they didn't provide what they thought would be the best value, or even a car to fit their needs at all. And it doesn't matter that they completely ignored consumer needs and demands for two decades. They're American made, so everyone in America should buy them. That's the definition of a free market... free to buy American!!
Though I suppose you'd still come back with some sarcasticly smartass retort in an attempt to justify that form of selling out as well.
Is absolutely nothing (other than constantly quoting from that same globalization/capitalism/free markets at ALL costs handbook of course) sacred to you?
Free/open trade LOL...yeah, as long as the trade is in Japan's favor all of the time then it's free/open of course.
What a joke.
01-25-2009, 10:13 AM
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GM And Toyota. A Tale Of Two Losers
By Bertel Schmitt
January 24, 2009
General Motors hasn’t made money on its core auto business since 2004 - and did nothing. Same cars, same talk, same mismanagement. GM is in the government’s intensive care, hangs on a the tax payer’s money drip, and still hasn’t changed.
Contrast that to Toyota. Toyota will announce its first operating loss in its history - approx $1.6b, less than GM’s monthly cash burn - and Toyota went to battle stations months before the announcement.
Toyota does everything GM failed to do. They changed the management. Akio Toyoda, grandson of the founder, will take over as president. Even before he’s officially taking the job, Toyota “appears ready to overhaul its entire operations, from development to production to its sales network,” the Nikkei (sub) reports. Nothing is sacred. Plants are idled worldwide. Output is slashed. A few days ago, the company held a meeting in Nagoya that was attended by 1,000 representatives from Toyota dealerships across the country. Toyoda made it clear that he would not hesitate to drastically revise the firm’s domestic sales structure. And that’s just the beginning. More drastic moves afoot.
Toyoda has already started spearheading a team of employees charged with devising new corporate visions, including making decisions on future domestic and overseas lineups, production system and sales networks.
While GM is painting rosy pictures about pent-up demand and sales which will soon rebound, Toyota is preparing for the worst.
Total global output capacity for all carmakers is 100 million units a year. Actual demand is estimated at only about 60 million cars worldwide. According to industry figures, capacity utilization below 80 percent spells trouble. With capacity utilization of 60 percent (and falling) the world’s auto industry is in deep trouble. Toyota alone has excess capacity of more than a million units.
While GM was betting on SUVs and available credit, Toyota aims to take the lead in the industry by introducing not only the most environmentally friendly cars but also budget vehicles for emerging countries and slick models that can spark young people’s interest in cars.
While GM was fleecing its suppliers and even drove its own Delphi into bankruptcy, Toyota is worried about the health of its suppliers. Toyota has conducted an emergency poll of around 50 parts suppliers, to grasp their fundraising situations. The upshot is that their financial health is rapidly worsening. “We will possibly need to help them secure necessary funds,” said Senior Managing Director Atsushi Niimi, who is in charge of procurement.
While GM coddled the UAW, Toyota slashed most temporary workers, and may let unionized workers go also.
Toyota officially replaced General Motors Corp. as the world’s No. 1 automaker in 2008. At Toyota, this is already regarded as an embarrassing non-event. Everybody knows that the reason is GM’s poor performance, rather than Toyota’s strong results. There were no celebrations at Toyota. Actually, it is an irritation. As the Nikkei says: “Staff are simply left without a new goal to shoot for and a bit weary from frequent changes in production schedules. To raise the morale of its people and suppliers, Toyota needs a new goal other than just “growing bigger” or “becoming No. 1.”
http://www.thetruthaboutcars.com/gm-...-of-two-loser/
By Bertel Schmitt
January 24, 2009
General Motors hasn’t made money on its core auto business since 2004 - and did nothing. Same cars, same talk, same mismanagement. GM is in the government’s intensive care, hangs on a the tax payer’s money drip, and still hasn’t changed.
Contrast that to Toyota. Toyota will announce its first operating loss in its history - approx $1.6b, less than GM’s monthly cash burn - and Toyota went to battle stations months before the announcement.
Toyota does everything GM failed to do. They changed the management. Akio Toyoda, grandson of the founder, will take over as president. Even before he’s officially taking the job, Toyota “appears ready to overhaul its entire operations, from development to production to its sales network,” the Nikkei (sub) reports. Nothing is sacred. Plants are idled worldwide. Output is slashed. A few days ago, the company held a meeting in Nagoya that was attended by 1,000 representatives from Toyota dealerships across the country. Toyoda made it clear that he would not hesitate to drastically revise the firm’s domestic sales structure. And that’s just the beginning. More drastic moves afoot.
Toyoda has already started spearheading a team of employees charged with devising new corporate visions, including making decisions on future domestic and overseas lineups, production system and sales networks.
While GM is painting rosy pictures about pent-up demand and sales which will soon rebound, Toyota is preparing for the worst.
Total global output capacity for all carmakers is 100 million units a year. Actual demand is estimated at only about 60 million cars worldwide. According to industry figures, capacity utilization below 80 percent spells trouble. With capacity utilization of 60 percent (and falling) the world’s auto industry is in deep trouble. Toyota alone has excess capacity of more than a million units.
While GM was betting on SUVs and available credit, Toyota aims to take the lead in the industry by introducing not only the most environmentally friendly cars but also budget vehicles for emerging countries and slick models that can spark young people’s interest in cars.
While GM was fleecing its suppliers and even drove its own Delphi into bankruptcy, Toyota is worried about the health of its suppliers. Toyota has conducted an emergency poll of around 50 parts suppliers, to grasp their fundraising situations. The upshot is that their financial health is rapidly worsening. “We will possibly need to help them secure necessary funds,” said Senior Managing Director Atsushi Niimi, who is in charge of procurement.
While GM coddled the UAW, Toyota slashed most temporary workers, and may let unionized workers go also.
Toyota officially replaced General Motors Corp. as the world’s No. 1 automaker in 2008. At Toyota, this is already regarded as an embarrassing non-event. Everybody knows that the reason is GM’s poor performance, rather than Toyota’s strong results. There were no celebrations at Toyota. Actually, it is an irritation. As the Nikkei says: “Staff are simply left without a new goal to shoot for and a bit weary from frequent changes in production schedules. To raise the morale of its people and suppliers, Toyota needs a new goal other than just “growing bigger” or “becoming No. 1.”
http://www.thetruthaboutcars.com/gm-...-of-two-loser/
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01-25-2009, 10:59 AM
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So what's next, Americans supporting/promoting/viewing only Japanese baseball and other Asia only sporting events while completely ignoring MLB, the NFL, the NBA etc?
Though I suppose you'd still come back with some sarcasticly smartass retort in an attempt to justify that form of selling out as well.
Is absolutely nothing (other than constantly quoting from that same globalization/capitalism/free markets at ALL costs handbook of course) sacred to you?
Free/open trade LOL...yeah, as long as the trade is in Japan's favor all of the time then it's free/open of course. What a joke.
Though I suppose you'd still come back with some sarcasticly smartass retort in an attempt to justify that form of selling out as well.
Is absolutely nothing (other than constantly quoting from that same globalization/capitalism/free markets at ALL costs handbook of course) sacred to you?
Free/open trade LOL...yeah, as long as the trade is in Japan's favor all of the time then it's free/open of course.
What a joke.
01-25-2009, 01:47 PM
#16
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It's not that I don't care, it's that I don't care as much as him. They might have had help, but the Big 3 got themselves into this. Do they DESERVE to go under? Maybe not, but they certainly EARNED it. And I find it offensive (and borderline socialist) to expect somebody to buy something just because of where it's made, regardless of the quality or whether it fits your wants/needs or not.
01-25-2009, 04:02 PM
#18
So what's next, Americans supporting/promoting/viewing only Japanese baseball and other Asia only sporting events while completely ignoring MLB, the NFL, the NBA etc?
Though I suppose you'd still come back with some sarcasticly smartass retort in an attempt to justify that form of selling out as well.
Is absolutely nothing (other than constantly quoting from that same globalization/capitalism/free markets at ALL costs handbook of course) sacred to you?
Free/open trade LOL...yeah, as long as the trade is in Japan's favor all of the time then it's free/open of course. What a joke.
Though I suppose you'd still come back with some sarcasticly smartass retort in an attempt to justify that form of selling out as well.
Is absolutely nothing (other than constantly quoting from that same globalization/capitalism/free markets at ALL costs handbook of course) sacred to you?
Free/open trade LOL...yeah, as long as the trade is in Japan's favor all of the time then it's free/open of course.
What a joke.Free market principles are very sacred to me and a lot of other people (like Irunelevens) because they promote liberty. The freedom to choose the product with the best value (wherever it came from) is essential for the marketplace. That's why we cannot stand the socialism and protectionism you support so dearly, which encourages monopoly and discourages competition, ultimately hurting American consumers.
01-25-2009, 04:40 PM
#19
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GM seriously needs fresh blood at the top. I can't believe Rick Wagoner and other executives are still there after all of this time. They have proven they cannot lead GM through these tough times and more importantly proactively make decisions that ensure long term viability. As long as they are there, GM will continue to suffer.
01-25-2009, 04:40 PM
#20
Free market principles are very sacred to me and a lot of other people (like Irunelevens) because they promote liberty. The freedom to choose the product with the best value (wherever it came from) is essential for the marketplace. That's why we cannot stand the socialism and protectionism you support so dearly, which encourages monopoly and discourages competition, ultimately hurting American consumers.
Based on mere principle, just to make a point even, and adhering to that one principle (let's say, capitalism in it's purest form) at all costs has helped bring this nation to a point where things are really, really bad in case nobody here has noticed.
Are you truly still willing to stand on a soapbox still preaching that same principle just for the sake of principle as fellow Americans are standing on bread/soup lines and robbing your home for food/clothing?
Now before we get too far ahead of ourselves, I am in no way a Socialist/Communist and I don't necessarily believe that protectionism is the answer here either. I have money and nice things and want to hold onto them just like anyone else.
I guess my question is, at what point do we say "enough is enough"? We're selling our nation piece by piece and when you sell something off like that, well, generally it goes away forever.
Freedom of choice is a truly wonderful privilege we have here in the U.S....as long as there are still plenty of choices of course.
Let's see how happy you are preaching principles when you're paying $50k for a base Camry.
