Toyota passes GM in Sales and Recalls.
04-25-2007, 08:40 PM
#1
TECH Addict
Thread Starter
iTrader: (14)
Join Date: May 2005
Location: Simi Valley, CA.
Posts: 2,727
Likes: 0
Received 0 Likes
on
0 Posts
Toyota passes GM in Sales and Recalls. Found this over at Chirpthird.com
It's a long read so there are Cliffs notes at the bottom.
"Say it isn't so?! But I thought Americans build crap cars and Toyota/Lexus built the best quality cars on the road? Not according to the facts (Businessweek, etc.). Read on and the next time someone tells you American built cars are crap, you can inform them otherwise. Feel free to pass on to friends.
Roger Simmermaker is the author of How Americans Can Buy American: The Power of Consumer Patriotism. He also writes "Buy American Mention of the Week"
---------------
Thunder on the Tundra: Toyota Trucks Ahead in 2007 Recalls
If you've merely done a moderate amount of Internet surfing or cracked open a newspaper lately - just about any newspaper - you've undoubtedly seen the news that Toyota has once again passed Ford in worldwide auto sales and may pass GM sometime this year.
But what you may not have seen is that Toyota has already passed both Ford and GM in a different category - automotive recalls.
Although we've barely passed mid-February, Toyota has already recalled! 533,417 vehicles this year in a mix that, according to www.AutoRecalls.us, includes Tundras Sequoias and Camrys. That puts Toyota on track to recall more than the over 1.76 million autos they recalled in the U.S. and Japan in 2006, and the 2.2 million they recalled in 2005 when they recalled more cars than they built.
What's more, the current recall related to the Turdra trucks and Sequioa SUVs is similar to the same defect in 800,000 of the same vehicles in 2005.
Maybe somebody at Toyota isn't paying attention?
Hopefully the American consumers are. Recall numbers by domestic companies (GM and Ford) so far this year are as follows: Ford, 128,163; Chevrolet, 4,829; and Pontiac, 1,602. Chrysler - a German company masquerading as an American company with plans to start importing cars from China in 2008 - has recalled 77,432 vehicles so far in 2007.
To be sure, high recall numbers are not good. Auto companies would much rather prefer high sales numbers instead. As I've already mentioned, the media is abuzz that GM may lose its crown this year to Toyota in worldwide auto sales. But for that to ever happen in the U.S. sales category, it's going to take several more years since GM has a U.S. market share of 24.3% compared to 15.4% for Toyota. Even Ford, despite their recent troubles, has a higher domestic market share than Toyota at 17.5%.
But if GM loses their worldwide crown this year, it may actually turn out to be a blessing in disguise. Here's why:
First, GM spent 17% less per vehicle this January compared to last January, which means they are more profitable on a per-unit basis. In fact, GM expects to report a profit for the most recent quarter.
Second, it may be good for GM to step aside temporarily, for now, and let Toyota take all the ammunition that is always aimed at the top dog of the industry so there is less pressure and fewer distractions. And when GM combines their more-solid profitability and their improved quality together, their public perception will also improve.
Then they can use these admirable qualities to prepare to surge back on top at the precise time Toyota is in the top slot with their recall surge in the news. Toyota's timing at being number one worldwide would create further skepticism about whether they really deserve their reputation for untarnished quality.
According to Business Week's January 22, 2007 issue, Toyota has recalled 9.3 million vehicles in the last three years, which is nearly four times the number of recalls in the three year period prior to 2004.
Other recent news that won't sit well with a Camry-conscious public is the class-action lawsuit recently settled by Toyota regarding ruinous oil sludge buildup
covering 3.5 million Toyota and Lexus (yes, Lexus) vehicles.
Optimistic statements by Toyota executives aren't going to cut it for long - particularly when they don't match well with reality. Denial in the Camry-company camp seems to be setting in. Toyota's North American president Jim Press recently disputed the suggestion that his company no longer enjoys a large lead in reliability over the American competition. Speculating on the thoughts of American car company well-wishers while speaking at the recent Chicago Auto Show,
Press said "I think there's some hope that the gap in quality is closing, but it really isn't."
Oh, really? That's a pretty strong comment considering Toyota recalled 1.27 million vehicles in one swoop in 2005, recording the biggest-ever recall in history for a Japanese car company.
But, recalls notwithstanding, the evidence that the quality gap is closing is pretty indisputable, and the evidence has been piling up for more than just the last couple of years. With the following facts, you can make your argument for American car quality fully bulletproof - even among your most ardent foreign car-defending friends.
* A February 10, 2003 Business Week told of how undeniable it was that GM cars are better built than they used to be. The article cited an improved J.D. Power quality ranking and a Consumer Reports recommendation for 13 of GM's vehicles (equal to 41% of their sales volume) compared to just five recommended GM vehicles for the previous year. The Chevy Impala beat the Camry in a quality survey, and Buick beat BMW.
* Business Week also reported September 23, 2003 that GM boosted its productivity 23% in six years while Toyota's productivity remained flat, and that GM's most-productive factories now beat Toyota's most-productive factories.
* A 2004 Consumer Reports ranking selected the Buick Regal as the most reliable among family sedans, beating the Toyota Camry, Honda Accord and Nissan Maxima. They also gave recommended ratings for four Ford models, including the Ford Focus.
* J.D. Power and Associates awarded Cadillac's Lansing Grand River assembly center its highest honor - the Gold Plant Quality Award - in 2004.
* An August 4, 2004 Wall Street Journal article said Toyota's lead in quality and reliability has narrowed in some segments and disappeared in others. Quality problems were reportedly "mushrooming."
* The Toyota Camry hasn't been awarded the best in its segment since the year 2000, but many Americans continue to regard it as the number one model in terms of quality. Toyota's Kentucky Camry plant was awarded with high initial quality rankings by J.D. Power from the late 1980s through the 1990s, but it plummeted to number 26 in 2002, improving to only number 14 in 2004, while two GM factories and one Ford factory took the top three spots that year.
* In a J.D. Power Initial Quality Survey of new 2004 cars, Chevy placed second behind Honda and Toyota sank to number three.
* As far back as at least 2003, Business Week has reported that American consumers regard certain foreign cars as better built than American cars, even when facts prove otherwise.
* Fast-forwarding to 2006, J.D. Power shows Mercury, Buick and Cadillac beat Toyota in a list of dependable cars. Two Buicks and a Mercury took the top three midsize car awards; Mercury, Ford and Buick took the top three large car awards; Ford took the midsize van award and the midsize truck award; and GMC and Cadillac took the large MAV (multi-purpose activity vehicle) and large premium MAV awards, respectively.
* In an article about trust issues, Business Week's December 11, 2006 issue stated "GM's quality nearly equals Toyota's." Perceived quality among the American public is another story, however. The difference between the actual quality of American cars and the perceived quality of American cars is the "perception gap."
* In the same article, J.D. Power's director for retail research said "Actual quality is so close." discussing the quality rankings of GMC, Chevrolet and Cadillac placing them on par with both Honda and Toyota.
* And most recently, of course, the Ford Fusion and Mercury Milan beat the Honda Accord and Toyota Camry according to Consumer Reports.
What's needed among automotive senior executives, and much of the media as well, is a return to intellectual honesty. Everyone tends to have their favorites and biases (mine are pretty obvious) but I pride myself in sticking with the facts to back up my comments.
When Toyotas North American president says that the quality gap isn't really closing, he's not being intellectually honest.
Some editorial writers aren't either. When Douglas Brinkley trumpeted Indiana's success in a Wall Street Journal article last year for attracting a Honda plant to their state - even though it took $140 million in tax credits and incentives - he wasn't what you would call "intellectually honest." In an apparent attempt to convince the reader that Honda doesn't send any automobiles to the U.S. from outside the country, he said the
following: "Turning farm fields into factories, that's what Henry Ford used to do. Today, in the heartland, it's being done by Honda - a company that doesn't manufacture imports but builds American-made cars."
Such statements lead the reader to think that some Japanese companies make all of their cars in the USA. Hardly. In fact, according to a January 8,
2007 Wall Street Journal article, the NAP ratio - a ratio that compares how many cars are built in North America vs. the number of cars imported - is slipping for Toyota. And according to Toyota internal documentation, the ratio is going to worsen next year."
******Cliffs notes:
Apparently Toyota has indeed passed up GM in total sales at this point in the Year, but as luck would have it, they have also passed them up in total recalls.
Total number of recalls:
Toyota- 533,417
Ford- 128,163
Chrysler- 77, 000
Chevrolet- 4,829
Pontiac- 1,602
It's a long read so there are Cliffs notes at the bottom.
"Say it isn't so?! But I thought Americans build crap cars and Toyota/Lexus built the best quality cars on the road? Not according to the facts (Businessweek, etc.). Read on and the next time someone tells you American built cars are crap, you can inform them otherwise. Feel free to pass on to friends.
Roger Simmermaker is the author of How Americans Can Buy American: The Power of Consumer Patriotism. He also writes "Buy American Mention of the Week"
---------------
Thunder on the Tundra: Toyota Trucks Ahead in 2007 Recalls
If you've merely done a moderate amount of Internet surfing or cracked open a newspaper lately - just about any newspaper - you've undoubtedly seen the news that Toyota has once again passed Ford in worldwide auto sales and may pass GM sometime this year.
But what you may not have seen is that Toyota has already passed both Ford and GM in a different category - automotive recalls.
Although we've barely passed mid-February, Toyota has already recalled! 533,417 vehicles this year in a mix that, according to www.AutoRecalls.us, includes Tundras Sequoias and Camrys. That puts Toyota on track to recall more than the over 1.76 million autos they recalled in the U.S. and Japan in 2006, and the 2.2 million they recalled in 2005 when they recalled more cars than they built.
What's more, the current recall related to the Turdra trucks and Sequioa SUVs is similar to the same defect in 800,000 of the same vehicles in 2005.
Maybe somebody at Toyota isn't paying attention?
Hopefully the American consumers are. Recall numbers by domestic companies (GM and Ford) so far this year are as follows: Ford, 128,163; Chevrolet, 4,829; and Pontiac, 1,602. Chrysler - a German company masquerading as an American company with plans to start importing cars from China in 2008 - has recalled 77,432 vehicles so far in 2007.
To be sure, high recall numbers are not good. Auto companies would much rather prefer high sales numbers instead. As I've already mentioned, the media is abuzz that GM may lose its crown this year to Toyota in worldwide auto sales. But for that to ever happen in the U.S. sales category, it's going to take several more years since GM has a U.S. market share of 24.3% compared to 15.4% for Toyota. Even Ford, despite their recent troubles, has a higher domestic market share than Toyota at 17.5%.
But if GM loses their worldwide crown this year, it may actually turn out to be a blessing in disguise. Here's why:
First, GM spent 17% less per vehicle this January compared to last January, which means they are more profitable on a per-unit basis. In fact, GM expects to report a profit for the most recent quarter.
Second, it may be good for GM to step aside temporarily, for now, and let Toyota take all the ammunition that is always aimed at the top dog of the industry so there is less pressure and fewer distractions. And when GM combines their more-solid profitability and their improved quality together, their public perception will also improve.
Then they can use these admirable qualities to prepare to surge back on top at the precise time Toyota is in the top slot with their recall surge in the news. Toyota's timing at being number one worldwide would create further skepticism about whether they really deserve their reputation for untarnished quality.
According to Business Week's January 22, 2007 issue, Toyota has recalled 9.3 million vehicles in the last three years, which is nearly four times the number of recalls in the three year period prior to 2004.
Other recent news that won't sit well with a Camry-conscious public is the class-action lawsuit recently settled by Toyota regarding ruinous oil sludge buildup
covering 3.5 million Toyota and Lexus (yes, Lexus) vehicles.
Optimistic statements by Toyota executives aren't going to cut it for long - particularly when they don't match well with reality. Denial in the Camry-company camp seems to be setting in. Toyota's North American president Jim Press recently disputed the suggestion that his company no longer enjoys a large lead in reliability over the American competition. Speculating on the thoughts of American car company well-wishers while speaking at the recent Chicago Auto Show,
Press said "I think there's some hope that the gap in quality is closing, but it really isn't."
Oh, really? That's a pretty strong comment considering Toyota recalled 1.27 million vehicles in one swoop in 2005, recording the biggest-ever recall in history for a Japanese car company.
But, recalls notwithstanding, the evidence that the quality gap is closing is pretty indisputable, and the evidence has been piling up for more than just the last couple of years. With the following facts, you can make your argument for American car quality fully bulletproof - even among your most ardent foreign car-defending friends.
* A February 10, 2003 Business Week told of how undeniable it was that GM cars are better built than they used to be. The article cited an improved J.D. Power quality ranking and a Consumer Reports recommendation for 13 of GM's vehicles (equal to 41% of their sales volume) compared to just five recommended GM vehicles for the previous year. The Chevy Impala beat the Camry in a quality survey, and Buick beat BMW.
* Business Week also reported September 23, 2003 that GM boosted its productivity 23% in six years while Toyota's productivity remained flat, and that GM's most-productive factories now beat Toyota's most-productive factories.
* A 2004 Consumer Reports ranking selected the Buick Regal as the most reliable among family sedans, beating the Toyota Camry, Honda Accord and Nissan Maxima. They also gave recommended ratings for four Ford models, including the Ford Focus.
* J.D. Power and Associates awarded Cadillac's Lansing Grand River assembly center its highest honor - the Gold Plant Quality Award - in 2004.
* An August 4, 2004 Wall Street Journal article said Toyota's lead in quality and reliability has narrowed in some segments and disappeared in others. Quality problems were reportedly "mushrooming."
* The Toyota Camry hasn't been awarded the best in its segment since the year 2000, but many Americans continue to regard it as the number one model in terms of quality. Toyota's Kentucky Camry plant was awarded with high initial quality rankings by J.D. Power from the late 1980s through the 1990s, but it plummeted to number 26 in 2002, improving to only number 14 in 2004, while two GM factories and one Ford factory took the top three spots that year.
* In a J.D. Power Initial Quality Survey of new 2004 cars, Chevy placed second behind Honda and Toyota sank to number three.
* As far back as at least 2003, Business Week has reported that American consumers regard certain foreign cars as better built than American cars, even when facts prove otherwise.
* Fast-forwarding to 2006, J.D. Power shows Mercury, Buick and Cadillac beat Toyota in a list of dependable cars. Two Buicks and a Mercury took the top three midsize car awards; Mercury, Ford and Buick took the top three large car awards; Ford took the midsize van award and the midsize truck award; and GMC and Cadillac took the large MAV (multi-purpose activity vehicle) and large premium MAV awards, respectively.
* In an article about trust issues, Business Week's December 11, 2006 issue stated "GM's quality nearly equals Toyota's." Perceived quality among the American public is another story, however. The difference between the actual quality of American cars and the perceived quality of American cars is the "perception gap."
* In the same article, J.D. Power's director for retail research said "Actual quality is so close." discussing the quality rankings of GMC, Chevrolet and Cadillac placing them on par with both Honda and Toyota.
* And most recently, of course, the Ford Fusion and Mercury Milan beat the Honda Accord and Toyota Camry according to Consumer Reports.
What's needed among automotive senior executives, and much of the media as well, is a return to intellectual honesty. Everyone tends to have their favorites and biases (mine are pretty obvious) but I pride myself in sticking with the facts to back up my comments.
When Toyotas North American president says that the quality gap isn't really closing, he's not being intellectually honest.
Some editorial writers aren't either. When Douglas Brinkley trumpeted Indiana's success in a Wall Street Journal article last year for attracting a Honda plant to their state - even though it took $140 million in tax credits and incentives - he wasn't what you would call "intellectually honest." In an apparent attempt to convince the reader that Honda doesn't send any automobiles to the U.S. from outside the country, he said the
following: "Turning farm fields into factories, that's what Henry Ford used to do. Today, in the heartland, it's being done by Honda - a company that doesn't manufacture imports but builds American-made cars."
Such statements lead the reader to think that some Japanese companies make all of their cars in the USA. Hardly. In fact, according to a January 8,
2007 Wall Street Journal article, the NAP ratio - a ratio that compares how many cars are built in North America vs. the number of cars imported - is slipping for Toyota. And according to Toyota internal documentation, the ratio is going to worsen next year."
******Cliffs notes:
Apparently Toyota has indeed passed up GM in total sales at this point in the Year, but as luck would have it, they have also passed them up in total recalls.
Total number of recalls:
Toyota- 533,417
Ford- 128,163
Chrysler- 77, 000
Chevrolet- 4,829
Pontiac- 1,602
04-26-2007, 12:43 AM
#4
TECH Regular
Join Date: Sep 2005
Location: Sacramento, California
Posts: 442
Likes: 0
Received 0 Likes
on
0 Posts
things will work out. so what if toyota gets to be on top for a while, they can get to see what its like to catch all the **** for being number 1. then once people see all the recalls and problems yota's are having the balance will shift again.
04-26-2007, 03:30 PM
#6
Originally Posted by Kevano26
things will work out. so what if toyota gets to be on top for a while, they can get to see what its like to catch all the **** for being number 1. then once people see all the recalls and problems yota's are having the balance will shift again.
04-26-2007, 06:43 PM
#7
Restricted User
iTrader: (24)
Join Date: Mar 2004
Location: Fleetwood, PA
Posts: 1,398
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by BAD2000TA
It's funny that you mention that, because the Toyota CEO has actually stated his reluctance towards being number for that exact reason. The spotlight on #1 shines so much brighter. However, you still can't hide the fact that people are buying Toyotas. GM/Ford/Chrysler need to build cars that appeal to the masses. Can't hide behind JD Power Reports, Consumer Report Mag, and any other "quality" survey to turn the tide. The ultimate is the appeal. I look at the Acura TL and don't see an equal on the domestic side. Sure, the new G8 looks like a winner, but it's still not out. Chrysler 300? Yo - MTV Raps. Where my DUBS? The TL, the Lexas IS, the Infiniti M45. All great looking, super interiors, modern technology, etc. Hmmm... where are the domestics?
Also compare the Camry and Accord to a G6 or Impala. I dunno if i'd say the Chevy's are better, but i'd say they're damn close if not even.
The point i'm trying to make here is, GM is on the right track in just about every way possible. They've got the cars, the plan, and the will, now they just need time.
Trending Topics
04-26-2007, 10:56 PM
#8
Well, I appreciate the feedback. My opinion is that the CTS is ugly. Just have never liked - CTS-Vspec or not. I also drive the STS at the GM Autoshow in motion. Totally unimpressed compared to a BMW 5 series. The TL and IS are 30K cheaper, too!.
But, I'm not trying to argue. Just stating how I view Cadillac compared. Most my friends aren't into the "new" Caddy style either.
But, I'm not trying to argue. Just stating how I view Cadillac compared. Most my friends aren't into the "new" Caddy style either.
04-27-2007, 06:29 PM
#9
TECH Resident
iTrader: (7)
Join Date: Sep 2006
Location: Flint, MI
Posts: 846
Likes: 0
Received 0 Likes
on
0 Posts
Well as already mentioned Toyota isn't going to like it's new spot on top for long. The media loves to hack away at #1, and did so quite a bit with GM. They would post in headlines about GM's recalls, and Toyota's would be on page 4 in a small paragraph where no one would see it. Good thing this will switch now, and GM can spend time not worrying about the stupid media and focusing on making good cars again.
And as far as appeal goes for cadillac, the CTS is getting revamped for 2008. It looks much better than it did, and i've seen one driving around on the streets and it sure looked to command respect. Something I don't see the more luxurious cars of other brands getting. But at the end of the day, what is superior or better looking is really personal opinion and doesn't mean jack ****.
And as far as appeal goes for cadillac, the CTS is getting revamped for 2008. It looks much better than it did, and i've seen one driving around on the streets and it sure looked to command respect. Something I don't see the more luxurious cars of other brands getting. But at the end of the day, what is superior or better looking is really personal opinion and doesn't mean jack ****.
05-01-2007, 05:01 PM
#13
Restricted User
iTrader: (24)
Join Date: Mar 2004
Location: Fleetwood, PA
Posts: 1,398
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by BAD2000TA
Well, I appreciate the feedback. My opinion is that the CTS is ugly. Just have never liked - CTS-Vspec or not. I also drive the STS at the GM Autoshow in motion. Totally unimpressed compared to a BMW 5 series. The TL and IS are 30K cheaper, too!.
I'd say the TL and IS are both better compared to the CTS, wouldn't you?
