Toyota's loyalty lead

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About 1980. I had it in a 1981 Horizon. One great tough engine, as was the follow on slightly larger 2.5L version which I had in an '86 L'Baron GTS.
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Uh, Honda is a lot closer to GM than GM is to Toyota.
And I wonder what we'd see if Mercedes was listed. And Porsche low? Heck, every Porsche owner I know buys another one. That's one reason Porsche has the highest profit margins in the industry.

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wrote:

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I have a 2001 Harley Sportster 880 & it has never been in the shop. Frequent oil changes & standard maintience help to keep it going strong.
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http://money.cnn.com/2007/12/06/autos/jd_power_retention_study/index.htm?source=yahoo_quote
Isn't there another way to look at this? 45.4% of the people buying Fords are trading in something else. Isn't that possibly a good thing for Ford? Maybe the headline could have been "Ford Captures New Sales From Other Brands." Suppose 100% of the people buying your brand were people that owned your brand, would that be a good thing? It would show a lot of Customer loyalty, but it would also mean you weren't capturing new Customers. I have to wonder what the ideal number would be. Probably one reason Scion numbers were so low is that it is a new brand, so there are not many "old Customers" with cars to trade in.
I guess this is like a lot of statistics - the meaning is determined by the people reporting the statistics. Which brings me back to one of my perceptions - the press loves Toyota.
Ed
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Well, no. That's not what the numbers say. They're saying "of people whose last car was a Ford, 54.4% are buying a Ford this time" -- they're losing half their customers on the next purchase.
"Of people who bought a Ford, x%'s last vehicle was something else" would be a different statistic. And it's the other statistic the automakers want: capture from other makers.

Certainly true. But, really, the actual headline and story are very accurate and spin-free: they report both that Toyota's customer loyalty is No. 1 (excuse me while I go get some Tums -- my daughter loves the Damned Toyota truck that is the most reliable vehicle we've ever owned for 206K miles now, but is a bigger pain in the butt to fix when it does finally break than every other vehicle we've ever owned combined -- thanks, my heartburn is better now), and that GM's is, in their words "close behind".
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writes:

After reading the actual JD Power Press Release, I see that you are correct. It is not that 54% of the people buying a Ford traded in a Ford, it is that 54% of people who bought a Ford last time, bought a Ford again. I wonder how someone like myself figures into these statistic. In the last 22 months, I have bought three new vehicles, two Fords and Nissan. I didn't trade anything in. But one of the vehicles I sold was a Ford, one was a Pontiac, and one was a Mercury. Not to mention a couple of other vehicles I got rid of in the last three years (a Saturn and two other Fords). If they had surveyed me in Feb of 2006, I would have said I replaced a Saturn with a Nissan (but not exactly directly). If they had asked in July 2006, I would have said I replaced a Pontiac with a Ford. And if they had asked in December of last year, I would have said I replaced a Mercury with a Ford. I am getting ready to buy two more cars (one for my Sister and one for my older son). It is likely I'll get a Toyota for my Sister to replace a Honda, and a Mazda for my Son to replace a Honda. So am I personally destroying the Honda retention rate? Interestingly, if I was buying a car for myself, it is likely I'd replace a Ford with a Honda. And next year or the year after when I need a new truck, I'll probably replace a Nissan with either a Toyota or a Ford (depends on whether or not Ford can fix the F150 for 2009 - I hate the current F150, the only worse truck is the horrible carton Tundra - at least I could still get a Tacoma).
Ed

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Joe Pfeiffer wrote:

So far, ALL of this supports my claim which I started realizing a few years ago: Toyota today is the GM of 1970. They have market dominance, they have repeat buyers, they have a long track record, but their product is declining at an incredible rate. Next thing you know they'll bring out their equivalent of the Vega (oh wait, they already have Scion), and they'll start putting small-car components in 3-ton vehicles ala TH-200 transmissions in Oldsmobiles (oh wait- they already have the Tundra with its crap brakes and defective camshafts...)
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Don't forget Toyota, like GM and Ford before, will soon start cost cutting measures to increase profits at the expense of quality and reliabilitiy - oh wait they are planning just that....
"Watanabe: Toyota will save $2.7 billion a year
Reuters December 11, 2007 - 6:50 am ET
TOYOTA CITY, Japan (Reuters) - Toyota Motor Corp. expects to accelerate its cost-cutting efforts next year to save more than $2.7 billion annually, its president said today, as the world's biggest carmaker seeks to offset rising commodity and development costs.
"We would expect to exceed what we've done under the previous plan," Katsuaki Watanabe told Reuters in an interview at the company's headquarters in Toyota City.
That amount should grow every year along with rising sales, he said, as cost reductions would be made on a per-vehicle basis.
Since 2005, Toyota has been working on a new cost-saving strategy dubbed "VI" for Value Innovation, which seeks to lump some of the tens of thousands of components in a car into modules and systems. The first car to incorporate the new scheme, a remodeled Crown sedan, is due out early next year.
"I believe the strategy is basically proceeding as planned," Watanabe said.
Toyota has given scant details on the program's target, saying only that it expected the impact to be faster and bigger than a previous plan to cut the price of individual parts.
That plan, called CCC21 (Construction of Cost Competitiveness in the 21st Century) and led by Watanabe as purchasing chief, shaved $9 billion off costs over five years, and executives have said it had the capacity to eliminate 300 billion yen in costs every year. That is equivalent to around 13 percent of Toyota's operating profit of 2.24 trillion yen last year.
The ability to reduce costs has been Toyota's forte, allowing it to pour money back into developing new models and attract drivers around the world. Toyota began selling the Prius, the world's first gasoline-electric hybrid car, 10 years ago and is still one of just a handful of carmakers to mass-produce the gas-sipping vehicles.
"The fact that they're planning to build on the CCC21 plan is remarkable, and attests to Toyota's unique strength as a high-volume carmaker and its group companies' solidarity," UBS Securities auto analyst Tatsuo Yoshida said.
"It'll give them a free hand to use their resources flexibly, including securing even more customers by building more attractive features into their cars," he said.
CRUCIAL 10 PERCENT
Slashing production costs is even more important as commodity prices keep climbing, environmental and safety standards rise and consumers migrate towards smaller and lower-margin compact cars to get better mileage.
At the same time, Toyota has promised to reach and sustain a 10 percent operating profit margin. Already its margin is the highest in the sector, at 9.3 percent in the year to March 2007.
Watanabe said reaching the 10 percent margin was "crucial" to be able to invest to the tune of 1.5 trillion yen a year each on facilities and R&D to develop safer and more environmentally friendly cars.
The VI project will be incorporated into each new model that Toyota rolls out from early next year, meaning the effect will grow from year to year, Watanabe said.
"The full impact will be seen probably around 2010," he said, adding that Toyota would step up its cooperation with North American and European suppliers to expand the cost-cutting activities beyond Japan.
TARGETING WEIGHT
Watanabe, known in the company for his "big-picture" vision, is looking beyond the ambitious VI project.
By 2010, the 65-year-old executive said, Toyota will likely have crafted a new scheme to replace the VI plan.
"By then we'd be looking at the car's design as a whole, for example by using lightweight materials," he said.
"I don't want to divulge too much, because this is really a corporate secret," he said, but added that there was a hint in the 1/X concept car shown at the Tokyo Motor Show which weighs just 420 kg -- one-third of the Prius, with twice its fuel efficiency.
Toyota is the world's most valuable automaker, with a market capitalization of more than $200 billion. Its revenue reached $215 billion last business year as sales grew in North America, Europe and China, although Toyota is conspicuously behind in the budding Indian market.
Toyota has forecast sales of 9.34 million vehicles this year, including units Daihatsu Motor Co. and Hino Motors Ltd., likely toppling General Motors as the world's top seller of automobiles. Excluding GM's minority-held Chinese joint venture, Toyota ranked first in 2006.
By 2009, Toyota aims to expand sales to 10.4 million a year.
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They don't include Lexus anymore?

Here's a nice cost cutting suggestion, forget about those expensive car ads, consumers will buy a Toyota no matter what
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Ed wrote:

Sheep.
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Steve wrote:

--
Civis Romanus Sum

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Smart!!!
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-Mike-
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on Monday 10 December 2007 01:39 pm, someone posing as Mike Marlow took a rock and etched into the cave:

Actually I remember that being an issue with the US automakers in general. Toyota has a mission to ensure that a given customer will always be a Toytoa customer.
One is supposed to start out in a Tercel, move to a Camry, then an ES 350, then a LS 460. That's a stated goal of Toyota.
GM - though they have the ability to follow such a route with Saturn/Chevy at the low end and GMC/Pontiac/Caddilac at the higher ends - doesn't seem to allow for this progression as much as Toyota does.
Of course, this being said by one who learned to drive on an Olds Cutlass, drove a GMC Jimmy into the ground over six years and 150K miles, and currently owns an Avalanche and Vue; yet never owned any Toyota model car or truck.
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Perhaps, but the only GM car I never owned was a Saturn or a Caddy. My first (second car I ever had) was a Corvair Monza. Had a few different Pontiacs, bunch of Olds and Buicks. Never owned a Chrysler product either and don't plan to in the future.
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wrote in message

My father was a Ford cheerleader... I thought then, and now, that Ford sucks.
I have had MANY GM cars. Some of the earlier ones were quite good..Then came the later models that soured me on them. They, at least, ride better than Fords.
I owned one Chrysler product, a Dodge full sized van. Built rough and tough, it has not been a bit of trouble... It is,however, not a refined driving vehicle.
We just got our first Toyota...It is a piece of artwork, well put together, quiet, powerful, and economical.. Love it so far.
My experiences with SAABS and Volkswagens have also been very good... At least, SAAB before GM bought it.
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