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.

Reply to
C. E. White
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Who writes this tripe?

Further, who actually believes it?

Peter Wieck Melrose Park, PA

Reply to
pfjw

Guido Reinking - Automotive New Columnist

Not sure it matter. Just interesting commentary.

Ed

Reply to
C. E. White

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

Reply to
pfjw

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

Reply to
C. E. White

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

Reply to
pfjw

Traitor!!!

Reply to
Ears

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

Cathy

Reply to
Cathy F.

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.

Reply to
Hachiroku

I worked for a dealer back in 2005, and I noticed Toyota quality slipping a bit...

Mostly in the US made models...

Reply to
Hachiroku

That's right--impossible.

VW? I wouldn't buy a German car with YOUR money. (Been there, done that.)

And yes, I "get" German cars. German cars are the expensive, pouty, and high-maintenance mistresses of the road. Damn, they are a fine, fine ride...

....but then the maintenance and pouting kicks in.

At some point, without unlimited funds, you are at a decision point: continue the high-priced, high-maintenance fun, or go back home and enjoy your reliable Lexus wife of a car, patiently sitting there waiting for you to get over the midlife crisis.

Oh sure, she's not as sexy as the German car, and she doesn't handle at the edge like the German car. She's also not as fickle and high maintenance and pouty, and she agrees with you much more of the time. She's always there and never complains, and you come to realize there's more to life than a high-maintenance relationship with a pouty, high-maintenance woman--no matter how sexy she is or how fun the nights out with her can be. Because when she lets you down and demands more of you than you have to give, and treats you like dirt, you're standing there all alone outside the club, looking and feeling like an idiot.

Your Lexus wife would never, ever do that to you.

And the occasional fun night out isn't worth what you end up paying for it, both financially and in time wasted while you wait for the German car mistress to be in the mood to play.

Do this: start paying attention to cars with tail light and headlight problems. What brands of cars are you seeing? That's right--VW, M-B, and BMW. And pay attention to how old, or rather how new, those problem cars are.

The reality of electrical issues with German cars make Lucas electrics look reliable.

Now *try* to find a Honda or Toyota, either low brand or high brand, no matter how old, with non-working tail lights. Good luck.

It's a small thing, but it represents the reality of the situation. You want to buy a German car? Just buy a GM car. At least the money you're throwing away stays more inside the country--and you get just as reliable a car.

Reply to
Elmo P. Shagnasty

The latest Consumer Report has Camry in the middle of the pack. However, differing from JD Power, it has the Scion on top. VW does have a lot to catch up even to Detroit in terms of quality. But if they can do it with their Audi marque then they should be able to with VW.

In general I throw CR in the trash for JD Power. But CR has a lot of pull with typical buyers. At least in this issue Ford would be a better bet:

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Reply to
johngdole

I have changed quite a few bulbs on Toyota and Hondas alike.

Reply to
johngdole

that comment right there is what I find so funny about all the kool-aid drinking Toyota and Honda evangelists, who say that GM/Ford are stupid for making trucks.

Looking at the Toyota/Lexus/Scion models shows for May 2008, posted in

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that theautomaker does indeed sell a large amount of trucks. Toyota (Lexus/Scion) makes 35 models of cars/trucks/vans.

Seven models - 20% - are trucks or vans.

22 models - 62% - are midsize or larger. Seven models - 20% - are considered compact or smaller.

GM (Buick/Chevy/GMC/Pontiac/Saturn) makes 54 models of cars/trucks/vans.

18 models - 33% are trucks or vans. (Note that six models are work trucks or full-size vans, which don't exist in Toyota's lineup.) 21 models - 38% - are midsize or larger. 10 models - 18% - are considered compact or smaller.

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So, it would be fair to say that - though Toyota has done a better job of marketing their stance as a small car maker, the reality is that they're the same as GM in terms of truck models.

Meanwhile, I'll go back to my 17MPG midsize Avalanche. :P

Reply to
PerfectReign

What light trucks, I never saw one, all I saw was a tundra, what bs the camry, corola, prius and small suv are the big ones. VW isnt taking anybody past.

Reply to
ransley

What light trucks, I never saw one, all I saw was a tundra, what bs the camry, corola, prius and small suv are the big ones. VW isnt taking anybody past.

Troll, Troll,Trolll.

That's because Toyota, without meaningful

What a load of bullocks , troll. Exactly what competion is missing. You are full of crap about Toyota. Toyota is all about cars. Cars so much that they jumped into trucks from scratch and took over off their profits and return customers. GMs best trucks are still 88 to 94s. Toyota hasn't stopped doing anything. The Corolla and Scion are the shit. I know two people getting over 40 mpg in Corollas. I'm getting 38 in an Echo beating it too death all day long. The dealership just bought me a drive shaft, brakes, radio, transmission, , and wheel bearing . And remounted my air box that got torn out from vibration. VW isn't taking over anything either. They're lucky they are still in business in the US . They only compete with themselves. Because it takes twice the labor to make the same type of car as others do. So they cant sell a car at the right price as everyone else. See their latest commercial targeting their only customers. Clueless 18 year olds. Lets have a baby so we can buy a VW. Haaaa!!!

Reply to
None4You

Reply to
None4You

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