Well, folks. What many have predicted for quite some time looks like it’s finally happened. For the first quarter of 2007, Toyota has surpassed General Motors in global auto sales.
Well, folks. What many have predicted for quite some time looks like it’s finally happened. For the first quarter of 2007, Toyota has surpassed General Motors in global auto sales.
Usually, the big news is annual sales. But if this trend continues, it looks like Toyota may be poised to steal that crown as well. However, unlike many, I don’t see this as an altogether negative development for the General.
Toyota’s eventual “King of the Hill” status has been known for quite a while. While there are some benefits to being the biggest, there are also plenty of drawbacks. Suddenly, you’re the target of media scrutiny, as well as the scapegoat for all things wrong with corporate America, foreign or domestic-owned. Before you know it, labor unions are trying to organize against you, and bleeding-heart journalists do sob-story features on how you mistreat and underpay your workers.
I think GM actually has some more shrinking to do before it can grow in a healthy way. Same-store sales for GM dealers are roughly one-third that of Toyota stores. The company simply has too many dealers. But as it learned with Oldsmobile, cutting dealers is not always as easy as it would seem at first glance.
Of the Big Three, GM seems to have the most promising future product lineup, and is smartly leveraging its foreign subsidiaries like Daewoo, Opel, and Holden, and tapping their expertise and talent in the respective areas they know best.
Unlike the vertical, provincial morass that Mulally is trying to undo at Ford, GM seems to be aligning itself on a global scale at a pace that defies its gargantuan size. Some notable wins for GM include strong performance in the rapidly-emerging Chinese market, which may someday rival the U.S. for total sales.
So I say, let Toyota have its 15 minutes of fame. The global sales game will probably be a two-way horse race over the next 3-5 years, and we will likely be the beneficiaries of it, by GM dusting itself off, rolling up its sleeves, and coming back swinging with innovative, stylish, and interesting new products like we’ve never seen before.
3 comments so far
It is true GM has many milestones in automotive history: the first electric car and hybrid truck, but unfortunately like most of GM’s cars they were underdeveloped and over priced. Toyota and Honda without a doubt have covered that market. They are not perfect, but they unlike the Big 3 saw efficiency as the key long before gas prices arrived by relying on 4-cylinders not v-8 engines. Personally I think the 15 minutes of fame you mentioned is going to be a lot longer. I can use an example: the chevrolet Cobalt. Decent looking and I personally like the SS trim in 4-doors, but when you compare it to the Mazda3(dynamically the best), Civic(sleekest and roomiest), and the Corolla (the oldest, but most proven platform on the market and still sells well with low rebates). Lastly the best 4-cylinder vehicle GM has is the Vibe and ironically made with Toyota parts and engineering. I own a 1999 Toyota with 120000 and believe you me there is alot more life left in a Toyota after 100000 than any GM vehicle.
April 27th, 2007 at 6:55 pm
I agree, Every GM vehicle I have owned has had problems over 100,000 miles. now i have a 93 Toyota pickup with a I-4 22re engine and 260,000 Miles and it still runs strong and gets about 28-31 hwy. It also recently towed a 14′ boat over 3 mountain passes in Colorado with no problems. Something i would not do in an older GM truck. Go with the winner. Maybe Gm will finally understand that quality should come before over priced patriotism.
May 1st, 2007 at 3:04 am
Now we need a turbo diesel hybrid multi fuel with vaiable displacement- maybe a v6 with 3 shutoff cylinders? or bring back something like the smart roadster?
May 1st, 2007 at 3:38 am
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