Toyota’s Starting to Suck

In  the post http://totaltrust.wordpress.com/2010/02/02/toyota-destroys-customers-trust-and-potentially-billions-in-market-value-as-well/ , the author talks about how Toyota blatantly disregards a brake failure in some of their models.  As I was browsing some financial stuff for another class, I came across an article that reminded me of this blog post.  The link to that article is http://www.businessweek.com/globalbiz/content/aug2008/gb2008087_642349.htm .  It talk about how Toyota has had the worst quarter 09Q4, since the ’90s.  Concurrently, GM and Ford sales by volume were up 20+ % this past quarter. 

Toyota has made it to the top, that is without question.  They have enjoyed a significant amount of time as king in the car making industry, but I think they are beginning to rest on their laurels.  It seems like all the news with Toyota lately has been bad — the brake recall, the paint issues, bad sales, etc.  If they dont start getting their act together, they wont stand long at the top.  There are plenty of other foreign automakers (namely Kia, Honda, Suzuki, etc.) that would love to seem them fall and take their place.  And you cant discount domestic automakers, either.  As soon as Detroit gets back on its feet, they will become competitive again.  It may take some time, but it will happen.

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One Response

  1. The situation with Toyota seems to be getting worse every day. It is easy for us to focus on a companies failures in order to learn what not do to in the future. However, what people often fail to observe how a company reacts to a problem in order to restore consumer confidence. I read recently that Toyota has been offering great incentives to people with defective cars in order to retain the customers trust and hopefully business. I think it would be extremely beneficial if you do a follow up to this article and maybe focus on how upper management has been dealing with the crisis.

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