Toyota struggles to meet small car demand - GreenHybrid

Jason · #1 (**permalink**) 07-08-2008, 05:58 PM

Quote:

The surge in popularity for small cars and fuel-efficient hybrids has left Toyota facing an unusual problem: deepening shortages of popular models such as the Prius hybrid.

A limited inventory of small cars hurt Toyota, which reported a 11.5 percent drop in U.S. sales in June.

In stark contrast, Japanese rival Honda Motor Co reported a 13.8 percent sales rise on record demand for its Fit subcompact car and Civic sedan.

http://uk.reuters.com/article/motori...22649120080702

bwilson4web · #2 (**permalink**) 07-09-2008, 06:24 AM

Having read "The Prius That Shook The World" and monitoring Toyota business practices, I have seen a pattern of 'reaction' rather than 'pro-action'. Honda suffers from a similar problem but less so.

Now I'm not one to say either company has better or worse strategic planning. Toyota build a huge truck plant in Texas just in time for $4/gal. gasoline. Honda seems to avoided competing in the big truck market. But Honda also discontinued the Insight or worse, didn't come up with a follow-up, hybrid-lite for their product line. Honda's missteps have also been public. So neither has played the game to perfection but they didn't have to.

Toyota and Honda remain head and shoulders above all of the rest and GM is struggling to make up for the mistakes of BAS hybrids and the ultra-expensive, top of the line but not luxury, two-mode hybrids. Compared to GM, Toyota and Honda have been brilliant. Equally lead footed, Ford chased off their hybrid developer and have yet to expand beyond the Escape hybrid. Chrysler has to sell cars to pay for gasoline for their customers.

Bob Wilson

doasc · #3 (**permalink**) 07-09-2008, 08:08 AM

Quote:

Originally Posted by bwilson4web

Toyota and Honda remain head and shoulders above all of the rest and GM is struggling to make up for the mistakes of BAS hybrids and the ultra-expensive, top of the line but not luxury, two-mode hybrids. Compared to GM, Toyota and Honda have been brilliant.

It is appalling how Toyota is always given the benefit of the doubt and GM gets thrown under the bus by the press. Questions Toyota will NEVER be asked:
- Why are Prius sales DOWN 2.6% over FH 2007? was it the great battery surplus of 2007?
- Why are Corolla sales DOWN 3.2% over FH 2007? did Toyota assume $4 gas and a new redesign would lower demand?
- Why do Prius sales remain at LESS than 8% of Toyota's sales?

The true story is that any small Toyota car imported from Japan (more expensive) is experiencing supply limitations, namely Yaris, Prius, 15% of Corollas, Scion Xb. The top selling domestically made Camry seems to be doing fine up 0.4%.