Toyota struggles to meet small car demand
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Toyota struggles to meet small car demand
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.
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.
Engineering first
Joined: Oct 2005
Posts: 5,613
From: Huntsville, AL
Re: Toyota struggles to meet small car demand
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
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
Outcast Enthusiast
Joined: Apr 2008
Posts: 208
From: SC
Re: Toyota struggles to meet small car demand
- 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%.
Last edited by doasc; Jul 9, 2008 at 08:30 AM.
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