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Joe Thompson asked:


Toyota has been enjoying much success in the US. So much successful, in fact, that they are expected to take over the spot occupied currently by General Motors as the world’s largest car manufacturer. The company has been selling cars which has broken record after record for sales. The company’s lineup also includes models that have won different awards. Not only that, they are also the leading producer of the world’s most popular green car, the Toyota Prius.

But Toyota has recently received another feather on their cap. Aside from breaking their sales record for February, the company was also voted as the 3rd “Most Admired” company in the United States. Fortune magazine conducted a survey on 3,332 executives, directors, and securities analysts in order to seek out the ten most admired companies in the country. The winners of this year’s distinction from Fortune magazine are known for their environment-friendly policies.

Toyota fits perfectly in that category since the car maker is one of the frontrunners in the auto industry when it comes to producing green cars. The Prius, the hybrid vehicle from Toyota, has been received warmly by the motoring public. The demand for fuel-efficient cars saw the sales of the Prius reach 100,000 last year. This year, the Toyota Prius remains to be one of the stronger selling models in the Toyota lineup. The Prius’ popularity is emphasized on the fact that it has replaced the Hummer as the vehicle of choice for Hollywood residents.

Aside from the Prius, Toyota’s lineup also features the best selling car in the U.S. since 2002 – the Toyota Camry. The Camry is the best selling car from Toyota and its popularity is still increasing as shown in its rising sales. Lexus, the luxury division of Toyota features the leading luxury car brand in the U.S. for seven straight years. These vehicles show that Toyota has been enjoying much success in the U.S. auto market and the company is still growing in terms of sales of their vehicles. These vehicles are like power antennas which propel the company to newer heights and increase the popularity of the company among different communities.

Toyota also boosts the economy of the country by providing jobs in their plants located in the U.S. Last year, the company produced more than 1.55 million vehicles and 1.4 million engines in their 14 plants in North America. The number of their plants located in the U.S. is still on the verge of increasing since Toyota has announced that they will be starting the construction of another assembly plant in Mississippi. Aside from the jobs generated by these plants, Toyota also indirectly creates hundreds of thousands of jobs.

Matthew C. Keegan asked:


General Motors has a long and illustrious history, one that began in 1908 with the merger of several auto companies into one entity. For the past 77 years, GM has enjoyed the title of world’s largest automaker, but that crown passed to Toyota Motor Corporation last year.

Toyota had been gaining on GM for years as the American automaker’s sales numbers stagnated or, as was the case last year, actually fell by several hundred thousand units. Despite selling more cars in China and in the United States than any other car maker, GM couldn’t keep their momentum going and actually sold approximately 600,000 fewer units than Toyota in 2008.

Credit should be given to Toyota who has persistently chipped at GM’s lead, making bold statements a few year’s back that they were poised to overtake GM when they were only selling two-thirds the number of cars as the old number one was then selling. Small, fuel efficient cars are the hallmark of Toyota, but the company has also taken a leadership role in the luxury car segment thanks to its Lexus line. For good measure, Toyota rolled out its youthful Scion division six years ago, another way that the company has been able to increase its visibility which has led to improved sales.

GM has also contributed to Toyota’s ascendancy as the company has rarely broken past its record selling pace of 9.5 million vehicles set some thirty years ago. Declining market share at home has led to most of that drop while its inability to conquer established European markets has also taken its toll. Without its strong presence in China, GM’s overall fortunes would have been much worse, likely spelling the end of the automaker.

Going forward, GM could rebound and see a sales increase beginning this year. Dogging the company, however, is its precarious financial position, one that could scuttle its recovery effort. Recently, GM announced that they would be consolidating operations and closing down or selling off excess brands, a move that could allow a trimmer GM to become profitable and grab more sales.

Lest anyone think that Toyota is moving forward trouble free, think again. In 2008, Toyota’s sales actually dropped, but not as severely as GM’s. In addition, the company is poised to report its first operating loss in its 70 year history, not a big drop but enough of a loss to concern Toyota management. Indeed, the Japanese car make recently replaced its CEO with the grandson of the founder of Toyota in a bid to reinvigorate sales.

Though the company is now #2, GM could borrow a phrase from rental car operator, Avis, and tell its customers, “we try harder.” That might work!