Toyota outsells Ford for first time - July 2006, why?

13»

Comments

  • kdhspyderkdhspyder Member Posts: 7,160
    but they're just not as high a quality that they used to be. The gap between the domestics and Toyota is dwindling, sometimes into statistical insignificance

    I'm not sure..

    What if, the threshhold for making a recall is moved higher and higher all the time as vehciles become more complex and the public demands more and more. While yes there might be a numerically greater amount of recalls, it may that the 'triggers' might be hyper-sensitive ever since the Firestorm/Exploder fiasco. No manufacturer wants to be in that situation. Those that give legal and public relations guidance to the top management strongly recommend to recall everything even if it only might cause a problem.
  • 210delray210delray Member Posts: 4,721
    Good point. And another example involves IIHS testing. The frontal offset tests have turned up many problems that resulted in recalls. Without the tests, the problems likely would never have been noticed, as 40 mph frontal offset crashes are relatively rare events in the real world, compared to the everyday fender benders.

    Most of the problems involved airbags that didn't fire properly (usually too late, although in one case -- Suzuki Verona -- the wiring was reversed): see here. Other problems involved fuel leaks.
  • crashqcrashq Member Posts: 5
    Part of it is that the big US carmakers are headquartered in Michigan which is not a hotbed of innovation. It is a solid upstanding midwestern community that doesn't accept change as fast as many other parts of the country. That is great except that a lot of the cars are sold on both coasts which tend to accept change more readily (some good and some not so good change).

    Ford has always relied heavily on 1) pickups/SUVs and 2) big family sedans. Pickup/SUV sales are slowing with increased gas prices. They updated their Taurus line for a number of years; downsizing it and adding the SHO to keep it at the top of car sales, but somewhere along the line the quality and innovation lagged behind. Another point is that the older US executives are out of tune with the market.A few years back, GM wanted to ditch GMAC, which was the only profitable division at the time, and Saturn, whose sales were jsut starting to soar, to concentrate on Cadillac, which had an average buyer age of 64 years old, and Buick. They finally decided to scrap Oldsmobile right as it came out with some cars that appealed to younger buyers. The cars were selling so well that they keep it going for a couple extra years.

    US automakers used to be tops in innovation although usually slower than foreign automakers to adopt the resulting technology (like fuel injection) into production cars. They didn't need to because there wasn't as much competition. One recent example is the EV-1, GMs electric car. It was a lease-only vehicle designed to meet the new zero emmisions regs in CA. Management decided to shut this project down immediately when the regs were changed; they just considered it a necessary evil to meet zero emmissions requirements in California rather than a potential future product. Despite lessees clammering to buy the cars, GM refused to sell them. They scrapped every single EV-1. Today, there is much more competition and you need to have a more broad ranging lineup to compete. You can't jut rely on the old standbys. Look how many Prius's Toyota is now selling. This was originally designed to start off with low production and to morph into a hot seller a few years down the road. Now Toyota is making a killing. Where are Ford and GM? They are concentrating on E85 which uses expensive ethanol rather than getting better gas mileage. Their is no sign that the ethanol production in this country will expand rapidly enough to reduce its cost. There is a benefit to the country by reducing gas imports, but no benefit to the consumer. No benefit to the consumer equals no great consumer demand = loss of sales to Toyota and Handa , who have products that are in high demand.

    The US auto industry needs to react to all of the consumers, not just on what the execs like.
  • john500john500 Member Posts: 409
    Does that mean that you have researched those points and your exhaustive statistical analysis has indicated no correlation between auto company and recalls? That was fast, dude, or are you really just on autopilot with the same old blinded rhetoric?

    Toyota outsold Ford for two simple reasons. GM's quality stinks and so does Ford's. Perhaps Ford and GM have miraculously fixed their quality since 2003 (the last time I owned a Ford F-150 and a GM vehicle). But I sure ain't gonna buy another Ford or GM until they have 6 year 100,000 mile comprehensive warranty or Consumer Reports list 7 straight years of good writeups across their model lines. That puts me at 2010. You can do as you wish. End of story.
  • logic1logic1 Member Posts: 2,433
    It is a solid upstanding midwestern community that doesn't accept change as fast as many other parts of the country.

    Leading technological companies such as Motorola, Boeing, Abbott, Palm are all in the Midwest.

    One recent example is the EV-1, GMs electric car. It was a lease-only vehicle designed to meet the new zero emmisions regs in CA. Management decided to shut this project down immediately when the regs were changed; they just considered it a necessary evil to meet zero emmissions requirements in California rather than a potential future product. Despite lessees clammering to buy the cars, GM refused to sell them. They scrapped every single EV-1.

    It is not an example of anything. The EV-1 is an all electric car that cost far more to make than could have ever been recovered on the market. I am not aware of any other regular production all electric cars on the market even today.

    Where are Ford and GM? They are concentrating on E85 which uses expensive ethanol rather than getting better gas mileage. Their is no sign that the ethanol production in this country will expand rapidly enough to reduce its cost.

    First, a conservative Midwest company is pretty close to a breakthrough in profitably converting animal waste (manure) into alternative fuel at a cost per barrel less than oil sells at present. This could be a big break for E85. (n.b.: The process works on people waste as well, if there were a way to get it without all the other things people throw into the sewers)

    Second, GM has the Hybrid Vue on the market right now, to be followed by the dual phase hybrid system it developed with Daimler and BMW. The dual phase actually leap frogs what Toy is doing.

    Ford has a hybrid Escape. Like most hybrids save the Prius, the Escape does not sell well, even though it reviewed well. Not sure a huge leap into hybrids would have made all that much sense.
  • logic1logic1 Member Posts: 2,433
    Does that mean that you have researched those points and your exhaustive statistical analysis has indicated no correlation between auto company and recalls? That was fast, dude, or are you really just on autopilot with the same old blinded rhetoric?

    So let me see, you spit out some points with no research, but when I suggest they are weak I am blinded.

    Your personal issues do not make your points that of an expert.

    You really need to learn to leave the attitude at the door. End of story.
  • nippononlynippononly Member Posts: 12,555
    California won't be taking the brunt of the recalls, as most are for cars outside the U.S. (some 90% of the Echo/Prius recall was outside the U.S, as most of the affected cars were Yarii for Canada and other markets, ditto Hilux Surf/4Runner/Tacoma), Highlander and Tundra recalls excepted. I believe those were two of the smaller ones though.

    2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)

  • crashqcrashq Member Posts: 5
    210 Delray, a lot of the recent F-150 sales and US sales are driven by huge incentives, that essentially wiped out any profit on them. All that does is keep Ford's capacity going until the incentives are gone. Just look at GM and Ford sales compared with their incentive packages. Incentive = sales up. Incentive ends = sales plummet

    You are right that there is a market for the old tried and true products/names like Taurus. Many parts of the country are big on loyalty and reliability (perceived and/or real). The Taurus, however, used to be the number one selling vehicle in the country. Now it is not even in the top 10 for 2005. Most if not all of those old Taurus sales would have transfer to the 500 over if Ford had simply named the 500 'Taurus' instead, because a lot of it is just name recognition. Ford has lost the young market (except for the Mustang) and thus will not have a good base for loyalty sales in the future

    JD Power 2005 auto sales figure

    1. Ford F-Series 901,463
    2. Chevrolet Silverado 705,891
    3. Toyota Camry 433,703
    4. Dodge Ram 400,543
    5. Honda Accord 369,293
    6. Honda Civic 308,415
    7. Nissan Altima 255,371
    8. Chevrolet Impala 246,481
    9. Chevrolet Malibu 245,861
    10.Chevrolet TrailBlazer 244,150

    Not one Ford in the bunch, except the F series. Sales of F series (and all other large trucks) will not increase. Ford better rethink their strategy.
  • nippononlynippononly Member Posts: 12,555
    "Even the head of Honda recently admitted this. (As a Honda fan, I'm glad he did. Look where decades of denial got Detroit.)

    Forgive me, but given the above, I can't see the "logic" of excusing Toyota for mounting recalls, while hammering GM and Ford for the same."

    Toyota's officials have also publicly apologized repeatedly, at least three separate times now including the apology to the commerce ministry in Japan. They have taken steps to counteract any repeat of this pattern in the future.

    I know I am a fan of the Japanese models, but I would be intrigued to see the chairman of GM or Ford ever publicly apologize to the press in this manner for excessive recalls or what-have-you.

    I know this isn't the recall thread, but I should repeat remarks I made a while back in a different thread: with all the carmakers squeezing their suppliers so mercilessly in this age of cost-cutting, we are bound to see recalls just become more widespread. For instance the Tundra recall is for poorly manufactured wheel bearings, the Ford recall right now is for poorly manufactured cruise control units that set cars on fire (13 so far, I believe).

    2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)

  • logic1logic1 Member Posts: 2,433
    but I would be intrigued to see the chairman of GM or Ford ever publicly apologize to the press in this manner for excessive recalls or what-have-you.

    GM's full page 'Road to Redemption' ads were not enough for you? They not only ran in all the buff magazines, but in large, (and very expensive) two page layouts in the WSJ and NYT.

    The Toy apology to the commerce ministry in Japan came in response to uncovered evidence that Toy execs had been deliberately withholding evidence for years. (and this from a government that bankrolled Toy's lucrative hybrid r&d).

    That gets your attention. Full page national US ads do not.

    That is the point I have been making here. Not that GM is now ahead of Toy. But rather, the Toy fans on these boards on the one hand use one standard against GM, then ignore the standard for GM.
  • grbeckgrbeck Member Posts: 2,358
    That's the difference between Japanese and American culture.

    Plus, American executives are undoubtedly warned by corporate counsel to avoid this type of public statement, as they are afraid that it could be used against the company in a lawsuit.

    Also note that the GM "Road to Redemption" ads were more generalized. GM didn't say, "Sorry that the transmission in your 1995 Model X was defective." It was more along the lines of a generalized mea culpa for past sins.
  • varmintvarmint Member Posts: 6,326
    The marketing campaign!?!?

    Don't get me wrong, I agree with you on the whole recall thing. But citing an ad campaign designed to get people to forget about crappy cars is not quite the evidence I would use to follow up that point.
  • 210delray210delray Member Posts: 4,721
    The Toyota people involved in the coverup were not "executives" like those in the Mitsubishi recall scandal. They were quality control managers and only 3 were involved.

    The executives accepted the responsibility and apologized.

    Regarding the "Road to Redemption," it said something like "30 years ago, we made great cars. 20 years ago, they weren't so great." Generalized, as grbeck says.

    Jamie Kitman, writing in Automobile, commented (I'm paraphrasing), "I've experienced enough GM cars to know one of those statements is a flat-out lie."
  • logic1logic1 Member Posts: 2,433
    So then your are arguing GM calling up someone at the US Department of Commerce and saying I am sorry would be better?

    How?

    US companies communicate to the market through advertisement. They have been doing so almost continously since the turn of the 19th Century.

    I don't see how saying I'm sorry to the government makes a better act of contrition than an ad campaign admitting a lost eye on quality and promising to get it right.
  • varmintvarmint Member Posts: 6,326
    No, I'm not concerned with Toyota's phone call. I'm just pointing out that the Road to Redemption wasn't an apology at all. It was a simply another lame marketing attempt sell more cars.

    It's on par with Joe Isuzu giving his word on something.
  • varmintvarmint Member Posts: 6,326
    Here's an article regarding the atmosphere at Ford. If it is to be accepted at face value, rumors about restructuring plans are hitting the workforce pretty hard.

    http://www.detnews.com/apps/pbcs.dll/article?AID=/20060816/AUTO01/608160398/1148-
  • logic1logic1 Member Posts: 2,433
    Well, fine.

    I have no problem with your position provided you agree it appears on face value at least to be no better or worse than someone at Toyota calling a government official and saying I'm sorry.

    My point is that neither side has done all that much on the issue. It is hard to say one is better than the other.
  • nippononlynippononly Member Posts: 12,555
    well, these were not phone calls, they were press conferences in at least two cases. People at the top of Toyota stood in front of a microphone stand and apologized to the public. The flashy ads devised by the PR department that GM put out in the hopes of gaining some customers is hardly the same thing. Neither Toyota nor Honda officials were hoping to use the occasion to sell more cars. They were embarassed.

    Lutz is as pro-GM as a guy could get (and so he should be, in his job). If he and Wagoner were to call a press conference and apologize to the American public for 25 years of vehicles with lax quality standards and poor reliability, I would eat my hat. And my socks. And...probably drop dead from shock.
    Ditto Billy Ford.

    As far as the topic of this thread, the general consensus in the press seems to be that the public will give Toyota at least two strikes before calling them out, given the amount of time they have taken to build their rep. So as long as they get their act together BUT QUICK, their sales should continue to rise. Ford is very disorganized right now - the only concrete plans they have seem to be reducing production capacity by 25% in the next few years. I can easily see Toyota staying ahead of Ford from now on.

    2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)

  • lahirilahiri Member Posts: 394
    Don't forget what Ford actually did to Taurus. Ford postponed redesigns and neglected Taurus as much as it could so that it could focus on big trucks. Ford got what it wished for.

    Ford wanted more profit per vehicle and that's why Ford did what it did. I think it was a mistake. If you let Toyota sell Camry to someone, Toyota will go a step ahead and sell Tundra to his or her spouse and Scion to his or her children. Five Hundred or Fusion are not bad - they are just too little too late.

    In my opinion, Ford should focus on redesigning Mustang, Escape and Focus as often as it can to prevent Toyota from stealing more car/ small SUV lovers from Ford. Also, Ford needs to come up with good plans to improve quality and resale value.
  • lahirilahiri Member Posts: 394
    Looks like this is a downward death spiral for Ford. Chrysler is using big discounts to stay afloat. GM is hoping that new Aura and new Silverado will stabilize marketshare. Things don't look good for any of these companies. Still, Toyota, Honda, BMW and Hyundai are getting bigger everyday - what do these people know that others don't?
  • logic1logic1 Member Posts: 2,433
    and its cousins.

    It may just get it. After that, it needs to figure out a way to bring the Euro spec Focus to the US, and not just as a limited dealer Mazda3 and Volvo S40.

    If it does both of these well, it can go far to recapturing lost market share and stabilizing.
  • lahirilahiri Member Posts: 394
    What is Euro Spec Focus?
  • logic1logic1 Member Posts: 2,433
    The Focus in Europe is built on a newer (more rigid and lighter) platform and offers a wider range of engines and transmissions.

    The interior looks nicer as well.

    Ford opted not to update its North American facilities to make the new Focus here, apparently in order to allow Mazda3 and Volvo S40 (which are both based on the Euro Focus platform) to appear more upmarket.
  • grbeckgrbeck Member Posts: 2,358
    ...will receive a substantial makeover for 2008. It will, however, remain on the current platform. Insiders who have seen prototypes say that it this is more than a grille change. The changes are quite substantial, and bring about a dramatic improvement in the car. A coupe will replace the hatchbacks.

    In 2010, the American Focus will once again share a platform with its European cousin. It will, however, be the next-generation European Focus, not the current one.
  • logic1logic1 Member Posts: 2,433
    In 2010, the American Focus will once again share a platform with its European cousin. It will, however, be the next-generation European Focus, not the current one.

    I would like to see this rolled up a few years. Can't happen soon enough for Ford.
  • 210delray210delray Member Posts: 4,721
    It's not going to happen -- we have to wait till 2010 -- at least.

    Ford maintains the current Euro Focus is too expensive to sell here. (It's the old "Americans won't pay too much for a small car.") Yet we do get the Mazda3 -- and it sells.

    Ford itself is predicting only 120K sales annually of the Edge, and they're mum on the sales numbers of the sibling Lincoln MKX. So this vehicle isn't likely to pull Ford out of the dumps.
  • grbeckgrbeck Member Posts: 2,358
    We have a 2005 Focus SE sedan. The ride-and-handling combination are quite good (better, in fact, than the last-generation Civic EX sedan I test drove at the same time). The engine is nice, too.

    The problems are too much road noise and subpar interior fit-and-finish. These problems show that Ford's cost-cutting efforts are too obvious in certain areas.

    The basics of the current Focus platform are still good; the car isn't hopelessly outdated. Ford needs to sweat the details and update the styling. The 2008 rework will supposedly address these issues, and carry the car until the all-new 2010 model debuts.
  • logic1logic1 Member Posts: 2,433
    Well, you have established car sense and I trust your analysis.

    It is no secret that much of the market reacts more to fit and finish issues than driving dynamics.

    Ford has a product that is close to being a player in the small car market segment that is seeing the most action these days. I hope '08 sees this happen.
  • kdhspyderkdhspyder Member Posts: 7,160
    I do not think Toyota's current hybrid technology will work well on a full size pick up. If Toyota has a dual phase system or has otherwise worked a solution to moving size economically, I'll give credit where it is due. At this point, I see nothing to suggest Toyota will challenge any of the big 3 full size pick ups.

    You will probably be surprised in April when the third rollout of the 2007 is completed that none of the detroiter's trucks matches up to the new DoubleCab Tundra in size or performance.

    Heck the Double Cab Tundra now is bigger than the F150 and it will be the middle model this time next year. With the announced 5.7L it will be the beast of the road.
  • kdhspyderkdhspyder Member Posts: 7,160
    I was in the steel industry at that time supplying steel to both Ford and Chrysler.

    The big improvement that occured across all product lines at the same time all across the world was the use of hot dipped Galvanized steel ( HDG ) or Galavannealed steel or Electrogalvanized steel. All three are different methods of adding a zinc coating to the base metal to act as an sacrificial coating to minimized the effect of rusting.

    By 1990 there was some on every vehicle in the US market. By 2000 it was the basic steel used on all vehicles. Rusting disappeared as a problem on all vehicles by that time.
  • kdhspyderkdhspyder Member Posts: 7,160
    Excerpted...

    "Today we are announcing the North American production in the fourth quarter will be cut by 21 percent. This action, difficult as it is, reflects an assessment of the marketplace that is conservative and more aligned with the shift in customer demand.

    As you know, an unprecedented spike in galoline prices during the second quarter impacted our product lineup more than that of our competitors because of the long-standing success of our truck and SUVs."

    I am certain it will be all over tomorrow's auto news.
  • lahirilahiri Member Posts: 394
    $3 a gallon is surprise to Bill Ford but business as usual for everyone else. Looks like he hasn't stopped by a gas station lately to fill himself. Finally, when 0% APR failed to sell his trucks, he had to open his eyes. What a shame.
  • nippononlynippononly Member Posts: 12,555
    check out California:

    http://www.autonews.com/apps/pbcs.dll/article?AID=/20060821/SUB/60819026/1078/ne- wsletter02&refsect=newsletter02

    The domestics COMBINED make less than 1/3 of all the retail sales here. I knew it was low, but I didn't know it was that low. The owner of Galpin Ford, one of the state's biggest and oldest Ford dealers and fiercely pro-Ford (I used to live not far from the dealership, would see the billboards and the newspaper ads all the time), has just caved in and bought a Honda franchise. So far, he is doubling his initial estimates of sales, and will have to ask for a larger allocation from Honda as he is going to run short of cars in August!

    Toyota made more than 1/4 of all retail sales in the state in the first half of the year. By contrast, GM made 14%. The only three domestic models in the top ten for sales are (not surprisingly) the F-series, the Silverado, and the Tahoe. I expect Tahoe to fall off that list by the end of the year, with the gas prices as they are.

    2014 Mini Cooper (stick shift of course), 2016 Camry hybrid, 2009 Outback Sport 5-spd (keeping the stick alive)

  • carlisimocarlisimo Member Posts: 1,280
    Yeah, that matches what we see out here.

    One of the biggest increases for Toyota was the Tacoma. I'm not too surprised; it's great in its segment, Toyota has a lot of loyalty here, and trucks are still popular but the full sized ones are just too big for many people.

    Lots of big SUVs too. It's not all about Toyota's small cars right now; it's about their small cars 20 years ago. When the Corolla and Civic were worlds better than any domestic commuter car, people bought them, loved them, and now that it's time for something bigger they're sticking to their brands.

    If that's true, then the domestics are going to keep sliding because their small, first-car offerings were substandard and even now are arguably not good enough to inspire loyalty.
This discussion has been closed.

Your Privacy

By accessing this website, you acknowledge that Edmunds and its third party business partners may use cookies, pixels, and similar technologies to collect information about you and your interactions with the website as described in our Privacy Statement, and you agree that your use of the website is subject to our Visitor Agreement.