Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Rivals
#1
Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Rivals
Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Rivals
TOKYO April 26, 2005; Yuri Kageyama writing for the AP reported that Toyota's chairman is urging Japanese automakers to raise prices or find other ways to even the playing field with ailing U.S. rivals General Motors and Ford in hopes of heading off a possible protectionist backlash in the crucial North American market.
Toyota Motor Corp. Chairman Hiroshi Okuda was quoted by Japanese media on Tuesday as saying the plight of General Motors Corp. and Ford Motor Co. could result in problems for Toyota and other foreign carmakers.
Okuda told reporters Monday that Japan's auto industry must consider a response, such as raising car prices in the United States and cooperating in technology.
"We need to give some time for American companies to take a breath," Okuda was quoted as saying by the Nihon Keizai Shimbun, Japan's biggest business daily.
"I'm concerned about the current situation surrounding GM. Although a trade conflict, like ones (that) happened in the past, may be avoided, there may be some impact (on Japan's car industry) because the car industry is symbolic in the U.S. economy," Okuda was quoted as saying by the Japanese daily Asahi Shimbun.
A Toyota spokeswoman on Tuesday confirmed the quotes from the two newspapers, but added that the company has no plans to raise prices on its U.S. models.
Speaking on condition of anonymity, the spokeswoman also noted that Okuda was speaking in his capacity as the head of the key Japanese business lobby Keidanren.
Toyota and other Japanese automakers were the target of U.S. workers' outrage in the 1980s. The Japanese were accused of robbing jobs from American workers and market share from U.S. automakers.
Such sentiments have since subsided because Toyota and other Japanese automakers increasingly produce cars in the United States, creating jobs for thousands of Americans.
But Okuda's comments appeared to be an attempt to stave off any possible backlash. His remarks also suggests that he sees the American automakers as needing help to compete with Japan's car companies.
Last week, General Motors reported a loss of $1.1 billion for the January-March quarter, its biggest quarterly loss in more than a decade, partly because the Detroit automaker has been losing U.S. market share to Asian manufacturers.
While faring better than GM, Dearborn, Michigan-based Ford is also losing market share and says it could sink post a loss or break even before special charges in the second quarter.
Toyota, which reports earnings next month, has been consistently boosting global sales. It has a reputation for reliable fuel-efficient cars, and has an edge over rivals in environment-friendly hybrid technology.
Toyota, based in Toyota city in central Japan, has passed Ford to become the No. 2 automaker in global vehicle sales. Some analysts believe it's just a matter of time before it catches up with GM, the world's biggest automaker.
Other Japanese automakers are also reporting a robust performance.
On Monday, Nissan Motor Co. posted record profits for the fiscal year ended March 31 with U.S. vehicle sales surging 18 percent from a year ago. Honda Motor Co. reported a 5 percent increase in fiscal year profit Tuesday as sales climbed to a record for the fourth straight year.
Source: aut channel
TOKYO April 26, 2005; Yuri Kageyama writing for the AP reported that Toyota's chairman is urging Japanese automakers to raise prices or find other ways to even the playing field with ailing U.S. rivals General Motors and Ford in hopes of heading off a possible protectionist backlash in the crucial North American market.
Toyota Motor Corp. Chairman Hiroshi Okuda was quoted by Japanese media on Tuesday as saying the plight of General Motors Corp. and Ford Motor Co. could result in problems for Toyota and other foreign carmakers.
Okuda told reporters Monday that Japan's auto industry must consider a response, such as raising car prices in the United States and cooperating in technology.
"We need to give some time for American companies to take a breath," Okuda was quoted as saying by the Nihon Keizai Shimbun, Japan's biggest business daily.
"I'm concerned about the current situation surrounding GM. Although a trade conflict, like ones (that) happened in the past, may be avoided, there may be some impact (on Japan's car industry) because the car industry is symbolic in the U.S. economy," Okuda was quoted as saying by the Japanese daily Asahi Shimbun.
A Toyota spokeswoman on Tuesday confirmed the quotes from the two newspapers, but added that the company has no plans to raise prices on its U.S. models.
Speaking on condition of anonymity, the spokeswoman also noted that Okuda was speaking in his capacity as the head of the key Japanese business lobby Keidanren.
Toyota and other Japanese automakers were the target of U.S. workers' outrage in the 1980s. The Japanese were accused of robbing jobs from American workers and market share from U.S. automakers.
Such sentiments have since subsided because Toyota and other Japanese automakers increasingly produce cars in the United States, creating jobs for thousands of Americans.
But Okuda's comments appeared to be an attempt to stave off any possible backlash. His remarks also suggests that he sees the American automakers as needing help to compete with Japan's car companies.
Last week, General Motors reported a loss of $1.1 billion for the January-March quarter, its biggest quarterly loss in more than a decade, partly because the Detroit automaker has been losing U.S. market share to Asian manufacturers.
While faring better than GM, Dearborn, Michigan-based Ford is also losing market share and says it could sink post a loss or break even before special charges in the second quarter.
Toyota, which reports earnings next month, has been consistently boosting global sales. It has a reputation for reliable fuel-efficient cars, and has an edge over rivals in environment-friendly hybrid technology.
Toyota, based in Toyota city in central Japan, has passed Ford to become the No. 2 automaker in global vehicle sales. Some analysts believe it's just a matter of time before it catches up with GM, the world's biggest automaker.
Other Japanese automakers are also reporting a robust performance.
On Monday, Nissan Motor Co. posted record profits for the fiscal year ended March 31 with U.S. vehicle sales surging 18 percent from a year ago. Honda Motor Co. reported a 5 percent increase in fiscal year profit Tuesday as sales climbed to a record for the fourth straight year.
Source: aut channel
But the guy is pretty serious. Are his worries unfounded or is the threat of a backlash really there? I mean, we do live in a free market but the U.S economy needs Ford and GM to survive. Will they (U.S gov) take such drastic measures to ensure the Big 2's survival? @ the expense of imports?
The domestic automakers don't need a crutch, they need to resolve their problems and put it behind them 100%.
Last edited by Gold_Rush; 04-26-2005 at 11:23 AM.
#2
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Rivals
The Japanese are HUGE fans of Deming...and killing off your competitors is not something he taught. Competition can be a good thing for all parties...
#3
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Rivals
It's bs. The Japanese car companies are not being magnanimous here. The yen has been steadily rising against the dollar for a while now, cutting into Toyota's profit margin. Additionally, Toyota realizes that if GM and/or Ford collapses now, they would pull the entire NA auto industry down with them. They want the domestics to continue to die slowly, allowing them continue to grow in a stable market.
This cover allows them to justify their price hikes to the American media, and also allows them to humiliate the domestic competition. The message is clear: we are your overlords, and you exist now only because we want you to. How arrogant.
This cover allows them to justify their price hikes to the American media, and also allows them to humiliate the domestic competition. The message is clear: we are your overlords, and you exist now only because we want you to. How arrogant.
#4
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Rivals
The only "backlash" I could see is from the U.S. Government itself. Let's face it, there are millions upon millions of Toyota/Honda lovers out there who swear by them, and refuse to even look at a domestic product because their old Pinto was a pile ( ). And I'm sure a good fraction of those people wouldn't care in the least if Japan steamrolled the Big Two into non-existance. Check out the Detroit News auto talk forum for a real eye-opener....heck most of those knuckleheads are cheering for such a thing to happen.
#5
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Riv
Originally Posted by Z28Wilson
The only "backlash" I could see is from the U.S. Government itself.
#6
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Riv
Whats funny is that if they raise prices on there cars people will still pay them just because they are getting a better product than GM or Ford.
#7
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Riv
Originally Posted by doctor420
Whats funny is that if they raise prices on there cars people will still pay them just because they are getting a better product than GM or Ford.
#8
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Riv
Originally Posted by Z28Wilson
Maybe in the family appliance/people mover segments, but Japan will never do a better truck (they've narrowed the gap but GM and Ford learned their lesson from the car segment) and Japan will not be able to do an affordable, competitive sports car (the 350Z was a decent attempt, but they have no idea how to do a Mustang-type car profitably.)
#10
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Rivals
The only reason the domestics will still own in trucks is fleet sales. For has already taken a hit this year in truck sales due to toyota and Nissans entries. They are off 7%.
#11
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Riv
Originally Posted by Z28Wilson
Maybe in the family appliance/people mover segments, but Japan will never do a better truck (they've narrowed the gap but GM and Ford learned their lesson from the car segment) and Japan will not be able to do an affordable, competitive sports car (the 350Z was a decent attempt, but they have no idea how to do a Mustang-type car profitably.)
#12
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Rivals
Originally Posted by falchulk
The only reason the domestics will still own in trucks is fleet sales. For has already taken a hit this year in truck sales due to toyota and Nissans entries. They are off 7%.
That and they're actually excellent products. You can't say the same about their bread and butter cars.
So the domestics know how to build a truck and affordable sporty cars, those areas they don't lag behind in. It's everything else that they lag behind in.
#13
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Riv
Fleet sales in the truck market are not exactly the same as fleet sales in the car market. Fleet cars are almost always rentals, or government go-fors. On the flip side, fleet trucks are working vehicles, where reliablity and ability are paramount to all else. The Japanese, to my knowledge, are still behind in this, for the simple fact that they dont really offer work versions. (IE: Rubber floors, manual trannies, cheap steel wheels, bed options [box beds, locker beds, etc], things like that.)
*** trucks may be fine for personal use, or even off-roading, but I dont see them seriously vying for the fleet market as of now.
*** trucks may be fine for personal use, or even off-roading, but I dont see them seriously vying for the fleet market as of now.
#14
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Riv
I'm watching Titan sales closely this year. They are way up so far, curious if Nissan sells as many as they wanted to sell. First import to really be competitive with domestics in the full-sized light-duty class.
Rumor has it that both Nissan and Toyota are thinking about offering 3/4 ton versions of their pickups, probably with their next generation products.
-B
Rumor has it that both Nissan and Toyota are thinking about offering 3/4 ton versions of their pickups, probably with their next generation products.
-B
Last edited by Beanboy; 04-26-2005 at 02:07 PM.
#15
Re: Toyota's Chairman Urges Japanese Car Cos. to Raise Prices to Help Ailing U.S. Riv