German Car Zone

I would live everyone to stop and think about Toyota cars not as examples of the automakers art, but of the businessman's art. Do not think of Toyota as a maker of dream cars, but of a dream investment.

Fact is, German cars appeal to the soul more so than most Japanese cars. But when it comes down to what most people will end up getting, then which company would you rather bank on?

At the end of the day, automakers are in business to make money...and sad to say that the car business is one which is now tough for many. Scary thing is that both Ford and GM lose money on making cars...and rely on financing them to make the bottom line black (or more likely a smaller red...)

I can go on like this. Toyota's ability to sell cars without incentives. It's reliability and quality that limits profit killing warranty claims. It's relentless cost reduction drives. And Toyotas markey capitalisation compared to the combined value of all its non-Japanese rivals...

Have a look at some of the below articles...

http://www.economist.com/displaystor...ory_id=3599000
http://www.msnbc.msn.com/id/11221072/
http://car-reviews.automobile.com/ne...-toyotas/1775/
http://www.usatoday.com/money/compan...7-toyota_x.htm

Toyota can be criticized for bland designs. For following rather than leading (though with hybrids they have backed a winner). But the fact is they are now putting out cars with real power (a 2007 Toyota Camry can be had with over 270 hp - 10 years ago this number would have been undreamed of in a mass market mid size car) that buyers want to buy.

The Germans are also doing well. BMW has done fine with the new 3 and 5, MB has turned the corner with quality (touch wood) and Audi/VW is now doing better too. But in terms of financial performance, management strength and overall attractiveness to investors, none of these makers can really hold a candle to Toyota.

So, whilst we can admire German cars in many ways, I dare say that there is only one car company we can truly admire...

As the saying goes...

Oh What a Feeling!

this is germancarzone.com, we dont bow down to japananese cars j/k


Is Toyota taking over GM?

There shall come a time when the 4 rings, the 3 pointed star and the Propellar Badge shall lick the gunk off my Landcrusier's diff...right after I've driven through some dung deposited by a herd of Northern Territory Water Buffalo...

Volume wise, I think Toyota may have closed in and probably surpassed GM, depending on how you calculate the numbers. Profit wise, it is annihilating every other car company worldwide. Matter of fact - if you take into account the negative numbers of Ford and GM - Toyota's latest profit result surpasses the combined result of the 11 next largest car companies...a truly staggering state of affairs.

And I forgot to emphasize Toyota's bet on hybrids...that has paid off big time, though there may be a patent dispute brewing up with that...

On profit wise I though that Porsche was the most profitable car company!

One thing I do know, GM are in dire trouble, something needs to change!

Porsche in terms of margin per unit sold and similar measures, but in outright terms Toyota is king.

GM has those horried legacy (pension + health care) costs...and I cannot see an easy way out.

Interestingly, rumour is Toyota is planning a huge push to expand its financing activities, one area where its skills and offerings lag far behind the American makers. But this could take many years to see any tangible results.

Toyota would be stupid to take over GM, if by that you mean buy it up. It would be as dumb as BMW buying Rover. They don't need GM, they cover so much of the same markets that it's not worth anything to them.

GM itself might die - they're doing really badly. Sure, they're a huge company, but just because companies are big, doesn't mean they can't go down. They'll likely have to cut back in many areas.

As for Toyota, I have a certain liking for them. I recently had a chance to hear what some people's favourite cars were, courtesy of a get-to-know-each-other 'game'. Surprisingly, many people said "Toyota" (I said VW Golf GTI.. affordable enjoyment). My take is that, when it comes to the crunch, many people just want a car that runs and runs, doesn't fall apart, and does what a car should do - transport them - and they seem to believe that a Toyota would be that car.

I am sure Toyota would not take over GM in that sense, but in order to placate US political sensitivities, may agree to source parts from GM for some models. GM in reality has not that much to offer Toyota that it could use.

Also, whilst Toyota cars can be argued to be staid, they are tough and relaible...and easily tricked up. We may crticize boy racers and their cars, but it is interesting to note how admired Toyota engines are by these guys - as well as the general chassis - when it comes to reliably extracting more performance.