Toyota’s new era
Beatty broaches the question of whether Toyota can ever enjoy the same sterling reputation as a leader in reliability and durability it enjoyed over the last two decades, by posing a question of his own…
“Is it possible for any car company to enjoy the technology leadership that Toyota did in the seventies, eighties and nineties? Had I been asked that question a year ago, I would have said it probably couldn't happen again in the future, because today there are so many shared suppliers, and so much shared information on how to build a vehicle with quality. It would be difficult for anyone to take a lead on the industry.
“But that is the curious thing about what’s happened; it caused us to look at absolutely everything we do. To open up every one of our processes, think about it, and recommit to the basic DNA of our company.
"This opened our eyes to the possibility that we can in fact set new completive benchmarks for quality and safety. But it takes a very different mindset of the Toyota from a year ago.”
Sales Slide
Compared to 2009, Toyota sales in 2010 will be down about 14 percent (-13.9 YTD November). This is in a market that’s up about 7 percent. Auto sales analyst, Dennis DesRosiers, attributes Toyota’s poor performance not only on the recall troubles, but also to Toyota’s response to it.
“What Toyota did brilliantly over the years, is to play to the number one variable that consumers consider when purchasing a vehicle — durability and reliability. The recall basically told the world that its vehicles were not totally reliable and durable. Now they have to re-establish the brand position, but every time they go out with an initiative, it draws attention back to the safety and quality recalls.”
DesRosiers adds that this has meant that Toyota is now less able to stay away from the “sales incentive” game. They no longer have a superior brand position. They are just another vehicle company, like everyone else. Everyone else plays the incentive game. Toyota is refusing to do that, and that’s why sales are down.”
He believes it will be extremely hard for Toyota to recapture its once-prominent brand position — if it will at all.
Another analyst, J.D. Power Canada’s Ryan Robertson, is more bullish on Toyota. He believes Toyota has done the right thing, by talking so often and so passionately about its concern for safety and quality. He points to J.D. Power Canada’s Brand Awareness Study, which tries to gauge the brands people are considering, when they are considering purchasing. In January 2010, 9.2 percent of respondents reported that they had the Toyota brand on their shopping list. By June that number had actually risen to 9.4 percent. By contrast Ford registered an 11.2 percent score in January 2010, and dropped to 9.9 percent by June.
Robertson figures Toyota must be doing something right.
Beatty broaches the question of whether Toyota can ever enjoy the same sterling reputation as a leader in reliability and durability it enjoyed over the last two decades, by posing a question of his own…
“Is it possible for any car company to enjoy the technology leadership that Toyota did in the seventies, eighties and nineties? Had I been asked that question a year ago, I would have said it probably couldn't happen again in the future, because today there are so many shared suppliers, and so much shared information on how to build a vehicle with quality. It would be difficult for anyone to take a lead on the industry.
“But that is the curious thing about what’s happened; it caused us to look at absolutely everything we do. To open up every one of our processes, think about it, and recommit to the basic DNA of our company.
"This opened our eyes to the possibility that we can in fact set new completive benchmarks for quality and safety. But it takes a very different mindset of the Toyota from a year ago.”
Sales Slide
Compared to 2009, Toyota sales in 2010 will be down about 14 percent (-13.9 YTD November). This is in a market that’s up about 7 percent. Auto sales analyst, Dennis DesRosiers, attributes Toyota’s poor performance not only on the recall troubles, but also to Toyota’s response to it.
“What Toyota did brilliantly over the years, is to play to the number one variable that consumers consider when purchasing a vehicle — durability and reliability. The recall basically told the world that its vehicles were not totally reliable and durable. Now they have to re-establish the brand position, but every time they go out with an initiative, it draws attention back to the safety and quality recalls.”
DesRosiers adds that this has meant that Toyota is now less able to stay away from the “sales incentive” game. They no longer have a superior brand position. They are just another vehicle company, like everyone else. Everyone else plays the incentive game. Toyota is refusing to do that, and that’s why sales are down.”
He believes it will be extremely hard for Toyota to recapture its once-prominent brand position — if it will at all.
Another analyst, J.D. Power Canada’s Ryan Robertson, is more bullish on Toyota. He believes Toyota has done the right thing, by talking so often and so passionately about its concern for safety and quality. He points to J.D. Power Canada’s Brand Awareness Study, which tries to gauge the brands people are considering, when they are considering purchasing. In January 2010, 9.2 percent of respondents reported that they had the Toyota brand on their shopping list. By June that number had actually risen to 9.4 percent. By contrast Ford registered an 11.2 percent score in January 2010, and dropped to 9.9 percent by June.
Robertson figures Toyota must be doing something right.