The Poor Folks At Toyota (TM)
Toyota (TM) recently had to recall several hundred thousand cars in it native Japan. It lost its top sport in the Consumer Reports reliability survey. Its shares trade near a 52-week low.
According to Bloomberg, the list of bad things going on at the Japanese company has grown as “GM (GM) sold 7.06 million vehicles through September, taking a lead of 10,000 units over Toyota’s 7.05 million.”
GM has down well in South America for some time and has stated that it expects rapid growth in that market to continue. It is the leading seller of vehicles in China, trading places in the top sport with VW from time to time.
But, now Toyota has to contend with GM’s lower cost base due to its new UAW contract. To make matters worse GM’s new crossovers and small sedans are selling well in the US and the big US firm is not losing sales each month as it did for a couple of years.
This may just be the start of a down period for Toyota.
Douglas A. McIntyre