• May 12th 2006 at 2:53PM
  • 11

As Toyota continues to rake in money hand-over-fist, it intends to bolster its fight for the #1 spot by increasing the money it spends on capital investment. The company's latest financial report pegs the automaker's capital spending for the current fiscal year at a whopping $14 billion - a fair amount more than the $12 billion analysts expected. For contrast, consider that General Motors, the current worldwide sales leader, expects to spend only $8.7 billion in its current fiscal year (OK, so that's not exactly chump change).

Much of the spending increase comes as Toyota attempts to wrestle away more light-truck market share from GM, building on the gains that its has made in the past half-decade. Toyota's share of that market increased from 10% to 14% in the last five years, corresponding with a similar drop in share by GM.

[Source: Washington Post]

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    • 1 Second Ago
      • 9 Years Ago
      I agree with John, the Japanese don't fear the Americans but there definitely is some professional respect there. I think most Japanese luxo models definitely do not look at the Germans the same way. Merc-Benz, and the Audi group have definitely lost their way in the quality and reliability department.

      I would say the Escalade is stupid from one perspective: It's a overbearing, crappy handling, gas guzzling piece of image iron that makes me want to put an RPG through the side of it every time I see one!
      • 9 Years Ago
      what? toyota is outdoing gm on something? what?
      • 9 Years Ago
      Wow Paul, you continue to impress me...not! Here's the deal. GM is and has been, unleashing a large amount of vehicles a year, even with a smaller budget. They are being smarter on how and where they spend their money, doing platform sharing and such, so that they can spend a lot less money and have a lot more product. 8.7 billion is about right.

      Now you see Toyota, which has gotten some product out, but considering they spent 14 billion last year as well, hasn't been as efficient at it. Sure, they replaced the Avalon, the Camry, the Tacoma and the Tundra, but each was 6 or more years old when replaced. Same with the Echo. Where's the rest of the money going, when you consider the Lambda crossovers and minivans are coming, along with the Zeta's, Sigma II, Epsilon II, and improvements will be coming for Delta and Theta in "07 and '08, on top of the introduction of the newest GMT-900's! I haven't even mentioned the new platforms that are coming to replace the G- and W- bodies that are in development. With Lutz behind it all, you will see differentiation like never before, and they will be able to lend different driving characteristics to the cars while being more flexibly built to save money.

      In powertrain, GM will continue to lead with even more fuel efficient V8's, capable of producing more than 30 mpg on the highway. They may be from 1955, but it's laughable no one has been able to catch up to the old small-block yet! The mouse motor is the only one that can produce an incredible 400 hp, and gets 28 mpg doing it. Of course, the real enthusiasts use and respect that motor, and Gardiner, if you had any brains, you would too.

      In 2007, the new 6 speeds will populate GM vehicles, as they are hooked to the new 3.6L V6's. There's going to be a new manual developed as well from the new auto's. The 3.5L and 3.9L will get active fuel management, and will be tuned to sound indistinguishable from other DOHC V6's. Of course, more E85 capability and the two new Hybrids will be a part of all of this. All from a puny 8.7 billion budget. GM will be alright!
      • 9 Years Ago
      or how people like Paul spell and write.....
      • 9 Years Ago
      The Escalade is not "stupid". It's probabbly the single biggest money-maker for GM.
      And Japanese car companies do not laugh at the US. As a matter of fact they fear GM/Ford MORE than the Germans. I read this a while back in a National Geographic Magazine piece on the auto industry.
      It was a direct quote from a Japanese exec.

      Right now, they have nothing to fear.
      • 9 Years Ago
      Not to worry. GM can still rely on its 1955 pushrod V8 engine for another couple of decades, or until it goes under.
      • 9 Years Ago
      #1 Toyota doesn't have lawyers to contend with
      #2 You really have a bug up your ass about the UAW. You sound as if the UAW is the main cause of GMs' problem
      #4 I guess it all the UAWs' fault and not mangements stupid decisions
      • 9 Years Ago
      Yeah, Toyota cancelled the MR2, Supra, MR-Spyder, Celica...basically all the cars that were somewhat sporty.
      • 9 Years Ago
      "Toyota to dramatically outspend GM in capital investment"

      That's right, companies with smart leadership and workers who are productive and care about their work product can do this type of thing.
      • 9 Years Ago
      Will the UAW allow GM the money to actually MAKE capital gains? Or will itr demand more and kil-l the company? Time will tell.
      GM, more than wage concessions, needs the flexibility to combine operations, decide when and where to make certain cars and also to stop producing unprofitable cars just to have to production lines going.
      GM can open new plants again. Will the UAW make that harder?
      • 9 Years Ago
      gm wastes their cap spending on stupid projects that fail and bring little return. like the stupid SSR, the stupid cobalt, the stupid new escallade, crappy CTS, etc. at least toyota i smart enough to get a return on their investment by engineering cars that are not an embarrassment to drive. the execs in japan must have no respect for americans when they see how american companies are run.