Toyota domination plans leaked: 15% of world market by 2010
It came as no surprise to anyone in 2003 when Toyota overtook Ford as the world's No. 2 automaker. And despite Toyota's good will gesture of raising prices to protect U.S. automakers, it was no secret the Japanese company was gunning for the No. 1 position. Now it's, well, somewhat official. The Wall Street Journal is reporting that a leaked copy of Toyota's confidential "global master plan" outlines that company's goal of taking 15% of the world car market by 2010. That would be a 4% boost over its 2005 share. An Associated Press story in the L.A. Times goes into detail about the plans, but we'll run over the highlights here.
Toyota's plan predicts affiliates Daihatsu and Hino Motors should contribute 1% to it's expanded market share, the other 14% coming from Toyota products. The automaker expects major growth in Russia, China, India and Brazil to be a big part of its global dominance, as well. A newly developed inexpensive minicar is expected to boost sales in these countries. It's Russia plant should begin production in late 2007, with an Indian plant up and running by 2009. According to Japanese media reports, Toyota also wants its overseas plants to boost output to 5 million cars by 2008, a 40% rise over 2005 levels of 3.5 million vehicles.
The gauntlet has been cast folks, and it appears at this point that no automaker, not even General Motors, is willing to pick it up and take the challenge of stopping Toyota.
[Source: The Wall Street Journal via The Associated Press via The Los Angeles Times]
Reader Comments (Page 1 of 2)
Michael Karesh 2:46PM (11/13/2006)
I could tell that Toyota had decided to aggressively grow their share a couple of years ago when I noticed that they were prices their new designs lower than the old ones AND putting rebates on them AND giving dealers incentives to give sizable discounts into their larger-than-average margins. As a result, a Camry could be bought for quite a bit less than an Accord.
Recently they've been adding capacity like mad. We haven't seen growth this fast since, well possibly not since the heydey of the Model T.
It will be interesting to see when they hit a wall. Surely everyone doesn't want a Toyota. But GM has demonstrated that it is possible to capture about half of a market if you're trying hard enough, so who knows...
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Ken 2:47PM (11/13/2006)
Mmmmmmm, rice rice all the way around!
I think I'm turning Japanese, I think I'm turning Japanese, I really think so!
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Andy UK 2:50PM (11/13/2006)
No surprise here, but it made mildly scary reading none-the-less. Toyota has yet to crack Europe; certainly Lexus sales are measured in the hundreds rather than the thousands here in the UK and other European countries. Interestingly the leaked plan doesn't mention further expansion in Western Europe as a priority of the company. When they've got a presence in Europe to match their market share in North America, then they'll have taken control of the world car market. As it stands now, Honda produces better cars for Europe than Toyota.
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Mr_Oak 3:15PM (11/13/2006)
Word of caution, this was GM 40 years ago. There will come a day when they will grow so large as GM did, that overhead will consume as it did GM. In another 15 -20 years, they'll be closing plants and pruning models from their fleet.
Don't say that the Japanese are too smart for that to happen. One only has to look back to the 80s when the Japanese were grabbing all the prime US real estate. Rockerfeller Center comes to mind and built hotels and resorts like in Hawaii, they bought in a super inflated market, when the market corrected itself, they lost they're drawers.
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Lithous 3:21PM (11/13/2006)
You guys have it all wrong. Toyota is different. Percentages of market share don't matter to them. They do this for the love of the customer and any percentages gained or coincidental profits that happen to accumulate are just an unexpected joy.
[pause while sipping a red substance with animated character applied label]
Plus, they told us they didn't want to be number one so it has to be true. They don't lie like those other entities for which Toyota is, for some reason, classified with and also referered to as "companies". Toyota should apply for some other status higher than "corporation" as they are so far above that which other corporations do in their activities.
[pause while gulping a red substance with animated character applied label]
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Shawn 3:25PM (11/13/2006)
Only if Toyota has allies in Europe...maybe VW & Fiat...then they can totally dominate the world. Okay, step 1, invade...I mean invest in China...
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Andy 3:53PM (11/13/2006)
I picked up an old issue of Road & Track from 1994. One of the news reports was that the production year saw another sales decline for Japanese automobiles--a third consecutive year. How the tables have turned once more.
Andy UK, you are incorrect about sales in Europe. Lexus production in Europe is measured in the tens of thousands. That is not a lot, but it isn't in the hundreds. Europe is not the only market Toyota has had trouble penetrating--it has had a hard time in China, where General Motors, Volkswagen, and Honda are doing well.
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roadside observer 3:37PM (11/13/2006)
Lithous, LOL ... and what's even more funny is that there are people who actually believe that what you posted is the God-honest truth!
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Mr_Oak 3:45PM (11/13/2006)
One more thing, for all these companies opening new plants in the US, beware.
It is generally known that across the board the automobile of today is far and away more reliable that 10 or 15 years ago. This coupled with slowed earnings growth, especially in the US market, means that people are going to be hanging on to their cars a little longer than normal. My point is, that market growth may not be as optimistic as they predict. An idle auto plant is an expensive miscalculation.
I was watching Autoline Detroit the other day. Auto dealerships across the country have had to cut back jobs in their service departments, a testament to today's automobiles reliability, longer warranties do play a part in this too. One mega dealership who in the mid-80s and 90, did $25,000.00 (net) per month of business in his service dept. now only does about $5,000.00 (net). A large portion of the business he writes, is due to negligence by the owners. Cars just don't break down like they used to.
If there is a sudden down turn in auto thefts and natural disasters all factors that help boost new car sales (I wonder how many new cars were sold last year as a direct result of hurricane Katrina alone?). Things could become quite interesting.
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Alain 3:53PM (11/13/2006)
Hurray! More Toyota recalls and craptastic quality!
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Richard Warren 3:56PM (11/13/2006)
Dominate the world? What hyperbole, what rubbish.
15% might take them to the number one namplate, but in case you guys haven't done your math lately that leaves 85% open to the other manufacturers.
In case you also haven't noticed Toyota keeps pushing back it's move to #1 with terms like, should, perhaps, projected (insert your copy here)"Now it's, well, somewhat official."
GM also grew their share of the world market this year, the soft spot is NA operations.
Just because you have a "master plan" does not mean that the plan will unfold the way you want.
"The gauntlet has been cast folks, and it appears at this point that no automaker, not even General Motors, is willing to pick it up and take the challenge of stopping Toyota."
More hyperbole. What guantlet? The guantlet that Toyota has to get past is the already existing makers presence in the countries mentioned. 2010? A lot can happen between then and now.
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Shadyman 5:24PM (11/13/2006)
First thing:
15% of the world market in DOLLAR Sales or UNIT sales?
Second thing: See First thing.
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Jaimie B 5:54PM (11/13/2006)
I knew the usual stupids would come out of their turdholes to comment negatively on this issue. The thing is, does it really matter what Toyota says?
I mean you shitforbrains would put a negative spin on anything they say anyway. Why? Just because you hate them Yeah, you losers hate anything successful don't you...something about how it reminds you morons how big a failure you are.
BTW, Ford intends to "model itself after Toyota". Funny, your beloved Ford is trying to copy the very same company you so despise.
http://autospies.com/news/Ford-to-Model-Itself-After-Toyota-9982/
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BOB 5:56PM (11/13/2006)
____taking 15% of the world car market by 2010. That would be a 4% boost over its 2005 share.___
IF YOU ARE AT 11% AND GO TO 15%, THAT IS AN INCREASE OF OVER 36 PER CENT, NOT 4 PER CENT.
____________________________________________________
AUTO SALES ARE NORMALLY EXPRESSED IN UNITS, TO ANSWER #12.
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Bob 6:10PM (11/13/2006)
"Domination plans leaked"? Uh, gee, their goal is to expand. Why is this news?!
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JON 6:40PM (11/13/2006)
PRODUCT.
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far jr 6:56PM (11/13/2006)
Toyota generally seems to be fairly good at forcasting. Look out GM the end of your time at the top is near. Don't sulk about it.. you don't have to be number one in size to build great cars and be profitable. Just look at Honda. Right now you need to concentrate on product and profitability in the North American market.
Toyota has good product and generally times them well in the market to keep the growth going. Quality has slipped as of late. Hopefully that is just a fluke and not a direct result of trying to attain the #1 spot. Be careful what you hope for... once you get the number one from GM, the pressure will be on from investors and the like to always stay there!
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RR 9:27PM (11/13/2006)
lol, haters extraordinaire here. they haven't even gotten to the point where GM was and people are already predicting their downfall. just because you wish it don't make it true.
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Gundar 9:35AM (11/14/2006)
Too bad that as Toyota sales increase, quality is decreasing >>
http://www.thetruthaboutcars.com/?p=1826
The new Camry is CRAP. If Toyota keeps going in this direction (remember, the new Ford Fusion was rated HIGHER than Camry and Accord by Consumer Reports), their honeymoon with the American buying public may be much shorter than the ones GM and Ford enjoyed for so many decades.
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Paul 11:20AM (11/14/2006)
all of you domestic lovers should switch to toyota and discover the freedom of reliable driving. liberate yourself of the burdon of owning crappy american designed and made products. Toyota will take care of you. GM and Ford hates you.
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