Toyota raises production forecast by 3%; losing ground to GM
The global auto sales downturn has been as painful as it's been swift, but a report from Yomiuri shows that the worst of times may be over. The Japanese news agency (via Automotive News) reports that Toyota has raised its vehicle production forecast upwards by 3% to 6.5 million units. That's still a far cry from Toyota's amazing 2008, yet the positive adjustment is still worth over 300,000 units of additional production.
That's welcome news to Toyota's manufacturing facilities around the world, as the drop in sales in the first half of 2009 left the Japanese automaker with far too much inventory. With the upward revision of production for the rest of the year, factories could be running more steadily.
While Toyota appears to be back on the upswing, it's facing renewed pressure from General Motors for the top spot in global sales. In the first half of 2009, GM closed the gap in overall production to only 11,000 units versus Toyota, a far cry from the 274,000 unit differential in the first half of 2008. GM, which struggled more than most in the US during the first half of the year, had far stronger results in emerging markets like China and South America, with overall sales down 21% versus 2008. Toyota's sales dipped 26% during the same period. Volkswagen also made a big jump compared to Toyota, as the German automaker's sales dropped only 5.1% in the first half of the year. VW is now within 500,000 units of Toyota during the first six months of the year.
[Source: Automotive News - Sub. Req.]
Reader Comments (Page 1 of 2)
AutoTribute 11:51AM (8/10/2009)
It seems that in the auto industry (or in business in general), the mighty always fall.
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shethj 11:55AM (8/10/2009)
Yes, but Toyota has only been #1 since 2008. Usually you stay on top for more than one year. Especially when the media has been calling for you to be #1 for the last half decade and was predicting that you would be WAY ahead of GM within the near future. American auto journalists are lemmings and refuse to engage in independent thought. Gm is stronger than Toyota in China and Toyota has penetrated every segment of the US market. When you put those two facts together you see that there was no guarantee Toyota was going to run away from GM. I would say GM's chances of passing them this year are strong. Toyota has no new product in the US outside of the PRius and RX. GM has Equinox, Terrain, CTS wagon, SRX and Lacrosse for 2010.
Judy Zik 1:07PM (8/10/2009)
I am amazed at how little coverage Toyota's fall is getting in the mainstream press. This isn't just the economy. If it was they would be losing sales but not market share. When they are losing market share to GM (while GM was in bankruptcy) you know they are in trouble. Their lineup has gotten stale and they have nothing anyone would be excited to drive (except perhaps the Prius for greenabes). The Toyota brand has completely missed the return of the fun to drive RWD cars (Camaro, Challenger, Genesis).
AutoTribute 4:59PM (8/10/2009)
shethj, just because GM has all those fresh products coming doesn't mean they'll be game changers. GM still has a reputation problem dragging it down, regardless of the quality of its products. These new products will make a dent, but only a small one. But, hey, it's a starting point.
AutoTribute 5:07PM (8/10/2009)
But so long as GM keeps rocking China, then I agree with you, shethj. It has a good chance of surpassing Toyota. But it would be only temporally as the global economy improves.
the4thheat 10:43PM (8/11/2009)
I think you guys have to realize that Toyota doesn't quite need to have the top production numbers to regain profitability, so they're purposely not running the production lines at full capacity (aka old GM style).
If you look at the incentives Toyota has been giving compared to other automakers it's pretty obvious that they're basically refusing to go down the production volume trail of tears.
Toyota is projecting profitability by next year and they really don't care about being #1 in volume anymore. Even if GM becomes the #1 volume king again what does that prove exactly? The #1 volume king is also the same company that just had to file for bankruptcy, which pretty much proves that being #1 in volume means nothing if you can't keep your company running.
At any rate Toyota's likely to be a hell of a lot more profitable next year than GM is, no matter how many cars GM sells.
Avinash machado 11:45AM (8/10/2009)
GM FTW.
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Chibi Chaingun - blackhivemedia.com 3:12PM (8/10/2009)
Gimme a HUMMER HX!
Pat 11:49AM (8/10/2009)
Shameless plug?
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Other Man 12:05PM (8/10/2009)
I think it was a good move for Toyota not to go extra happy on the brands like they almost did with that all hybrid brand and others. Frankly I think Scion could just be melded into the mainstream Toyota brand and let the Scion brand out in the cold.
GM is shrinking down their brands in the NA market nicely. There's a bit more they could do but I'll take it as is considering the improvement in their products.
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paul34 1:06PM (8/10/2009)
The only Scion left with any hope is the tC. They already wrecked the xB from the hit it was in its first generation, and the xA is quickly becoming just another Matrix.
FT 12:33PM (8/10/2009)
It's funny how Autoblog neglects to mention that GM counts sales of Wulling (of which it owns much less than 51%) in their totals. Take that out (400,000+ units last year) and the gap to Toyota is huge (Toyota outsold GM+ Wulling last year).
Autoblog, we all know you Amateurs don't like Toyota, but at least make an effort to not be so obvious......
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Chibi Chaingun - blackhivemedia.com 3:16PM (8/10/2009)
Yes... "Amateurs" that run a Professional automotive publication. (???)
the4thheat 10:47PM (8/11/2009)
Yes...all blog writers are suddenly "professional" auto journalists?
Seriously by that logic you must be a professional too what with your spamming your own blog url. Oh wait no, you're just a spamming idiot.
I guess I'm a professional writer in a whole bunch of genres too since I've owned my own commercial blog sites before too. Oh wait, no any idiot can do that.
Luis 12:36PM (8/10/2009)
Toyota needs to not worry about the sales crown. At this point they just need to work on their product line and making sure it's the best it can be. Not the most they can be.
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Richard S. 12:40PM (8/10/2009)
Agree on the Wuling sales. I don't recall Ford adding total Mazda sales to its tally when it owned a 33% stake.
Also, forget GM and Toyota. It seems that VW might be the one to reach number 1 in sales soon.
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FT 12:53PM (8/10/2009)
VW's doing great but will be hurt by the impending doom in Europe (their biggest market):
http://europe.autonews.com/apps/pbcs.dll/article?AID=/20090810/ANE02/908109995/-1&AssignSessionID=173362946292480
Western Europe's car sales could fall 11% in 2010, forecaster warns
jv2k 12:45PM (8/10/2009)
Gm already designed new sports cars for the US...
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Eidolon 12:52PM (8/10/2009)
I really hope these projections and the like don't factor in sales bumps from Cash for Clunkers...
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Level 1:00PM (8/10/2009)
It's funny how the No1 in cars sales still be in the green and the No2 in car sales world wide went bankrupt....
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