Waiting for the New Year
I was sitting at dinner the other night with some Honda employees. I mentioned the floods in Thailand and they looked at me and said, “This year can’t end soon enough” Their wish for the New Year will be that the old year ends.
Toyota sold more cars and trucks globally than General Motors for the first time ever the first three months of 2007.
In 2010 Toyota was the number one global leader over General Motors by 1,000,000 vehicles.
For Toyota to withdraw it’s full-year profit and vehicle sales for the rest of the fiscal year (which ends March 31, 2012) outlook on Tuesday shows the uncertainty of the company and the economy. Honda withdrew its earnings
Toyota is Japan’s largest automobile company. Just like the United States bailed out General Motors and Chrysler because of the jobs, Toyota has to worry about its country. They have reaffirmed their commitment to manufacturing in Japan despite the strong yen. This means a car that is exported to the United States is going to be less profitable, if at all.
The Korean companies, Hyundai & Kia, have not had the problems Toyota and Honda have. Plus they have their own steel company. Hank Lee, CEO of Kia, told me that raw material prices are going up, but they are for all companies.
According to the International Organization of Motor Vehicle Manufacturers was founded in Paris in 1919. It is known as the “Organisation Internationale des Constructeurs d’Automobiles” (OICA).
Production globally is not just cars, it’s cars, light vehicles, and commercial buses.
2. General Motors
If you added Renault-Nissan-Avtovaz together as they have for Hyundai and Kia they are below Nissan and Ford.
Toyota and Honda are halting, or cutting, production in some of their production facilities in Asia and the United States. Toyota says they will lose production of about 150,000 vehicles from the supply shortage. Toyota’s website says, “The situation in Thailand continues to be dynamic and we will continue to adjust production as necessary”.
Nissan outpaced even their expectations! Nissan’s supply chains were part of the reason, but Simon Sproule, Corporate Vice President, Global Marketing Communications, Nissan Motor Company gave Nissan’s reasons for the stellar results;
Regarding results, many factors:
1. Our ability to manage unexpected external events e.g. financial crisis, earthquake, Thai floods, and the strong yen. I don’t know the management teams at Honda or Toyota but we have 8 senior executives who run the company – 50% Japanese and 50% non-Japanese plus C Ghosn as CEO. They are a close group of very talented experienced executives who turn on a dime when things get tough. Decision making is pragmatic, decisive and fast…..and everyone aligns on the plan and executes.
2. Our product. We need to check the numbers, but we are on track to record our largest sales year in history – we just upped our volume forecast. In the US for example, look at the new Versa compared to the same segment products from Hyundai, Ford, Honda, Toyota, etc. In Europe, we are on track to be the largest Asian brand. In China, we are ahead of Toyota and Honda. And this is with a product range that is on the verge of a massive refresh program – an all-new vehicle on average every six weeks for the next six years. Based on published forecasts, we will be over 1 million units ahead of Honda on a full-year basis.
3. Brand. Nissan brand is now back in the Interbrand Top 100. We are behind Toyota and Honda but gaining ground. Infiniti brand is expanding globally and achieving significant gains in awareness due to our successful partnership in F1 with double world-champions Red Bull.
No one here is pausing for breath as well. There is an incredible sense of energy and enthusiasm for the future and we are building a very different kind of Japanese car company.