16273 messages,
Last post on Apr 25, 2013 at 8:21 AM
You are in the
Automotive News & Views Forum.
What is this discussion about?
Toyota, Automotive News
#15611 of 16273 Re: Sales break down [nippononly]
by hpmctorque
Jun 09, 2012 (6:03 am)
I agree with you that some of Toyota's actions - or inactions - are puzzling.
As for DI, Nissan and Honda didn't adopt it yet either, as far as I know. Yet, even without DI, the 2013 Altima achieves 38 mpg highway. That's tops in its class, unless the '13 Accord does better, and one mpg better than the '13 Malibu light hybrid. I'm wondering whether DI isn't always better, or whether Nissan is just keeping that feature in reserve.
As for the '12 Yaris, since that model is built in Japan, the lack of DI and a 6th gear probably has to do with cost. This is a low profit segment to begin with, and the yen is strong, so Toyota may earn nothing, or possibly even lose a little, on each Yaris. Whatever the explanation is for not including these enhancements, Toyota is spending very little to market the Yaris in the U.S. That ties in with the company's expectation that, at least for now, the Yaris will be a relatively low volume model in the U.S.
There's also the fact that if the Yaris features DI and 6-speed transmissions, the Corolla must too. The business case just may not be strong enough to make these investments. Another thing to consider is reliability and cost-to-repair. These probably favor 4-speeds over 6-speeds, especially for the automatic.
#15613 of 16273 Re: Sales break down [hpmctorque]
by nippononly
Jun 09, 2012 (1:11 pm)
The business case just may not be strong enough to make these investments.
And there you have it. You have neatly placed in a nutshell the message that I think sums up Toyota these days.....the days when it made business sense to just make the best product in each class and charge accordingly are gone I guess. Now it often makes more sense to make the cheapest product....not exactly aspirational, eh?!
#15614 of 16273 Re: Sales break down [nippononly]
by hpmctorque
Jun 09, 2012 (3:19 pm)
I believe that a key challenge for Toyota, unlike several years ago, is that it has expanded into virtually every segment, when you include Lexus and Scion. That's similar to GM. This degree of vehicle diversification makes it virtually impossible to have leading edge products in every segment. They have to continually ask themselves whether, for example, they'll get a bigger payback from investing in a new transmission for Yaris and Corolla, or an improved battery pack for Prius. The answer may be to invest their marginal yen in Prius, to maintain their lead in hybrids. I imagine that the Prius line has more-long term profit potential than the econobox end of the spectrum.
I'm just conjecturing, I really don't know, but that's what I think.
Ford, on the other hand, took a different approach, by selling its PAG (Premium Auto Group) brands, and shutting down Mercury. It put its resources into fixing its main brand, and now that Ford has recovered, resources are being poured into Lincoln. Given its relatively limited resources, Ford Motor Co. had to make some hard choices. For example, it hasn't introduced RWD sport sedans, but has poured a lot of money into improving fuel economy, which is a higher priority for most consumers.
#15615 of 16273 Re: Sales break down [hpmctorque]
by ateixeira
Jun 11, 2012 (8:11 am)
For Toyota, I think having Lexus is somewhat of a handicap. They need to keep Toyota vehicles to "less than Lexus". So that creates a glass ceiling for them - the IS gets DI but the Camry and Avalon cannot.
The lesser Toyotas, then, can't either.
Hyundai doesn't have that handicap, so even the Accent gets DI. Oddly the Elantra doesn't, go figure.