Yep

Who cares who the top seller is?

187out: Good point.

Why is everbody talking about pecker size? Who cares?

Anyway, I think that GM will actually be a bit RELIEVED to no longer be the number 1 automaker. They have been focusing of improving their product for some time now and I applaud them for it. If I were to purchase an American car tomorrow, it most certainally would not be a vehicle made by Ford Motor Co. or Chrysler, it’d be from GM. However, I’m still not to the point where I would feel comfortable purchasing a brand new GM-anything. As much as I really like the new CTS, I wouldn’t buy one brand new.

I guess you could phrase it this way: “All profits from TMS have the POTENTIAL to go back to TMC, but they have substantial obligations to maintain at TMS before going to TMC.”

And to speak to every Asian auto job gained is an American auto job lost: There probably would have never been a job lost if Ford/GM/Chrysler actually managed their demand, workforce levels and continued to make relevant products. Domestics employed too many people with too many benefits who produced vehicles a decreasing population actually desired. The job cuts at Ford/GM/Chrysler are an attempt to right-size, therefore it’s not a one-for-one exchange.

***The only reason why I started on the topic is because I think it is ridiculous to be upset that the money is going to Japan.*** The stakeholders (mainly banks), Toyoda family and other investors are not offering the Japanese population their profits. Only a few rich people in Japan. Likewise, the stakeholder (mainly banks), Ford family and other investors are not offering the American population their profits. Only a few rich people in America.

Holdings

Toyota reports on its consolidated financial statements 540 consolidated subsidiaries and 226 affiliates.

* Toyota Motor North America (100% – 2004)
* Toyota Tsusho – Trading company for the Toyota Group
* Toyota Canada Inc. owned via Toyota Motor North America
* Daihatsu Motor Company (51.2% – March 31, 2006)
* Hino Motors (50.1% – March 31, 2006)
* DENSO (24.74% – September 30, 2006)
* Toyota Industries (23.51% – March 31, 2006
* Aisin Seiki Co. (23.0% – September 30, 2006)
* Fuji Heavy Industries (8.69% – September 30, 2006)
* Isuzu Motors (5.9% – November 10, 2006)
* PT Toyota Astra Motor (49% – 2003)
* PT Toyota Motor Manufacturing Indonesia (95% – 2003)

As you can see, Toy Motor North America is one of them. Toy Motor NA in turn fully owns Toyota Motor Sales, USA Inc. therefore that is a wholly owned subsidiary of Toyota (headquartered in Japan). Toy Motor Sales is NOT a US corporation or in any way US owned. It certainly contributes to our economy (in the form of jobs mostly, but then again, every Asian car manufacturing job gained is offset by domestic car jobs lost – see Ford cutting another 13000 jobs article). All profits made by TMS go back to Toyota City, Japan where they are reinvested throughout the world but mostly benefit the Jap economy.

We’ll use Ford as a counter-example:

This is the exact same as Ford (whatever is left of it) except the profits automatically go to the Ford family in the end. Ford, the manufacturer, allocates their cars to the US sales arm. They sell the cars to the dealer and make their profit. The profits from the sale go to the Ford family, also they pay Ford employees and are used for marketing/incentives.

So there are two different “profits” you are talking about. If you are upset that TMS is buying cars from TMC and TMC/Toyoda family is profiting, then you should be just as mad that the Ford family is profiting off of Ford cars. You make it seem as if the Ford family is dispersing their profits to the American public and that somehow by buying American brand products that you and the entire United States benefits. Wrong! That only happens if you own stock in the company and Ford is making a profit to offer a dividend.

Even though I don’t intend to speak for them, I work for Toyota in Torrance. I can’t tell you how much I hate to see people wishing for the demise of US automakers. If GM, Ford or Chrysler fails, we all fail, including Toyota. Especially in a recession. One manufacturer going out of business or severely diminished will turn a recession into a depression. That effect would be wide-spread, to an extent you could not imagine.

Likewise with Toyota, to those who seek Toyota’s demise, it will have the same effect. Toyota directly employs over 32,000 people in the US alone. Add dealers, suppliers, and business that rely on employees of the dealers or suppliers and you have millions of people affected by how Toyota performs. And these are AMERICANS, not Japanese. 32,000 AMERICANS!!! (BTW, I’m not Asian as someone assumed a couple weeks ago).

I’d like to see Toyota to win, but we thrive off of competition and trying to do better than yesterday. It doesn’t always happen, but it is Toyota’s goal.

As far as Toyota’s quality concerns and GM resurgence in the US, no one outside of the people who follow the auto industry knows about it. The frankly don’t care. They are worrying about their mortgage or 401K plan. If you ask the normal middle age person what they think about Toyota, and they’ll say it is a quality car. That perception has been built for several decades and will not be easily broken by spats of bad news. It has the potential though. Likewise, GM’s perception of poorly made vehicles is HARD to get rid of. The ONLY way for GM to become relevant to mainstream America again is if they continue this level and improve upon it for the next decade or longer.

http://www.youtube.com/watch?v=Jqa4LpdtOD8

Not often anyone can say that!

Think about this: Last year, GM sold over 9 million vehicles as well. That year, Wuling sales were also included in there (as they should be) as Wuling is all part of GM’s Chinese operation. The alliance is knowk as SGMW or SAIC-GM-Wuling. Just like GM included cars made in China by SAIC, they are allowed to include Wuling. Remember that this is China we are talking about. GM is not allowed to fully own Wuling – the Chinese commies won’t allow that. Lastly, remember that virtually all automakers (including Toyoda im pretty sure) uses a joint-partnership type of deal in order to import their cars to China. If they don’t, imported cars in China are taxed at a rate of 100% in China. Look at the SGMW website….. GM is all over it. Wuling can be counted.

http://www.sgmw.com.cn/english/company/about.jsp?catid=113

In some of the earlier posts that indicated that Toyota would take the #1 title in global sales I said and you can see my posts that Toyota probably would take the #1 spot. And they probably will although since Toyota hasn’t released their sales #’s no matter what anyone says for or against GM or Toyota until all the #’s come in no-one knows yet.

Secondly Toyota has taken a big step forward in the last two years to become #1 and while we should admire their effort for doing so because they do offer good quality vehicles, my father had an 84 celica that he still swears was one of his best cars and other people that I know that have their Toyota’s most like them. I’d own something from Toyota if they offered anything appealing however since they no longer offer a Supra, Celica or MR2 I have no interest in any of their products.

But being #1 isn’t everything. While Toyota has the #1 spot and while they have sold more vehicles their recall rates have gone through the roof and they have recalled more vehicles in the 2007 Calendar year then any of the other automotive companies, so I hope that Toyota can actually fix this because if they don’t then they’ll have the reputation that GM has had for years to come.

Also watch how fast the media will turn on Toyota. Once they have the #1 Title while they keep announcing recalls or cough.. “WARRANTY Extensions”… it won’t get better for Toyota.

When Toyota releases their official sales that say by a credible third source then I will say Congratulations to Toyota. And also bring back the Supra, Celica and MR2… Thank you.