Quote:
Toyota's Growth Brings Tough Challenges, A Ray Of Hope For GM?
2006-10-09 12:46 (New York)
CONTRIBUTOR Douglas A. McIntyre
http://247wallst.blogspot.com : Toyota
(NYSE:
TM) has become the recall king, something that the company has never
had to
wrestle with in the past as it won most of the JD Powers and other car
quality
surveys. But, as the company's market share had balloned in the US,
Toyota has
had to ramp up production for North America, and quality seems to have
suffered.
(Toyota's sales in the US rose 25% in September.)
As Toyota attempts to overtake GM (NYSE: GM) as the world's largest car
company,
there is new evidence that it growth may be undermining quality. In a
new study
by Strategic Vision, Toyota's reputation for quality took another hit.
In the
new survey, Honda (NYSE: HMC) took the largest number of categories. GM
was
second with wins in the small SUV, small specialty, convertibles and
heavy duty
trucks. Toyota only won in three segments compared to seven last year.
Toyota may now be facing the headwind that large manufacturers like GM
had in
the past. With a larger model line, more factories, and a greater
number of
vehicles being produced, keeping quality high becomes more and more
challenging.
In the same survey by Strategic Vision, BMW placed highest in vehicle
quality
but was not included in overall results because it makes only luxury
cars. But,
with a modest number of models and smaller production, BMW has a better
chance
at quality control in each vehicle. Or, at least the is the working
theory.
Mayby, just maybe, the perception that Toyota does not make the world's
best
cars could help GM.