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Why Has Toyota Been Caught With It's Pants Down In The U.S. Market?

When US auto sales slumped last month to their lowest levels in more than a decade, Toyota Motor Corp. suffered as much as anyone else.

Unusual for the Japanese automaker, its U.S. sales tumbled 21.4 percent, even more than the overall market.

As the manufacturer of the Corolla, Yaris and other popular small cars and the leading seller of hybrids, Toyota should have benefited from soaring fuel prices. Instead, its U.S. dealers found themselves stocked with Toyota and Lexus trucks they couldn't sell, and short of small, fuel-efficient cars.

At a meeting last month in Salt Lake City, dealers pressed Toyota's top U.S. managers to explain why the carmaker renowned for its responsiveness and flexibility couldn't provide them with more small cars.

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Why Has Toyota Been Caught With It's Pants Down In The U.S. Market?



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GodfatherSHMGodfatherSHM - 7/9/2008 9:16:44 AM
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because us LOYAL Toyota owners of the past are finally pissed off enough at them for raising car prices to high for common day cars and then on top of that giving us a car quality that now sucks.

They screwed over their loyal base and that is coming back to bite them hard!

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american_madeamerican_made - 7/9/2008 1:09:11 PM
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Come Back to America and drive something that isn't a death trap tin can


bestofallcadbestofallcad - 7/12/2008 12:52:27 AM
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Greedy Toyota


qckshftrqckshftr - 7/9/2008 9:25:52 AM
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Random flame... whyyy don't Asian (non luxury) and domestic automakers offer a "Leatherette" option, at least, in their smaller cars??? If everyone's used to such amenities on the big SUVs/Crossovers/Trucks they're downsizing from... Won't they want the same creature comforts in small cars? I was amused that most California Toyota dealerships offer to add AFTER-MARKET leather to their cars... Why doesn't Toyota have a FACTORY Leatherette option???

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Agent009Agent009 - 7/9/2008 9:48:56 AMView My AgentSpace
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GM and Ford are running into this problem. Everyone trading in the luxury SUV wants high end options that are not available in their smaller offerings.


auto001auto001 - 7/9/2008 9:34:29 PM
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The "faux" leather phenomenon in autos was invented by BMW to shave costs and maximize profits... Toyota don't play that :)


85bmw745i85bmw745i - 7/10/2008 2:16:40 AMView My AgentSpace
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I actually like leatherette. Very durable, easy to clean and last forever. Plus I like the way it fits tight and looks so clean.


bigTYMEbigTYME - 7/10/2008 4:26:56 PMView My AgentSpace
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It's called a Civic EX-L. But then again how many are actually available on the lot. Even the Focus has a $695 option for leather seats.


EL34EL34 - 7/9/2008 9:40:08 AM
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"Why Has Toyota Been Caught With It's Pants Down In The U.S. Market?"

Because Toyota make ugly cars :-?

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_43LE_43LE - 7/9/2008 11:39:03 AM
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Stupid comment as usual :-?


Agent63Agent63 - 7/9/2008 9:09:17 PMView My AgentSpace
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Not ugly cars but not the most exciting.


damikcodamikco - 7/9/2008 10:41:46 PMView My AgentSpace
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Agent 63 i agree, with you about their cars not beiing so good looking, i dont like toyota much but lets face it the entire industry has been caught with its pants down, and sending jobs and prophit over seas leaves no one to buy your services and has shrunk the american economy down to nothing, we are no longer the richest nation anymore even though we would like to believe we are.


bestofallcadbestofallcad - 7/12/2008 12:58:44 AM
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Yes Toyota is now a Grandma car, infact I see alot of hats in the slow lane behind the wheels of camry's. They are boring, and have no style.


indy335indy335 - 7/9/2008 9:49:10 AM
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I don't want to bash Toyota, but it's clear it's hard to be large and nimble. The US market changed so quickly that everyone that cashed in on the truck/SUV market was caught with their pants down.

Right now Toyota has cash in the bank, but what if they make a bet on small cars and hybrids and by some freak chance oil drops to $30 a barrel in early 2009? Hmmmm...then they move in the other direction again thus burning more cash.

It's tough when you can't define the market and are always chasing it.

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0to600to60 - 7/9/2008 11:18:17 AM
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Actually that goes for almost any company


PlanBPlanB - 7/9/2008 9:58:28 AM
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Because outside of the Yaris, Prius, Corolla and Camry hybrid they have just as many gas guzzlers sitting on their lots as the other brands. Not to mention the premium you pay for those Toyotas over the domestics, throw in the weak economy also... and they're just as vunerable as the others.

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RupertRupert - 7/9/2008 8:29:31 PMView My AgentSpace
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Toyota are as bad as Ford as far as relying on trucks goes. There's the Rav-4, Sequoia, Highlander, Tundra, Land Cruiser, Tacoma, 4-Runner, FJ Cruiser and soon the Venza. I don't know how anyone can call Toyota a green company.


damikcodamikco - 7/9/2008 10:44:01 PMView My AgentSpace
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thats true and evryone looks at GM as the bad guy when all makers have many suv's.


NoFHoesNoFHoes - 7/9/2008 11:06:29 PM
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Damikco,

You wrote, "...all maker's have "many" suvs? Errr, Audi just released their first one a year or two ago. BWM has 3 and everyone else has 4+.


M35MTM35MT - 7/9/2008 1:38:32 PMView My AgentSpace
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Caught with their pants down? I dont think you understand the meaning of that expression.

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SixxFiveSixxFive - 7/9/2008 2:36:48 PM
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Toyota has become like GM.

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NoFHoesNoFHoes - 7/9/2008 11:02:16 PM
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??? Toyota has always had tupperware interiors.


bestofallcadbestofallcad - 7/12/2008 1:13:52 AM
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No Toyota has not become GM, GM has been coming out with some Great Exciting and quality cars, where Toyota is coming out with cars that they have always come out with boring!!! The Camry and Corolla was boring in the past and is still boreing.


auto001auto001 - 7/9/2008 9:31:39 PM
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It's because Toyotas last forever, i.e., slow turn over... these reliable vehicles don't live the life of the typical "lease-return-lease-return" - disposable life of a German vehicle.

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damikcodamikco - 7/9/2008 10:44:45 PMView My AgentSpace
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Than why arnt their warrantys longer?


85bmw745i85bmw745i - 7/10/2008 2:23:22 AMView My AgentSpace
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I agree with you Damikco, but at the same time, I think the reputation for durability, reliability and build quality speak for themselves. Pretty cocky for toyota if you ask me, but comsumers that shop Toyota products know how well built and reliable they are, I'm not so sure they are as good now as they were from early 2000's back to the 80's but the same bad rep of American made cars of the 80's and 90's is the same rep that helped Toyota gain so much of the market. Now that companies like GM are making such good cars, it will eventually even out and hopefully move to GM and other Domestic car makers favors. As much as I like imports (german cars to be more specific) I don't want U.S. Automakers to fall. We need those jobs and the American workers money to avoid a big depression. The big 3 might not be as good as the others but the gap has shrunk so far that they are just about there with toyota and honda, and if you don't keep your car for more than 5 years like most americans, you couldn't go wrong with a GM product compared to toyota and honda.


BoredBored - 7/9/2008 10:01:46 PM
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I guess Toyota is going to have to "walk it off" just like GM, Ford, and Chrysler.

(wow, no comments from MT...yet)

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tecnopolistecnopolis - 7/10/2008 12:53:32 AM
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Hyundai isn't helping.

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M53RM53R - 7/10/2008 10:49:24 AMView My AgentSpace
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Because many of their competitors offer just as efficient, better performing, better looking and just as reliable vehicles.

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ChicaneShooterChicaneShooter - 7/11/2008 5:51:26 AM
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auto 001:
"It's because Toyotas last forever, i.e., slow turn over... these reliable vehicles don't live the life of the typical "lease-return-lease-return" - disposable life of a German vehicle."


true. i know of almost NO toyota owner (and i know many) who EVER TRADES in his or her toyota for a new one. they tend to buy new ones outright.

in several cases, the old one is already spoken for by a friend or relative who KNOWS they'll have a RELIABLE used car.
in a few other cases, the old one is simply KEPT for use as the daily driver/work car.

(at our local toyota store, before they got hungry for more sales, they would not even TAKE trade-ins. they ONLY SOLD new cars.)

also, few of these toyota owners trade every 4-5-6 years. they tend to keep them a LOOOONG time! i'm still hanging on to my '94 truck myself, used now ONLY for trucky chores. several people have wanted to buy it. nope. worth more to me than whatever the 'book' says it's worth!)





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ChicaneShooterChicaneShooter - 7/12/2008 4:05:00 AM
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"Unusual for the Japanese automaker, its U.S. sales tumbled 21.4 percent, even more than the overall market."


if i recall, last year they were posting NEW RECORD SALES almost monthly.

so the larger drop relative to other brands are just declines from HIGHER LEVELS. in absolute number of unit sales, they are not so far off from others, and STILL LEADING in many segments.

they aren't selling more now, simply due to SHORTAGES of the high demand fuel efficient models.





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wangawanga - 7/14/2008 7:21:31 PM
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Toyota's reliabity is a big problem,i know "die hard toyota fans that switch to Honda and the $4.50 pg add to their misery,they trade their 06 4 runner for the old 08 Pilot.People are trading their gas guzzlers
for 4cyl vehicles,Honda Fit,civic,accord and cr-v,the new Pilot is not selling as expected,we just move 2 since last week.Gm,dodge and toyota are dead,no mouvement

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