Interesting Reading

[051071]

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If you've merely done a moderate amount of Internet surfing or cracked open a newspaper lately - just about any newspaper - you've undoubtedly seen the news that Toyota has once again passed Ford in worldwide auto sales and may pass GM sometime this year.

 

But what you may not have seen is that Toyota has already passed both Ford and GM in a different category - automotive recalls.

 

Although we've barely passed mid-February, Toyota has already recalled! 533,417 vehicles this year in a mix that, according to www.AutoRecalls.us, includes Tundras Sequoias and Camrys. That puts Toyota on track to recall more than the over 1.76 million autos they recalled in the U.S. and Japan in 2006, and the 2.2 million they recalled in 2005 when they recalled more cars than they built.

 

What's more, the current recall related to the Turdra trucks and Sequioa SUVs is similar to the same defect in 800,000 of the same vehicles in 2005.

Maybe somebody at Toyota isn't paying attention?

 

Hopefully the American consumers are. Recall numbers by domestic companies (GM and Ford) so far this year are as follows: Ford, 128,163; Chevrolet, 4,829; and Pontiac, 1,602. Chrysler - a German company masquerading as an American company with plans to start importing cars from China in 2008 - has recalled 77,432 vehicles so far in 2007.

 

To be sure, high recall numbers are not good. Auto companies would much rather prefer high sales numbers instead. As I've already mentioned, the media is abuzz that GM may lose its crown this year to Toyota in worldwide auto sales. But for that to ever happen in the U.S. sales category, it's going to take several more years since GM has a U.S. market share of 24.3% compared to 15.4% for Toyota. Even Ford, despite their recent troubles, has a higher domestic market share than Toyota at 17.5%.

 

But if GM loses their worldwide crown this year, it may actually turn out to be a blessing in disguise. Here's why:

 

First, GM spent 17% less per vehicle this January compared to last January, which means they are more profitable on a per-unit basis. In fact, GM expects to report a profit for the most recent quarter.

 

Second, it may be good for GM to step aside temporarily, for now, and let Toyota take all the ammunition that is always aimed at the top dog of the industry so there is less pressure and fewer distractions. And when GM combines their more-solid profitability and their improved quality together, their public perception will also improve.

 

Then they can use these admirable qualities to prepare to surge back on top at the precise time Toyota is in the top slot with their recall surge in the news. Toyota's timing at being number one worldwide would create further skepticism about whether they really deserve their reputation for untarnished quality.

 

According to Business Week's January 22, 2007 issue, Toyota has recalled 9.3 million vehicles in the last three years, which is nearly four times the number of recalls in the three year period prior to 2004.

 

Other recent news that won't sit well with a Camry-conscious public is the class-action lawsuit recently settled by Toyota regarding ruinous oil sludge buildup

covering 3.5 million Toyota and Lexus (yes, Lexus) vehicles.

 

Optimistic statements by Toyota executives aren't going to cut it for long - particularly when they don't match well with reality. Denial in the Camry-company camp seems to be setting in. Toyota's North American president Jim Press recently disputed the suggestion that his company no longer enjoys a large lead in reliability over the American competition. Speculating on the thoughts of American car company well-wishers while speaking at the recent Chicago Auto Show,

Press said "I think there's some hope that the gap in quality is closing, but it really isn't."

Oh, really? That's a pretty strong comment considering Toyota recalled 1.27 million vehicles in one swoop in 2005, recording the biggest-ever recall in history for a Japanese car company.

 

But, recalls notwithstanding, the evidence that the quality gap is closing is pretty indisputable, and the evidence has been piling up for more than just the last couple of years. With the following facts, you can make your argument for American car quality fully bulletproof - even among your most ardent foreign car-defending friends.

 

* A February 10, 2003 Business Week told of how undeniable it was that GM cars are better built than they used to be. The article cited an improved J.D. Power quality ranking and a Consumer Reports recommendation for 13 of GM's vehicles (equal to 41% of their sales volume) compared to just five recommended GM vehicles for the previous year. The Chevy Impala beat the Camry in a quality survey, and Buick beat BMW.

 

* Business Week also reported September 23, 2003 that GM boosted its productivity 23% in six years while Toyota's productivity remained flat, and that GM's most-productive factories now beat Toyota's most-productive factories.

 

* A 2004 Consumer Reports ranking selected the Buick Regal as the most reliable among family sedans, beating the Toyota Camry, Honda Accord and Nissan Maxima. They also gave recommended ratings for four Ford models, including the Ford Focus.

 

* J.D. Power and Associates awarded Cadillac's Lansing Grand River assembly center its highest honor - the Gold Plant Quality Award - in 2004.

 

* An August 4, 2004 Wall Street Journal article said Toyota's lead in quality and reliability has narrowed in some segments and disappeared in others. Quality problems were reportedly "mushrooming."

 

* The Toyota Camry hasn't been awarded the best in its segment since the year 2000, but many Americans continue to regard it as the number one model in terms of quality. Toyota's Kentucky Camry plant was awarded with high initial quality rankings by J.D. Power from the late 1980s through the 1990s, but it plummeted to number 26 in 2002, improving to only number 14 in 2004, while two GM factories and one Ford factory took the top three spots that year.

 

* In a J.D. Power Initial Quality Survey of new 2004 cars, Chevy placed second behind Honda and Toyota sank to number three.

 

* As far back as at least 2003, Business Week has reported that American consumers regard certain foreign cars as better built than American cars, even when facts prove otherwise.

 

* Fast-forwarding to 2006, J.D. Power shows Mercury, Buick and Cadillac beat Toyota in a list of dependable cars. Two Buicks and a Mercury took the top three midsize car awards; Mercury, Ford and Buick took the top three large car awards; Ford took the midsize van award and the midsize truck award; and GMC and Cadillac took the large MAV (multi-purpose activity vehicle) and large premium MAV awards, respectively.

 

* In an article about trust issues, Business Week's December 11, 2006 issue stated "GM's quality nearly equals Toyota's." Perceived quality among the American public is another story, however. The difference between the actual quality of American cars and the perceived quality of American cars is the "perception gap."

 

* In the same article, J.D. Power's director for retail research said "Actual quality is so close." discussing the quality rankings of GMC, Chevrolet and Cadillac placing them on par with both Honda and Toyota.

 

* And most recently, of course, the Ford Fusion and Mercury Milan beat the Honda Accord and Toyota Camry according to Consumer Reports.

What's needed among automotive senior executives, and much of the media as well, is a return to intellectual honesty. Everyone tends to have their favorites and biases (mine are pretty obvious) but I pride myself in sticking with the facts to back up my comments.

 

When Toyotas North American president says that the quality gap isn't really closing, he's not being intellectually honest.

Some editorial writers aren't either. When Douglas Brinkley trumpeted Indiana's success in a Wall Street Journal article last year for attracting a Honda plant to their state - even though it took $140 million in tax credits and incentives - he wasn't what you would call "intellectually honest." In an apparent attempt to convince the reader that Honda doesn't send any automobiles to the U.S. from outside the country, he said the

following: "Turning farm fields into factories, that's what Henry Ford used to do. Today, in the heartland, it's being done by Honda - a company that doesn't manufacture imports but builds American-made cars."

 

Such statements lead the reader to think that some Japanese companies make all of their cars in the USA. Hardly. In fact, according to a January 8,

2007 Wall Street Journal article, the NAP ratio - a ratio that compares how many cars are built in North America vs. the number of cars imported - is slipping for Toyota. And according to Toyota internal documentation, the ratio is going to worsen next year.

 

Occasionally I'll find an editorial writer that dares to step away from the foreign biases of others in the same industry and rate cars objectively, rather than relying on the mindset of the question "will American cars ever match the Japanese cars in quality?"

 

 

 

 

 

 

 

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[focalxplosion]

What is the source?

 

I've read that it is considered unpatriotic to knock domestic cars in Japan. I'm curious how much truth there is to that. Here it seems just the opposite.

[backtoschool]

What is the source?

 

I've read that it is considered unpatriotic to knock domestic cars in Japan. I'm curious how much truth there is to that. Here it seems just the opposite.

 

 

All you have to do is pick up a Detroit paper to how bad the big 3 are brow beat by the News and Free Press. One thing for sure, there is more loyalty to domestic brands in Japan than there is in this country.

[forddaughter]

What is the source?

 

 

I had heard that Toyota is full of recalls, they just don't get the press coverage which is a bunch of crap!

[Davew]

Most people are under the false assumption that each vehicle manufacturer produces all the parts that go into their cars. As we all know, there aren't that many companies that make the various components. Even if there were, mortals make the parts from materials found here on earth. No vehicle or its parts are prone to last forever, without failure. With that being said, people are also under the false assumption that foreign built cars are somehow superior. When most first hit our shores, they were inferior and ugly. In order to compete, styling, quality, and marketing savy were improved. However, the tide is turning. Look at MB for example, their cars come in dead last for reliability. In talking to mechanics at local dealers, they subtantiate this. So much for paying a hefty sum for a foreign car. I'm sticking with Ford.

[WHATwhat]

Ford has a mid-sized truck?

[fastime]

Ford has a mid-sized truck?

 

They will my friend , they will ... :shades:

[ellu369]

--------------------------------------------------------------------------------

 

 

 

 

 

If you've merely done a moderate amount of Internet surfing or cracked open a newspaper lately - just about any newspaper - you've undoubtedly seen the news that Toyota has once again passed Ford in worldwide auto sales and may pass GM sometime this year.

 

But what you may not have seen is that Toyota has already passed both Ford and GM in a different category - automotive recalls.

 

Although we've barely passed mid-February, Toyota has already recalled! 533,417 vehicles this year in a mix that, according to www.AutoRecalls.us, includes Tundras Sequoias and Camrys. That puts Toyota on track to recall more than the over 1.76 million autos they recalled in the U.S. and Japan in 2006, and the 2.2 million they recalled in 2005 when they recalled more cars than they built.

 

What's more, the current recall related to the Turdra trucks and Sequioa SUVs is similar to the same defect in 800,000 of the same vehicles in 2005.

Maybe somebody at Toyota isn't paying attention?

 

Hopefully the American consumers are. Recall numbers by domestic companies (GM and Ford) so far this year are as follows: Ford, 128,163; Chevrolet, 4,829; and Pontiac, 1,602. Chrysler - a German company masquerading as an American company with plans to start importing cars from China in 2008 - has recalled 77,432 vehicles so far in 2007.

 

To be sure, high recall numbers are not good. Auto companies would much rather prefer high sales numbers instead. As I've already mentioned, the media is abuzz that GM may lose its crown this year to Toyota in worldwide auto sales. But for that to ever happen in the U.S. sales category, it's going to take several more years since GM has a U.S. market share of 24.3% compared to 15.4% for Toyota. Even Ford, despite their recent troubles, has a higher domestic market share than Toyota at 17.5%.

 

But if GM loses their worldwide crown this year, it may actually turn out to be a blessing in disguise. Here's why:

 

First, GM spent 17% less per vehicle this January compared to last January, which means they are more profitable on a per-unit basis. In fact, GM expects to report a profit for the most recent quarter.

 

Second, it may be good for GM to step aside temporarily, for now, and let Toyota take all the ammunition that is always aimed at the top dog of the industry so there is less pressure and fewer distractions. And when GM combines their more-solid profitability and their improved quality together, their public perception will also improve.

 

Then they can use these admirable qualities to prepare to surge back on top at the precise time Toyota is in the top slot with their recall surge in the news. Toyota's timing at being number one worldwide would create further skepticism about whether they really deserve their reputation for untarnished quality.

 

According to Business Week's January 22, 2007 issue, Toyota has recalled 9.3 million vehicles in the last three years, which is nearly four times the number of recalls in the three year period prior to 2004.

 

Other recent news that won't sit well with a Camry-conscious public is the class-action lawsuit recently settled by Toyota regarding ruinous oil sludge buildup

covering 3.5 million Toyota and Lexus (yes, Lexus) vehicles.

 

Optimistic statements by Toyota executives aren't going to cut it for long - particularly when they don't match well with reality. Denial in the Camry-company camp seems to be setting in. Toyota's North American president Jim Press recently disputed the suggestion that his company no longer enjoys a large lead in reliability over the American competition. Speculating on the thoughts of American car company well-wishers while speaking at the recent Chicago Auto Show,

Press said "I think there's some hope that the gap in quality is closing, but it really isn't."

Oh, really? That's a pretty strong comment considering Toyota recalled 1.27 million vehicles in one swoop in 2005, recording the biggest-ever recall in history for a Japanese car company.

 

But, recalls notwithstanding, the evidence that the quality gap is closing is pretty indisputable, and the evidence has been piling up for more than just the last couple of years. With the following facts, you can make your argument for American car quality fully bulletproof - even among your most ardent foreign car-defending friends.

 

* A February 10, 2003 Business Week told of how undeniable it was that GM cars are better built than they used to be. The article cited an improved J.D. Power quality ranking and a Consumer Reports recommendation for 13 of GM's vehicles (equal to 41% of their sales volume) compared to just five recommended GM vehicles for the previous year. The Chevy Impala beat the Camry in a quality survey, and Buick beat BMW.

 

* Business Week also reported September 23, 2003 that GM boosted its productivity 23% in six years while Toyota's productivity remained flat, and that GM's most-productive factories now beat Toyota's most-productive factories.

 

* A 2004 Consumer Reports ranking selected the Buick Regal as the most reliable among family sedans, beating the Toyota Camry, Honda Accord and Nissan Maxima. They also gave recommended ratings for four Ford models, including the Ford Focus.

 

* J.D. Power and Associates awarded Cadillac's Lansing Grand River assembly center its highest honor - the Gold Plant Quality Award - in 2004.

 

* An August 4, 2004 Wall Street Journal article said Toyota's lead in quality and reliability has narrowed in some segments and disappeared in others. Quality problems were reportedly "mushrooming."

 

* The Toyota Camry hasn't been awarded the best in its segment since the year 2000, but many Americans continue to regard it as the number one model in terms of quality. Toyota's Kentucky Camry plant was awarded with high initial quality rankings by J.D. Power from the late 1980s through the 1990s, but it plummeted to number 26 in 2002, improving to only number 14 in 2004, while two GM factories and one Ford factory took the top three spots that year.

 

* In a J.D. Power Initial Quality Survey of new 2004 cars, Chevy placed second behind Honda and Toyota sank to number three.

 

* As far back as at least 2003, Business Week has reported that American consumers regard certain foreign cars as better built than American cars, even when facts prove otherwise.

 

* Fast-forwarding to 2006, J.D. Power shows Mercury, Buick and Cadillac beat Toyota in a list of dependable cars. Two Buicks and a Mercury took the top three midsize car awards; Mercury, Ford and Buick took the top three large car awards; Ford took the midsize van award and the midsize truck award; and GMC and Cadillac took the large MAV (multi-purpose activity vehicle) and large premium MAV awards, respectively.

 

* In an article about trust issues, Business Week's December 11, 2006 issue stated "GM's quality nearly equals Toyota's." Perceived quality among the American public is another story, however. The difference between the actual quality of American cars and the perceived quality of American cars is the "perception gap."

 

* In the same article, J.D. Power's director for retail research said "Actual quality is so close." discussing the quality rankings of GMC, Chevrolet and Cadillac placing them on par with both Honda and Toyota.

 

* And most recently, of course, the Ford Fusion and Mercury Milan beat the Honda Accord and Toyota Camry according to Consumer Reports.

What's needed among automotive senior executives, and much of the media as well, is a return to intellectual honesty. Everyone tends to have their favorites and biases (mine are pretty obvious) but I pride myself in sticking with the facts to back up my comments.

 

When Toyotas North American president says that the quality gap isn't really closing, he's not being intellectually honest.

Some editorial writers aren't either. When Douglas Brinkley trumpeted Indiana's success in a Wall Street Journal article last year for attracting a Honda plant to their state - even though it took $140 million in tax credits and incentives - he wasn't what you would call "intellectually honest." In an apparent attempt to convince the reader that Honda doesn't send any automobiles to the U.S. from outside the country, he said the

following: "Turning farm fields into factories, that's what Henry Ford used to do. Today, in the heartland, it's being done by Honda - a company that doesn't manufacture imports but builds American-made cars."

 

Such statements lead the reader to think that some Japanese companies make all of their cars in the USA. Hardly. In fact, according to a January 8,

2007 Wall Street Journal article, the NAP ratio - a ratio that compares how many cars are built in North America vs. the number of cars imported - is slipping for Toyota. And according to Toyota internal documentation, the ratio is going to worsen next year.

 

Occasionally I'll find an editorial writer that dares to step away from the foreign biases of others in the same industry and rate cars objectively, rather than relying on the mindset of the question "will American cars ever match the Japanese cars in quality?"

 

 

 

 

--------------------------------------------------------------------------------

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I saw a sign in Talladaga that said:

"Ford employs more people in North America than all the transplants combined"

[051071]

I saw a sign in Talladaga that said:

"Ford employs more people in North America than all the transplants combined"

Geographically speaking when you say North America that includes the USA, Canada and MEXICO!!! With all the jobs Ford has sent to Mexico it's probably true!!

[boegey]

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According to Business Week's January 22, 2007 issue, Toyota has recalled 9.3 million vehicles in the last three years, which is nearly four times the number of recalls in the three year period prior to 2004.

 

Other recent news that won't sit well with a Camry-conscious public is the class-action lawsuit recently settled by Toyota regarding ruinous oil sludge buildup

covering 3.5 million Toyota and Lexus (yes, Lexus) vehicles.

 

A few months ago, I read an article in the Star Tribune newspaper (Minneapolis) that stated prior to 2004 Toyota fixed their 'recalls' as customers brought their cars in for repair / service. They told their customers that they did this 'extra' service to keep their customers happy. This practice was referred to as a 'silent recall' because Toyota didn't actually recall the vehicles.

 

The article stated Toyota executives were facing charges because of this practice (it artificially made their recall numbers lower than the competition).

 

I am sure the sudden rise in recalls starting in 2005 has to do with Toyota getting caught fudging the numbers for so many years. I only wish more media would tell this story. In the Twin Cities, if Ford recalls 200 vehicles for a loose screw it leads the news. Yet when Toyota recalls 100,000 vehicles, nary a word is said or written.

 

Boegey

 

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Edited May 7, 2007 by boegey

[el norte]

What is the source?

 

I've read that it is considered unpatriotic to knock domestic cars in Japan. I'm curious how much truth there is to that. Here it seems just the opposite.

could it be that most of the population in japan is japanese! The US is a mixed bag of ethnic origins that probably don't support american traditions as well. you know baseball, hotdogs, and chevrolet! Maybe the media can start supporting our country and what it stands for instead of bashing it constantly! there really isnt a better way to share info than the media, and i blame them for part of the domestic auto makers problems!

[igor]

Geographically speaking when you say North America that includes the USA, Canada and MEXICO!!! With all the jobs Ford has sent to Mexico it's probably true!!

"all the jobs"!!?!?!?

 

the 2 assembly plants and 1 engine plant .. WOW that is like .. half of Ford ..

 

and while we are at is .. SO WHAT!?!?! .. all Ford's Mexican plants are unionized .. somehow US does not mind Canadian Unionized plants, but Mexican Unionized plants are the enemy?

 

Igor

Edited May 7, 2007 by igor