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Old 03-16-2007, 04:57 PM   #1
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Are you surprised that Toyota is in on it?
Yes and no. Yes because they risk muddying their hard-earned green hue. No because they currently have a competitive advantage over the big slackers. Among other strengths, their products generally have superior FE. If new regulations mandated that all other companies also had to have better FE, Toyota could lose one of their key marketing assets. They know that the big 3 are too stupid to do it on their own.

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The Big 3 are in the rut they are in because consumers don't want their products because they are too high maintenance and too inefficient. The public therefore gravitates to the foreign products that have only incremental improvements over the domestics. - (emphasis added)
Exactly!. Toyota (and other Japanese makers) set out around the early 70's to be just a little better than the stodgy big 3. At that time, the big 3 believed in planned-obsolescence through making inferior products. When one of their products wore out, they counted on consumers not asking questions, instead just buying a new one.
Ford, GM, Chrysler, and AMC all operated this way fearing that if they didn't, the market would shrink. Toyota planned to simply grow in marketshare with a 5, 10 and 20 year plans. Leaders of the big 3 have never been able to see beyond the next 10 minutes.
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Old 03-16-2007, 05:46 PM   #2
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Right!

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Originally Posted by Silveredwings View Post
Yes and no. Yes because they risk muddying their hard-earned green hue. No because they currently have a competitive advantage over the big slackers. Among other strengths, their products generally have superior FE. If new regulations mandated that all other companies also had to have better FE, Toyota could lose one of their key marketing assets. They know that the big 3 are too stupid to do it on their own.
Now we're getting somewhere. It's predicted by the end of the year that 'Yota will pass the General in sales by the 4th quarter, making them a new #1 in 8-decades (read: eight). Since more people these days seem to want size and not FE, Toyota (as usual), has figured out what's most profitable for them. In the meantime, their lineup of fuel-efficient vehicles is at stake. We know the return on investment is much smaller on a Yaris than an Tundra, so they need to sell more of the Yarii to profit. It all makes sense...if more options are available from other manufacturers, then that cuts into their margin.

But the question remains, where is Honda on this one?

RH77
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