LATEST FROM OUR BLOGS

» More

- Moon Hopes To Complete Amazing Story

MORE HEADLINES

» Markets | Economy | Companies

- Look Ahead: 'Risk On' Attitude Could Fuel Rally Further

BEHIND THE WHEEL VIDEO

» More

The Nikkei Business Report

17 hrs ago

The Nikkei 225 finished up 0.2% at 9,808 Monday, but volume was down at a 6-week low. Fast Retailing, Suzuki Motor, and Kubota were top gainers, but major power companies were among the hardest hit. Makiko Utsuda from The Nikkei has more.

Fiat's 5-Year Road Plan for Chrysler

05 Nov 2009

Fiat said its 5-year road plan to turn around Chrysler will result in the doubling of revenue. "There is no alternative but for Chrysler to be ambitious at this point," Stefano Aversa, co-president of restructuring specialists Alix Partners, said Thursday. "They have plenty of cash."

Ford's Safer Seatbelt 05 Nov 2009
Ford is unveiling its groundbreaking seat belt. CNBC's Phil LeBeau has the details.

Chrysler's Rebirth

05 Nov 2009

Chrysler is kicking off its rebirth and hoping its new game plan will please the government as well as the industry. Mike Jackson, chairman and CEO of AutoNation, shares his insight.

Toyota Reports Surprise Profit, but Outlook Bumpy

05 Nov 2009

Toyota's results blew past expectations Thursday. The Japanese automaker posted a surprise quarterly profit and halved its annual loss forecast. "Toyota is still making a loss. It's still going to face a very difficult future ahead," Graeme Maxton from The Insight Bureau said. "This doesn't mean that the auto sector has turned around."

RSS FEED

» Help

Subscribe to this RSS feed
Stay up to date with Behind The Wheel.

CNBC ON DIGG

Behind The Wheel

Text Size

Oct.03

9:57 AM ET

Friday, 3 Oct 2008

Toyota Finds The Going Tough At The Top

Posted By:Phil LeBeau

Sectors:Oil and Gas | Technology | Automobiles and Parts

Companies:Toyota Motor Corporation | General Motors Corp

This is for all of you who e-mail and call me "Toyota Phil" and for those of you who think I favor the Japanese automaker and never write anything critical.

And yes, even for those of you who have suggested I am part of a conspiracy in the media to only portray Toyota [TM Loading... () ]as the best in car business (Yes, I actually get e-mails stating this).

The Japanese automaker finds itself in an unusual position--explaining why its sales plunged 29% last month while promoting its cars and trucks with the type of 0% financing offer the Detroit three have been running (and criticized for) in recent years. In short, Toyota is getting a taste of the tricky life that comes when you are the second largest automaker in the U.S..

This doesn't mean the wheels are coming off at Toyota. It does mean the automaker is finding the challenges that come with being large are not strictly the problems of the Big 3.

Also, Toyota is finding GM's [GM Loading... () ] models have risen to a point that they can attract buyers, especially when sweetened with employee pricing. Just look at the success some of GM's models had last month while Toyota's bread and butter models struggled with far fewer incentives.

As a result Toyota has to fight fire with fire and bring the kind of offer that will get buyers back in the showrooms. Zero percent financing on 11 models will certainly help.

This is not a case of throwing cash out on some inferior models. This is simply greasing the deal a bit to help buyers feel good about buying. It's a smart and necessary move in this market.

Welcome to life at the top of the food chain.

_____________________________________
Click on Ticker to Track Corporate News:

- Ford Motor [F Loading... () ]