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Today, we watch the downfall of a car manufacturer.

  1. Feb 13, 2010 #1
    http://www.cnn.com/2010/US/02/13/tacoma.recall/" [Broken]

    Things are not looking good at the Toyota plant. Even though it is only 8,000 trucks, each recall and warning hurts them more and more.
     
    Last edited by a moderator: May 4, 2017
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  3. Feb 13, 2010 #2

    Ivan Seeking

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    8000 trucks is barely an afterthought. No doubt though, these are tough times at Toyota.

    I will gladly buy a Toyoya for our next car. With so many years of phenomenal success and growth, they were due for some problems.

    After all of the crap US manufacturers have turned out for years, a few problems at Toyota causes me no concern at all.
     
  4. Feb 13, 2010 #3

    Evo

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    Same here, Toyota makes great cars.
     
  5. Feb 13, 2010 #4
    The average American who gets all of their news from the TV and newspaper, is going to hear this and think "toyota is recall after recall" and not give them a second thought. There are informed individuals out there, who know stuff like this happens from time to time, and overall toyota makes good cars. But these people are the minority.
     
  6. Feb 13, 2010 #5

    Evo

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    Trust me, after years and years of problems with American cars, I don't think this will hurt Toyota that much. People tend to prefer certain cars and will most likely continue that preference. People that like American cars will feel better about their choice.
     
  7. Feb 13, 2010 #6

    Ivan Seeking

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    Yes, product loyalty often results from many years of having happy customers. As indicated in another thread, I estimated that we have driven Toyotas over a million miles with almost no unplanned maintenance or repairs. Toyota's reputation was earned this way a million times over. A few bad months won't undo that reputation provided that they take care of the problems. Likewise, GM and Ford cannot easily undo the reputation earned through almost four decades of producing crappy products. As for Chrysler, PULLEASE! Don't even talk to me.
     
    Last edited: Feb 13, 2010
  8. Feb 13, 2010 #7

    Chi Meson

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    Our "family car" is the Toyota Sienna. It's my 4th Toyota. This recall is barely registering on my "concern screen."
     
  9. Feb 14, 2010 #8
    Almost all car manufacturers do recalls on their cars, especially new models, i remember the list of recalls that we had to do on some of the merc's i worked on. Used to work on cars for hours without the customers knowledge, apparently BMW used to replace the whole engine on their old 325 model.
     
  10. Feb 14, 2010 #9
    America makes cars?
     
  11. Feb 14, 2010 #10
    lol, pick ups.
     
  12. Feb 14, 2010 #11

    OmCheeto

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    I think I got over 600,000 miles from my two Toyota's. Much better than any of my other vehicle brands. But being the experimenter that I am, I just bought a Ford. :frown: Actually, this will be my first real Ford. (Apparently my Probe is really a Mazda) But the gentleman that runs the convenience store that I frequent says his Ranger has over 200,000 miles, and is still running quite well.:smile: So all is not lost.

    Ouch! Toyota stocks dropped 26% in one month!

    hmmm....

    2-12-2010
    Toyota: Market Cap: 120.8B
    Ford: Market Cap: 36.8B
    GM: bankrupt / stocks still not trading the last time I checked
    Chrysler: bankrupt / stocks still not trading the last time I checked

    Just a blip in Toyota's radar screen apparently. Stocks are up 7% over the last week. Go back to sleep everyone. .....:zzz:
     
  13. Feb 14, 2010 #12
    If I recall correctly (and I think I do), Toyota has a HUGE, and I mean HUGE sum of cash (in the billions) laying around in case of hard times.
     
  14. Feb 14, 2010 #13

    mgb_phys

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    Most Japanese companies sit on huge cash reserves, given the traditional very low dividends they pay this is a problem for the market - but is great for long term investment.

    A neighbour was laughing at my Subaru last year, claiming the crash would wipe out all the small specialist car makers, Subaru is owned by Fuji - they could probably pay for Subaru for a century out of the tea money.
     
  15. Feb 14, 2010 #14
    i think toyota is smart to get this out of the way right now. most people will never hear of this recall if they don't own the vehicle because the news will be drowned out by the other. a slow trickle of bad news every month or so would be detrimental, tho.
     
  16. Feb 14, 2010 #15

    russ_watters

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    They'll be ok. It would be worse if the economy was up: losing a month of sales means losing a lot less sales than it would in a good economy.
     
  17. Feb 14, 2010 #16
    http://hbr.org/2008/06/the-contradictions-that-drive-toyotas-success/ar/1

    An article from June 2008
     
  18. Feb 15, 2010 #17
    How to burn cash:

    http://www.nytimes.com/2009/01/30/business/30ford.html

    I can tell you that around 2000 Ford had a reserve of around $30 billion

    If you would have told me Ford would be in the position it is today in 2000 so quickly I'd have laughed-most folks would have.

    Never say never..
     
  19. Feb 15, 2010 #18

    Ivan Seeking

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    Yes, Toyotas are made in Georgia.

    I like to think that Ford and GM will make a comeback. Ford is actually in pretty good shape right now, comparatively, and I think GM has a fighting chance. But they must abandon the niche approach and go head to head with the Japanese, which they are finally starting to do. They got their butts kicked so badly in the 70's that they all but yielded to Japanese superiority in fuel-efficient, reliable cars.

    Ford was doing very badly when I saw a bit about them designing trucks to sound cool. They were actually tuning the exhaust system for the sound, according to test subject's preferences. I was simply amazed by this. Has America's first car company really been reduced to utter novelty as a design goal? Hopefully they have their eyes on the ball now.
     
  20. Feb 15, 2010 #19
    Hondas and Mercedes in Alabama. think we might have a toyota engine plant, too.

    was that the Harley Davidson edition F-150? i suppose they get excellent markup on specialty editions. and considering the number of folks that will rip the stock exhaust off first thing to put on a rumbly catback system, it's hard to blame them for wanting to get a piece of that pie. you should see the ridiculous stickers on Roush-modded Mustangs.
     
  21. Feb 15, 2010 #20

    Ivan Seeking

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    I'm not sure what model was involved, but this strikes me a bit like saving the goldfish when the building is burning. There are surely more important things to do with your time.
     
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