One automaker’s misfortune is another’s gain, or so it seems with GM and Toyota. With the effects of Japan’s Tōhoku earthquake still being felt and full scale production unlikely to resume at Toyota’s Japanese plants until the end of the year, GM is likely to reclaim the top spot as the world’s largest automaker.
Adding to Japanese automakers woes are the numerous recalls and the bad publicity brought about by the sudden unintended acceleration debacle in 2009 and 2010, both of which have hurt the brand’s image for reliability.
Meanwhile, a post-bankruptcy GM has gone from strength to strength. Better products – including the likes of the Buick Lacrosse and Chevy Cruze and Equinox models – are helping bring GM into the second decade of the 21st century. Toyota, meanwhile, is struggling to maintain sales with an ageing range of vehicles, bad PR and diminished production capacity.
Last year, GM was only 30,000 vehicles shy of matching Toyota on total global sales. With Toyota producing 260,000 less vehicles because of the manufacturing problems caused by the earthquake and tsunami, its U.S. competition is in a good position to overtake its ailing brethren.
Toyota’s North American dealers are undaunted, however. As North Park Toyota General Manager Merle Gothard pointed out to the Associated Press, “[Sales are] important from a marketing standpoint. But Toyota has other things going for it.” Things like an extremely loyal customer base, excellent build quality and (until recently) a reputation for reliability that was second-to-none.
Only time will tell if GM can retain its current momentum and not fall into the same old traps that has plagued it so many times in the past (Cadillac Cimarron, here’s looking at you). At least for now, GM is set to be top dog yet again.
By Tristan Hankins
