Tuesday, April 24, 2007

Toyota Surpasses GM

Toyota has now become the worlds largest automaker after surpassing GM in total sales. How did they do it? They made a more reliable car at a cheaper price. It's that simple here. If you demonstrate to me that your car will last 200,000 or more miles reliably, you can bet that I'll be a customer for life. Honda has proven that to me. I own 3 of them and not one has failed to start up on me, ever.

GM on the other hand has been pushing out SUV's and trucks as hard as they can because they are extremely profitable. While that is the case, they should have brought out other, more fuel efficient vehicles in case something like the current gas prices had happened. Don't hire more marketing people, hire more engineers. Hire designers, talk to car buyers, including those who bought your competitors vehicles, cut costs but not quality. Those things will get you back on top quicker then any slick marketing campaign can.

As a side note, GM is working on an all electric prototype called the Volt. If they manage to keep their claims of 300 miles per charge and keep the car reliable, that would go a very long way towards regaining market share. I know I would personally purchase one if the claims are true and the price is right.

Travis
travis@rightwinglunatic.com

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