Sekar

What's Driving Toyota Down?

Most auto analysts including this author are missing an important point in Toyota's weekness. Watanabe and his American team became so bullish in 2004-05 that they jumped to open two new plants in US (San Antonio to build Tundras and Mississippi to build Highlanders). This decision is the nail in the coffin for Toyota. Toyota hastily jumped into making full-size pickup trucks and competing with F-150 and Silverado. The cost of building two auto plants is enormous and Toyota completely missed the point on selling these gas guzzlers in a downturn economy. Toyota has to either abandon San Antonio and Mississippi plants altogether and focus on making small and medium cars in US. I have driven Tundra truck and it rides like a Camry sedan. All American truck fans like a truck that roars like a truck and not mew like a cat. Nissan was clever to abandon Titan's progress and decided to rebadge Dodge Ram as Titan starting 2010. Carlos Ghosn is clever than Toyota's drunk management. Moreover Toyota's reliability is also falling. The 2009 best reliable sedan is Ford Fusion and not Camry. Consumer Reports rates Fusion higher than Accord and Camry and just below Altima. This endorsement speaks volumes in itself. Starting this spring, gas prices will start going up and Toyota is going to feel the pinch much stronger.