Posted on 01/05/2007 3:39:09 AM PST by Cagey
DETROIT (AP) — If Toyota Motor Corp. has eyes on taking the title of world's largest automaker from General Motors Corp. next year, it won't happen without a fight.
In an interview Thursday, GM Chief Executive Rick Wagoner said his company has room for growth worldwide and will forcefully defend its title.
"I like being No. 1, and I think our people take pride in it," he told a small group of reporters at GM's headquarters. "It's not something we're going to sit back and let somebody else pass us by."
Toyota last month announced a global production target of 9.42 million vehicles for 2008, increasing the odds that it will surpass GM. That would easily exceed the 9.2 million vehicles GM is estimated to have produced in 2006.
Wagoner wouldn't reveal the company's 2007 production targets, but he said GM has the capacity to build more than 9.42 million cars worldwide. The company will fight for every sale, he said, but will stay within its strategy to rely on quality products to make money and less on selling cars and trucks with incentives.
If Toyota does pass GM, Wagoner said he would not be pleased.
"It won't be a happy day for me, but I've lost basketball games before in my life. You get ready and you learn and you go back the next day, and that's what we'll do," he said. "We're going to fight to keep the position, and if one day we lose it, we'll fight to get it back."
As its U.S. market share shrank when high fuel prices drove people away from trucks and sport utility vehicles, GM cut production last year. But it's rolling out multiple new products and Wagoner said the North American market should be healthier this year.
Toyota, with a better balance of cars and trucks, capitalized on the consumer shift and raised its market share by two percentage points last year. For the first time, the company passed DaimlerChrysler to become the No. 3 auto seller in the U.S.
Toyota isn't concerned about becoming No. 1 globally, said spokesman Irv Miller. The company is working to keep its quality high, focus on customers and roll out its new Tundra full-sized pickup truck, he said.
"A perceived sales challenge for global leadership is not something we're even thinking about," Miller said.
Also in the interview, Wagoner said he agreed with Ford CEO Alan Mulally's statements that the United Auto Workers may have to make significant concessions in upcoming contract talks to keep GM competitive.
While he wouldn't be specific about what GM would seek in bargaining with the union, Wagoner said the company faces a cost disadvantage to competitors that needs to be addressed. But he would not say if GM would seek labor cost parity with Toyota and Honda Motor Co., both of which have significant U.S. manufacturing operations.
The UAW will begin negotiating new labor contracts with Ford, GM and DaimlerChrysler in the fall.
Like Ford, GM already is talking with the UAW in advance of formal contract talks later this year, Wagoner said. He said the UAW already has helped the company with health care concessions and buyouts that will reduce its hourly work force.
But GM is "not fully competitive" in all parts of its business, he said.
"We need to continue to make progress in the '07 negotiations," he said. "If we can make progress and if we can do it on an accelerated basis, I think that would be terrific for us ... But improving competitiveness is fundamental. I don't disagree with what Alan said on that at all."
Wagoner also announced that GM's global sales exceeded 9.1 million vehicles for the second year in a row and the third time in the company's history. Domestic sales were surpassed by sales outside the country, with 55 percent outside the U.S.
Global sales declined by 80,000 vehicles last year, with most of that attributed to a decline in U.S. rental car sales, Wagoner said.
Competition is good.
Let them continue to earn it.
well if it means that GM will grow a pair, tell the unions to stick it and then build quality cars, cool....
But chances are that won't happen...
I'm looking for a 5 passenger SUV with all the safety features, including Electronic Stability Control. So far I haven't found an American one that I like. Also, it seems that all new vehicles have large blind spots in the rear corners.
Finding one with ESC should be fairly easy. That feature costs the automakers very little to add and is a great selling feature.
I had a Jeep GC and didn't have a problem with blind spots. If you're uncomfortable with what's behind you you might consider adding a rear view camera and they are priced very reasonably now.
Love my Tundra!
In the spirit of keeping GM #1, take a look at the GMC Envoy. If you want a full size, the GMC Yukon. They come with a 100,000 mile warranty. That is 64,000 more miles that Toyota offers. The quality of the new GM vehicles is every bit as good as Toyota. I one of each right now - a Chevy pickup and a Toyota Highlander.
Consumer Reports doesn't recommend the Envoy.
I love my Mitsubishis!
We did too and liked it. Consumer Reports isn't recommending it saying "Reliability has been well below average."
Without a fight? What have they been doing for the last 30+ years when Toyota grew from almost nothing to a company that is almost their size? The critical moment came and went in the 80s when ALL GM cars looked the same. You know things are bad when they start making Cadillacs that look like Cavaliers and expect people to buy 'em.
Unlike some FReepers, I always buy American. Despite this, I haven't bought a GM car in over 10 years--even though I have close to a $2000 credit on my GM credit card. Last month I test drove a Pontiac Solstice, which I'd been drooling over for months. Awesome looking car, but very disappointing performance. It had almost zero interior room (no place to keep even a briefcase if two people are in the car), kept stalling and the automatic lacked power (hard to believe for a car that size). I ended up buying a Dodge Charger (a great car for the $$). Ten years ago, I wouldn't have given Chrysler the time of day, but I took a chance on a V6 Sebring a few years ago and it has performed flawlessly. The new Nitro is very hot as well.
For many years people thought that the japanese had a lock on gas mileage. The fact was they made small light cars with no power. That is the secret to gas mileage. Now that Toyota and Nissan make full sizd pickups they get no more gas mileage than Ford and Chevy. Their cars are pretty much the same. If you want gas mileage you must sit in a car that can be crushed by anything larger than Motorcycle.
In further comments, he said, "We'll defend our #1 position by cutting the price of our vehicles by 50% if necessary. We think this will help ensure customer loyalty because they'll need the other 135% for repairs."
Shareholders loved the plan. Major Equity Mutual Funds were unanimous: "We want GM to generate losses in our portfolio, because we need to offset the capital gains taxes we paying on the huge runnup in Toyota stock," said John Bogle of Vanguard.
Individual shareholders agree. "GM is my largest holding," said Warren Buffett. "After Bill Gates, I can't think of a bigger charity case in the world."
As long as union violence is legal, the chances are slim.
GM just placed an order for 10,000 of gray plastic knobs/dashboards to put in every single vehicle they make!
What an economic engine!
Regards, Ivan
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.