No, it can’t. Ultimately, prices are determined by demand, because those who demand can find substitutes, whether that is buying a used car or buying nothing at all.

If car prices were to leap, sales would plunge. That’s particularly true given the current credit crunch — lenders might disregard the price increases, and simply cap their loans at lower amounts relative to the purchase price.

A lack of production capacity is a temporary problem.

It would not be temporary if there was a need to replace several hundred thousand vehicles overnight. It takes years to build a factory and train the workforce sufficiently that the company can build a quality product.

Toyota certainly wants to win, but it is much better for Toyota if it can win through organic growth. This strategy has worked very well so far for the company, and it can continue to work. If they were selling cereal or ball point pens, it would be different, but cars are too costly and complicated for this to be helpful to them.

Hmmm…less than a week ago I was having exactly the opposite conversation with an Acura owner who was marveling over how little service my GM product requires compared to his car.

Phil

But those Toyota fans someone was talking about though, were probably the fans who blindly follow Toyota and want the Big 3 to go down without a second thought. And yes, I have met and chatted with some of those people to. I feel sorry for their shortsightedness.

“I have actually researched some of the ills. Some are the biased import/export regs. If the U.S. protected our industries like Asian countries do, the tide might be in the other direction.”

Yes, because the big 2.x would never have gotten themselves into this situation if we just legislated out imports or tarriffed the hell out of them. The domestics own worst enemy is themselves and *no*one*else*.

Usta Bee :

“If Toyota doesn’t want to see GM go Tango Uniform maybe the could sell them some new Corollas re-badged as the “Prizm Part Deux” ?.”

Have ‘em license production of the Prius and call ‘em Volts this time.

“Rabid fan base? Have you ever meet anybody who was rabid about Toyotas?”

The last rabid fan base car Toyota produced was the Supra.

You could count the Celica too….if you count blonde secretaries as “rabid fans” (they’re all driving Vee Dubs now).

If Toyota doesn’t want to see GM go Tango Uniform maybe the could sell them some new Corollas re-badged as the “Prizm Part Deux” ?.

I will make this observation (as I have here at TTAC before). I’ve studied and crunched the numbers for Toyota and others WORLDWIDE and can tell you this; when (not if) GM goes under sooner rather than later, it will be a huge problem for Toyota, Nissan, in fact every player in the US market – because there is not enough worldwide or US capacity to make up the sudden market disruption due to the many plant closures.

For one, there are limitations on US vehicle types due to crash testing and emissions, so – for example – if GM were to go tits up, Chapter 7, Toyota couldn’t simply re-assign British Toyota Avensis production to try to make up for the loss of one of GM’s plant production in NA. The Avensis can’t be sold in NA! You get the picture. Besides, Toyota (and Honda and others) are smart enough to actually tailor their production levels to need and not leave tons of excess production capacity laying around burning up money (like some 2.801 companies I could name).

Of course, actually building reliable cars which people want to buy, is the foundation of the whole thing, along with having a brand which is well understood by the buying public.

Harley has a brand. Porsche has a brand. Toyota has a brand. Honda has a brand. Apple has a brand.

What the hell have GM got? Ford is a “little” better, but only in degrees. Chrysler?! Pfffft! Give me a break….

“Odd how in China, on a level playing field, GM is kicking Toyota’s ass.”

Not so level Mr. Bond.

The Chinese have a deep-seated animosity towards the Japanese, thanks to the island nation’s Chinese invasion (and subsequent barbarity) in WW2. Even so, despite a late start, ToMoCo is catching-up with GM in China.

More factually, < GM claimed they sold 1.03 million vehicles in China last year (assuming you adhere to GM’s dubious assertion that you should include vehicles made by partnerships in which they owned LESS than 50%). An 18 percent growth rate.

In ‘07, ToMoCo shifted 490k vehicles (without accounting tricks). A 62 percent gain.

Odd how in China, on a level playing field, GM is kicking Toyota’s ass.

So kiss our steel industries goodbye, the electronics manufacturing, tire manufacturing, you name it.

As you go buy from Walmart, try to find U.S. made products there. Then read bout our current economy.

We’re all in the same boat. Just different seats. If one of the BIG 3 drown, you WILL be adversely affected.

Toyota’s plan is for it to grow slowly and for Detroit to shrink slowly. A quick collapse of any of the Detroit 3 is not part of the plan, and doesn’t help Toyota in any meaningful fashion. In fact, it probably will hurt Toyota, with things like suppliers going bankrupt in turn and American politicians on the warpath looking for a scapegoat.

At that time the Toyoda family vowed to see Japan avenged. GM made the ubiquitous duece-and-a-half military trucks. Ford made the tri-motor planes, Chrysler at the time made military vehicles as well. As all these companies contributed largely to the destruction of Japan, Toyoda vowed to see them destroyed.

The story is probably apocryphal, but then again…..

Basically, most people are going to see right through any blame put on Toyota and instead blame the Big 3 management, unions, product, history, and many, many other reasons before saying “Toyota”. So while things might get a bit uncomfortable for them from a few people, it will be quickly forgotten.

Sure they do. They talk about how their GM car is in the shop again, and about how the other guy’s Honda has never been in the shop except for scheduled maintenance.

Touche’

Just as the Yankees, Toyota can do no wrong.

(As I remember the “1-Ton” Hilux pickup, w/ 2.2L wheezer of an engine)

You just pwned Toyota with that paragraph.

If competitors are just a bit better… you’ll see who is really the “poor”.

I’d really like for the meth addict begging for change on the corner not to die. I won’t, however, give him money because I know exactly what he’ll do with it.

Or stated another way, Satified Costumers!

Hmm…didn’t somebody else say something like that? Oh, yeah, it was Engine Charlie!

If those sentiments are so genuine, perhaps Toyo could give GM a low interest loan of say…….. $30Billion

Rabid fan base? Have you ever meet anybody who was rabid about Toyotas?

Toyota is dependent upon many of the same suppliers. If those suppliers get hurt, Toyota will suffer capacity disruptions that will hurt their own business.

Toyota could not possibly add capacity fast enough to take advantage of the complete wipeout of a domestic company. Toyota is much better off if they have the chance to chip away at that business, rather than have it tank overnight.

Having poor competitors makes Toyota look that much better in comparison to the alternatives. The Corolla seems like a better idea when there is a Caliber parked next to it.

Toyota cannot gain and could only lose from the political backlash that might come from a Detroit meltdown. They would get some of the blame, but can’t build factories fast enough or support suppliers so much that they would benefit from it.

One of the 2.8 going belly-up would impact TOMOCO, but I don’t think it would be more than a flesh wound. Most Toyota components are at least dual-sourced. With Toyota having spread their manufacturing philosophy across their supplier base, these suppliers should have the ability to ramp-up if one falters with the Detroit gangs.