David And Goliath: A Comparison Of Nissan And Toyota
Japan’s largest and second largest automakers are worlds apart. Last year, Nissan made less than half of the cars the world’s number one, Toyota produced. Looking at the February results of both, we see a Goliath that is slowing down and a David that is revving up mightily. What’s more, we see a Goliath that is heavily exposed to the destruction in Japan, and a David that had moved most of his production abroad, well before the Flood. Let’s compare David and Goliath.
This comparison is based on February 2011 production and sales data emailed to TTAC today by Toyota and Nissan. The Toyota press release is available here. The Nissan press release is available here. For Toyota, we will be using the Toyota Motor Corp group data, including Daihatsu and Hino. If no time period is given, the data refer to February 2011. A month does not a year make. However, this February probably was the last “normal” month you will see in the Japanese car industry for a while. Let’s see how the two embark on the road to the great unknown.
In February, Toyota’s worldwide production fell 2.5 percent to 761,248 units. Nissan’s global production increased 21.7 percent to 350,093 units, an all-time record for the month of February.
Japanese production was down for both, reflecting the double-digit contraction of the Japanese domestic market. Toyota’s Japanese production dropped 7.4 percent to 349,900 units. Nissan’s production in Japan decreased 3.8 percent to 93,432 units.
Exports from Japan rose 5.3 percent to 170,075 units for Toyota, first increase in two months . Nissan’s exports in February increased 7.8 percent to 54,215 units. Nissan’s exports to North America increased 41.5 percent, to Europe 51.8 percent.
Here is probably the most important metric at the moment and in the following months when all manufacturers, and especially the Japanese are trying to come to grips with the disaster in Miyagi:
Toyota has 49 percent of its global production of 716,248 units in Japan, 51 percent of the production is overseas. Nissan has 27 percent of its global production of 350,093 units in Japan, 73 percent is overseas. Neither of them will escape the Japanese parts paralysis unscathed. At least on a spreadsheet, Nissan is in a better position that its Goliath rival. As always, the devil is in the details.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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I would sort of agree with Vanilla actually. I have pondered this myself. It seems as if Toyota has picked up what GM used to be (at least figuratively), but of course with much better built yet boring cars too. Here in W. CO. a lot of old folks (both old hippies and rednecks) drive Toyota trucks and cars (I have seen an NRA sticker on a Prius). But Nissan seem to compete more with the VW crowd in sedans, but yet competes with Toyota, GM, and Ford in trucks and SUV's.
Production may be overseas, but there is an unwritten,heavily spoken piece of advice that even the local Toyota monopoly salespeople tell their customers...DON'T BUY THE CAMRY THAT WAS MADE IN THE US...LOOK FOR THE "J" THAT STARTS THE VIN...the horror stories of ill fitting doors on Camry SE's made in Kentucky...my own experience with my 2011 Sienna SE which has an interior that would be more fitting in a Yugo than a $30k+ van, peeling paint on the insides of the doors...