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Toyota Backlash?


Following their recent successes, the automaker is becoming increasingly worried about a future backlash.

According to a presentation by Seiichi Sudo, president of Toyota Engineering and Manufacturing in North America, "We (Toyota) are winning, our competitors are jealous and we are now the de facto leaders of the auto industry."

As they continue to take market share from the "Big 3" there will be more resentment from those people that are directly effected.

The main reasons that Toyota is "winning": Yen vs. the U.S. Dollar creates more profit for Japanese companies, most Toyota’s don’t have high rebates like their American counterparts, Toyota does not have to pay large retirement/ pension plans because most of their workforce is not of retirement age like the American companies. Toyota also hasn’t had the large quality issues that the other companies have had in the past. Customers also desire their cars, even though they may not be the best product out there.

Toyota may be on the top now, but that will not always be the case. Other companies do build better cars and Toyota’s quality has been slipping in the past few years.