Toyota Motor Sales - Competitors

Toyota Motor Sales Competition

Now Viewing Toyota Motor Sales's competition in: Automobile Manufacture (primary)

Recent Developments

US Automakers Curtail Leases - Reeling from the drop in truck and SUV sales amid record high gas prices, the Big Three automakers, GM, Ford, and Chrysler, have all drastically changed their lease offerings. Chrysler has stopped offering them, and Ford and GM have raised the price for some truck and SUV leases. All three have been hit hard by the falling resale value of their trucks and SUVs once they come off lease.

Crossover Sales Decline - Sales of crossovers (CUVs), vehicles designed to look like SUVs but built on more fuel-efficient car chassis, fell 11 percent in July 2008 compared to a year earlier, according to Autodata. As consumers turn from trucks and large SUVs, the industry hoped that CUVs would bridge the gap for consumers seeking better mileage, but desiring a larger vehicle than a midsize or compact. While fewer truck, SUV, and CUV sales have been countered by higher volumes in the small car segment, small cars have correspondingly smaller profit margins.

Auto Downturn to Continue - Several automakers report double-digit sales declines for July 2008 as high gas prices, a tight credit market, and concerns about a slowing economy kept consumers out of showrooms. Sales for GM declined 27 percent; Ford, 15 percent; Toyota, 12 percent; Honda kept losses to 1.6 percent. Analysts predict that the softness in the US auto market will likely persist throughout 2009.

Competitive Landscape

The major drivers of US demand for autos are employment and interest rates. The profitability of individual companies depends on manufacturing efficiency, product quality, and effective marketing. Large companies manufacture multiple product lines, marketed under different brand names. Smaller companies manufacture a few or single product lines. Large companies have advantages of economy of scale; smaller companies compete by focusing on specialized markets. Due to highly automated manufacturing processes, the average annual revenue per employee is about $1.4 million.

Full Industry Overview For Automobile Manufacture

Automobile Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US motor vehicles manufacturing is forecast to grow at an annual compounded rate of 8 percent between 2008 and 2013.

Motor Vehicle Manufacturing Growth Strengthens

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.