Toyota, the most profitable automaker has now emerged as the world's biggest carmaker. In 2006, it sold 2.5 million cars and trucks and forged ahead of the US-based Chrysler and is now in the process of passing another US auto major, Ford. For the second year in a row, Toyota emerged as America's third most admired companies after General Electric and Starbucks. Being a Japanese company, it surprisingly turned out to become America's most prestigious automaker. It is not only leading the `Big Three' US carmakers in terms of sales but also in understanding American car psyche. In fact, Japanese carmakers have been boosting foreign sales and making gains in the US, the world's largest car market.
The US car industry was dominated by the Big Three, GM, Ford, and Chrysler both in the US and worldwide. Fifty years ago, GM alone produced half the cars made in the US, employed 500,000 workers, emerged as a powerful company and even had an influence over the government. However, from the 1980s, its market share plummeted and further it was hit badly by the oil crisis and the rise of Japanese imports. The market share of the big three declined dramatically, while the Japanese players like Toyota are racing forward by producing more environment-friendly and reliable cars. While GM and Ford are cutting thousands of jobs, closing plants and watching helplessly their financial rating decline, Toyota is building one new plant each year. |
