The fortunes of the world’s biggest car manufacturers have swung from good to bad a great deal over the last few years. The biggest shock, at least for US car makers, was the necessity for a US Government bailout for Chrysler and GM and the fact that Ford had to cut loose its luxury division in order to stay afloat. But all three American firms are now able to boast handsome profits, something that may be causing Toyota’s chief executives to break out in a cold sweat.
But how realistic is it that Toyota, the world’s biggest selling car maker, will be overtaken by one (or more) of its US rivals? The truth is that Toyota has had some very bad luck of late. In February of 2011 the firm had to recall 2.17 million cars due to concerns over possible faulty accelerator pedals. In itself, that was a huge and very costly undertaking, but when the tsunami and earthquake of March 11th hit, it all got a lot worse.
The twin problems of disruption to component makers and a reduction in Japan’s ability to generate enough electricity for its factories and offices, has slowed output of Toyota’s various models. These two big set-backs have enabled GM, Ford and even Chrysler to close the gap in terms of profits and sales.
As emerging markets such as India and China show increased demand for motor cars, being able to compete at full capacity will be crucial for any car company that wishes to get their fair share of the soon-to-be-available profits. Toyota will need to act quickly and cleverly if is to avoid losing its top spot, or worse, start a long term slide. To see a leading brand of car breakdown in such a way might seem improbable, but in these fast moving times, anything is possible.
Breakdown Cover from 
