News / USA

Decline in Toyota Sales Gives Rivals Boost

Prius, the 3rd, Generation.
Prius, the 3rd, Generation.

Multimedia

U.S. sales of Toyota vehicles declined nearly 9 percent in February, the first full month since the Japanese automaker suspended sales and recalled 8.5 million cars for accelerator problems.  Although the concerns about the safety of Toyota's vehicles are likely to benefit Toyota's rivals, analysts say when the dust finally settles, Toyota, the world's largest automaker is likely to remain just that.

Despite one of the largest auto recalls in history, several congressional hearings, and more than 50 accidental deaths linked to sudden acceleration - Toyota still managed to beat sales expectations.

Jessica Caldwell is senior analyst at online auto advisor, Edmunds.com:

"The truth of the matter is, they're still the third largest automaker in terms of volume in the United States," said Jessica Caldwell.

Instead of the double digit declines many were expecting, Toyota sold more than 100,000 vehicles in the U.S. last month, only about nine thousand fewer than for the same period last year.

But with pent-up demand expected to boost worldwide sales in 2010, Toyota's problems have been a boon for rivals.  

U.S.-based Ford saw a 43 percent surge in February.

"As soon as the news about the recall hit, we saw a lot of interest in Ford, which isn't necessarily a natural competitor for Toyota," she said. "I would say that the other two big winners were Honda, obviously, that's Toyota's natural competitor and also Hyundai, the Korean automaker that has done a lot in the past year and has really benefited from Toyota's misstep."

"This is as bad as it gets for an auto company," said Clarence Ditlow.

Auto safety expert Clarence Ditlow says Toyota's missteps have been costly because it waited too long to act.

"It's not a lost cause but its an uphill battle," he said. "Toyota has to bat a thousand [be perfect] for the next year."
 
While many questions remain about the exact cause of the acceleration problems that led to worldwide recalls, Caldwell expects Toyota sales will rebound.

She says the Japanese automaker has already launched an aggressive campaign to regain lost business.  

It is also positioning itself to play a larger role in China.

"I think everyone is clamoring for dominance in China so I think everyone sees that as really a crucial market, the next big market out there," said Caldwell. "So of course whatever happens in China is really going to affect what these automakers do on a global scale."

Total vehicle sales in China soared 45 percent last year, overtaking the U.S. as the world's biggest auto market.

Although Toyota hopes to expand sales in China to 800,000 vehicles this year, it continues to lag behind the competition.  

General Motors, for example, sold nearly two million vehicles in China last year.

You May Like

Conflicts Engulf Christians in the Middle East

Research finds an increase in faith-based hostilities, and Christians are facing persecution in a growing number of countries in the region More

Iran Bolsters Surveillance of Phones, Internet

Does increased monitoring suggest the government is nervous? More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Ukraine Battles Pro-Russia Rebel Assaulti
X
Daniel Schearf
August 29, 2014 9:30 PM
After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Ukraine Battles Pro-Russia Rebel Assault

After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Growing Business Offers Paint with a Twist of Wine

Two New Orleans area women started a small business seven years ago with one thing in mind: to help their neighbors relieve the stress of coping with a hurricane's aftermath. Today their business, which pairs painting and a little bit of wine, has become one of the fastest growing franchises across the U.S. VOA’s June Soh met the entrepreneurs at their newest franchise location in the Washington suburbs.
Video

Video Ebola Vaccine Trials To Begin Next Week

The National Institutes of Health says it is launching early stage trials of a vaccine to prevent the Ebola virus, which has infected or killed thousands of people across West Africa. The World Health Organization says Ebola could infect more than 20,000 people across the region by the time the outbreak is over. The epidemic has health experts and governments scrambling to prevent more people from becoming infected. Zlatica Hoke has more.
Video

Video Asian Bacteria Threatens Florida Orange Trees

Florida's citrus fruit industry is facing a serious threat from a bacteria carried by the Asian insect called psyllid. The widespread infestation again highlights the danger of transferring non-native species to American soil. VOA’s George Putic reports.
Video

Video Aging Will Reduce Economic Growth Worldwide in Coming Decades

The world is getting older, fast. And as more people retire each year, fewer working-age people will be there to replace them. Bond rating agency Moody’s says that will lead to a decline in household savings; reducing global investments - which in turn, will lead to slower economic growth around the world. But experts say it’s not too late to mitigate the economic impact of the world’s aging populations. Mil Arcega has more.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.
Video

Video America's Most Popular Artworks Displayed in Public Places

Public places in cities across America were turned into open-air art galleries in August. Pictures of the nation’s most popular artworks were displayed on billboards, bus shelters, subway platforms and more. The idea behind “Art Everywhere,” a collaborative campaign by five major museums is to allow more people to enjoy art and learn about the country’s culture and history. Faiza Elmasry has more.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. Shaikh Azizur Rahman reports from Kolkata.

AppleAndroid