A Research Report on the Change in Global Auto Industry (IX)

2.  Toyota's short-term losses may last one to two years after its strategic adjustment and its treatment of the internal injury

The serious impact of this crisis on Toyota Motor, which suffered losses for the first time in 70 years, has exposed shocking internal injury. Before that, Toyota had been a leading benchmark of the global auto industry. However, more than 70% of respondents to our survey believe Toyota has not been injured to the bone, compared to the case of GM, and therefore, in a relatively short period of time (1-2 years) after a certain negative impact, Toyota will soon get repaired and regain its competitiveness. The specific impact is shown as follows:

① Toyota and its related core auto-parts suppliers have suffered substantial losses, a fact that has revealed the problems existing in Toyota's expansion strategy and management mode in recent years. The online survey shows that the vast majority of people believe that excessive dependence on the North American market and the appreciation of Japanese yen are the two major factors behind Toyota's losses. But the main reason behind this is the defects of its strategy and management. Both in the U.S. and Chinese markets, Toyota's quality problems are increasing. Now, Toyota has started its drastic sweeping reform, including the replacing of its core management.

② The online survey has also showed that although the Toyota brand has suffered a huge negative impact, the majority of experts we have interviewed believe that Toyota's 1-2 years of adjustment period will give opportunities for its closest rival Volkswagen Ag and potential competitor Hyundai Motor to catch up, and this will be the biggest loss to Toyota.

③ Toyota's internal injuries will take time to heal, but in the medium- and long-term, perhaps this is not a bad thing for the company’s development, because if Toyota can reform effectively, it will develop more healthily after recovery. As oil prices are likely to rise again, Toyota cars, either economical cars or new-energy vehicles, will have a dominant position and strong profitability in the market. As shown in the survey, most respondents believe that Toyota is the carmaker that commands the most advantage in the segment of new-energy vehicles.

(To be continued)

A Research Report on the Change in Global Auto Industry (I)

A Research Report on the Change in Global Auto Industry (II)

A Research Report on the Change in Global Auto Industry (III)

A Research Report on the Change in Global Auto Industry (IV)

A Research Report on the Change in Global Auto Industry (V)

A Research Report on the Change in Global Auto Industry (VI)

A Research Report on the Change in Global Auto Industry (VII)

A Research Report on the Change in Global Auto Industry (VIII)

A Research Report on the Change in Global Auto Industry (X)

A Research Report on the Change in Global Auto Industry (XI)

A Research Report on the Change in Global Auto Industry (XII)

A Research Report on the Change in Global Auto Industry (XIII)

A Research Report on the Change in Global Auto Industry (XIV)

A Research Report on the Change in Global Auto Industry (XV)

A Research Report on the Change in Global Auto Industry (XVI)

A Research Report on the Change in Global Auto Industry (XVII)