Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
'Big Three' Likely to Include Toyota by 2009
"DETROIT -- The "Big Three" automakers likely will include the Toyota Group by decade's end, according to CSM Worldwide. Currently fourth in the U.S. auto market behind General Motors, Ford and DaimlerChrysler, Toyota is expected to pass DaimlerChrysler to become the third largest seller of automobiles in the United States by 2009.Currently, Toyota holds 12% of U.S. light vehicle sales. By 2009, CSM projects annual Toyota Group sales to widen 24% to more than 2.5 million units per year, or s 14.1% market share, enough to dislodge DaimlerChrysler. "Robust growth for the automaker will stem from an unrelenting product offensive, intensified effort in the luxury market, incremental volume from Scion, and strong brand equity," said Joseph Barker, manager of North American Sales Analysis for CSM.Toyota brand sales are projected to climb 23% by 2009 as its offerings nudge further upmarket and expand body style and powertrain options. The upcoming 770N Avalon is a hint of things to come on the car side, Barker said. Toyota also hopes to lure truck buyers with a more expansive lineup of upsized, more powerful CUVs, SUVs, and pickups.At Lexus, sales are projected to grow 40% despite intense competition in the luxury realm. CSM also expects sales from Scion, Toyota's youth brand, to reach 125,000 units in 2005 before stabilizing at 100,000 to 120,000 units over the long term. Because Scion is attracting new customers rather than cannibalizing from Toyota, sales are incremental to the company, Barker explained.From small cars to full-size SUVs, Toyota is capable of building North American-focused vehicles in North American production facilities, he said. This makes Toyota less vulnerable to instability in the dollar/yen relationship, which has a profound impact on vehicle costs. North American-sourced vehicles will account for 63% of Toyota's U.S. sales this year, and that number is forecast to rise to 70% by 2009.Toyota Group returns some of the strongest residual values in the business; high trade-in values allow Toyota to attract shoppers with cut-rate lease deals and put more money in the hands of returning customers. "Strong residuals have the power to turn a first-time buyer into a long-time brand loyalist," said Barker.Visit CSM Worldwide: www.csmauto.com"