Toyota’s Struggle to Regain Top Position

One day you are sitting on top of the world as the global leader of car production.  The next day you are consumed by the fact that your historical company is about to crumble.  Toyota, the world’s best car manufacturer is experiencing just that.  The reason is not due to operational performance.  Toyota surpassed General Motors as the best car company worldwide in 2008.  Toyota maintains a global dominance in the car manufacturing business.  Circumstances beyond their control have Toyota scrambling to regain and maintain its top position in the car manufacturing industry.  The earthquake and tsunami at 14:46:23 on March 11, 2011 has caused a disruption in Toyota’s manufacturing and parts supply capabilities.  This disruption has but the company in the predicament of losing it supreme position as a car manufacturer to General Motors.

In the recently passed year, Toyota sold 842,000,000 cars and General Motors sold 839,000,000.  Investors and stock analysts are predicting that General Motors will regain its position as the supreme global car manufacturer.

Toyota’s struggle has to do with dwindling auto parts supplies due to the earthquake in Japan.  With a loss of 260,000 production units, Toyota is under pressure.  To circumvent the arduous situation Toyota has embarked on marketing campaign designed to improve its image.  The President of Toyota Motor Corporation, Akio Toyoda held a recent press blitz in Tokyo.  He apologized to all customers for the delay of orders.  Overall, Toyota has done well in the industry.  Its stock may not be performing as well as Ford but Toyota’s work ethic and sales are preeminent.

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To add to the worries of Toyota, consumers are becoming concerned about the danger of radiation exposure by using cars recently manufactured by Toyota.  When the Japanese earthquake struck, three nuclear reactors broke open and spewed radioactive contaminant.  People are worried that the car parts produced in Japan have become radioactive.  Toyota has implemented the procedure of checking radiation levels in a few of the cars and Japanese car parts that have been recently completed.

In the minds of Toyota executives, they have lost their top position.  Toyota does not expect full production until July 2011.  There is mixed reaction to Toyota’s predicament but it is clear that Toyota’s struggle to regain top position is going to be a long and hard one.