Toyota: We don't want to be No. 1
Chief of Japanese auto manufacturer's US division calls struggling General Motors 'a global icon.'
DETROIT (Reuters) - Toyota Motor Corp. has no interest in surpassing General Motors Corp. as the world's largest auto manufacturer, the president of its U.S. division said late Monday.
Several analysts have said the Japanese auto manufacturer will likely overtake GM this year or next.
"Not so fast," Jim Press, president of Toyota Motor Sales USA, said at the Automotive News World Congress in Dearborn, Mich. "We have no interest in GM declining, or in becoming number one," Press said. "GM is a global icon, it supports the economy and represents the strength of the industry. We have great confidence they will emerge in a much stronger position."
GM (Research) has been struggling with high labor and commodities costs, loss of U.S. market share to foreign rivals, and sluggish sales of sport-utility vehicles -- its longtime profit generator. The auto giant lost nearly $4 billion in the first three quarters of 2005.
As part of broader restructuring efforts, GM plans to close 12 facilities in North America and slash 30,000 jobs through 2008.
In contrast, Toyota is expanding in the United States, and analysts expect a new engine plant in North America soon. "If we were going to build an engine plant, Michigan would be very close to the top of the list," Press said, referring to the ideal location.
Analysts have said a switch at the top could come just three years after the producer of the Camry unseated Ford Motor Co. (Research) as the second-largest car manufacturer in 2003 as it raced to add capacity around the world to meet demand.
But Press said, "I don't think it's a given. I don't think that if you look at trends that it's fair to say what the outcome will be."
Toyota last month said it would increase output 10 percent in 2006 to a record 9.06 million vehicles. GM does not provide sales or production forecasts on an annual basis but has said its 2006 global vehicle sales would hit a new record, exceeding last year's 9.2 million units.
Toyota, a leader in hybrid technology, is targeting worldwide hybrid sales of 1 million units a year by about 2010. Press said he expects sales of Toyota's hybrid vehicles to grow about 50 percent this year and slow down slightly in subsequent years.
http://money.cnn.com/2006/01/17/news/companies/toyota.reut/index.htm