Subaru and GM part company

[dcarrb]

Enter Toyota

This is probably a very good move for Subaru.

dcb

[Landshark]

IBShadowsaysSubarumadeworstdecisionevAr

[dcarrb]

I read an editorial awhile back speculating that Toyota should buy GM.

dcb

[Chiketkd]

Originally Posted by Landshark

IBShadowsaysSubarumadeworstdecisionevAr

+12345

-Chike

[svxsubaru1]

Well i guess no more cheap 92xs (imprezas) with he GM employe discount.

[Shadow248]

Originally Posted by Landshark

IBShadowsaysSubarumadeworstdecisionevAr

Actually, GM made a good decision. It's a waste of time for GM to mess with Subaru. Couldn't hurt Subaru though. If anything, you guys should be worried about your beloved cars losing anything resembling excitement. Look at what Toyota currently offers. You want a Subaru line like that? I wouldn't.

Good luck to ya.

Originally Posted by dcarrb

I read an editorial awhile back speculating that Toyota should buy GM.

Why would Toyota want all that debt? I've heard so many people saying how Toyota could buy GM...etc. Why would they? They'd gain nothing but a huge burden. Instead, Toyota has elected to help GM buy actually RAISING prices in their US lineup. I used to think that Toyota was out to get GM, but I am now questioning the presumption that Toyota wants to be on top. I'm starting to believe that they really don't care. They did nothing to counter GM's employee pricing (which increased their market share singlehandedly by almost 10%), and have made several moves that actually help GM in the long run. So i dunno. Maybe they're just crazy.

[Mr. Pockets]

Originally Posted by Shadow248

Instead, Toyota has elected to help GM buy actually RAISING prices in their US lineup. I used to think that Toyota was out to get GM, but I am now questioning the presumption that Toyota wants to be on top. I'm starting to believe that they really don't care. They did nothing to counter GM's employee pricing (which increased their market share singlehandedly by almost 10%), and have made several moves that actually help GM in the long run. So i dunno. Maybe they're just crazy.

Please provide a link showing an announcement from Toyota that they're raising prices to help GM. The last I heard, Toyota denied they were going to do this.

Toyota are concerned about the Big Three. They're worried that one of them failing would cause patriotic backlash against them.

As for Toyota not countering GM's employee pricing, I don't think that was restraint on their part. I think it shows how comfortable of a position they're in.

[Royal Tiger]

Does this mean there will not be a new Corolla Rally car anytime soon in WRC? And can we get the Toyota F1 car painted with a blue rear wing just for us?

[Shadow248]

Originally Posted by Mr. Pockets

Please provide a link showing an announcement from Toyota that they're raising prices to help GM. The last I heard, Toyota denied they were going to do this.

You could say the motivation is open to interpretation. Toyota will not say that they did it to "save GM" (and that's the wrong way to put it even if it IS the truth), but look at Toyota's current position, portfolio and future plans. You will see how much they have to gain by keeping GM around. It does make sense.

That being said, I won't argue that there is undeniable evidence that they decided to raise prices to help GM, only that they did decide to raise prices.

http://www.freep.com/money/autonews/...e_20050730.htm

http://money.cnn.com/2005/07/26/Autos/toyota_prices/

Originally Posted by Mr. Pockets

As for Toyota not countering GM's employee pricing, I don't think that was restraint on their part. I think it shows how comfortable of a position they're in.

This could have been their position going into the "price wars", however, on the tail end, I guarantee you Hiroshi Okuda is kicking himself. GM gained almost 5% in market share thanks to their aggressive pricing. The company's stock has stabilized and their aggressive fixed-cost cutting measures will only further the improvement of GM's situation. Seeing as prices of most of GM's lineup will not be returning to their previous levels, Toyota's ever-slowing march on GM may finally come to a halt.

http://www.thecarconnection.com/Auto...175.A8785.html

[benebob]

Originally Posted by Shadow248

GM gained almost 5% in market share thanks to their aggressive pricing. The company's stock has stabilized and their aggressive fixed-cost cutting measures will only further the improvement of GM's situation. Seeing as prices of most of GM's lineup will not be returning to their previous levels, Toyota's ever-slowing march on GM may finally come to a halt.

Yeah a gain, they will pay for during the next 2 years. How many people are gonna buy a GM that isn't offered at a discount? Everyone will wait for the price to come down in their head (even though they are now priced a little more in line with other manufactures). 20 years of rebates will do that to ya. It will REALLY hurt them for the next couple of years but it is something that should've been done well 19.5 years ago. Toyota's march won't end until GM can get a clue on designing an engine that doesn't sound like 2 pushrods eating themselves.

[Noir]

Originally Posted by Shadow248

You could say the motivation is open to interpretation. Toyota will not say that they did it to "save GM" (and that's the wrong way to put it even if it IS the truth), but look at Toyota's current position, portfolio and future plans. You will see how much they have to gain by keeping GM around. It does make sense.

That being said, I won't argue that there is undeniable evidence that they decided to raise prices to help GM, only that they did decide to raise prices.

http://www.freep.com/money/autonews/...e_20050730.htm

This could have been their position going into the "price wars", however, on the tail end, I guarantee you Hiroshi Okuda is kicking himself. GM gained almost 5% in market share thanks to their aggressive pricing. The company's stock has stabilized and their aggressive fixed-cost cutting measures will only further the improvement of GM's situation. Seeing as prices of most of GM's lineup will not be returning to their previous levels, Toyota's ever-slowing march on GM may finally come to a halt.

http://www.thecarconnection.com/Auto...175.A8785.html

You know, I'm not too bright...but I don't see how Hiroshi Okuda is kicking himself. Looks like over 60% of their sales increase came from loyal GM fanboi's like yourself. That leaves 30 something percent left of their increase to turning over Toyota loyalists.

I could be wrong, but a friend of mine who's a manager at Enterprise Car Rental told me that they were purchasing more GM vehicles over Toyota...maybe because of price increase? If that's the case for these fleet vehicle purchases, then the margin is shrinking for winning over new customers from Toyota's irongrip in a whooping 2.1% increase.

It seems that not many Toyotas were traded in for new GM's though. Not significanly enough to mention. We won't know the results until the next postings to see if the increase hurt Toyota.

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Per your source:
"That Toyota is increasing prices by 1% or so is not unusual at all. It's what they've done every year," said Jesse Toprak, senior analyst at Edmunds.com, a consumer auto-data service in Santa Monica, Calif. "That they are doing this while most competitors are cutting prices is unique."

Toyota, which increased U.S. sales 11% in this year's first half, is raising prices 1.2% on average. GM's first-half sales rose 2.1% because of a 47% surge in June, when it began offering employee discounts to all buyers. Ford Motor Co. and DaimlerChrysler AG's Chrysler Group followed that offer this month, while Asian makers such as Toyota haven't matched it.

From your boys at JD Power and Associates:
The Power Information Network trade data shows that in both May and June, more than 60 percent of the vehicles traded in on GM purchases have been GM vehicles. There has also been a mild increase in the number of Ford vehicles being traded in for new GM models.
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