Wednesday, March 3, 2010

Toyota becomes GM

I have to say this even though I know it won't be popular. I've never been a fan of Toyota. I've considered them 'another GM' for quite some time. To me the cars were too bland, the user base aging and category breadth confusing and unpredictable. When they started to go for volume sales and market share, I knew something would crack. Al Reis talks about this in

The automotive industry is a tough one, particularly in this country where it requires a significant investment to build and run an auto dealership. Every one of them needs to be a car palace. In order to recoup that investment, in theory one needs volume. Like housing, that's how the industry has been run for ages.

I wonder if it's going to become an unsustainable model. I wonder if dealerships can be more efficient if they became virtual or at least virtualize elements of their operation in order to be competitive. I'll be watching the industry to see.

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