Pontiac Rolls into History Books, RIP

This Thanksgiving week, General Motors has officially ceased production of it’s Pontiac brand of vehicles as a result of the bailout by the U.S. government.  Not only could the car maker not meet it’s financial obligations but, the fact is that the car’s brand no longer had the appeal it once did and sales were declining.

The last Pontiac G-8 rolled off the assembly line in Orion heading for a fleet order rather than a museum for posterity sake yesterday.  http://www.detnews.com/article/20091126/AUTO01/911260411/Pontiac-reaches-end-of-the-line/?imw=Y 

http://www.pontiac.com/ has the official closeout information on remaining vehicles for sale with deals as low as o% financing for six years or cash back offers up to $4,500.  As a wake up call to anyone buying a car, six years is an absurd amount of time to pay off a car, especially when the warranty ends before you pay it off.

With discount offers like this across most of GM’s product line up, how they are ever going to make money, get out of bankruptcy and away from government ownership is beyond any one’s guess. 

Besides the 1000’s of job losses at Pontiac plants, NUMMI the joint venture between  GM and Toyota venture looks to be shutting its doors as well. http://www.mercurynews.com/drive/ci_13766495 From the Bureau of Labor Statistics unemployment by state http://www.bls.gov/web/laumstrk.htm is listed.  Like the climategate, how true these numbers are is any one’s guess.

I recall the 1978 Pontiac Bonneville that I learned to drive in.  What a tank, but it had the radio antennae built into the glass which was pretty cool.  In 1982 came the Firebird and was featured on the TV Show Knight Rider.  I never owned one, but a lot of my buddies did and it was a girl magnet.

Pontiac Fiero

In 1984,  my dad through a mid life crisis or whatever, found the Pontiac Fiero much more in the spirit of things.  What a car it was and far removed from anything on the market.  The damned things body was made of plastic!  We’ll some sort of poly-resin- that when a grocery cart hit it it bounced off with no damage.  With no USA steel to give it strength, on impact the car crumbled.  Luckily, we never crashed it but traded it it on something or another.  Might have been the Cadillac Sedan De Ville with the horrendous 4-6-8 valve engine- another GM disaster.

Our Fiero was hot red in color with every option known to man, including the fabulous sound system from Bose.  Nothing like Van Halen screaming at you at ten decibels while driving down the highway. A definite babe magnet of a car.  It made you want to live in the fast lane or at least drive in it.

 

Chief Pontiac, Ottawa Tribe

In the spirit of Thanksgiving, Chief Pontiac of the Ottawa Tribe must be glad to know that the spirit of the Pontiac brand of vehicles will go on- in memory at least.  He was quoted as saying, 

According to a French chronicler, in a second council Pontiac proclaimed:

It is important for us, my brothers, that we exterminate from our lands this nation which seeks only to destroy us. You see as well as I that we can no longer supply our needs, as we have done from our brothers, the French…. Therefore, my brothers, we must all swear their destruction and wait no longer. Nothing prevents us; they are few in numbers, and we can accomplish it.   Peckham, Indian Uprising, 119–20; Dixon, Never Come to Peace, 109. via  http://en.wikipedia.org/wiki/Chief_Pontiac#cite_note-8

It didn’t turn out so good for the Indians being forced to reservations, but in the long run some tribes are probably more financially stable than the U.S. government,  thanks to good fiscal policy and casino’s.

Ironically enough, the Pontiac Silverdome was sold this month for $583,000 USD to a Toronto, Canadadian businessman. Completed in 1975 as the Pontiac Metropolitan Stadium, at a cost of $55.7 million, the Silverdome seats 80,311. It contains 102 luxury suites and 7,384 club seats. more at http://en.wikipedia.org/wiki/Pontiac_Silverdome

“While still not sure what he’ll ultimately do with the stadium, adjacent fieldhouse and 127 acres of land, Apostolopoulos said he’d like to return it to being a place that hosts football, soccer, hockey and basketball as well as concerts.  “People today like sports so we have to keep it for sports events,” he said. “Whatever they like, we’ll do.” But Apostolopoulos said the zoning does allow for the tearing down of the stadium and the building of houses, apartments or almost any other kind of construction.” http://www.thestar.com/sports/article/729769–toronto-developer-snaps-up-vacant-pontiac-silverdome

At less than $5000 USD an acre that was a good deal for any pilgrim. 

™©® by repective owners.

 

Open wide, say ahhh and check out more posts from Ahrcanum including our Swine Flu report that started  in April and is updated regularly at http://ahrcanum.wordpress.com/swine-flu-report/

SUBSCRIBE NOW for further updates in the top right margin.

[Via http://ahrcanum.wordpress.com]

Karena Bermasalah, Toyota Ganti Pedal Gas 4 Juta Mobil

Washinggton, 26 November 2009 - Toyota Motor Corporation berencana mengganti pedal gas 4 juta mobil di Amerika Serikat menyusul laporan yang disampaikan Lembaga Nasional Keselamatan Jalan Raya Amerika Serikat (National Safety Highway Traffic Administration/NSHTA) September lalu. Penggantian akan dilakukan mulai April 2010.

Seperti diketahui, pertengahan September lalu, NSHTA mengumumkan pedal gas mobil Toyota menyangkut di karpet sehingga gas tiba-tiba tertarik dan mobil melaju kencang tak bisa dikendalikan dan menimbulkan kecelakaan. Lembaga ini juga merekomendasikan Toyota untuk menarik kembali produknya yang dinilai bermasalah itu.

NHSTA juga mengatakan, sebuah laporan kecelakaan terjadi di California yang menewaskan seorang pengemudi dan tiga anggota keluarganya terjadi pada September. Kecelakaan terjadi karena pengemudi tidak bisa mengendalikan mobil yang melesat dengan tiba-tiba akibat pedal gas tertarik oleh karpet lantai.

Perbaikan pedal gas ini merupakan langkah penting bagi Toyota untuk memulihkan citranya sebagai pabrikan otomotif terbesar di dunia setelah berita penarikan kembali produknya diumumkan ke publik pada September lalu. Terlebih, selama bertahun-tahun produk Toyota dikenal tidak hanya nyaman tetapi juga aman.

“Reputasi Toyota benar-benar terpukul (dengan peristiwa tersebut),” tutur Aaron Bragman analis otomotif dari Lembaga Konsultansi IHS Global Insight seperti dikutip Associated Press, Kamis (26/11).

“Dan langkah perbaikan merupakan hal yang sangat penting bagi Toyota. Sebab, hal itu merupakan pilar bisnis bagi pabrikan ini,” tambah Aaron.

Sementara itu sumber di Toyota menyebut, dalam rencana penarikan yang dirilis Rabu (25/11), dealer Toyota akan menawarkan (sementara) pedal gas kepada para pemilik mobil sembari menunggu pabrikan mengembangkan model pedal gas yang terbaik.

Proses penggantian sementara itu akan dilakukan awal Januari mendatang. Sedangkan pedal baru yang permanen akan dipasang pada awal April.

“Reputasi Toyota benar-benar terpukul (dengan peristiwa tersebut,” tutur Aaron Bragman analis otomotif dari Lembaga Konsultan HIS Global Insight seperti dikutip Associated Press, Kamis (26/11).

“Dan langkah perbaikan merupakan hal yang sangat kritikal bagi Toyota. Sebab, hal itu merupakan pilar bisnis bagi pabrikan ini,” tambah Aaron.

Penggantian pedal itu tidak hanya pada varian Lexus ES350 saja, tetapi juga pada sedan medium Camry yang merupakan sedan paling laris di Amerika. Bahkan, Toyota Prius yang merupakan sedan hybrid terlaris di Amerika Serikat itu juga masuk dalam daftar penggantian.

Juru bicara Toyota Amerika, Irvin Miller, mengatakan pihaknya sangat serius menaruh perhatian pada masalah ini. Namun, sebutnya, Toyota percaya bila disebut electronic control system mobil produknya bermasalah.

Menyinggung penggantian pedal gas dan karpet lantai yang akan dilakukan itu, sumber Toyota lainnya mengatakan, karpet lantai mobil hanya dijual di Amerika. Oleh karena itu penarikan kembali produk yang akan diganti hanya terbatas pada produk yang dijual di Amerika Utara saja.

[Via http://rajufebrian.wordpress.com]

Secondo tagliando: 30746 Km

A distanza di 10 mesi arriva anche il secondo tagliando della Prius. A quota 30746 Km.

Ancora niente da segnalare. Tutto procede benissimo. L’auto si comporta a dovere e non mi sta dando rogne di sorta. Il secondo tagliando mi è costato 160€.

Tirando un po’ di somme, all-inclusive (benzina, assicurazione e manutenzione) dell’auto si riassume così: 330€/mese e 0.11€/Km.

[Via http://posizioneprona.wordpress.com]

GS love

Y a beaucoup de GS sur le BloG, surtout celles avec un 2jz et évidemment, les belles que Orido conduit. Vous me direz que j’aime bien les Gs : c vrai

[Via http://gt418.wordpress.com]

Manual Car Wash + Detailing

My car really needed a wash after it turned from Black to Grey. I was kinda reluctant to do this as it is now the wet season at this part of the world. I was just hoping that the rain wouldn’t come else all my effort will go down the drain.

You could see how dirty the rinse bucket is after the wash.

Two Bucket System

My Sunday Workout:

- Rinse the car

- Wash the Rims

- Shampoo then Rinse with Two Bucket System

- Claybar (it just do wonders to the surface!)

- ALL-IN-ONE Cleaner

- Wax + Aquawax

Polish & Wax

The wash area. I really mess up the whole area sometimes……

Wash Area

What I got after 4 hours:

Shine!

Shine!

Shine!

Shine!

Shine!

You just wanted to give halfway sometimes but it just so satisfying after seeing such results. Oh! There’s no rain….till now.

[Via http://photosynthesys.wordpress.com]

Toyota to Launch 10 New Hybrids by Early 2010s, Battery-Electric Vehicle Confirmed for 2012

Seems shrinking gas prices haven’t deterred Toyota’s need for hybrid developin’ speed. Starting with the third generation Prius and the new Lexus hybrid, the HS250h, which are being unveiled at the North American International Auto Show in Detroit, the car company has announced that it will launch as many as 10 new hybrids by the early 2010’s.Some of highlights from the incoming hybrid lineup? News that the Plug-in Prius will launch by the end of this year, and confirmation that Toyota will release a Battery Electric Vehicle, the FT-EV urban commuter vehicle, by 2012. Plug-in Prius Comes Early. The much-anticipated Plug-in Prius, which was originally slated for launch in 2010, will now be arriving a year early. The lithium ion battery-powered Prius Plug-in Hybrid Vehicle will hit US shores by the end of 2009, though only 150 will be placed with U.S. lease fleet customers. The FT-EV Battery Electric Vehicle Only Years Away. Even more intriguing is the prospect of Toyota’s BEV, the FT-EV, which is evidently only 3 years away from a US arrival. According to Toyota,

The FT-EV concept shares its platform with the revolutionary-new iQ urban commuter vehicle. Already a huge hit in Japan, the iQ is lightweight and seats four passengers in comfort and security, while delivering exceptional mileage, sporty performance, unique refinements and a fun, youthful image. Toyota’s FT-EV concept imagines an urban dweller, driving up to 50 miles between home, work and other forms of public transportation, such as high-speed rail. Although, for now, the FT-EV remains a pure concept, it represents a natural pairing of product strategies.

Sounds great, but will American consumers take to the compact electric car as readily as the Japanese have?
A Hybrid Future. Toyota just revealed a concept for a compressed natural gas powered Camry Hybrid at the LA Auto Show in 2008. We’ll have to keep our ears peeled for further details on both it and the promising FT-EV. So that makes five out of ten—what other kind of hybrid-ery does Toyota have in store for the next few years? Time will tell, but the company is forecasting selling at least a million gas-electric hybrids by the early 2010s, so we can bet there’ll be a decent consumer-friendly variety.

[Via http://osx86sv.wordpress.com]

Used Toyota Celica car review

Toyota Celica is superbly equipped and has competent road. It is a unique choice in its market. It might not boast the off-road ability of some of its rivals, but it’s a better car on the tarmac for it. This article aims to provide you with all the advice and information to make the right choices when buying a used Toyota Celica.

Test-drive the used car for its below features -

•    Looks –
There’s no ambiguity with the Toyota’s lines; you can tell immediately that this is a car with sporting pretensions thanks to the swoopy silhouette, low-slung nose and 2+2 configuration.

•    Accessories –
In typical Japanese fashion, this is one of the Celica’s high spots, as it comes with a raft of standard equipment for which you’d pay extra if buying from many of Toyota’s rivals.

•    Performance –
All cars have a six-speed manual gearbox, but in the T-Sport the ratios are closer together and top gear gives just 20.5mph/1000rpm.

•   Reliability –
In typical Toyota fashion there’s little to worry about when it comes to reliability, as even hard-driven cars seem to give few problems. However, there are one or two things that it’s worth keeping an eye out for. Perhaps the most important is whether or not the car is a grey import. If it is, not only might the car not have the correct UK specification, but it may also not be properly rustproofed, so watch out for corrosion in the floor pans and inner wheel-arches.

•    Practicality –
For a sporting car, the Toyota Celica scores impressively in the practicality stakes thanks to the incorporation of a hatchback rather than a boot.

Visiting the seller:
Always visit the seller at their home address. Don’t arrange to meet them at a motorway service station, a lay-by or any other address aside from the one where they live.

You must check the V5C document of the used Toyota Celica car. Also check the service history, MOT etc. Do not accept photocopies of these documents, they should be original.

Read more about used Toyota cars on Toyota hub of Auto Trader. Brwose through used Toyota Celica cars for sale.

Jarno Trulli decide futuro na próxima semana

O italiano Jarno Trulli garantiu que apenas deverá tomar uma decisão quanto ao seu futuro no inicio da próxima semana, após o Toyota Motor Sport Festival, que se irá realizar este fim-de-semana no traçado de Fuji, no Japão.

Trulli e Kamui Kobayashi estarão presentes no evento da marca nipónica, mesmo sabendo que esta já não participará no Mundial de Fórmula 1 de 2010, com o italiano a revelar ao site Autosport.com que apenas irá tomar uma decisão assim que o seu trabalho com a Toyota cessar.

Quanto ao seu futuro e às hipóteses para a próxima temporada, Trulli referiu que está em conversações com diversas equipas e que ainda nada está garantido.

“Ainda não assinei nada. Estou em conversações com várias equipas e em breve irei tomar a minha decisão. Nada é certo na vida. Mantenho a minha porta aberta [a todas as propostas], mas de certeza que em breve irei chegar a acordo com uma equipa”, referiu o veterano piloto italiano.

[Fonte: autosport.aeiou.pt]

The Prius 45,000 seat facebook bus.

I thought I’d look into how to use the internet to push an environmental friendly vehicle such as the Prius.

I’ve had a lot of experience marketing cars online especially for Honda and Mazda here in Australia. But how do you market a car that has questionable environmental impact (due to battery production and shipping) and low quality driver experience?

I have now read a lot of reviews, which suggest for the same price and better fuel performance I would be better buying one of the new gen diesel vehicles. I must admit I do and because I wanted the performace and driving experience while reducing fuel consumption.

Hybrid cars are not a new concept with Ferdinand Porsche, in 1899 as a young engineer at Jacob Lohner & Co. created the first gasoline-electric hybrid vehicle. It wasn’t until the 1980’s that the idea was brought back in to the light. Interestingly it was Audi in 1989 with the 100 Duo a plug-in parallel hybrid based on the Audi 100 Avant quattro. But no more than 10 were produced. Audi continued to work on the idea with a few releases. In 2010 they will release the A1 a sporting looking car with reasonable 110 kW (150 bhp) compared to the 57 kW (76 hp) in the Prius. But I digress… if you want to know more visit Hybrid Vehicle History website. http://www.hybrid-vehicle.org/

Researching this I was underwhelmed at how Honda, Toyota and Lexus for example used social network marketing. Toyota have gone much further and have succeeded especially when you look at Facebook and Twitter. This may be a reflection on the number of units sold to the marketing spend but none the less there are 45,000 people engaged and talking about the Prius.

The downside for Prius is that it has have come under scrutiny by some of the biggest motoring commentators. The most well know is Jeremy Clarkson of Top Gear fame. Prius have been stuck with a 3 year old clip of the underperformed earlier model. Will this endanger sales? I think it is only a bug on the windscreen of the 45,000 seater facebook fan bus.

So what do I think? Well I’m impressed they have used almost every channel available to them. But! I have lost count of how many messages they are try to spread. Different execution for different targets can make sense but I think Toyota has been sucked in by their agencies. Some of the creative is self indulgent design to put another trophy on the reception desk. The stand out is the UK TVC which sells the merrits of the car. Toyota can no longer hangs its hat on the green angle.

The Gallery
Twitter

There are dozens of Prius twitter accounts. It looks like the Prius marketers have create 3GenPrius twitter account. The content is a follow on to the efforts on Facebook. The account has just over 1,000 followers while following 1,200 Twitter feeds. Nothing exciting here but if you want to watch the conversation in click here.

Facebook

Facebook has 29 groups you can become a fan. The main group has over 45,000 fans and has developed apps to help “share” the “radom acts of Prius”. Not only have they created a tribe of followers they have given them the tools to spread the gospel.

The group description is “Welcome to Harmony. Where what people want is also what nature needs. With an unsurpassed fuel economy rating, available solar technology, more power and fewer smog forming emissions, it’s no wonder Prius is the most loved hybrid in the world.” But is it the most loved? Well on that I searched for other “popular” hybrids including the Honda Insight – yep they maybe right.

There is also an option to “Ask an Expert” or see the Prius solar flower (you have to see it)

Websites

US: http://www.toyota.com/prius-hybrid/commercial.html
UK: http://www.toyota.co.uk/cgi-bin/toyota/bv/frame_start.jsp?id=MSR_PRIUS

Why Not? http://www.toyotabeyondcars.com

Mobile Site: http://m.toyota.com/prius/index.html

iPhone App

Available through itunes contains a lot of  information.  Photos  that you can compare and choose colors, even see how the dashboard navigation system looks.  Trim versions, so you can compare prices and option packages.  iPhone and iPod Touch users can see videos, including a 360-degree colorizer of the Prius.  Within the next couple of months, Toyota will extend this rich media feature to other models – and also to other mobile phone models.

Forums and Blogs

The Prius is all over the internet. One of the biggest forum is PriusChat with 70,500+ threads, 996,000+ comments and over 58,000 members. When I visited the site there were 4,276 active members. Now for a car that is not highly rated that is pretty impressive.

Youtube

Go to YouTube and type in “prius” and you are returned almost 7,000 results. Like most keyword searches only a percentage are of the car. Here you will find the TVCs, the making off the DA DA DA international TVC. Other clips include spoofs and reviews including the Top Gear bashing of the Prius and he does make a good point.

International:
I’ve seen this TVC before. It is visually clever with a mass of people playing the part of trees, flowers and running water. The main message is about the low emmission aspect of the car. The only “more power” and “more space” are the only two other take aways. Impressive yes, persuassive – hmmm maybe not.

http://www.youtube.com/watch?v=Tq4nrmnqY9o

UK:
I like this  TVC as it manages to get the clean energy across but makes more of the features of the car. When looking for a car you have a particular need or desire. With a number of hybrid cars how do you now stand out? Being the original and the most experience is what the TVC communicates. The others are just following our lead.

http://www.youtube.com/watch?v=FuGJtIUow3o

Top Gear
Unless a cars has 800+ bhp you’re in trouble with these guys. Why are people so unkind! Well they may be onto something.

http://www.youtube.com/watch?v=oOvp69lnZbA
http://www.youtube.com/watch?v=xqY8FUDcATE

Fifth Gear are a bit more generous with the 3rd gen Prius
http://www.youtube.com/watch?v=yspf4wbs5uE

Promo
“best selling hybrid in history” – please they should be slammed for that comment alone. I thought the blue man group had vanished in the hallowed halls of the 1990s.

http://www.youtube.com/watch?v=p8Btpk8yTS0

Traditional Media

Here is a range of print ads… still looking for more.

Toyota still world’s number one manufacturer

It seems a report published by IHS Global Insight last Thursday was a little premature, with official numbers today showing Toyota is still ahead of Volkswagen in sales volume.

Volkswagen’s third-quarter financial results revealed the manufacturer produced 4.4 million vehicles during the first nine months of the year – trumping Toyota’s 4.2 million units. However, VW’s production total includes joint-ventures in which it doesn’t own a majority share, making its final figure artificially high.

Toyota, on the other hand, has legitimately produced 4.2 million vehicles this year, easily making it the world’s largest automaker. Adding Toyota’s affiliates to the mix puts the company at 4.9 million units produced.

On Strategic Groups & the 5-Forces Framework

Michael E. Porter defines a Strategic Group as ‘the group of firms in an industry following the same or a similar strategy along the strategic dimensions.’  This essentially means that a Strategic Group, within an industry, is a group of firms that operate in a similar fashion in terms of their respective Specialization and Vertical Integration. If we take the example of the Passenger Car Industry, a group of firms are characterized by broad product lines, heavy advertising, medium integration, extensive distribution, mass-market appeal and widely-available service, lets call this Group A, while another group of companies would be characterized as extremely narrow product lines, minimal, often no advertising, high integration, selective distribution and service and superior performance, lets call this Group B. The firms that fall in Group A, internationally, are to the likes of Hyundai, Ford, Chevrolet, Volkswagen, Fiat, Toyota, Renault etc., while firms like Ferrari, Bugatti, Bentley, Rolls Royce, Lamborghini, Maybach etc, belong to the latter group. Then there exists a group in between wherein performance meets mass-market appeal. This, Group C, would consist of firms like BMW, Audi, Daimler-Benz (Mercedes), Porsche, Alfa-Romeo, Nissan etc., which are a match between performance and luxury, and wide-appeal through narrow product lines. Another group of manufacturers, say Group D, such as Proton, Tata Motors, Maruti-Suzuki, Daihatsu, Mahindra & Mahindra, etc. exists which has most characteristics of the first group, barring an international appeal, meaning that manufacturers like these are broadly limited to their home countries and a few other countries, with product lines which are neither narrow nor broad, but have extensive distribution channels, at least in their home countries.  Firms in Group B are highly vertically integrated primarily because of the focus on quality in their products, which is essentially why most products from these firms are hand-built with in-house manufacturing of components unlike other groups where most, and in some cases, all components are purchased, ranging from the Chassis to the Design, and Automobiles are just assembled in the plants.

Interestingly, the Strategic Groups, as mentioned, also have a lot in common with market shares of these firms. While Group A firms tend to enjoy a high market share with their products with mass-market appeal internationally, Group B, on the other end of the spectrum, has firms with products of very limited appeal, primarily because of the exorbitant price tags. Group C firms have much smaller market shares than that of Group A, and have a middle-of-the-road appeal in terms of luxury and performance and price. Group D, on the other hand, consists of firms with large market shares in only a few markets, most commonly in the country they originate from. It is also interesting to understand the ownership patterns of firms across various Strategic Groups. Broadly, the largest Global players enjoy a presence, through one or more of their brands, in at least three of the four strategic groups. For example, Volkswagen Group has a presence in Group A with its Volkswagen brand, in Group B with Bugatti & Bentley, in Group C with Audi & Porsche, and in Group D with Skoda & SEAT. Similarly, Fiat Group has a presence in the three groups with Fiat in Group A, Ferrari in Group B and Alfa-Romeo in Group C. The benefits are primarily in the form of platform sharing and in effect, cost saving because of reduced Research & Development costs, Market Power and the sharing of critical components.

Industry Rivalry

Rivalry within a Strategic Group is likely to be more in industries where there is a great difference between product lines of firms, especially in terms of pricing. In the Automobile Industry, the rivalry among the firms within a Group is far greater than the inter-group rivalry, as opposed to an industry where the substitutes are very close and are available in plenty. The inter-group rivalry is at a far lower level internationally because of the scale and appeal of products of firms from different groups. On the customers’ part, there can be a shift from one group to another, especially when upgrading to a more expensive automobile, the firms effectively compete for customers in different market segments on their parts. For example, Ford does not compete with Ferrari, but it does, in some segments, with BMW, Audi & Mercedes. This is because Ford’s more expensive and less mass-market range of cars are in similar segments with BMW’s lesser expensive, more mass-market cars. So a Ford Focus would compete with a BMW 1-Series and not a BMW 7-Series as the target customers for both are poles apart. Similarly, firms from Group D can often compete with firms from Group A on a regional level, which is why we see Maruti-Suzuki competing with Ford, Fiat & Chevrolet because their target customers in the Indian market are broadly similar, but differ in the global context.

Bargaining Power of Suppliers

Different strategic groups enjoy different degreed of bargaining power of suppliers. In Strategic Groups where firms are primarily assemblers, the bargaining power of suppliers tends to be low primarily because of the scale of production of these firms. Often firms that operate in the mass-market enjoy market power because of their market share. This allows them to leverage their position to bargain with suppliers and have components customized for their use than that of other players. For example, Denso is a key supplier of Toyota to such an extent that Denso follows Toyota to whichever market Toyota enters. The bargaining power of Toyota over Denso is fairly high because of standardization of components and faster product development times across the industry because of which Toyota has the advantage of purchasing similar components from Bosch or Delphi. But because Denso is so dependent on Toyota for its revenues, it has to operate in a manner which suits Toyota, hence effectively lowering possibilities of serving another client. The existence of multiple-suppliers allows firms to pick and choose from a bouquet of firms and attain the lowest possible costs, keeping in mind the specification of the components in concern. In other strategic groups such as Group B, the bargaining power of suppliers is fairly high because of the focus on quality of the product. Most firms in Group B product most components of their cars and outsource only a few. The few components that they outsource come from specialist suppliers. The switching costs may not be very high, but the costs of customization of products to suit the manufacturer is very high because of the nature of the product.

Bargaining Power of Buyers

Bargaining power of buyers varies from group to group. Groups where mass-market players exist with minimal product differentiation have to deal with high bargaining power of buyers while groups with highly differentiated products enjoy low bargaining power of buyers. Strategic Group A, where firms are mass-market players with low product differentiation in most cases, have to deal with very high bargaining power of customers, primarily because of the availability of a plethora of options both from the same firm as well as from constituents of the Strategic Group. The bargaining power of buyers is slightly lower for Group C firms than that of Group A, because each Group C firm has a brand identity which is peculiar to that firm alone while others are close to achieving similar results, but are not widely known for the same. For example, BMWs are identified with their handling and performance, while Mercedes cars are identified as the more luxurious of the two. While customers pick between one of the brands, they have an agenda in mind while purchasing cars from this particular group. A customer who would like more performance than luxury is likely to go for one brand over the other, but at the same time, the customer also enjoys the presence of multiple players and can shift from one brand to another because the products are so close to each other in terms of specifications, features, luxury and performance. Firms in Group B enjoy low bargaining power of buyers, primarily because they have highly differentiated products with varied features and specifications. The products are normally either extremely high on luxury, or on performance. While all products in this strategic group are far more luxurious and better in performance than those in the other groups, they tend to have an inclination towards one side of the spectrum. While Rolls Royce cars are the epitome of luxury on wheels, Ferrari’s are the best performers of the lot, which is not to say Rolls Royce is archaic in terms of performance and Ferrari in luxury. The customers here have a clear-cut demand which can only normally be filled by one of the brands, which essentially goes to say that the bargaining power of buyers is low for Strategic Group B firms.

Threat of Substitutes

Substitutes to passenger cars are broadly based on the price points of the vehicles. While at the lower-end of the spectrum, substitutes are public transport and 2-wheelers, the higher-end of the spectrum only has air-travel as a substitute, which is only applicable for inter-city travel. Group A and Group D face the threat of substitutes such as 2-wheelers and public transport because of their price points. For example, the Tata Nano faces threat of substitutes by Motorbikes in India, especially for unmarried individuals, married without children and empty-nesters. The other threat to lower-end cars is Public Transport, primarily because of the limited spending capacity of the target customers of these products. Firms in Strategic Group B only face threat from substitutes such as Helicopters and Airplanes, the latter primarily for inter-city travel and the former for intra-city travel. The threat is low because of the scarcity of helipads in most parts of the world.

Threat of New Entrants

Threat of new entrants is low across the industry at a global level primarily because of the capital requirements for setting up of production facilities and distribution channels. The threat is low on a global level, but at a local level, threat in parts of the world is high. For example, in India, the threat of new entrants is at a medium level because of the absence of multiple global players. When these players decide to enter India, they can, and are willing to, spend Millions of dollars in setting up infrastructure to support their products. This is aided by a huge potential market for products of these firms, which are primarily members of Group A. Establishing of brands is also a very difficult task, especially for firms looking to enter Group B or Group C. Most firms in these groups have been present in the market for decades and have established their brands over years and years of existence and can hence charge a huge price tag for their offerings.

Group A:Hyundai, Ford, Chevrolet, Fiat, Volkswagen, Toyota, Renault etc. Group B:Bentley, Rolls Royce, Ferrari, Maybach etc. Group C:BMW, Daimler-Benz, Audi, Porsche, Nissan etc. Group D:Maruti-Suzuki,Tata Motors, M&M, Skoda, Proton etc.

Reference:
Competitive Strategy, Michael E. Porter

the rav

today i had a parent-teacher conference.  one of my son’s teacher’s showed me a story he had written.  all about how mom got a new s.u.v. and how happy he was about it.  he described the make of it and even how the trunk opens from the side and has a full spare tire on it.  that boy was damn proud of mama’s s.u.v.!!!  and it’s not been quite 3 weeks yet, but i pulled into work this morning and glanced at the odometer….i usually miss these little milestones.

ET Extra: Protecting Your Life: Toyota Unintended Acceleration Causing Deaths And Injuries

Engineering Thinking Extra Is A Short Review Of A Current Hot Topic

“Toyota Motor Corp.’s campaign to get customers to remove or replace floor mats, which the Japanese automaker is blaming for unintended acceleration cases, isn’t convincing to some of its drivers…” … “More than 300 complaints have been filed with federal regulators about the problem, including at least six involving fatalities, and Toyota says the floor mats are to blame.”
Detroit Free Press

Although it’s conceivable that floor mats may in some cases create a “stuck accelerator” problem, it should be noted that cars with cruise control have an electronic link inserted between the driver and the accelerator; i.e. a little robot that assumes control of acceleration. Based on engineering experience, my opinion is that this link is more likely than floor mats to be the primary cause of Toyota;s problem. Therefore, if you should be so unfortunate as to experience unintended acceleration, it might help to immediately turn off cruise control.

-Ed Walker

Aimgain LS460

VIP VIP VIP! The cream of the crop! Loving every panel on this car.

Just to be safe, I’d like to say that I dug these pictures from my archive and I’m sure I got them from someone’s blog or a forum, I’m not sure. So no hard feelings. It’s not the first time I’m taking something off the Internet and putting it up on my blog “as my own”. After all, I don’t consider any of the content my own anyway – it’s just a collection of stuff I’ve gathered on the Internet that I wanna share with people =D Cheers! Also just to set the record straight, I haven’t been pressured by anyone it’s just that I felt a need to make justifications? lol.

Toyota en Bridgestone geven er de brui aan

Twee Japanse giganten gaven deze week te kennen zich uit de Formule 1 terug te trekken. Toyota doet dat met onmiddellijke ingang, Bridgestone op het einde van 2010. De beslissing van Toyota was verwacht, die van Bridgestone was een complete verrassing. De F1 heeft een jaar tijd om een nieuwe bandenleverancier te zoeken, maar het lijkt nu al duidelijk dat Goodyear, Michelin en Pirelli geen kandidaat zullen zijn.

Bij Toyota waren er al een tijd signalen dat het team aan zijn laatste seizoen in de F1 bezig was. Williams had zijn motorcontract met Toyota opgezegd, en Toyota-rijders Trulli en Glock wisten dat ze voor 2010 bij een andere werkgever moesten aankloppen. Toyota was acht seizoenen actief in de F1, maar kon ondanks fenomenale budgetten geen enkele grand prix zege op zijn naam schrijven.

Met de aftocht van Honda vorig jaar en de nieuwe exits van Toyota en Bridgestone wordt de Japanse betrokkenheid in de F1 zwaar teruggedrongen. De Japanse GP blijft wel overeind, en waarschijnlijk zal er volgend jaar ook nog een Japanse rijder op de grid staan. Kamui Kobayashi verbaasde in de twee laatste races van het seizoen als vervanger van Glock, en mag met een cheque van Toyota op zoek naar een zitje voor 2010.

Raikkonen hoping to race on - with the right team

It’s not often that a recent race winner and world champion ends a season without a confirmed seat for the following year, but that is just the situation that 2009 Ferrari driver Kimi Raikkonen is facing.

With Fernando Alonso joining the Italian team to partner Felipe Massa in 2010, Raikkonen is still to find a new cockpit in which to ply his trade. However, the Finn, who is a season shy of his 10-year anniversary in Formula One racing, doesn’t seem too anxious about his future and is instead determined to find the right drive.

And on Friday he reiterated that he is more than willing to bide his time until there’s a suitable vacancy at a team that can offer him the chance to challenge for more race victories and further titles.

“It’s hard to believe that I have been in Formula One for nine years already,” the 30 year-old said on his official website. “I am very motivated to win races and a championship again and will only remain in Formula One if I can race for a team that can give me a car to fight at the front. Let’s wait and see what happens.”

Although the 2010 driver market remains pretty open, with plenty of seats still up for grabs, Raikkonen has considered taking a sabbatical next year if he can’t find an acceptable drive. And speaking in Abu Dhabi a week ago, he made it quite clear to the media that time off remained an option.

“I can do whatever I want,” he said, “but like I said before, I haven’t made my decision about what I want to do yet. Basically I have a few different options and we will see what is the best one overall and then I’ll make my decision.”

During his nine-year F1 career, which has included spells at Ferrari, McLaren and Sauber, Raikkonen has racked up one world championship, 18 wins, 16 pole positions, 35 fastest laps and 579 points.

Reference: f1.com

Renault set to stay in Formula 1?

After the bombshell of Toyota pulling out yesterday, it seemed we were heading for a double-whammy with Renault calling an emergency meeting in Paris. However the result of that meeting sounds positive and it seems Renault will continue on the F1 grid in 2010.

The Enstone based team have had a tough 2 years, finishing 4th and 8th in the constructors championships, as well as the departure of Flavio Briatore and Pat Symonds following the ‘Crashgate’ race fixing scandal involving Nelson Piquet Jr.

The team’s managing director Jean-François Caubet said:

“We have already contracted our drivers, had our budget approved and are enrolled in the world championship. Season 2010 has begun already. We will not be world champions in 2010, but we do have hopes to be much improved.”

Toyota Bids Bye to F1

Toyota will be the second major Japanese car maker to quit F1. It has been anticipated since long that Toyota would quit F1.

Toyota Motor Corporation has now publicized its policy to leave the FIA Formula 1 World Championship at the end of the 2009 season. And this is because of the company’s current economic crunch. This withdrawal by Toyota will be a blow to the Formula One.

Toyota’s connection with Formula One began in 2002. Toyota has been racing for eight seasons. The Toyota F1 team participated in 141 F1 races and accomplished 13 podium finishes. The team never won a race in spite of having an annual budget of around US$300 million. But the Toyota F1 team was fifth in the 2009 Constructors’ Championship.

Toyota mentioned that would keenly contribute to other developments of motorsports by supporting grassroots races and setting up events in which it is easy for people to participate. Now, the world’s largest car manufacturer will concentrate on its core business of making hybrids and electric cars.

Toyota leaves Formula One amid economic crisis

TOKYO: Formula One was left reeling on Wednesday as Toyota became the latest automaker to quit the motor sport in response to the economic crisis, just days after tyre manufacturer Bridgestone pulled out.

Toyota said its decision to withdraw after this year’s season, which ended Sunday in Abu Dhabi, reflected ‘the current severe economic realities.’

Honda and BMW have already exited F1 to cope with the credit crunch and Toyota’s withdrawal leaves no Japanese automaker left in the motorsport, raising fresh fears for its future.

The company said it ‘intends to do its best to find a solution’ for the team, which has not won a Grand Prix since its 2002 debut on the F1 circuit and finished this season ranked fifth in the constructor championship.

While F1 attracts millions of viewers, the amount of money it costs to run a team – estimated at hundreds of millions of dollars a year – means it has become an unaffordable luxury for cash-strapped Japanese manufacturers.

The sport has lurched from crisis to crisis in recent years, including financial troubles, a Renault race-fixing scandal and a threat by a clutch of teams earlier this year to form a breakaway series over a proposed budget cap.

Facing a collapse in worldwide car sales, Toyota had already pulled out of hosting the Japanese Grand Prix at its Fuji Speedway circuit from next year.

On Monday Bridgestone said it would end its contract as the official tyre supplier to F1 – joining an exodus of Japanese auto firms from world motor sports.

Honda announced in December its shock withdrawal from F1, selling its team to former principal Ross Brawn – reportedly for just one British pound.

Brawn driver Jenson Button of Britain has since been crowned the new F1 champion, with the team at the top of the constructor’s standings.

Suzuki and Subaru meanwhile have withdrawn from the world rally championship, while motorcycle maker Kawasaki has exited the MotoGP and Mitsubishi is quitting the Dakar Rally despite a dozen victories.

Toyota’s decision to exit F1 comes as the global economic downturn forces Japanese automakers to slash costs and step up their focus on environmentally friendly cars such as petrol-electric hybrids.

‘Not only Toyota, but all automakers, are now under pressure to concentrate their investment in green technology,’ said Mamoru Kato, an auto analyst at Tokai Tokyo Research Centre.

‘Toyota launched the F1 business in an effort to boost sales in Europe by improving its brand image there, but the impact appears to have been smaller than expected,’ said Kato.

Toyota overtook US rival General Motors in 2008 as the world’s top selling automaker but it fell into the red for the first time in the year to March 2009 and expects another loss this year.

The Japanese maker, which is due to announce its interim financial results on Thursday, has idled plants and slashed thousands of jobs as it tries to weather its biggest ever crisis.

Kobayashi: I could have been making sushi.

Toyota driver Kamui Kobayashi has said that when he was driving in GP2 earlier this season, prior to covering for Timo Glock in an F1 Toyota race seat, he no longer had any money to race in the F1 feeder series and almost went to work in his father’s sushi restaurant, until the lucky break of an F1 drive following a bad crash from the German, Timo Glock.

Kobayashi has impressed in his 2 F1 races ending this season, finishing 9th and 6th respectively prompting strong rumours that he will be offered a Toyota race seat for 2010, a rumour strengthened by the Toyota F1 boss saying that he was impressed with Kobayshi.

The 23 year old Japanese driver Kobayshi said:

“I have no budget, no budget. So I cannot drive GP2 next year. I would probably go back to Japan to maybe work with my father in his sushi restaurant.”

“It was like that two months ago, seriously. When I was 16 years old I worked there, making sushi.”

Toyota Motorsport President John Howett praised Kobayashi for his fighting spirit, but Kobayashi wondered what the fuss was about.

“I don’t need to be worried for me because it is not the Mafia.”

“I have tried to be a Toyota driver for next year but I didn’t know how much I could show before. I just had to do the best at each moment and it seems to have finally worked well.”

“Still I have many things to do. I have to improve qualifying and I need time. But the last two weeks have been quite good for me.”