Thursday, February 4, 2010
Toyota's Total Recall - who gains?
We often hear that one man’s food is another’s poison. And in this case, Toyota’s rough patch might well contribute to its rivals fortunes. Financially ofcourse Wall Street will keep analyzing the numbers as they come in, on how things are panning out for Toyota relative to the market.
There are all kinds of theories and speculations on who stands to gain. Infact, a Goldman Sachs report puts GM and Chrysler as bigger benefeciaries compared to Ford. This is the same trio that was in deep trouble and went to Washington asking for help, just an year back. Could this be their silver-lining?
Edmunds.Com ran a survey that kind of concludes that for the 3 most popular models for Toyota, the biggest rival cars domestically would be from Chevrolet and Ford, but then it also says that there are atleast 6 alternatives from foreign manufacturers.
That brings the spotlight to Honda the biggest and closest rival to Toyota in the key market segmets that are impacted. Though from a branding, quality, pricing they are well positioned, their biggest challenge could be in handling the additional surge in demand, in terms of their inventories etc., which has traditionally been kept quite small and lean.
But then ‘09 year end sales weren’t all that great and that’s left Honda with close to 2months of inventory on both their popular models Civic and the Accord. So they are well positioned to tap into the opportunity thats up for grabs.
In comparison it sounds like a pack of fierce animals going after some fresh kill, and who can grab the lion’s share.
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