Wednesday, October 17, 2007

Toyota: The pains of growing big

Toyota is growing bigger and there are no questions about that.  However, what is questionable is Toyota's ability to maintain the quality and reliability standards that have been a hallmark of its iconic status.  Consumer reports indicates that it is no longer true.  I had written earlier about how relaiability is bound to be correlated with volumes and a multi-product focus.  Toyota cannot hope to solve the world's commuting problems with just the Camry, Corolla and the Prius.  the heterogeneity among consumers is much bigger than what these cars have to offer. The ings are already evident - the 2007 Camry looks more like the Lexus than the family sedan it is supposed to represent.  What would become of the Lexus if the Camry looks like th Lexus?  These are troubled times - it is apparent that Toyota is not very adet at being a multi=product firm.  Myabe GM's bugaboo will be its strength at the end of the day.

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