Brand Report Card--Toyota on the rise

 

Toyota grabbed headlines in late December with its 2007 sales forecast of 9.34 million vehicles. Moderate growth for the Japanese industrial giant came at time when Ford Motor Company and General Motors are experiencing problems adds up to a likely reordering of the largest automakers. Toyota is on track to supplant General Motors as the world’s largest car manufacturer and claim the number two slot in America, bumping Ford down a peg in the process.

Toyota has gained momentum over the years, building a broad product portfolio with a reputation for quality and fuel efficiency. Toyota looks to become even stronger in the years ahead, as indicated by the recent Brand Report Card study conducted by the Consumer Reports National Research Center.

The random, nationwide telephone survey intended to determine how Americans rank automotive brands and identify which brands are thought to excel in key areas: design/style, performance, quality, safety, technology/innovation, or value.

Toyota dominated the study, earning the top-ranking position in more than half of the six brand-attribute categories. Thirty-seven percent of interviewees rated it as the best in at least one category. This performance provides insight into how Toyota has evolved into such a worldwide powerhouse.

Supporting the perception and brand loyalty numbers, 24 percent of Americans are considering a Toyota for their next purchase. Trailing in popularity are Honda (17 percent), Chevrolet (15 percent), and Ford (13 percent). Combined, these figures indicate that even though Toyota expects to set sales volume records in 2007, there is even more future growth potential for the brand.

Don’t count the domestic brands out yet. Despite a tough couple years, with dramatic headlines about poor sales, factory closings, and massive layoffs, Ford and Chevrolet, in particular, are hanging in there. With aggressive turnaround strategies, such as painful factory closings and withdrawal from the minivan segment, both brands are taking steps to change their fortune. Toyota has gained ground while the domestics are at their weakest, but consumers still think highly of these distinctly American brands.

No question, the past couple of years certainly has been a wake-up call for the domestic brands. Toyota is not only grabbing hearts, minds, and driveways, but it is also about to enter NASCAR Nextel Cup racing this season.

Companies that focus on the attributes car-buyers most want--safety (72 percent) and quality (69 percent)--have are poised to increase their perceived leadership and may translate to tangible sales leadership, as suggested by the Brand Report Card.

The grades have been given by the American consumers; it will be interesting to see how the manufacturers buckle down on their homework and try to raise their grades.

--Jeff Bartlett