Toyota leaves VW far behind
It is estimated that the Volkswagen Group will sell significantly fewer cars in 2020. The reason for this was the absence of parts. However, the competition Toyota that has increased its market position to become a world leader has shown that there’s another way.Its Japanese Toyota group has defended its position as the top company in the world market in the year that ended, significantly increasing the gap from its competitor Volkswagen. The group has sold 10.5 million vehicles across the globe, which is ten per cent higher than in the year prior. This group includes the small-car manufacturer Daihatsu and the maker of commercial automobiles, Hino Motors.
On the other side, Rival VW was forced to accept that sales dropped by 4.5 per cent in the range of 8.88 million vehicles in the last year. Moreover, the chip crisis and other issues with suppliers caused Volkswagen sales to fall noticeably during this second Corona year 2021.This gap Volkswagen the other two Toyota has grown to 1.6 million cars. In 2020 the Japanese were back in the top spot in the world ranking and had gained a lead of 350,000 vehicles. Between 2016 and 2019, however, Volkswagen was ahead of Toyota even though it was only a little.
GM knocked off
It appears that the US business General Motors has now altogether quit the race to become top spot in the world. GM has not yet announced worldwide sales numbers for its full-year 2021. Last year, GM was substituted as the leading market player in their marketplace with Toyota at the beginning of the year for only the first time. Before that, Americans had held that title for over 90 years.
Toyota sold 2.3 million vehicles across the United States last year, which is an increase of 10 per cent. General Motors posted a 13 per cent drop in sales to 2.2 million vehicles. GM was the world’s most-seller automaker in the year 2011.
Since the beginning of the year, most carmakers have faced many issues in supplying components from suppliers, including semiconductors. However, one of the keys to their success for the Japanese is, according to reports, the large proportion of their value-added in the final product. Based on calculations made by Hans-Erich Muller, professor at the Berlin School of Economics and Law, in the year 2019, which is one year before the onset of the pandemic, 24 per cent of the value that is added at Toyota is derived from outside suppliers.
In a research conducted by the Hans Bockler Foundation, the scientist was quoted as declaring: “Not outsourcing, but the development of partner relationships with suppliers, employees and customers is one of Toyota’s secrets of success.” Further, “People are aware that outsourcing can undermine technical strengths and core competencies”.