Toyota outsales GM in June but there is nothing to be happy about it

Toyota Motor Corporation(TYO: 7203), the largest automaker of Japan will over take General Motors Corporation(NYSE:GM) in the monthly US sales in June but there is nothing to be happy about it as the US economic slowdown is still continuing and the automaker is struggling with downward auto sales. Auto industry experts and analysts are expecting another “double digit dip” in auto sales in June.

Higher fuel price, weak economy, and lower consumer confidence has resulted into switching over small fuel efficient cars and cross over vehicles. This has proved to be a boon for the Japanese automakers like Toyota Motor Corporation and Honda Motor Company Limited (TYO: 7267) that depends less on the sales of trucks and SUVs like the three largest American vehicle makers: GM, Ford and Chrysler.

Still, Toyota is experiencing its share of problems. The company is hardly keeping up with the high demand of its Hybrid Prius. More over, it has cut down its pickup and light truck production.

Famous marketing consulting firm, J.D. Power and Associates, is predicting that, with continuation of the present trend, the ‘annualized sales rate’ for June would be 12.5 million vehicles ; the lowest monthly sales since 1992.

Related article:
AP

2009 Honda FCX Clarity: Over hyped Hindenburg!

‘The car that emits nothing but water’, ‘solution to fuel problem,’ and so many things! I was carried away for some time and started to think that this time the world will truly become a better place but my dream bubble just got busted. The new Honda FCX Clarity started with big bang but ended up in whims. For the last couple of days, what Honda Motor Co. Ltd. (TYO: 7267)has been touting as the ultimate solution to pollution free transport proved to be nothing but a public stunt. Now, the million dollar question is WHY?

First, production of Hydrogen requires lot of electricity. How do you produce that electricity? by burning fossil fuel. This takes us back to square 1.

Second, hydrogen is not widely available. Production of hydrogen in large quantity is not profitable. In the first reason, I have already explained why? Then why building hydrogen fuel cars?

Third, Honda is saying that electric plug in vehicles are not so good because they have lower mileage and the battery has limited power. True, but the electricity is more available than H₂. Then why going for expensive hydrogen cars? Criticizing New York Time's article on 2009 Honda FCX Clarity, Guardian says:

Is the Times unaware that electric-car manufacturers are working on "exchangeable batteries", which would make a battery swap about as fast as it takes to refuel a car with hydrogen?

Related articles:
Guardian

CNet News.com

The Seattle Times

The Independent

Japanese manufacturers take top position in UK's Car Magazine survey

Famous British magazine, Car Magazine recently conducted a reliability survey which revealed that Japanese cars are better than British and other European models. Honda Motor Company Limited (TYO: 7267), the second largest car maker in Japan took the first place. The first eight spots of the survey were taken by 38 Japanese brands. The study was conducted over 89,768 cars that were upto eight years old. Telegraph.co.uk reports:

Statistical analysis was used to calculate a Brand Reliability Index percentage based on readers' reports of total breakdowns, faults that required a vehicle to be taken to a garage and minor niggles.

Break-downs were weighted more heavily than niggles. Honda achieved 85 per cent followed by Toyota, Daihatsu, Lexus, Mazda, Subaru and Suzuki.

The Korean Hyundai brand was the first to make inroads into Japanese domination, scoring 80 per cent.

The table was divided into reliability categories ranging from the best "very good" through "good", "average" and "poor" with the least reliable being described as "very poor".

Out of the eight Japanese brands, seven made it to the ‘very good category’. South Korea’s Hyundai and Porsche fell into the “good” category.

Most of the British cars fell either into ‘poor’ or ‘very poor’ category. Rover, MG, Land Rover fall into “very poor”; Vauxhall “poor”; Mini and Jaguar reached the average figure.

Honda was also in fault position with it Civic model that was made in Swindon, Wiltshire. The car came at the joint-bottom spot in the individual model’s list.

Related article:
Telegraph

Will Honda FCX Clarity be the ultimate transport solution of the future?

Like a big python, the high price of fuel coiled the world economy and squeezing out every chance of growth. From the top economies to the poorest region, every one is suffering from high fuel prices. At the same time, major environmental changes and green house effects have changed our lives. At such a critical stage, Honda Motor Company may have been able to bring a sigh of relief among people. The new Honda FCX Clarity is going to hit the road next month. A car that runs on hydrogen and emits no CO₂ but water seems to be the ideal car for every one. However, there is a catch. The car is not still available for the mass market. It comes with a high price tag.

Still, the good thing is people in developed countries have started using vehicles that are fuel efficient and emits less CO₂. The revolution has already started in the United States of America. Major US automakers like Ford, Chrysler, GM are now focusing on building small fuel efficient vehicles and hybrid and electronic vehicles.

Now, the million dollar question is, can cars like Honda FCX Clarity change people’s demand of oil? At this stage, that is a big ‘No.’ The demand of oil will still remain high as more and more countries are moving towards industrialization. In addition, there are many products around us that require petroleum to produce such as plastic. It would take a lot more to divert people from using oil as the major source of energy but Honda FCX Clarity is the symbol of hope. It shows that if we try we can change ourselves and enrich our lives and the lives of others.

Related article:

The Record