28 January 2016

The Biggest Manaufacturer : 2015

Toyota number one in 2015

GM decided that trying to be the biggest was folly if profits would be hurt achieving it. Then Toyota took the step of not focusing on keeping at the top when its bullet proof reliability reputation was being affected by this pursuit. Did VW Group learn from this. No, it saw it as a chance to reach its coveted goal.

We all know VW's desire to be at the top has damaged its reputation due to a cheating culture that grew out of this aim. Hopefully the clean out at the top of VW will stamp out this 'win at all cost' mentality. Becoming the largest car maker may never happen for the VW Group, but does that matter? A successful, profitable company is what is required, who makes the most vehicles is just a numbers game, bragging rights, a vanity.

For 2015, the Toyota Group has made 10.15 million vehicles with a tiny drop in percentage terms. The VW Group has made 9.9 million for a 2% fall and GM's tally was 9.8 million which was about the same as last year. None of them grew as fast as the global increase. I would imagine Toyota will maintain its volume - and maybe improve - in 2016. With VW still to feel some effect from the scandal, GM could make it back into second.

Once a company nears or reaches the 10 million mark, managing and controlling everything becomes a challenge. Astute management is needed to move on from there. Reputation and profit are what really matters at the end of the day. Striving to be the biggest is just a distraction.

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