GM, then Toyota, and now Volkswagen: For each of these players in a seemingly star-crossed game, no sooner did it rise to be the biggest name in carmaking, than it fell in a stupendous, unforced blunder.
GM was the world’s biggest-selling carmaker for 77 consecutive years until 2008, declared bankruptcy, then took shortcuts resulting in 120 dead, and record numbers of recalls.
Toyota, with its market-leading Camry, and mass-market hybrid electric vehicle, placed Toyota on the leading edge of cool. In 2008, Toyota took the #1 spot in sales.
But in 2009, Toyota began to be the target of accusations about inadvertent acceleration but insisted there was nothing wrong with its cars— then reported fatalities as a result of the acceleration forced Toyota to order massive, rolling recalls, and to suspend the sale of its best-selling models. And in March 2014, Toyota finally admitted that it had been lying—the pedals did stick, and it agreed to pay a $1.2 billion US fine to avoid prosecution.
VW took the crown of best sales in July 2015, then, was found to be cheating the smog systems. Immediate 20% loss in everything.
Michael Cusumano, a professor at MIT, blames the economics of the business.
Yet it’s so difficult to make money without such felonious acts. “So you see examples of companies pushing the envelope. It’s hard to increase market share,” Cusumano said.
http://qz.com/507761/theres-a-very-simple-reason-why-no-carmaker-can-seem-to-rule-the-industry-for-long/
GM was the world’s biggest-selling carmaker for 77 consecutive years until 2008, declared bankruptcy, then took shortcuts resulting in 120 dead, and record numbers of recalls.
Toyota, with its market-leading Camry, and mass-market hybrid electric vehicle, placed Toyota on the leading edge of cool. In 2008, Toyota took the #1 spot in sales.
But in 2009, Toyota began to be the target of accusations about inadvertent acceleration but insisted there was nothing wrong with its cars— then reported fatalities as a result of the acceleration forced Toyota to order massive, rolling recalls, and to suspend the sale of its best-selling models. And in March 2014, Toyota finally admitted that it had been lying—the pedals did stick, and it agreed to pay a $1.2 billion US fine to avoid prosecution.
VW took the crown of best sales in July 2015, then, was found to be cheating the smog systems. Immediate 20% loss in everything.
Michael Cusumano, a professor at MIT, blames the economics of the business.
Yet it’s so difficult to make money without such felonious acts. “So you see examples of companies pushing the envelope. It’s hard to increase market share,” Cusumano said.
http://qz.com/507761/theres-a-very-simple-reason-why-no-carmaker-can-seem-to-rule-the-industry-for-long/
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