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1985. Toyota could not do anything wrong. In the important U.S. market the product line was solid. Product for product, Toyota models bested offerings from other car manufacturers. Car of the Year Awards all over the place. The Corolla GTS, MR2, Celica GTS, and Supra- the Toyota enthusiasts were well served. Toyota USA President, Mr. Togo, set personal goals for the U.S. company, and he achieved them all- Motorsports, Manufacturing, Exporting, Mini-Trucks, even Aviation !
On a visit to Japan, we learned about Toyota Global Ten: Toyota’s corporate goal for 10% of the world automotive market. In Japan, Toyota owned the industry. Aggressive expansion in Europe had begun and Toyota was on a fast learning curve. The Corolla was the best selling car in the world. The Camry was being Americanized. And the enthusiasts had their choice
By 1990, a new decade, Toyota was still on top, with a brand new division Lexus.. Toyota products were world-class products. Toyota sporty cars had the best engines in their class. Industry insiders and Trade magazines who predicted that Honda will surpass Toyota were proved wrong- if you added the Toyota truck and van sales. Honda was on track to capture the entry-level market. (Even Acura had an entry-level model, a Twin Cam.) Toyota had all it’s bases covered: Luxury, Sporty, Van, and Trucks.
Toyota , however, started to loose a generation of die-hards interested in performance cars and interesting entry-level cars. Cars that performed the best in their class. Cars with state-of-the art engines. Cars you are proud to drive. Cars you can have fun with. And can ultimately afford.
1995. Toyota remained on top of the Import market, with the Camry, SUV, and truck sales. In five years, Lexus became an award-laden and established Luxury brand. Even mighty Mercedes, the historic and iconoclastic purveyor of benchmark automobiles was forced to reposition and reinvent their stars. To achieve yearly Sales Records and Profits, Toyota concentrated on improving the Camry and trucks, gaining on new markets and keeping millions of loyal customers.
Toyota Motorsports in the U.S. had won numerous Championships, making Toyota enthusiasts real proud. Even Toyota USA , caught in the excitement continued buying out TRD Japan’s interests in TRD USA- the better to serve the U.S, market. The Supra and MR2 Turbo gained cult-like status, making Toyota enthusiasts even prouder. You almost did not miss the disappearance of the real GTS Corolla and Celica models.
A Japan visit was dismal. Japan was in Recession. At that time, Nissan and Mazda were at the brink of collapse, which would have caused Japanese and World recession. The Japanese Trade ministry “advised” Toyota about market expansion. This resulted in Toyota trying to maximize profit on model lines and unit sales, not market share. There was less emphasis on entry-level, low margin vehicles.
As Lexus continued making history in the Luxury field, Honda had entrenched and owned the entry-level and aftermarket. Even the U.S. Honda Twin Cam engines were better than U.S. Toyota’s! Toysport had to import the real Toyota Twin Cams from Japan (just like in the 80”s) to keep parity in the streets. U.S. magazine surveys showed the different Toyota car models became also-rans in their test / review categories.
Toyota Corporate in Japan and the U.S. realized the situation and the Genesis Group was formed. Record sales and profits in Toyota, overshadowed the gradual disappearance of interesting Toyota niche models.
In 2000, the new millennium, Toyota’s product line-up has lost favor with the performance enthusiast core. The Turbo and GTS models were gone. Toyota SUV’s RAV4, Highlander, 4Runner, Sequoia, and Land Cruiser represented Toyota’s commitment to the emerging market. The entry-level products were dismal and demanding attention. It would take a major impetus from Toyota to recapture the Sporty and entry-level market.
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