GM will ‘recover and revive’, Toyota boss predicts
A Big 3 domestic auto industry that can survive and thrive is welcomed by a fearsome competitor.
On Thursday, Yoichi Tomihara, Toyota Canada’s president and CEO, commented on government bailouts of General Motors and Chrysler and their emergence from U.S. bankruptcy protection this summer.
“This government support to GM and Chrysler is to revive and recover them,” Tomihara said after delivering a speech on the future of the auto industry in Canada at Club Roma in St. Catharines. “Then once they recover ... it’s fair competition and I think we can compete on that fair condition after they recover.
“I believe General Motors has a very strong base in engineering and research and development,” added Tomihara.
“I think they will really recover and revive after (taking on) a new shape.
“We need a really stable GM for the stability of the industry,” he said. “Especially in North America.”
As for possible future investment in Niagara, Tomihara is non-committal.
“We have just finished a huge investment in Woodstock,” he said. “Honestly speaking, it’s really a future subject to study. “I think it’s a bit too early.” At the luncheon sponsored by the St. CatharinesThorold Chamber of Commerce, Tomihara disagreed with a common perception that the global auto industry’s future is in countries like China, Brazil or India.
“ While those are important markets for automakers, I believe the future is here,” he told the crowd of 100 in St. Catharines — another 66 watched the speech online.
“When we are trying to determine the shape of things to come, we will find our answers in markets like Canada’s.”
Canada’s large and diverse market forces Toyota to adapt fast to consumer tastes, he said.
Canadian drivers want vehicles with more performance, safety and convenience technology, Tomihara said.
He said they also want lower fuel consumption and emissions, and all in a reasonably-priced vehicle.
Its two Canadian plants in Woodstock and Cambridge are also “an important strategic advantage for us here in Canada,” he said. “In fact, today Toyota is the largest Canadian automobile manufacturer.”
Canada has other advantages in that domestic companies have led in mastering social media, Internet and event-based marketing to reach customers, he said.
“As global companies, we appreciate the honesty of the Canadian market,” he added.
“There is no hometown player in Canada.
That means Canada is a good representation of a global market, where companies come to compete on a level playing field.”
He confirmed the Canadian rollout of Toyota’s new Scion brand, which is oriented to younger drivers.
Scions will be available by September 2010 at dealerships in Toronto, Montreal and Vancouver.
Introducing plug-in hybrid cars with electric/internal combustion engines and re-entering the battery electric vehicle market by around 2012 are other commitments, he said.
After the talk, chamber general manager Walter Sendzik said Toyota officials were in the area for the test-driving event Test Fest at the Niagara District Airport.
“ There was an opportunity for Yoichi Tomihara to address the business community,” Sendzik said.
“We thought it would be interesting to hear from Toyota ... and what its vision is for the automotive industry in Canada.” dfraser@ stcatharinesstandard.ca
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