Although united in their stance against government dialog regarding Corporate Average Fuel Economy standards (CAFE), General Motors Corp.(NYSE: GM) and Toyota Motors (NYSE: TM) are squaring off in a head butting match over just exactly how the new vision for hybrid automobiles will take final form. A WSJ.com report (subscription required) briefly examines the differences between the two companies and their visions for target travel range for electric-only vehicles.Toyota representatives indicate that their tolerance level for electric only travel range is settling into the 10 to 20 mile range while GM executives claim that their target range is closer to 40 miles. The debate seems to be taking place around lithium-ion batteries and the many questions which still remain as to the long term viability of that power source technology. Pointing to the alleged tendency for lithium-ion batteries to overheat, Toyota leadership appears unwilling to state that the technology is fully road ready. GM, for its part, is still investigating its battery options also.
GM executives are a bit perturbed at the apparent lack of media coverage regarding the fact that many of the vehicles which Toyota has leaned upon for its surge ahead of GM in total sales actually have mileage ratings below those of their General Motors counterparts. GM feels that Toyota is simply throwing up a smoke screen to the facts and is muddying the common waters in the pursuit of a viable electric vehicle. GM also seems to believe that Toyota is simply attempting to obscure the facts regarding actual over the road mileage performances of both companies.
We are still a long way from seeing effective electric vehicle deployment but all parties involved are to be commended for their efforts. There are an abundance of options and opportunities to be exploited now in the electric vehicle arena and given the steep increase in crude prices, those opportunities shall only become more lucrative. It is of major importance now that the big players refrain from corporate politics and simply stick to the business at hand.
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Reader Comments (Page 1 of 1)
10-23-2007 @ 10:55AM
V.S. said...
Toyota will have another problem to play out in the near future. GM has a 4 four wage freeze in place. Toyota has record sales and profits. How will this play to Toyota workers who haven't had a wage raise in a year with record sales and profits when Toyota tells them they will also have to forfeit their wage increases!.......interesting at the most! GM stocks to hit $55 to $58 by the end of the year.......Toyota to drop around $5.00 from the present $106
10-24-2007 @ 11:07AM
John Dee said...
The truth about the so call great company "Toyota" is starting to come out. I guess it was easy to fool the people when the domestic auto companies were sleeping but that's not the case anymore.
10-28-2007 @ 4:52PM
fniguy29 said...
Dear Investors, I just want to a say a few things about Toyota and its current situation about its stock. TM stock will now rise considerably in the next coming months. Toyotas rock-hard balance sheet and future performance in R&D will help exceed all of its competitors; it�s just a matter of time. I don�t want to focus on GM and bad mouth there polices they believe in, but they only concentrate in the short run and beating sales which eventually just decreases its sales margin. With the coming quarter earnings on November 7th, increase in profits, currency volatility and interest cut on October 31st, expect this stock to climb, not considering the fact that it has hit its 52 week low and rebounded. Long term and short investors will drive this stock back to its original and beyond. Toyotas sales are higher then it�s previous year quarter even with the housing situation a strong earnings report exist. Analyst $180 target price is one that will be reached within a matter of time. If you take out the deliberation of the sub-prime mortgages housing problem, months back. You will see that this stock formerly should had been around 140 and increasing. With the possibility of future Dividends coming, TM will drive up to new highs. There are no reasons why you should consider shorting TM. It�s absolutely outrages if you take the allocated risk into consideration. The housing problem, has led this Toyota down in there first place and not its performance! Short-time investors all bailed out at that time. And now are gaining confidence and are reinvesting in this stock.
A STRONG BUY INDEED