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Toyota takes GM to task over dealer network
Mumbai, Sept 04: Toyota Kirloskar has said General Motors India lacks commitment and possesses a poor dealership network, as the Japanese auto giant launches a campaign to hardsell its newly-launched Corolla.
Mumbai, Sept 04: Toyota Kirloskar has said General Motors India lacks commitment and possesses a poor dealership network, as the Japanese auto giant launches a campaign to hardsell its newly-launched Corolla.
Toyota, in a note to all its dealers, has said that the US giant’s Indian subsidiary has “no commitment to produce the latest models in India.” The Opel Astra had old technology, while the Chevrolet Optra has South Korean lineage.
The note also says that GM possesses a poor dealership network. Toyota, in contrast, has high commitment to bring the latest models to India. The Toyota Camry was the best selling car in the US in ’02, while the Corolla is the highest sold model in the world with accumulated sales of about 30m, the note adds.
TKML officials said this was part of an internal marketing and training programme and is a normal practice among car companies when a new model is launched in the same segment. The note is confidential, meant for an internal sales training purposes, TKML officials say.
“We have to update our dealerships/salesmen of the newly-launched products,” says a company spokesperson. GM officials said Chevrolet Optra’s success might have forced competition to resort to badmouthing, which is against business ethics.
The note and the criticism comes when both Toyota and GM are locked in a fierce fight for volumes in the executive segment. The Corolla, which till recently was a fast mover in the executive segment, has been pipped by GM’s Chevrolet Optra for the last two months to the No 1 slot.
G M sold 1,005 Chevrolet Optras in July and 870 units in August, while Toyota sold 980 Corollas in July and 828 in August. The document also says that GM has no successful product launch, while Toyota’s Qualis is a market leader in its segment. It also contains a critique of GM in India. It says that Opel Astra has gone through many quality problems. The model was also dogged by bad quality and poor engineering. All the dealerships of Toyota are equipped with sales, service and spares at the same location, but GM has a poor dealership network, the note adds. Bureau Report
The note also says that GM possesses a poor dealership network. Toyota, in contrast, has high commitment to bring the latest models to India. The Toyota Camry was the best selling car in the US in ’02, while the Corolla is the highest sold model in the world with accumulated sales of about 30m, the note adds.
The note and the criticism comes when both Toyota and GM are locked in a fierce fight for volumes in the executive segment. The Corolla, which till recently was a fast mover in the executive segment, has been pipped by GM’s Chevrolet Optra for the last two months to the No 1 slot.
G M sold 1,005 Chevrolet Optras in July and 870 units in August, while Toyota sold 980 Corollas in July and 828 in August. The document also says that GM has no successful product launch, while Toyota’s Qualis is a market leader in its segment. It also contains a critique of GM in India. It says that Opel Astra has gone through many quality problems. The model was also dogged by bad quality and poor engineering. All the dealerships of Toyota are equipped with sales, service and spares at the same location, but GM has a poor dealership network, the note adds. Bureau Report