Toyota Prez Sez "GM Wonderful Company"

TOKYO, Oct 21, 2003; Chang-Ran Kim writing for Reuters reported that Toyota Motor President Fujio Cho, known as a champion of modesty, called General Motors Corp a "wonderful" company on Tuesday and dismissed suggestions the Japanese auto maker was trying to overtake its bigger rival.

Toyota Motor Corp , the world's No.3 auto maker by sales volume after GM and Ford Motor Co, has set a target of boosting its global market share to 15 percent some time in the next decade from a little over 10 percent now, which would likely put it ahead of GM.

"We honestly don't intend to and we're not aiming to overtake GM," Cho told an industry conference in Tokyo, also attended separately by top executives at GM, Ford and other big auto makers.

Toyota's rapid growth, especially in the key U.S. market at the expense of locals, has been further highlighted recently by data showing it outsold Chrysler -- one of Detroit's 'Big Three' auto makers along with Ford and GM -- in the United States in August for the first time.

"For us, GM and the 'Big Three' have always been a presence beyond our reach, way beyond the clouds in the sky, and now we feel we've finally reached a position where we can see them somewhere in the distance ahead," said Cho, who is famously modest, perhaps reflecting the company's motto, "continous improvement".

But Cho's characterisation appears a stretch even for Toyota, which is by far the most profitable and cash-rich auto maker in the world, with $8.6 billion in net profit last year.

Toyota is also an undisputed leader by stock value.

Its market capitalisation is more than $110 billion, compared with GM's $24 billion and more than the combined values of GM, Ford and DaimlerChrysler.

And last week, GM said its third-quarter earnings from its global automotive business fell 91 percent to $34 million as its North American auto business earned 76 percent less than last year, hurt by a production fall and a rise in consumer incentives.

Its overall earnings improved to a $425 million net profit from an $804 million loss last year, but only helped by the strength of its finance arm.

Still, asked what figure he admired most in the global auto industry, Cho singled out GM as a company, commending it for remaining a powerful company after so many years.

"We have a long history of working together with GM in America, and although we have no capital alliance with it, I think it's a wonderful company," Cho said.

"Keeping that size and scale for as long as it has is truly a remarkable feat."

Toyota and GM have a joint venture in Freemont, California, known as NUMMI, or New United Motor Manufacturing Inc, which was founded in 1984 and makes cars and trucks like the Toyota Tacoma, Toyota Corolla and GM's Pontiac Vibe.