In the last 30 days, Toyota has recalled more cars (9 million) than it sold in the last three years.  Industry analysts are deeming this a once-in-a-lifetime opportunity for America’s domestic automakers to reverse their declining market share and reestablish themselves as industry leaders.  The obvious question on everyone’s minds: can they do it?

Figures just published on Automotive News show that both Ford and GM are out performing Toyota and expanding their market share.  

Ford is showing unprecedented growth with a 43% boost in year-over-year sales while GM is moving in the right direction with 12% increase from last year.  For the first time in almost a decade Toyota is showing a decline (9%) in year-over-year sales volume.

Although these most recent sales figures suggest and Ford and GM are moving in the right direction, the future is still very unclear.  Toyota has temporarily stopped selling approximately 57% of its US models, but as soon as the current recall gets cleared up, they will undoubtedly be back on track and working hard to reprove their worth.

So how do Ford and GM take full advantage of their current upturn in fate?  Industry analysts charge that domestic automakers need to beat Toyota (and Honda) at their own game: by building forward-looking cars with high mileage, attractive features, and outstanding quality.

Do you think that Ford and GM have what it takes to continue growing after Toyota completes this historic recall?

Source: [HBS Working Knowledge]