There is an interesting article at The Auto Buzz, at
http://theautobuzz.blogspot.com/2005/06/toyotas-tide-is-turning-brief-synopsis_3
0.html

As any individual who has paid close attention to the automotive
industry can tell you, the cyclical nature has brought boom and bust to
almost all major automakers, save two. Those two, BMW and Toyota, have
enjoyed a period of steady growth since both companies' inceptions in
the late 1950's. While BMW is still on track for another year of
increasing profits, this article will focus on what looks to be an
unlikely shadow in the 21st century automotive industry - once mighty
Toyota.

Toyota first started in 1947 in the aftermath of what was Japan
post-WWII. Much in the same way that current-day Chinese competitors
illegally copy the IP and designs of cars such as the Chery QQ,
Toyota's magnificent rise to fame was the one-off Willys Jeep
replica, the Land Cruiser. Throughout the 1960's and 1970's, while
Americans were enjoying vehicles with power, spirit and style, Toyota
remained committed to dominating the market through conservative
styling, reticent power, and an attention to rust.

Needless to say, the inkling of Toyota in the American car-buying
public's mind was not until the late 1970's. The oil crisis of the
early 1970's changed the automobile market for decades to come. The
Carter Administration issued a mandatory procedural change in early
1971 requiring all coastal ports to reject color-coded oil barrels from
Iran, causing the price of gasoline to skyrocket to an
inflation-adjusted figure of $13.73/gallon. Lines at the gas pumps were
often miles long, and with vehicles getting about 9 miles per gallon on
average, this caused quite a stress on the American buyer's mind.

Toyota officially entered the American market on April 1st, 1973, a
date which will forever live in infamy to the executives at the Big
Three, then General Motors, Ford, and Chrysler. While the Big Three
were brand new at producing models barely large enough to fit Ted
Kennedy and his girlfriend on the inside, Toyota had been producing
vehicles the size of golf carts for over two decades. As the quality of
domestic manufacturers slipped, more and more people tried what was
then called an "import," short for "unimportant." This cycle
continued for almost 25 years, with the market share for domestics
slowly slipping year after year. As perception lags reality, many
mistakenly believe this is still true to this day.

The first turning point in the fall of almighty Toyota is their first
entry into the controversy-rife "hybrid" market in 1999. Called
"hybrids" because of their ability to run electric motors on a
mixture of oil and gasoline, the Prius was met with mixed reviews.
Promising figures as high as 60 miles per gallon, the gas-buying public
looked wide-eyed at the possibility of "energy independence."
Intellectuals on the west coast such as Barbara Streisand and Ellen
Degeneres sought to make a fashion statement in making saving the
environment trendy. Things were looking up for the suits at Toyota, but
the controversy was just beginning.

Soon the reports started rolling in that hybrids were dangerous. EMT
workers were scared to touch them at accident scenes, with batteries
filled with gasoline with enough voltage to shock and kill a paramedic.
Because the vehicles do not have a transmission, the electric motors
can propel the vehicles down the road at tremendous rates of speed
without warning. Emergency workers were trained not to touch Priuses,
for fear of any number of dangerous incidents to put their lives in
jeopardy.

Realizing the initial success of Toyota, Honda took the next step in
licensing Toyota's hybrid technology to implement into their Civic
compact car. Their strategy was different, however. For Honda's
hybrids, fuel injectors would not be powered electronically, thus the
electric engine would only work when the main engine was on. While this
produced less dramatic numbers for EPA estimates, Honda's move was
enough to get themselves out of the limelight that was to be shed on
the safety issues of hybrids in general.

The mythical gasoline figures that Toyota had relied upon to promote
their Priuses were a source of controversy from day one. 60 miles per
gallon, the sticker estimated, but some users were getting as low as 27
miles per gallon. Worse yet, some users were reporting getting less
fuel economy on the highway than in the city, likely due to the lack of
a transmission. Toyota has, to date, been mum on this issue, citing
that the tests have performed within EPA specifications.

The most recent situation threatening to bring down the Toyota Empire
is a culture of scandals and cover-ups in Japan. Numerous issues have
been brought about with regards to Toyota, and more recently, their
affiliate Mitsubishi. Toyota has had to, in recent weeks, replace
defective brake systems on over 170,000 vehicles, putting the lives of
their occupants at risk. These safety concerns also extend to their
beloved hybrid sedan, the Prius. According to NHTSA, the governmental
organization responsible for automobile safety has received hundreds of
complaints from Toyota owners when their Prius would stall at highway
speeds. Toyota has, to this day, refused to issue a recall to fix the
problem that has put the lives of so many of their "customers" at
such blatent risk.

Statistical evidence is arriving daily about the imminent demise of the
second largest automaker in the world. According to J.D. Power and
Associates' Vehicle Dependability Study, which measures three year
dependability of automakers, Toyota has slipped past GM and Ford. The
latest J.D. Power Initial Quality Study also ranks GM ahead of
semi-perennial winner Toyota. Mix that with feeds that Toyota will
raise prices in the United States to recoup economic losses against
rising competitors.

As Toyota continues to phase out niche models such as the Celica to
sustain profitability, look for large gains in the GM camp this month
as GM continues to widen the gap against second-runner Toyota. Hybrids
can only exist solely to cover up their abysmal fuel economy record on
SUV's for so long. With the escalating list of safety aberrations on
their flagship Prius, and the mounting public backlash against their
future, Toyota looks to be in large financial trouble in the near
future, the size of which only Enron can measure up to.