While its competitors stumble and struggle to cut costs and capacity, Toyota Motor Corp. has seemingly had the smoothest ride possible to the top of the industry.
The company raised its sales and profit targets Wednesday, and is now poised to be the No. 1 automaker in terms of vehicles sold worldwide as soon as this year, and could be No. 2 in terms of U.S. sales starting in 2007. It raised its profit outlook for the current fiscal year by about a third Wednesday, and said it is now poised to see a 75 percent improvement in its bottom line in the fiscal year ending March 31.
But experts say that there are some bumps and potholes that could be ahead for Toyota (Charts) in the coming years, especially in the United States, which is now its largest market.
Those experts say it's potential problems are nowhere near as severe as those dogging Detroit's Big Three, but they do pose a risk that the company's seemingly easy growth and bullet-proof reputation.
Toyota has seen better than 8 percent annual growth in U.S. sales the last 10 years, and is poised to complete it third straight year of double-digit growth. Meanwhile, industrywide sales have gained at only slightly better than a 1 percent annual growth rate.
The gains have nearly doubled its U.S. market share in that time, from 8.1 percent in 1997 to 15 percent for the first eight months of this year. But experts say there are a number of factors that might put the brakes on those rapid gains in the coming years
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