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Auto on Info  July 2005

Toyota and BMW Among World's 20 Most Innovative Companies; Toyota, Mercedes-Benz, BMW, and Honda Brand Names Among World's 20 Most Valuable

By James B. Bleeker

Per Business Week's August 1, 2005, Special Report issue, Toyota Motor Corporation and BMW AG placed 14th and 20th, respectively, in the list of the "Top 20 Innovative Companies in the World." No other auto manufacturer made the list.

The position in the list of the world's twenty most innovative companies is based on frequency of selection in Boston Consulting Group's 2005 poll of 940 senior executives living in 68 countries.

Also per Business Week's August 1, 2005, Special Report issue, the Toyota, Mercedes-Benz, BMW, and Honda brand names were judged to be among the world's twenty most valuable brand names. On this list, the Toyota brand occupied the 9th position, the Mercedes-Benz brand - the 11th position, the BMW brand - the 16th position, and the Honda brand - the 19th position.

The position of the brands is based on the percentage of the companies earnings that can be attributed to the brand name, i.e., revenues minus operating costs, taxes, and capital amortization, with negative adjustment for patents held and management strengths and with credit for "market leadership," earnings stability, and global reach, per Business Week. More briefly, position is based on an international reputation for quality.

Note that by Table I and Table I-MVRP, the reputations of Mercedes-Benz and BMW may have outlived reality.

Source for innovation standing: "Top 20 Innovative Companies in the World," Business Week, August 1, 2005, p. 64

Source for brand name value: "The Top 100 Brands, " Business Week, August 1, 2005, p. 90

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Mini-Survey No. 55, "A Lexus Owner Satisfaction Poll with Enquiries into Lexus Durability"
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Mini-Survey No. 58, "A Toyota Owner Survey with Enquiries into Reliability Importance"
Mini-Survey No. 62, "How Would You Characterize GM's Brand Names?"
Mini-Survey No. 66, "General Motors Travails and Prospects"

 

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