Toyoda, Toyota most powerful in the auto world

Toyota Motor Corporation president Akio Toyoda has two more reasons to smile, as Forbes ranked him the auto world’s most powerful person and 34th in the overall list, even higher than Japanese Prime Minister Shinzo Abe. The Toyota brand is ranked most valuable in the automotive world, worth $31.3 billion.

MANILA, Philippines–Who is the most powerful in the automotive world? Forbes magazine has released its list of the world’s most powerful people. The list includes elected politicians, dictators, religious leaders and businessmen. The ranking takes into account a person’s power over people, such as employees and financial resources. Listing the 72 who rule the Earth’s 7.2 billion people, the ranking indicates the top 0.000001 percent of the population. For CEOs, Forbes measures the company’s revenues and market value as part of its ranking.

The most powerful person in the automotive world is Toyota Motor Corp. President Akio Toyoda, ranked at No. 34. The head of the world’s largest automaker, Toyoda is the grandson of the company’s founder. He has steered the company back to winning over consumers, after massive recalls in the United States in 2010. The giant automaker is leading in the United States, Japan and Southeast Asia, but still has paltry market share in Europe and China. Toyota has been a proponent of gasoline-electric hybrid but has not gone into pure electric vehicles. The company is instead starting production of hydrogen fuel-cell vehicles.

Surprisingly, the next automotive boss on the list is Tesla Motors’ Elon Musk, at No. 52. The California-based billionaire has challenged the premium car market with Tesla Motors’ lineup of all-electric vehicles. Tesla has notably outsold Lexus, Mercedes-Benz and BMW in California. Dubbed as a technology company that produces cars, Tesla has a market value 60 percent that of General Motors. Musk is putting up a $5-billion “gigafactory” to produce battery packs for as many as 500,000 cars by 2020, in preparation for expanding Tesla’s production capacity. He has opened up Tesla’s patents, allowing other manufacturers to use the technology to advance the electric car category. Musk has challenged the automotive establishment by not selling through a car dealer system, as he wants Tesla to sell directly to customers.

Volkswagen’s Martin Winterkorn, at No. 58, leads Europe’s largest carmaker, with a target of 10 million auto sales in 2014. The VW group maintains a large stable of brands, from mainstream to luxury, among them Audi, Porsche, Lamborghini, and Bugatti. According to Forbes, Winterkorn urged European regulators to give automakers more time to develop fuel-efficient cars. He plans to make VW the biggest electric carmaker in the world and put 1 million electric vehicles on the road by 2020.

Mary Barra is the first female CEO of General Motors (and the first woman at the head of any of the eight biggest automakers) is listed at No. 62, just ahead of Japanese Prime Minister Shinzo Abe. She has weathered the storm of at least 21 deaths caused by faulty ignition switches. GM is profitable in North America and is targeting profits from its European operations by 2016.

Google cofounders Sergey Brin and Larry Page are at No. 9. The company’s maps applications and Waze navigation system have changed the driving habits of millions. Google has strong designs on an autopilot system for cars, showing off a prototype of its self-driving car with a friendly cartoon-character face.

Most valuable auto brands

While dollars and employees are easy to quantify, the value of a brand is more tenuous. Nevertheless, a brand name is valuable especially to automotive companies. It is the badge that consumers look for more than anything else, and a strong brand can carry a promise of performance, reliability and retention of value.

For its list of the best brands, Forbes considered only those with a presence in the United States. The publication used earnings before interest and taxes for each brand, and allocated a percentage of earnings to the role brands play in each industry.

Just as Toyoda is the most powerful in the world of cars, Forbes has ranked the Toyota brand as the most valuable in the automotive business. The company is vying with Volkswagen to be the top-selling automobile company. It employs more than 300,000, with sales of $255.64 billion worldwide. The Toyota brand, No. 9 on the overall list and valued at $31.3 billion, stands for reliability, easy maintenance and a high resale value.

BMW ranks close behind at No. 11, with a brand value of $28.8 billion. The brand, formerly known primarily for its rearwheel sport sedans, has branched out into all automotive niches, including SUVs, front-wheel-drive hatchbacks and a minivan, in all but name. The company has recently started a line of electric vehicles, with the i3 city runabout and the i8 sports car.

Archrival Mercedes-Benz is at No. 17. Founded by the inventor of the automobile, the German company carries a full lineup of vehicles, from supercars to delivery trucks. Its name is synonymous with luxury.

Honda is at No. 20. The fiercely independent innovator is strong in passenger cars and crossovers, with its Accord and Civic among the best-selling cars in America. It is reputed to be the more sporty of the Japanese big three, with its rich history in motorsports, particularly Formula One.

Volkswagen luxury brand Audi has successfully carved out its own identity thanks to styling, well-appointed interiors, and its much-vaunted technology. It’s ranked at No. 38.

Ford, at No. 45, has regained its mojo in global markets, proving correct the strategy of focusing on the main Blue Oval brand and disposing of other marques such as Volvo and Land Rover.

Top European automaker Volkswagen is at No. 56 in the list, reflecting its relatively low position in the American market. Being a powerful company in Europe and China, the VW brand is the core of a expansive group that includes sportscar and premium SUV maker Porsche, which is at No. 89.

Chevrolet, the core brand of General Motors is at No. 62. Japan Big Three member Nissan is at No. 68, while the Korean carmakers are represented by Hyundai, No. 71, and Kia, No. 80. Toyota’s luxury brand Lexus is ranked No. 73.

Another automotive-related brand in the Top 100 is No. 66, Shell. The company that already plays a strong part in many automotive entertainment devices, Apple, is at No. 1 on the list, with a $124.2-billion brand value. Apple recently unveiled its Car Play automotive interface, allowing its ubiquitous iPhones to function as the center of a car’s infotainment system.