Over the past decade Toyota has grown to catch up and then overtake General Motors as the world’s leading automotive manufacturer.

This short video explains how this remarkable gain can be understood in terms of the self-reinforcing competitive advantage that is generated by the Escher Cycle.

The second largest automotive manufacturer is now the Volkswagen group, and this company runs a similar cycle:

• manufacturing expertise and economies of scale are leveraged across brands (for example in platforms and components and assembly lines), while
• innovations from the Audi, Porsche, Bugatti, Lamborghini, Bentley, and Passat marques are leveraged into Volkswagen, SEAT, and Škoda vehicles.