Toyoda wonders aloud if Toyota has faltered by following GM's lead
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Toyoda wonders aloud if Toyota has faltered by following GM's lead
During the reign of company President Katsuaki Watanabe, Toyota became the number one automaker in the world, along with amassing $52 billion in cash and marketable securities. That sounds like one of the most amazing runs in the history of the automotive industry, but it's more than a little disappointing to company scion Shoichiro Toyoda.
The 84 year-old Toyoda is apparently the mild-mannered type, but Bloomberg is reporting that he read the riot act to Watanabe and his fellow execs. The news agency's sources say that Toyoda railed Watanabe for being "so anxious to boost sales and profits that he'd let Toyota emulate bankrupt General Motors." Toyoda also reportedly chastised execs for becoming too dependent on large and expensive cars, trucks and SUVs, saying, "customers need to save money."
Toyota may have made $17.7 billion in 2007, but the $4.5 billion it lost in 2008 and the $5.7 billion it expects to shed in 2009 shows that Toyoda may be on to something. If the company is to turn around in the next few years, though, it'll have to come at the hand of another Toyoda. Shoichiro's son Akio takes over as president on Tuesday.
The 84 year-old Toyoda is apparently the mild-mannered type, but Bloomberg is reporting that he read the riot act to Watanabe and his fellow execs. The news agency's sources say that Toyoda railed Watanabe for being "so anxious to boost sales and profits that he'd let Toyota emulate bankrupt General Motors." Toyoda also reportedly chastised execs for becoming too dependent on large and expensive cars, trucks and SUVs, saying, "customers need to save money."
Toyota may have made $17.7 billion in 2007, but the $4.5 billion it lost in 2008 and the $5.7 billion it expects to shed in 2009 shows that Toyoda may be on to something. If the company is to turn around in the next few years, though, it'll have to come at the hand of another Toyoda. Shoichiro's son Akio takes over as president on Tuesday.
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It's annoying reading that article, because I have to pay attention to a specific letter in order to determine whether the subject of several of the sentences is Mr. Toyoda, the founder, or Toyota, the company. 
Motor Trend for sure, but I don't think C&D has a history of pandering to Toyota. Toyotas generally get the "meh, it's a nice appliance, a to b, whatever" sort of review from C&D.
Motor Trend for sure, but I don't think C&D has a history of pandering to Toyota. Toyotas generally get the "meh, it's a nice appliance, a to b, whatever" sort of review from C&D.
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For the most part I think he is right. Hindsight is always 20/20 but they did try to match GM for the truck based product lines. Although it would be wrong to say Toy lost focus in their hybrid, subcompact and sedan lines it seems that maybe they tried to grow even faster than they already were.
I think what isn't being stated here and I feel has a significant part of the decision making process was the desire to attain the World's #1 automaker status. If you look back at decisions make and markets entered with that goal in mind then their current business model makes more sense.
Even still when Akio Toyoda takes over he'll inherit a very healthy corp. that only needs minor tweaks to stay on top. Nothing like GM's current situation.
I think what isn't being stated here and I feel has a significant part of the decision making process was the desire to attain the World's #1 automaker status. If you look back at decisions make and markets entered with that goal in mind then their current business model makes more sense.
Even still when Akio Toyoda takes over he'll inherit a very healthy corp. that only needs minor tweaks to stay on top. Nothing like GM's current situation.
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From: Roseville, MI, USA
One may not LIKE Toyota the carmaker, or Toyoda the executive, but you have GOT to respect the guys.
They tell it like it is....GM's executives on the other hand don't. You won't hear a story about Fritz standing up and slamming somebody in the company that cost the company billions. No, instead, Fritz defended Wagoner.
Enough of that. I guess all I'm sayin' is they've got *****.
They tell it like it is....GM's executives on the other hand don't. You won't hear a story about Fritz standing up and slamming somebody in the company that cost the company billions. No, instead, Fritz defended Wagoner.
Enough of that. I guess all I'm sayin' is they've got *****.
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From: Melbourne, Australia
I'm not sure anybody could blame the outgoing president at Toyota for the recent poor financial results. As somebody said, hindsight is a wonderful thing. If I were president of Toyota, I doubt I would have done anything differently.
I guess the message is that Toyota couldn't slam the brakes quickly enough to offset the 'unexpected' GFC... but all the larger automakers are guilty of the same result... except Hyundai. But Hyundai essentially make cheap cars whereas Toyota are a league or two above that level, hence their sales downturn.
I guess the message is that Toyota couldn't slam the brakes quickly enough to offset the 'unexpected' GFC... but all the larger automakers are guilty of the same result... except Hyundai. But Hyundai essentially make cheap cars whereas Toyota are a league or two above that level, hence their sales downturn.
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It took the global financial crisis in order for Toyota to lose any money. And at least here they seem to want to address even those issues. Can't fault them for reacting quickly unlike some other companies who were on auto-pilot.
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From: Jersey Shore
Wait wait wait...Toyota relied on trucks and SUV's? I thought that was GM? You are telling me that Toyota makes trucks and SUV's? Since when? I thought it was only hybrids and cars that people want to buy?
Im confused...
Im confused...
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From: oshawa,ontario,canada
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Who wants a Toyota that isn't a reliable fuel-sipping appliance? Nobody.
Big Als comment accurately reflects how badly they fumbled since they invested a ton in vehicles most people don't even know they sell.
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