Toyota President Katsuaki Watanabe has once again acknowledged ToMoCo's recent quality issues. The AP reports that Watanabe attributes the company's product-related failures to its rapid rise to global dominance. The growth has taken its toll in various areas, ranging from development and design to production, suppliers and maintenance. Watanabe says time pressures and the shortage of experts has exacerbated their quality control problems. What's more Watanabe admitted that Toyota is suffering from some of the symptoms of "big company disease:" arrogance born from success. Putting the pro in proactive, Toyota's CEO said some unspecified products are being delayed to ensure the "total quality" on which Toyota's reputation depends. The automaker is going over every problem, "tracking root causes, analyzing and coming up with ways to prevent a recurrence."
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Putting the pro in proactive, Toyota’s CEO said some unspecified products are being delayed to ensure the “total quality” on which Toyota’s reputation depends. The automaker is going over every problem, “tracking root causes, analyzing and coming up with ways to prevent a recurrence.”
They did this with the Corolla and to what end?
Well, acknowledging the issue, delaying product and working the fundamentals is one way to resolve Q problems.
Okamoto Watanabe could have hired Bob Lutz and directed him to say, “What’s your problem? We’re just as good as anybody else. Stop whining and buy our frickin’ cars, already.” Lutz is pretty good at that.
Why don’t they go and look at their old cars?? U know the ones that people actually have driven for 70-80k miles?? Look at how the seats wear, how the dash looks after 4-5 years in the hot summer sun, or how the rubber holds up when you close the driver’s door. Look at how the rear view mirror holds up at 100k. By making that better, you make a better car from the beginning. I think the domestics would learn a lot from that too!
I can’t believe Watanabe said that Toyota was suffering from “big company disease”. I’ve been a bit skeptical as to whether Toyota was taking their quality problems seriously, or whether everyone was just giving them the benefit of the doubt and a free pass. But that’s a stunning admission from a higher-up.
I have a lot of respect for a guy who can admit that. Now I want to see how they act on the admission and what the results are.
Kudos to this Toyota exec for publicly addressing an issue. I’d venture to guess Watanabe even feels somewhat woeful for the recent issues. It’s the cultural difference.
The leaders of the “big-3” would spin it faster than a dreidel during Hanukah…or worse yet, ignore it.
Kind of goes back to the accountability thing.
DT
There’s nothing I love better than bigwigs admitting shortcomings. I’m sick of hearing millionaire jerks talk around problems and misleading the public with full knowledge that their product is inferior. I hope Toyota can turn this quality problem around, and then I hope Ford and GM look at what they do and apply the same honest, quality-focused principles to their production. The chances of the latter happening are sitting at about 5% I reckon…
Talk is cheap Watanabe-san.
The fact remains that Mother Toyota has dropped the quality ball. Honestly, I cannot think of a single Toyota product that I can recommend at present. Consider how they ruined the Scion Box and the Corolla. Look at their emphasis on giant pick-ups and SUVs. The Prius you say? Don’t get me started. Toyota has built their reputation on high quality white-bread transportation appliances which possess no character whatsoever. Now they don’t even have the quality.
Toyota NA is smart enough to understand that they are still competiting in a market where many people still refer to Japanese people as “JAPS”.
They know that can not get too arrogant in the USA without facing a backlash. The only true strength they have in foriegn markets that already have indeginous automakers is to make better products than the home teams.
This is their philosphy on business and it has served them well so far. It is also very important to ACCEPT the fact that the other makers are making betters cars today. A Fusion and a Malibu are more than merely credible competition for Today’s Camry. In recent years Toyota relaxed when other makers were on the ball, namely Nissan. All one needs to do is checkout the current Maxima and Avalon. The current Avalon has a very Towncar feel to it. while the Maxima has seen a easily identifiable improvemet in interior quality.
Also and not for nothing but even being a Toyota fan I can admit that looking at Toyota current lineup in the USA that Toyota F*&ked up big time just like GM and Ford. Just in time for the gas crisis that all automakers should have seen coming Toyota has increased the size of just about every vehicle in its lineup to “American” sized proportions. RAV4, Highlander, Sequioa, Tundra have all grown and no longer offer an smaller (right sized) alternative to the domestics.
As I like to say, you know you’re hearing the truth when it goes against the speaker’s best interests. Hooray for the truth, hooray for Toyota.
86er:
They did this with the Corolla and to what end?
If we don’t hear about any problems with the new Corolla then Toyota will have certainly done it’s job. Most owners of the new Corolla are saying fit and finish is improved over the old one.
CarShark:
I can’t believe Watanabe said that Toyota was suffering from “big company disease”. I’ve been a bit skeptical as to whether Toyota was taking their quality problems seriously, or whether everyone was just giving them the benefit of the doubt and a free pass. But that’s a stunning admission from a higher-up.
I can’t believe some of you are surprised by this. Toyota has *always* acted like this. Toyota often admits faults and problems and is willing to learn from their mistakes. It’s been that way for a long time now at Toyota.
Of course, compared to any other automakers, this is indeed quite shocking.
Scott Baysinger:
Talk is cheap Watanabe-san.
The fact remains that Mother Toyota has dropped the quality ball. Honestly, I cannot think of a single Toyota product that I can recommend at present. Consider how they ruined the Scion Box and the Corolla. Look at their emphasis on giant pick-ups and SUVs. The Prius you say? Don’t get me started. Toyota has built their reputation on high quality white-bread transportation appliances which possess no character whatsoever. Now they don’t even have the quality.
You’re right, talk is cheap. Where is your proof that Toyota quality is bad? In case you haven’t noticed, Toyota has been making a *real* effort to improve quality.
Emphasis on giant trucks and SUVs? Bit of an exaggeration don’t you think? Toyota has only ONE “giant truck” (the Tundra) and only one “giant SUV” (Sequoia). The Land Cruiser hardly classifies as a “giant”, same with the 4Runner and FJ Cruiser. The Highlander, Rav 4, and Sienna are all built on car platforms, and the Tacoma is a midsize truck.
We can also look at Toyota’s sales if you want to talk emphasis. Toyota’s car and crossovers make up the majority of it’s sales, not it’s trucks. Toyota’s top seller is a car. Ford’s top seller is a truck, and GM’s top seller is a truck.
Once again, where’s the proof “they have no quality”? They stumbled a bit quality-wise over the past few years, but they’re well on their way to correcting that.
Most owners of the new Corolla are saying fit and finish is improved over the old one.
How would you possibly have any data to establish that?
I doubt that such survey data exists (the car just came out, and the JD Power survey won’t be released for quite some time). And in any case, most owners would not be in a position to make qualitative comparisons between the fit and finish of the models.
The “victim of our own success” argument is as old as the earth. And I can assure you that any corporate CEO that makes statements like Mr. Watanabe’s, however sincere he may be, does so with neither contrition nor spontaneity.
-Matt
It’s certainly not an argument any of the big 3 could make.
Johnson: “…Emphasis on giant trucks and SUVs? Bit of an exaggeration don’t you think? Toyota has only ONE “giant truck” (the Tundra) and only one “giant SUV” (Sequoia). The Land Cruiser hardly classifies as a “giant”, same with the 4Runner and FJ Cruiser. The Highlander, Rav 4, and Sienna are all built on car platforms, and the Tacoma is a midsize truck…”
Based on your logic, Chrysler has even less emphasis on “giant trucks and SUV’s”. They have one full size truck, and no full size SUV’s. The Commander is just a stretched Grand Chrerokee which is a mid size, and the Durango is bigger now than a mid size but still not as big as a Yukahoe/Escalade/Suburban, Expedition, Sequoia, or Armada. Everything else they have is smaller.
I agree with the previous commentor that they “Americanized” everything in their line up just as gas became expensive. If they didn’t have their home market in Japan they would not have been able to come up with a Yaris, or Tc, or Xb. Wait, they screwed up the Xb too.
I feel absurd saying “kudos to Toyota”, since they’re only doing what any responsible person or company would do – owing up to problems, looking for solutions and trying to do better in the future. But most of their competitors either deny the existence of problems (“our cars are just as good as our competitors, the dumb consumer has been hoodwinked”), or they blame some exogenous factor (“it’s the weak yen”, “it’s the weak dollar”, “it’s CAFE”, “it’s unions”, “it’s safety standards”, “it’s gas prices”, etc.). This looks positively upstanding by comparison. Maybe if GM and Ford stop whining and start emulating the big dog, they will start to climb their way out the hole they’re in.
Bancho :It’s certainly not an argument any of the big 3 could make.
Uh, by success I think he is refering to sales and market share. Last time I checked, the big 3 at one point were very successful in the fact that they had almost all of the US market share.
windswords :
I would agree with your first para. Chrysler isn’t truck focused. They lack any sort of focus at all. I think Johnson’s point was that while Toyota sells very Americanized truck products, their main profit comes from their car lineup and its derivatives.
On the zing at the xB, the only screwup was calling it the xB. It should have earned a completely new name as the xD did. That would also have left room in Scions lineup to bring in the Aygo as the new xA and that little square Daihatsu (which is the Japanese market xB successor) as the updated xB.
(I’m biased as the new xB goes as I’m an owner. It’s a great vehicle in its own right and deserved a new name. Maybe Toyota could stage a recall and send me a new set of badges and an owners manual with an updated name.)
crc :
I agree but that’s in the past and they still haven’t stood up and admitted their failings like this.
kazoomaloo : “I hope Toyota can turn this quality problem around, and then I hope Ford and GM look at what they do and apply the same honest, quality-focused principles to their production. The chances of the latter happening are sitting at about 5% I reckon”
I have to disagree with your assertion.
Ford has started to drink the quality kool-aid and their product quality has been on a steep rise for the past 3-5 years….they faced the facts and acted This is not a “blip” but has been validated by every company that measures quality including Consumer Reports and JD Power. Consumer Reports now recommends nearly every Ford model as they attain average-above average quality.
Maybe Ford should do a better job getting this story out to inform folks like you—-maybe this will be part of Farley’s new marketing message—it better be ! Shame on him if it isn’t.
If Bob Lutz or Rick Waggoner had said what Watanabe said would anybody here believe them? I know that I wouldn’t.
Lumbergh21 :
Their lack of credibility shouldn’t be an excuse for them not to even try. :)
Talk is cheap Watanabe-san.
The fact remains that Mother Toyota has dropped the quality ball. Honestly, I cannot think of a single Toyota product that I can recommend at present. Consider how they ruined the Scion Box and the Corolla. Look at their emphasis on giant pick-ups and SUVs. The Prius you say? Don’t get me started. Toyota has built their reputation on high quality white-bread transportation appliances which possess no character whatsoever. Now they don’t even have the quality.
Totally disagree with you Scott. They haven’t dropped the quality ball or even close. A few spills yes but a few spills does not a General Motors make! I own a Corolla and I can’t wait for my lease to end so as I can get the new one. They never have, don’t now nor likely ever will emphasize big vehicles more so than their small cars. What’s wrong with the Prius? Their cars have as much charactor as anyone elses. Saying that they don’t have quality any more is a broad statement that to me makes no sense. I suppose if you have a dislike of a car company, they can do no good. Kinda like me with GM only it’s not a dislike but an intense loathing. :-)
Yes, of course this is true. Toyota grew too fast in their race to be #1 they lost sight of their roots. Their staff, suppliers, engineers, all pushed to the max.
For the rest of the automotive world these comments should serve notice as Toyota is not messing around.
Pch101:
How would you possibly have any data to establish that?
I doubt that such survey data exists (the car just came out, and the JD Power survey won’t be released for quite some time). And in any case, most owners would not be in a position to make qualitative comparisons between the fit and finish of the models.
What “data”? It’s called observation. Some owners of the new Corolla, who were also owners of the previous gen Corolla say fit and finish has improved. You want objective data? Toyota is using a new laser-guided system for exterior and interior panels that aligns and positions panels exactly where they need to be, ensuring good fit and finish. The Corolla is the first Toyota model to use this new system, and all future Toyota models from now are supposed to use it.
windswords:
Based on your logic, Chrysler has even less emphasis on “giant trucks and SUV’s”. They have one full size truck, and no full size SUV’s. The Commander is just a stretched Grand Chrerokee which is a mid size, and the Durango is bigger now than a mid size but still not as big as a Yukahoe/Escalade/Suburban, Expedition, Sequoia, or Armada. Everything else they have is smaller.
I guess you ignored the fact that Chrysler’s top seller is a truck. Like I said, Toyota’s top seller is a car. In fact, Toyota’s top two sellers are cars. You cannot say the same about any of the American automakers.
What “data”? It’s called observation.
Right. You just made it up, as I suspected.
You should avoid making statements such as “most owners of the new Corolla are saying fit and finish is improved over the old one” when you have absolutely no facts, of any kind, to support that statement.
The fact is that you have no idea what owners are thinking, or whether they even have an opinion about the relative fit-and-finish of various Corolla models. You made that statement because you thought it would make you sound credible to have the public on your side, but it was ultimately untrue.
If you want to say that you like the Corolla, that’s fine, you are entitled to your opinion. But if you want to make assertions about public opinion, then this is another matter entirely, and you will be challenged for making fallacious claims that you cannot back up.
“Toyota has *always* acted like this. Toyota often admits faults and problems and is willing to learn from their mistakes.”
Case in point: when Toyota first entered the US market, it offered a car that didn’t pass muster. Soon it was clear to Toyota (as it had been to American drivers) they weren’t ready to play on this side of the pond. They openly admitted their mistake, they shut down their American operations, and waited until they had developed better products before resuming selling in the US.
Pch101:
The fact is that you have no idea what owners are thinking, or whether they even have an opinion about the relative fit-and-finish of various Corolla models. You made that statement because you thought it would make you sound credible to have the public on your side, but it was ultimately untrue.
If you want to say that you like the Corolla, that’s fine, you are entitled to your opinion. But if you want to make assertions about public opinion, then this is another matter entirely, and you will be challenged for making fallacious claims that you cannot back up.
No, the fact is you are are wildly misinterpreting my comments and jumping to conclusions.
I have not assumed anything with regards to what Corolla owners are thinking. It’s awfully ignorant of you to think so. The comments made about the new Corolla have been on some enthusiast car forums. You may doubt their claims, but please do not attack me for simply stating their opinions. I made nothing up.
It seems you also conveniently ignored the comments I made about Toyota using a new system for exterior and interior panel fit-and-finish. That is no opinion, it is a fact. You can go take a tour of Toyota’s Cambridge plant in Canada to see for yourself.