On this day of change, Toyota is returning to its roots, announcing the appointment of Akio Toyoda as its new President. Toyoda will inherit his grandfather’s firm from Katsuaki Watanabe, just as Toyota is facing its greatest challenges in years. Even Watanabe recognizes the need for change, telling the Wall Street Journal “times have changed completely and … it really requires very bold reform and something that is outside of the box.” And Toyoda hopes to reach back to the foundational principles his grandfather endowed to his firm, while injecting a relatively youthful perspective (Toyoda is 52 years old). “I will go back to the basics of the foundation of the company,” says Toyoda. “But at the same time I am not bound by past history. I intend to exercise as much boldness as possible in pushing ahead with the reforms.” Though a Toyoda hasn’t led the firm since 1995, Toyota also hasn’t lost money since it was founded. To fight the tide of bad news, Reuters reports that Toyota has announced further production cuts. Domestic Japanese production between February and April will be cut in half compared to last year, with plans for only 9k units of production. This will include an 11 day furlough at 11 of its 12 Japanese plants.
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How do you reform the most successful car company in the world? Everyone is trying to copy the Toyota Production System. What is Toyoda-san going to copy?
Continuous improvement. Never resting on laurels. The company is showing brilliance even in its failure.
What is Toyoda-san going to copy?
Chris Bangle
Fun fact: the name, Toyoda means “abundant rice fields.” To use it was deemed bad marketing, so a contest was held to name the firm…
What is Toyoda-san going to copy?
Chris Bangle
While I would hope that another role model could be identified, yes, Toyotas (and Lexus and Scion) all could use a dose of style. As I prescribed for Honda earlier, Pininfarina could use a white knight. Imagine a Camry designed with Italian sensibilities.
Does Toyota like being portrayed as a maker of mobile appliances? I don’t think so, which is why they should acquire Lotus from their Malaysian masters. There is already an engine supply relationship. Lotus engineers could give Toyota engineers a few lessons in automotive dynamics –and perhaps in return give Lotus a back-door entry back into Formula One. (Anyone else miss the black-and-gold John Player Special livery?)
I loathed Toyota, actually, so I wish they do not listen to me.
According to an article I read a while back, they lost 4% last year in global car sales. Seems like a good reason to change those at the top.
What would happen if the debt2.45 did that?
Further evidense that all the GM fanboiz predictions of Toyota’s downfall will prove fruitless.
They have problems, but they address them and take action. Don’t look for the new numero uno to slack off anytime soon.
I sure hope Akio Toyoda can put some excitement into their designs, the enthusiast world could use it.
Bunter
@jolo- I think we can extend a bit of patience for the managers for the most successful car company ever. It is not like they are useless US car companies who keep the same execs for decades while slidiing further in oblivion.
I think you will see some decontented, cheaper back to basic econoboxes appearing for a bit. Despite all the doom and gloom, by the time you design new cars for the current economy, the situation will have changed. Rather, they can just bring over some foreign models to shore up the bottom, slow down development in the yuppy segment, and basically ride out the storm.
For example, instead of aiming high with enthusiast cars like the GT-R which is a lovely halo car, but I can’t imagine making Nissan much money, they could bring back an AE86 style car at a low price and sell volume.
The Japanese equivalent to Gm!
I love it!
And the ‘spin’ goes rolling on….
‘They’ have lost focus on thier reason for being
so successful.
Making cheap daily drivers for parents to buy for their kids because they were bulletproof.
Now we ‘lucky’ Americans get everything but that!
and combined with the most UN-respected dealers.
Sure sounds like GM to me…
Maybe they’ll follow the Chrysler example and put gas guzzling Hemis and lousy transmissions in everything possible.
That sure went well.
Seriously, why can’t US automakers ever show this kind of honest evaluation insted of just saying they’ve improved?
@ James2:
Actually, I think you’re on to something. Maybe not a Camry, though. Too pedestrian, in my opinion. But perhaps Pininfarina could design a sleek drop-top Lexus halo car to replace the long-in-tooth SC430?
They already copy Bangle. Just pray they don’t start taking design cues from the blind designer for Acura.
Anyone else miss the black-and-gold John Player Special livery?
Yes I do but it would never happen. First, JPS is a cigarette brand produced by Imperial and BAT (We know how well BAT did in F1 – fitting their team as Honda just pulled out) and cigarette adverts are banned in Europe. Only the biggest producers hung around for the Middle East market.
Lotus could come back though. They would be a welcome addition in these dwindling grids.
Not many people know but Toyota’s roots are in making textile machinery. I guess a little bit of the original manufacturing genes remain in every car company. Toyota is indeed reliable, gets from point A to point B, and does it in the most boring manner possible, just like … well, a sewing machine. BMW was forced to make car engines instead of airplane engines after the First World War. Because of that, as Jamal Wallace put it: It’s not just a car … Fuji Heavy Industries made bombers before making the Subaru, and we all heard about the Mitsubishi Zero, a plane that outclassed any allied fighter at the beginning of the Second World War. Anybody surprised by the sportiness of a Saab needs to think about the fighter planes – the company’s original product. So, how about them roots, Toyota ?
PS I still can’t figure the effect of the cork manufacturing genes in Mazda …