While the faintest signs of economic turnaround have Detroit going back to optimistic prognosis mode, Toyota’s new boss isn’t ready to be caught guessing. Automotive News [sub] reports that Akio Toyoda is forecasting losses through March 2010, saying “we want to do everything possible to avoid a third consecutive year of losses.” Toyoda’s goal? Profitability using only 70 percent of his firm’s production capacity. Which means no plant shutdowns are planned. Keep breathing, San Antonio. Emphasizing the conservative approach is Toyota’s forecast of an $8.8 billion loss through March 2010. Analysts expect the loss to be closer to $5 billion, says AN. More autonomy for US operations and an emphasis on regionally marketed products are also major components of Toyoda’s revamp of the world’s largest automaker.
Under-promise, over deliver. Best strategy for a public company. It never hurts to be conservative when you have your own (alt-spelled) name on the building.
I have to wonder if NUMMI will make up a significant portion of the un-used 30% of capacity.
A fellow had just been hired as the new CEO of a large corporation. The CEO who was stepping down met with him privately and presented him with three numbered envelopes. “Open one of these if you run up against a problem you don’t think you can solve,” he said.
Things went along pretty smoothly, but six months later, sales took a downturn and the CEO was really catching a lot of heat. About at his wit’s end, he remembered the envelopes. He went to his drawer and took out the first envelope. The message read, “Blame your predecessor.”
The new CEO called a press conference and tactfully laid the blame at the feet of the previous CEO. Satisfied with his comments, the press – and Wall Street – responded positively, sales began to pick up and the problem was soon behind him.
About a year later, the company was again experiencing a slight dip in sales, combined with serious product problems. Having learned from his previous experience, the CEO quickly opened the second envelope. The message read, “Reorganize.”
This he did, and the company quickly rebounded.
After several consecutive profitable quarters, the company once again fell on difficult times. The CEO went to his office, closed the door and opened the third envelope. The message said, “Prepare three envelopes.”
Toyota’s CEO also voluntarily took a 30% paycut for the performance. Completely opposite as to how Detroit Automakers CEOs still rack in substantially more money than their transplant rivals and their pay doesn’t change even when they run the company into bankruptcy.
This is the guy in charge of toyota? Hm. No wonder their vehicles have an undeniable bland cast about their styling.. just look at him. His expression instantly reminds me of a futurama character, president of the neutral planet.. “I have no strong feelings one way or the other.”
Bland.. isn’t necessarily bad, though. Just.. safe.
Just don’t let the bean counters cut any more quality. Toyota’s latest interiors are dangerously close to the level of garbage Nissan was using early in their recovery starting with the ’02 Altima. The Altima was fun to drive, so its crap interior was somewhat forgivable. The Camry is not. If it gets much worse, customers will start jumping ship for the Sonata.
I don’t think Honda and Toyota can fend off Hyundai. Honda could, but sadly, I don’t think they will.
The Toyoda lad has everything needed to settle placidly his facial features upon the mount known as Rushmore.