BAD NEWS: Toyota is seeking to cut cost of parts "or quality"

I *hate* the plastic in the prius. If you look at it, it scratches!

 

Gee, I remember when GM, et al were putting the big squeeze on their suppliers just a few short years ago. Just before the big fall.

Wouldn't it be ironic that in Toyota's quest to catch up to and surpass GM - they suffer the same fate as GM?

Mr. Toyoda said Toyota was "...grasping for salvation," quoting from Jim Collins' book "How the Mighty Fall." Here is a brief overview of the book:

Decline can be avoided. Decline can be detected.
Decline can be reversed.


Amidst the desolate landscape of fallen great companies, Jim Collins began to wonder: How do the mighty fall? Can decline be detected early and avoided? How far can a company fall before the path toward doom becomes inevitable and unshakable? How can companies reverse course?


In How the Mighty Fall, Collins confronts these questions, offering leaders the well-founded hope that they can learn how to stave off decline and, if they find themselves falling, reverse their course. Collins' research project--more than four years in duration--uncovered five step-wise stages of decline:


Stage 1: Hubris Born of Success
Stage 2: Undisciplined Pursuit of More
Stage 3: Denial of Risk and Peril
Stage 4: Grasping for Salvation
Stage 5: Capitulation to Irrelevance or Death


By understanding these stages of decline, leaders can substantially reduce their chances of falling all the way to the bottom.


Great companies can stumble, badly, and recover.


Every institution, no matter how great, is vulnerable to decline. There is no law of nature that the most powerful will inevitably remain at the top. Anyone can fall and most eventually do. But, as Collins' research emphasizes, some companies do indeed recover--in some cases, coming back even stronger--even after having crashed into the depths of Stage 4.


Decline, it turns out, is largely self-inflicted, and the path to recovery lies largely within our own hands. We are not imprisoned by our circumstances, our history, or even our staggering defeats along the way. As long as we never get entirely knocked out of the game, hope always remains. The mighty can fall, but they can often rise again.

 

I hope they remember what happened to Mercedes when they went down a similar route some years back.

 

I'm not sure that using eco plastic is intended to reduce cost. I saw a lot of suppliers at Tokyo Motor Show last month emphasize green and eco-friendliness including as part of manufacturing.

I remember reading about Toyota taking apart horns, figuring out what was inside and how to reduce their cost long ago. http://books.google.com/books?id=JY...ook_result&ct=result&resnum=9&ved=0CCoQ6AEwCA might've been it. Some of the pages around there might be interesting reading. They had a plan in 2000 to parts cost by 30%.

http://www.businessweek.com/magazine/content/05_08/b3921062.htm might've been the article I originally read. It has some of the same info as the above including some of the same charts.

This thread should probably be moved to "Other cars". Or, perhaps there ought to be a sub-forum for general (non-model specific) Toyota news and discussion?

 

I firmly believe that Toyota quality has slipped - badly

My dad had a 1980 Toyota pickup, it was very well built. Like a lot of vehicles back then, they didn't resist rust very well. BTW: there have been recent "customer satisfaction" campaigns regarding rusted Tundra and Tacoma frames

He then bought a 1990 4Runner, which I bought off him in 1997. That thing was also very well assembled. I was raised on a stick, both were stick shifts and when sold had the ORIGINAL clutch (232,000 miles on the HiLux, 345,000 miles on the 4Runner)

My mom bought a 1990 Corolla and sold it in 2000, putting on 248,000 miles with zero issues

I had a lot of naggy little things with my Prius, mostly interior trim stuff. The seats in the 1990 4Runner were light years beyond what my Prius had. Yes, my Prius also had The Stall happen

So far my FJ has been ok. No evidence - yet - of infamous Fender Bulge/cracks, busted paper thin windshield, or exploding rear axle. The passenger door check broke and was replaced under warranty.

Otherwise, the overall quality of my FJ is much better than my Prius was. Better assembled interior, tighter more consistent gaps, even the headlights were properly aimed (My Prius upon delivery, the low beams lit up the tops of trees). Seats are better than the Prius, but sadly deficient compared to that 1990 4Runner

I had some pretty bad issues with my 2000 GMC Sierra. However, co-workers and neighbors report the +2007 appear light years better.

If Toyota sacrifices quality (Which was what created such a loyal customer base to begin with!) in some quest to outsell GM, they shouldn't be surprised if those formerly loyal customers abandon them

 

They can move manufacturing to India or China. No environmental regulations & a workforce that is willing to work for next to nothing. (In India the job market is so bad that college grads will intern with a corporation for no pay in the hopes they will be hired eventually.)

IMO they will probably follow GM's lead by cutting corners & reducing the quality. This will allow the domestics to claim improved quality. Perhaps Toyoda wished to be "big like GM" and one day they will be just like GM.

Toyota, you are only as good as the last car you sold me. Chances are your customer base switched brands to buy your car. Disappoint your customers & you'll find them at your competitor's stores. In 2006 you have the most fuel efficient vehicle in production. In 2009 you're down to 2nd and the competition appears to be increasing.

IMO distinguish yourself by producing quality. People can buy cheap crap anywhere.

 

Wasn't that uncomfortable?