Akio Toyoda says Toyota is in fourth stage of collapse (of five)--The Economist

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by kgall, Dec 17, 2009.

  1. kgall

    kgall Active Member

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    This weeks Economist's cover has the headline Toyota Slips Up and a very funny picture of a banana on wheels. The articles pp. 11, 75-77, state that Akio Toyoda, TMC president, says that Toyota is in the fourth (grasping for salvation) of Jim Collins' five stages of corporate decline (the fifth being capitulation to irrelevance or death).
    The Economist is usually leading the knowledge curve on this sort of stuff. I wish I could include a link, but I don't know how to do that with this magazine--I only use the paper, not the on-line edition. Maybe some one else could provide it.

    Prius is mentioned as one of only a few bright spots in the company--and the expansion of the Prius brand as one way forward.

    However, the only real evidence of corporate decline they present are
    1. Truely huge losses in the recession (bigger than GM's in the months leading up to bankruptcy);
    2. Stagnant or declining market share everywhere except Japan;
    3. A feeling that Toyota cars are boring compared to other Japanese auto giants.

    These are real problems, but I'm not sure that they explain the panic Toyoda seems to be communicating, and the Economist picks up on. First, they have enough cash to weather tough times. Second, everywhere but China the market share problem doesn't seem all that bad. It follows a long period in growth of market share, so it's not surprising. Finally, Toyota has for a couple of decades been known as the car company that sells to readers of Consumer Reports, not Road and Track. So for a lot of folks, boringness has never been a problem.

    Any thoughts on what's going on here?
     
    #1 kgall, Dec 17, 2009
  2. DeadPhish

    DeadPhish Senior Member

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    This speech took place several months ago. It's very old news that the Economist is rehashing as a year end summary. Some truth to be sure.

    But the general background of the speech was omitted. This was the new CEO's first speech after he took over several months ago. I read it as a sober assessment from the top about the performance of the managers underneath him. In other words,

    "I'm in charge and I want change...NOW! If you have a different viewpoint the door is over there."

    IMO the job of the CEO is to be dissatisfied with everything, all the time. More can be down and results can be better, all the time.
     
    #2 DeadPhish, Dec 17, 2009
  3. a_gray_prius

    a_gray_prius Rare Non-Old-Blowhard Priuschat Member

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    Market share really isn't a very good indicator of performance - it's kind of a lagging measure. You wouldn't want to make changes to your (very large) organization only after you have a very big problem. Also, they killed off their exciting cars - no more Celica, no more Supra, no more MR2.

    For example, their effect on Subaru, which they bought a stake in, has been noticeable in the recent versions of the WRX - softened, heavier, more comfortable versions of the cars they once were (the newest model has remedied this situation somewhat). The result of that "Americanization" has been a plunge in sales, especially to car enthusiasts.
     
    #3 a_gray_prius, Dec 18, 2009
  4. Midpack

    Midpack Member

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    Toyota: Losing its shine | The Economist
     
    #4 Midpack, Dec 18, 2009
    1 person likes this.
  5. Rybold

    Rybold globally warmed member

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    This only means one thing ... :D ... they better push forward the release date of the PHV Prius if they want to recapture and re-ignite the hearts of consumers around the world. :D

    *I don't consider the graph in the article to be accurate in Dec.2009. GM is pretty much dead by comparison to Toyota.

    .

    .
     
    #5 Rybold, Dec 18, 2009
  6. Rybold

    Rybold globally warmed member

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    Having read the whole article now, I think Mr. Toyoda is spot on. A true leader. He sees the trends shifting right now before the results become obvious, and he is developing a plan, with every intention to reverse the commencing trend shift.
    Excellent article. And, I am proud that Mr. Toyoda is the man in charge.

    Mr. Toyoda's plan: Make cars that look better than the competition, are more fun to drive than the competition, and with all models available in HSD form. Bingo!
     
    #6 Rybold, Dec 19, 2009
  7. Tideland Prius

    Tideland Prius Moderator of the North
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    Very good. Lots of us youngin's grew up with the Japanese sports car era - Suprea, Celica, Paseo, MX-5, MX-7, RX-7, 300ZX, 240SX, 100NX... These are the guys that could potentially move up the ranks from sports cars to family cars when the time comes. However, the issue arises when there's no sports car to attract them to the brand in the first place.

    By no means am I saying that the Camry should become a sports sedan. However, if would be nice if that SE or Sport models were more than merely a few extra body parts and a black interior. (See Corolla S/XRS, RAV4 Sport, Camry SE, Yaris RS)

    I realise it may be a little more costly to have a car tuned for many many hours just fr that one model (as they still have to tune a car for the rest of the lineup) but initial impressions of those who drove the Sienna SE were fairly positive. Some wished the entire Sienna lineup drove like the SE because it felt more car-like and the steering was more direct.
     
    #7 Tideland Prius, Dec 19, 2009
  8. The Electric Me

    The Electric Me Go Speed Go!

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    It's a global recession. All automakers are struggling right now. I think Toyota is just being wise and trying to stay humble. Unfortunately for Toyota I think they are at the top of the mountain, at a time when the mountain isn't really that high.

    Given the challenges this time presents, Toyota cannot afford to be anything but humble and hungry. The next decade as the previous will continue to offer competiton from Honda, Volkswagen, Hyundai and Ford, GM and others. Statements like Toyota is in the 4th stage of collapse are eye catching..attention getting but I don't really believe Toyota is struggling any more than all big business is right now. Automakers more than perhaps other businesses are floating on the tide of world wide economic conditions. It's simple, when people can afford or feel they can afford to buy cars, they do, when they don't, they don't. To remain positioned to take advantage of a global recovery, Toyota must recognize the challenges of today. Expect recovery, prepare for collapse.
     
    #8 The Electric Me, Dec 19, 2009
  9. DaveinOlyWA

    DaveinOlyWA 3rd Time was Solariffic!!

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    i agree with DP, i think its a new leader taking over and emphasizing that "business as usual" is no longer an option and tough decisions, radical changes in the status quo is needed to stay on top.
     
    #9 DaveinOlyWA, Dec 19, 2009
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