Toyota "losing its way" is exactly what caused their current situation (specifically, they lost "
The Toyota Way") but I think that their management will bring it back in line. This is a bump in the road, and it's a pretty big one... but from big events like this one, corporate managers can learn big lessons and can change the company for the better. I believe that this will be the case with Toyota.
One thing to remember about all of this is that Akio Toyoda has been president of the company for just nine months (since June 2009), and when he took the position, he publicly recognized the deficiency in focus on quality and safety and has been working to bring it back in line with Toyota's trademark “kaizen” approach of improvement through steady, gradual cost reduction while maintaining product quality. Toyota had strayed away from what had made them successful. Quoting business week, “The root cause of their problems is that the company was hijacked, some years ago, by anti-(Toyoda) family, financially oriented pirates,” said Jim Press, Toyota's former U.S. chief
Previous to Akio Toyoda was Katsuaki Watanabe, who is documented as having been very focused on cost cutting and rapid growth. His "Construction of Cost Competitiveness in the 21st Century" plan reminds me of NASA's "Faster, Better, Cheaper" plan.... any engineer will knows that you can only 'pick two' of the three, and in the case of Toyota, while cheaper and faster happened (Watanabe slashed the time needed to bring new models into production and wrung out more than $10 billion of savings over six years after just 3 months in his job) the "better" or quality part of the triangle was eroded and cause what we have today.
Personally, I have owned 5 Toyotas (and still own 3) and I wouldn't hesitate to buy another... after the acceleration issue is resolved that is.
- Toyotero
- Reference -
http://www.businessweek.com/news/20...lie-in-cost-cuts-growth-targets-update1-.html