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In an effort to slow the crash, Toyota Motor Corp. is undertaking a massive overhaul and management reorganization next month when Akio Toyoda takes over as president. Toyoda, the grandson of Toyota's founder, will be officially appointed on June 23 at the annual shareholder's meeting. With the new president in place, the Financial Times is reporting that the company will replace 40% of its senior managers and bring back Yoshimi Inaba, a former senior executive, to lead U.S. operations.

While the Japanese automaker is reportedly working on slashing costs by $8.22 billion, it reported the first operating cost in its 71-year history last week. As further evidence of the company's struggle in today's marketplace, Toyota's net loss of $7.87 billion in the latest quarter exceeding even GM's net loss of $5.97 billion during the same period.

[Source: Automotive News - Sub. Req. | Source Image: Kazuhiro Nogi/AFP/Getty Images]

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    • 1 Second Ago
      • 6 Years Ago
      Toyota builds some great cars, but they took their eye off the ball, and allowed quality to slip.
      • 6 Years Ago
      • 6 Years Ago
      LOL, Toyota shows first loss in what... forever, and look at all the armchair CEO's :) Hilarious.
      • 6 Years Ago
      Toyota lost its focus when it decided to be the #1 automaker in the world.

      For years, Toyota exceeded its own internal sales goals and it seemed like there was no stopping them.

      The cause of their downfall is complacency, arrogance, and too much focus on growth and not enough of what made Toyota successful in the first place (namely high value, high quality vehicles).

      Oh, and don't forget that every automaker is doing poorly right now, but that is no excuse for Toyota forgetting its own vaunted values.
      • 6 Years Ago
      If only we the people can do the same thing about the government...
        • 6 Years Ago
        We do in fact can do something similar.
        It's called voting. We have 2 SOLID choices and we choose the president we think is going to ruin our country less than the other.

      • 6 Years Ago
      The picture would be much better if you cut the 3 guys on the left out and take the head of the fourth guy.
      • 6 Years Ago
      "OMG that is like, soooooo impossible, because like, Toyota is like sooooooo awesome and they love trees so much and they make that totally perfect Prius and they're like, just soooooooo can-do-no-wrong"


      Welcome to the real world, Toyota.
        • 6 Years Ago
        Real world??? Is that the same world where management is held accountable? You know like Wagoner, 10 years of loses, 17 mil a year + 20 mil golden parachute.
        • 6 Years Ago
        lol, wtf
      • 6 Years Ago
      If they were really serious about turning themselve's around they'd ask for some expert advice from Obama.
      • 6 Years Ago
      I always compared Toyota's when shopping for cars. But never decided on getting one. There was always something that kept me from owning one. Most of the time I couldn't get used to the boring styling, or the driving experience was not up to par with others like Honda or GM built cars. For example, last year I compared the RAV4 to the CR-V, Saturn VUE and Ford Escape. The RAV4 felt like an empty shell and gooey around curves. Surprisingly the VUE XR V6 offered by far the best driving experience of them all.
      • 6 Years Ago
      The reason they are not selling cars is because they are not making good dependable cars, small compact cars and hybrids, they are making too many dinosaurs of trucks with big V8s they are not making what people want to buy...oh wait this is a Toyota post not a GM lol..
        • 6 Years Ago
        You speak the truth either way. Toyota is really loosing it's allure. Toyota cars are exceedingly adequate, they redeem e and excuse their blandness with laudable reliability. But, that's going down the tube. A Toyota without an insane reliability and dependability is not a car that's going to sell.

        This summer, I bought a car. I looked at the Corolla, Civic, Focus, Elantra, Versa, and Cobalt. I wanted to drive it for at least a 100k miles. I test drove all the cars. The Cobalt was a penalty box with wheels. The Versa was nice, but I've heard too many horror stories about it's realibilty. The Focus was nice, but I didn't quite trust Ford. The Civic was too expensive and the dealer was terrible.

        "Sir, we don't have any manual Civics."
        "How about an SI"
        "We don't normally do deals on the Civic SI"
        "You're not really giving me a deal on the normal Civic"
        "Sir, we're bringing a Civic around, do you want to look at our Pilot? We've got deals on those."

        I was left to chose between the Corolla and the Elantra. The Corolla just didn't feel like a Toyota should. If I were to pay a premium and forgo driving dynamics and sport, I expect to be compensated with reliability, and I just wasn't perceiving that.

        I ended up getting the Elantra because it's actually a zippy car with the manual and the warranty is nice.

        I bet that there's enough people like me, who would take a less reliable car with a greater warranty, or people who think that Toyota's quality has declined in recent years.
      • 6 Years Ago
      " What that in the rear view mirror ? " Hyundai
        • 6 Years Ago
        They used to be reliable cars but now they seem to be losing their reputation for reliabilty.
      • 6 Years Ago
      Toyota needs to get their eye back on what made them great in the first place. They made too many compromises in order to try to sell more cars than GM.

      Toyota are no dummies, they just need to remember that they are in the business for profit, not just revenues and car counts.
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