Toyota reverses decision, chooses to again seek quality over market share
It was back in 2002 when Fujio Cho, then-President of Toyota Motor Corp., set the company's goal of achieving a 15 percent share of the global automotive market sometime after 2010. Seven years ago, it didn't seem much of a stretch as the automaker had already captured 10.7 percent, and the seemingly-unstoppable company was rapidly growing.While the Japanese automaker's train hasn't completely derailed, the self-imposed deadline looms and Toyota is reeling through a global slump that has served the company its first loss in decades. With market share taking a back seat to survival, current Toyota President Akio Toyoda (right) has dumped Cho's goal in favor of a back-to-basics focus on quality. And, nobody needs to point out that the automaker's latest forecast represents a production decline of nearly one million units compared to last year. An anonymous company executive summed the new president's directive up in just seven words: "Our president doesn't like figures or documents."
[Source: Automotive News - Sub. Req.]
Get a WordPress.com Blog
Reader Comments (Page 1 of 3)
Joe K. 5:38PM (8/11/2009)
Sounds like they've been reading the comments in Autoblog.
We've only all been saying it for the past 4 years....
Reply
Randy 7:04PM (8/11/2009)
No kidding. Sounds like Ford is the new Toyota and Toyota is now playing catchup to Ford. Kinda strange how we all call this stuff years before the rich people figure it out... lol
Luis 10:46AM (8/12/2009)
news: Ford is still catch-up. While they have good products (ok, one: Fusion - Fiesta and Taurus I'll believe one year after they're on the road in the US). While the Lincolns look ok now, they need to sell more.
The Ford fanboys need to take a chill pill. Time will tell. So will the market.
zamafir 5:40PM (8/11/2009)
ABOUT DAMN TIME.
Reply
Redline 10:27AM (8/12/2009)
Yep, now they just need a proper sports car again.
JDM Life 12:39PM (8/12/2009)
About time? when did they stop buildin strong cars?
Farmboy 5:44PM (8/11/2009)
Quality and Toyota? hmmm.........
Reply
why not the LS2LS7? 5:47PM (8/11/2009)
When they kill the FJ Cruiser I'll believe they have turned their eyes from being #1 seller. Until then, it's just talk.
Reply
hashiryu 6:42PM (8/11/2009)
WTF does the FJ have to do with anything and why do you want it dead?
Obviously DaMinority 8:34PM (8/11/2009)
You mean other than it's ugly, inefficient and clearly cannibalistic? If you'd like more reasons I've got one for you. If it wasn't pawning most of its parts from the 4-ruiner it wouldn't be profitable. Oh wait, are they going to choose quality over profits?
why not the LS2LS7? 9:29PM (8/11/2009)
I want it dead because it's the opposite of what Toyota was.
It's a behemoth gas guzzler with no real utility to anyone it is sold to.
It's an example of a niche-filler. You can't be #1 unless you have a car to sell to everyone. Once you hit the big markets (family sedan), you go to the smaller ones (large coupes), once those are done, you go to the niches, like big ass trucks that get awful mpg while carrying little more than a station wagon can. And don't forget to make ridiculous SUVs like the Sequoia.
The old Toyota instead made cars with broad appeal and good efficiency and said forget the little dark corners. And making fewer cars meant the ones they did make could be even better because they got more attention.
I want the old Toyota back. When the FJ Cruiser is gone, I'll know they've returned to concentrating on what they used to concentrate on.
Luis 10:48AM (8/12/2009)
Um, the old Toyota still sold niche cars, like the Supra and 4Runner. Rumors are the next 4Runner are back-to-basics (good). The FJ is a truck with real off-road ability and is not a me-too-Soccer-mom-mobile like so many other SUVs try to be.
Jeff Gilleran 12:57AM (10/07/2009)
Problem with growth is the obvious demand increases.
If you push speed/production over quality, it never fails to hurt business.
Its when you get either greedy, or cannot meet demand and cut corners it utimately ruins your reputation as a "quality" manufacturer of whatever brand you are.
Maybe some other automakers can take a note from Toyota here and stop what isnt working and move to what does.
Good to see a company that admits that something isnt working as planned and actually makes adjustments soon enough to avoid failure both to shareholders and customers.
Reply
IK 5:51PM (8/11/2009)
when are they going to make cars like the ae86 and mr2 again
Reply
No-bama 5:50PM (8/11/2009)
How convenient!
Sales have fallen off the table and Toyota is in danger of loosing major ground to VW, Ford and even GM so they change their tune so it looks like thay did it on purpose.
Wasn't it just a few articles ago that Toyota boasted it had raised sales goals for the year?!
TOYOTA IS THE NEW... OLD GM.
Reply
Leclerc 5:54PM (8/11/2009)
Let's not get ahead of ourselves there guy. It's not like Toyota is looking for a big bailout or anything. I am sure they can depend on your tax dollars if they do though, right?
No-bama 6:01PM (8/11/2009)
Toyota is getting your tax money...
It's called C.A.R.S.
Nissan wasn't too shy to ask for a bailout what makes you think Toyota is?
Tourian 6:02PM (8/11/2009)
No, they can get Japan's tax dollars, not ours.
nrb 6:12PM (8/11/2009)
Leclerc, you missed the part where Toyota did take a bailout. They just took it form Japan.
Leclerc 6:16PM (8/11/2009)
@ No-bama. Dude, there's a difference no matter what type of spin you want to put on this one. Toyota did not stick their hand out looking for a bailout because of company mismanagement. This CARS program wasn't initated by Toyota, but by our meddling administration. And what the hell does Nissan have to do with all this? Did I mention Nissan, or are you just trying to prove a point you can't substantiate with fact. You stated that Toyota is the new GM. As a thinking man, do you really think that is a true statement, or are you merely a UAW fanboy that just can't stomach Toyota or any import for that matter. Don't reply to this, just try to read and also understand what I am trying to convey to you. I sometimes wonder why I engage in mindless banter with some on the chuckleheads that frequent this site. You'll be alright, the deathstar know as Toyota won't steal your lunch.