Toyota CEO a "worried man"???
#1
Speaks French in Russian
![](https://www.clublexus.com/forums/images/ranks/rank-smod2.gif)
Thread Starter
![Default](https://www.clublexus.com/forums/images/icons/icon1.gif)
wsj.com
As Rivals Catch Up, Toyota CEO Spurs Big Efficiency Drive
Culture of Institutional Worry Drives Mr. Watanabe
By NORIHIKO SHIROUZU - December 9, 2006; Page A1
As Rivals Catch Up, Toyota CEO Spurs Big Efficiency Drive
Culture of Institutional Worry Drives Mr. Watanabe
By NORIHIKO SHIROUZU - December 9, 2006; Page A1
TOYOTA CITY, Japan -- The world sees Toyota Motor Corp. as an unstoppable profit juggernaut, overtaking rivals one by one as it rolls toward replacing General Motors Corp. as the world's largest auto maker.
Not Katsuaki Watanabe. Toyota's chief executive officer is a worried man. He thinks Toyota is losing its competitive edge as it expands around the world. He frets that quality, the foundation of its U.S. success, is slipping. He grouses that Toyota's factories and engineering practices aren't efficient enough. Within the company, he has even questioned a core tenet of Toyota's corporate culture -- kaizen, the relentless focus on incremental improvement.
U.S. and European car makers have spent years struggling to overhaul outdated operations and work practices to better compete with Toyota. By some measures, some of those companies are catching up. Now, driven by a severe dose of institutional paranoia, Mr. Watanabe is trying to move the target.
Mr. Watanabe, 64 years old, wants kakushin, or revolutionary change in how Toyota designs cars and factories. He is pushing Toyota to reduce the number of components it uses in a typical vehicle by half -- a radical idea that would usher in a new chapter in car design. He also wants to create new fast and flexible plants to assemble these simplified cars.
His ultimate aim: Cut at least a trillion yen ($8.68 billion) in vehicle costs in the next three to four years -- the equivalent of about $1,000 a vehicle -- and keep slashing costs at similar rates thereafter. That is on top of one trillion yen Toyota squeezed out of its parts purchasing from 2000 through 2004, an effort led by Mr. Watanabe in an earlier role. By comparison, GM recently lopped a similar amount from its annual costs, but largely by cutting jobs.
Toyota is gaining market share and racking up profits even as its U.S. rivals are in an historic tailspin. Toyota now has 12% of the world-wide car market, including sales from two affiliates, putting it in the No. 2 spot behind GM. It is poised to soon overtake the embattled Detroit auto maker. Mr. Watanabe's formula of relentless improvement, characterized by a series of programs with lengthy acronyms, helps explain why the Japanese company has been able to prosper as American giants wither.
Like most senior Toyota executives, Mr. Watanabe is careful to downplay the company's ambitions in public. His favorite words include jimichi (steady), tetteiteki (thorough), and, especially, guchoku (having an open mind). If it succeeds, Toyota would further pressure Detroit to revamp itself; failure, however, could slow the Japanese company's seemingly inexorable rise.
Not Katsuaki Watanabe. Toyota's chief executive officer is a worried man. He thinks Toyota is losing its competitive edge as it expands around the world. He frets that quality, the foundation of its U.S. success, is slipping. He grouses that Toyota's factories and engineering practices aren't efficient enough. Within the company, he has even questioned a core tenet of Toyota's corporate culture -- kaizen, the relentless focus on incremental improvement.
U.S. and European car makers have spent years struggling to overhaul outdated operations and work practices to better compete with Toyota. By some measures, some of those companies are catching up. Now, driven by a severe dose of institutional paranoia, Mr. Watanabe is trying to move the target.
Mr. Watanabe, 64 years old, wants kakushin, or revolutionary change in how Toyota designs cars and factories. He is pushing Toyota to reduce the number of components it uses in a typical vehicle by half -- a radical idea that would usher in a new chapter in car design. He also wants to create new fast and flexible plants to assemble these simplified cars.
His ultimate aim: Cut at least a trillion yen ($8.68 billion) in vehicle costs in the next three to four years -- the equivalent of about $1,000 a vehicle -- and keep slashing costs at similar rates thereafter. That is on top of one trillion yen Toyota squeezed out of its parts purchasing from 2000 through 2004, an effort led by Mr. Watanabe in an earlier role. By comparison, GM recently lopped a similar amount from its annual costs, but largely by cutting jobs.
Toyota is gaining market share and racking up profits even as its U.S. rivals are in an historic tailspin. Toyota now has 12% of the world-wide car market, including sales from two affiliates, putting it in the No. 2 spot behind GM. It is poised to soon overtake the embattled Detroit auto maker. Mr. Watanabe's formula of relentless improvement, characterized by a series of programs with lengthy acronyms, helps explain why the Japanese company has been able to prosper as American giants wither.
Like most senior Toyota executives, Mr. Watanabe is careful to downplay the company's ambitions in public. His favorite words include jimichi (steady), tetteiteki (thorough), and, especially, guchoku (having an open mind). If it succeeds, Toyota would further pressure Detroit to revamp itself; failure, however, could slow the Japanese company's seemingly inexorable rise.
#2
Lexus Fanatic
![Default](https://www.clublexus.com/forums/images/icons/icon1.gif)
I partially agree with him....he is correct to be concerned with a lot of the things that go into today's cars. The auto industry, in general, is making cars nowadays, especially luxury models, too complex by putting in too many electric toys and gadgets. The LS460 that I reviewed recently, for example, in spite of being a truly wonderful car to ride in and drive ( I gave it an extremely high rating ), was absurdly complex electronically. There were literally dozens and dozens of buttons, video systems, monitors, etc......to deal with. As I had not yet driven a new 2007 LS, I spent a good 15 minutes just familiarizing myself with enough controls and systems that I felt I was ready to actually drive it.
My point is that if cars were less complex, more time and money could be spent on things instead that IMO were even more important....things like getting as close to zero defects as possible, a wider choice of paint colors, etc.....
Part of the problem with complexity also lies with excessive Government vehicle requirements; things DOT and NHTSA require that cars IMO don't really NEED, yet they are required anyway....things like the upper-level red stop light in the rear, the brake pedal interlock on shifting out of Park, OBD II computers, and the newer R-134 A/C systems.....and standard tire-pressure monitors are soon coming.
In fact, there is a proposal now to make stability control standard soon in ALL new vehicles sold in this country. Just think how much complexity THAT will add to new cars.....and their prices.
My point is that if cars were less complex, more time and money could be spent on things instead that IMO were even more important....things like getting as close to zero defects as possible, a wider choice of paint colors, etc.....
Part of the problem with complexity also lies with excessive Government vehicle requirements; things DOT and NHTSA require that cars IMO don't really NEED, yet they are required anyway....things like the upper-level red stop light in the rear, the brake pedal interlock on shifting out of Park, OBD II computers, and the newer R-134 A/C systems.....and standard tire-pressure monitors are soon coming.
In fact, there is a proposal now to make stability control standard soon in ALL new vehicles sold in this country. Just think how much complexity THAT will add to new cars.....and their prices.
Last edited by mmarshall; 12-09-06 at 08:08 PM.
#4
![Default](https://www.clublexus.com/forums/images/icons/icon1.gif)
That's a good step to make changes in this manner. So long as the target of producing a cost efficient car doesn't bring the final product off the deep end.
This will be interesting to see over the years. Feel sorry for the auto workers though. This makes me wonder if some labor will be off-shore in countries that welcome this industrial development.
This will be interesting to see over the years. Feel sorry for the auto workers though. This makes me wonder if some labor will be off-shore in countries that welcome this industrial development.
#7
![Default](https://www.clublexus.com/forums/images/icons/icon1.gif)
I partially agree with him....he is correct to be concerned with a lot of the things that go into today's cars. The auto industry, in general, is making cars nowadays, especially luxury models, too complex by putting in too many electric toys and gadgets. The LS460 that I reviewed recently, for example, in spite of being a truly wonderful car to ride in and drive ( I gave it an extremely high rating ), was absurdly complex electronically. There were literally dozens and dozens of buttons, video systems, monitors, etc......to deal with. As I had not yet driven a new 2007 LS, I spent a good 15 minutes just familiarizing myself with enough controls and systems that I felt I was ready to actually drive it.
My point is that if cars were less complex, more time and money could be spent on things instead that IMO were even more important....things like getting as close to zero defects as possible, a wider choice of paint colors, etc.....
Part of the problem with complexity also lies with excessive Government vehicle requirements; things DOT and NHTSA require that cars IMO don't really NEED, yet they are required anyway....things like the upper-level red stop light in the rear, the brake pedal interlock on shifting out of Park, OBD II computers, and the newer R-134 A/C systems.....and standard tire-pressure monitors are soon coming.
In fact, there is a proposal now to make stability control standard soon in ALL new vehicles sold in this country. Just think how much complexity THAT will add to new cars.....and their prices.
My point is that if cars were less complex, more time and money could be spent on things instead that IMO were even more important....things like getting as close to zero defects as possible, a wider choice of paint colors, etc.....
Part of the problem with complexity also lies with excessive Government vehicle requirements; things DOT and NHTSA require that cars IMO don't really NEED, yet they are required anyway....things like the upper-level red stop light in the rear, the brake pedal interlock on shifting out of Park, OBD II computers, and the newer R-134 A/C systems.....and standard tire-pressure monitors are soon coming.
In fact, there is a proposal now to make stability control standard soon in ALL new vehicles sold in this country. Just think how much complexity THAT will add to new cars.....and their prices.
It's a good thing to hear that Toyota execs are not complacent and are trying to stay awake and ahead of the competition. I just wish they would be a little less conservative in the performance sector.
PS I think you are one of the few people intelligent enough to actually familiarize yourself with the car before driving it +1.
Trending Topics
#11
Lexus Fanatic
iTrader: (20)
#12
![Default](https://www.clublexus.com/forums/images/icons/icon1.gif)
Great to hear it from the man himself! At least we can take some comfort that Toyota is not getting ahead of itself and not letting quality slip (which, to be honest, is getting noticeable.. even with our 02 Camry which currently has a few "broken" items and is at 100,000kms).
Thread
Thread Starter
Forum
Replies
Last Post