TRDFantasy

I already know the answer, do you? I am not talking about capital expenditures, but *strictly* R&D spending on future product and technology.

Some of you act as if Toyota is sloppy with their R&D spending, as if Toyota is not efficient, and as if Toyota does not plan for the long term. It's funny how short-sighted some enthusiasts are.

In the years between 2002-2006, Toyota spent quite a significant amount on R&D. The fruits of that R&D can be seen with cars like the LS, and the new technology and advancements it brought. Toyota's quality dropped in the past few years not because of lack of R&D, but because Toyota's human resources, it's engineers, were stretched way too thin. Now Toyota has increased development time to ensure quality once again, and is spending more *per model* than they have in 2002-2006.

There are many examples in Toyota's history of the fruits of significant R&D spending. The original LS was a significant project, and it turned out to be a very successful and influential product. Likewise, cars like the 4th gen Supra had significant R&D spending. Most recently, the Lexus LF A has been a very significant R&D project, and from all accounts so far it seems that it will be a very successful product.

The 3rd gen Prius was also a fairly significant R&D project, as was the 2nd gen Prius.

Some of Toyota's R&D spending has resulted in the hybrid market dominance you see now, and also has resulted in Toyota having the most fuel efficient product line-up in North America.

Nothing is "guaranteed", but Toyota has shown time and time again that they spend R&D resources very efficiently, and historically every significant R&D project that Toyota worked on has turned out to be very successful and fruitful for the company.

Yes, Toyota will definitely turn around their finances. They survived a very tough time financially in the 1950's, being on the verge of bankruptcy, and emerged out of that situation a stronger company than ever.

Again, I don't see exactly what your point is. Are you trying to stubbornly instill doubt that Toyota will not succeed? Are you trying to imply that Toyota will fail somehow, and that they won't turn around their finances? Are you being "devil's advocate" or "stirring the pot" just for the sake of it, like some other certain people here on CL like to do?

FKL

What is the answer? You do not have access to proprietary company information, so therefore you have no way at all of gauging in any sort of quantitative manner how "successful" R&D spending has been at Toyota. You can throw billions of dollars into something and not see any worthwhile gains, or the gains that you do realize are at parity with a competitor who spent much less.

In the years you mention, Toyota also went on an ill-devised quest towards emulating GM and Ford in an overt attempt towards taking the number one title in the North American automaker.

This is fluff. Again, you can spend billions and the return ratio can be deeper than a competitor. You have no way of knowing or quantifying in any significant manner how "efficient" or to which level their R&D spending translated into those technologies. And the LF-A? You are jumping the gun, as you have absolutely no idea how it will be received in the market place, or whether the project will ever pay itself off (or whether Toyota is after simply increasing their intangible image, a la Bugatti Veyron).



"Very efficiently" is relative and vague. The money poured into some of their ill-devised North American products like the Tundra and Texas plants were not fruitful or successful and drove the unit to loose hundreds of millions of dollars. In my opinion, you are grossly exaggerating reality.

I have little doubt either. They are not going to suddenly collapse and any comparisons to GM are not correct.

Stop trying to question my intentions.

TRDFantasy

I ask again, what is your point? You don't like me questioning your intentions, but you refuse to clarify what is your *POINT* in this whole argument?

There is a ton of proof to show how generally successful Toyota's R&D spending has been. Whether you want to look at the proof or not is your choice, but it's there.

Also FYI, the 2nd gen Tundra itself was not a massive R&D project (compared to other Toyota R&D projects). The Texas plant should not even factor into this debate, because the plant was a capital expenditure, NOT an R&D expenditure.

FKL

I think I've made my point more than abundantly clear, more than once. We can agree to disagree at this point.

The G Man

That is a very bold statement, if that were true, Toyota would be the world's biggest company right now. I would not call the Scion line entirely successful. It did not flop but it also wasn’t as successful as Toyota wanted it to be. The LA-F project, if Lexus make back 50% of the cost of the LA-F project, they will be lucky, and I know, I know, halo projects like the LA-F pays off in other ways. The new Venza and the new Tundra haven’t been totally successful either. And then there was the oil sludge problem in the pass, but I do agree with you. Toyota does not have total flop project, they have projects that doesn’t live up to expectations, but good enough to break even most of the time. That just goes to follow their company's philosophy. Play it safe and don’t take big risk, the reward will be less, but the chance of total failure is also less.

TRDFantasy

Exactly. Scion did not use up major R&D spending, and the Venza is certainly no flop. Considering Toyota has the Rav 4, Highlander, *and* the Venza all as crossovers, and considering the Venza is a niche product, sportier than other Toyota crossovers it is doing quite well.

Flops for Toyota are rare in general; proof of that can be seen throughout Toyota's history. That is a big reason why their R&D spending is efficient. Also to the critics, the consistent profits that Toyota was posting all these many years up until the current recession is more proof of efficient R&D spending.

When a company posts solid consistent profits for many years, has healthy market growth, and lots of successful products, I don't see how else you can quantify that company's R&D spending as anything other than efficient.

Also FYI Toyota spends nowhere near what the world's biggest companies spend on R&D. Considering that, Toyota is still the world's biggest automaker and IIRC the biggest company in Japan (and Asia).