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Toyota to cut auto parts costs by 30%, reports say

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Old 12-23-09, 11:54 AM
  #31  
The G Man
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Originally Posted by spwolf
why are you assuming that there would be no failovers? There are always failovers in vehicles... Prius's brake by wire system, has 3 different failover systems. Brake by wire system destroyed MB's reputation on the other hand... Why would it be different for unified ecu?
As far as I know, systems like drive by wire and brake by wire have redundancy, but with the main ECU, when it fails, it just goes to limp mode, no redundant ECU. I am sure the rest of ECU for the smaller systems are the same way.
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Old 12-23-09, 12:44 PM
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toyota must be very careful, because pressuring suppliers into lowering costs can mean in many cases that those suppliers have no choice but to cut corners, which may not show up in year one of vehicle ownership, but years 2-5 as things break.

GM and Ford both fell into this trap in the 80s, plus they had a lazy and arrogant management and manufacturing workforce that didn't give a crap about quality. toyota cares about quality, but pressuring suppliers can be very dangerous, as even if relations with them are good now, those suppliers may not divulge everything they had to do.
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Old 12-23-09, 12:53 PM
  #33  
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Originally Posted by bitkahuna
toyota must be very careful, because pressuring suppliers into lowering costs can mean in many cases that those suppliers have no choice but to cut corners, which may not show up in year one of vehicle ownership, but years 2-5 as things break.

GM and Ford both fell into this trap in the 80s, plus they had a lazy and arrogant management and manufacturing workforce that didn't give a crap about quality. toyota cares about quality, but pressuring suppliers can be very dangerous, as even if relations with them are good now, those suppliers may not divulge everything they had to do.
this is exactly what i worry about... in the end, it has to come from somewhere...
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Old 12-23-09, 01:04 PM
  #34  
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Originally Posted by bitkahuna
toyota must be very careful, because pressuring suppliers into lowering costs can mean in many cases that those suppliers have no choice but to cut corners, which may not show up in year one of vehicle ownership, but years 2-5 as things break.

GM and Ford both fell into this trap in the 80s, plus they had a lazy and arrogant management and manufacturing workforce that didn't give a crap about quality. toyota cares about quality, but pressuring suppliers can be very dangerous, as even if relations with them are good now, those suppliers may not divulge everything they had to do.
as mike said before, toyota has unique system where they work together with suppliers to design parts, both lowering their prices and making parts makers satisfied. This is why Toyota is most liked company among auto suppliers...
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Old 12-23-09, 01:05 PM
  #35  
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Originally Posted by The G Man
As far as I know, systems like drive by wire and brake by wire have redundancy, but with the main ECU, when it fails, it just goes to limp mode, no redundant ECU. I am sure the rest of ECU for the smaller systems are the same way.
thats why ecus dont fail often.... it makes no sense assuming that anything new that they do will fail. But i am sure there will be failsafes in the ecus, these are not stupid people, there is whole reason that entire japanese industry is working on it together.
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Old 12-23-09, 02:58 PM
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Originally Posted by rominl
this is exactly what i worry about... in the end, it has to come from somewhere...
and it's not like the vendors that are left are having a good year themselves
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Old 12-23-09, 04:10 PM
  #37  
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There goes Toyota quality. You cant produce a parts for 30-40% less and expect the same quality and reliability. I hope they can keep it together
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Old 12-23-09, 05:45 PM
  #38  
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The Japanese company has set more aggressive cost-cutting targets under a program called RRCI, which combines two cost-reduction initiatives currently under way, the person said. RRCI stands for "Ryohin (quality), Renka (low-price), Costs and Innovation."
http://online.wsj.com/article/SB1000...tions_business
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Old 12-23-09, 05:51 PM
  #39  
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The plan involves seeking cost reductions on a wide range of auto parts — including those for the undercarriage, engine and electrical devices — for all new models.
http://search.japantimes.co.jp/cgi-b...0091223a1.html
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Old 12-23-09, 06:58 PM
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Originally Posted by I8ABMR
There goes Toyota quality. You cant produce a parts for 30-40% less and expect the same quality and reliability. I hope they can keep it together
actually you can. remember those $700 bluray players? they're $100 now.
or $4000 desktop PCs? they're $500 now.
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Old 12-23-09, 07:31 PM
  #41  
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Originally Posted by bitkahuna
actually you can. remember those $700 bluray players? they're $100 now.
or $4000 desktop PCs? they're $500 now.
Exactly. Another example is how the Lexus 8 speed is lighter and more efficient than the 6 speed and the 8 speed has less parts.
 
Old 12-23-09, 07:46 PM
  #42  
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Originally Posted by I8ABMR
There goes Toyota quality. You cant produce a parts for 30-40% less and expect the same quality and reliability. I hope they can keep it together
Reliability doesn't at all have to coincide with how expensive parts are.

The only concern here is the appearance and feel of the material cost cutting but even here Toyota may just be suggesting new more efficient manufacturing processes that yield the same quality for less money. This happens all the time. Most things get better while either staying the same price or falling.

One of Apple's first home computers were $20,000 (in today's dollars). And it did nothing in comparison to a cheap cell phone. Now you can get an iPhone for $99 that does everything under the sun.

Take my Yaris as another example. El cheapo interior materials that will last longer than wood and leather filled luxury interiors. Why? The plastic doesn't wear the way the natural materials do in luxury cars. So here's a case where "cheap" is more reliable. There's an owner who has around 400,000 trouble free miles on his '07 Yaris (been posted here). Low cost can still be bullet proof.
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Old 12-23-09, 08:19 PM
  #43  
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Originally Posted by bitkahuna
toyota must be very careful, because pressuring suppliers into lowering costs can mean in many cases that those suppliers have no choice but to cut corners, which may not show up in year one of vehicle ownership, but years 2-5 as things break.

GM and Ford both fell into this trap in the 80s, plus they had a lazy and arrogant management and manufacturing workforce that didn't give a crap about quality. toyota cares about quality, but pressuring suppliers can be very dangerous, as even if relations with them are good now, those suppliers may not divulge everything they had to do.
This is what worries me. I hope they can keep it together. Some of their recent efforts have been an improvement. I hope they don't take a step forward and two backward.

One consoling fact, is that Toyota does help it's suppliers engineer a lot of their parts, hence the fur flying when some of their suppliers started selling Hyundai said parts.

Toyota, please don't become the GM of this decade.
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Old 12-23-09, 08:57 PM
  #44  
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I'm not worried about this at all, it's nothing more than a stated business objective.
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Old 12-23-09, 09:02 PM
  #45  
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Originally Posted by bitkahuna
actually you can. remember those $700 bluray players? they're $100 now.
or $4000 desktop PCs? they're $500 now.
Exactly those of us in high tech understand this very well.
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