Now, I'm not an expert on the auto industry, it's far too complex. Car makers operate in countries all over the globe, and in some way, all auto manufacturers are "imports" somewhere on the planet. What interests me more, is the thought processes expressed in this article on Bloomberg.com about Toyota.
Cost cuts didn't stop at production even for Toyota, with 1.48 trillion yen of cash, bank deposits and stocks at the end of March 2005. Starting in September 2005, executives were downgraded to business class on overseas trips from first class, while managers and their deputies had to fly coach.
``We have to get rid of the big company disease'' and keep refining Toyota's production, (President, Katsuaki) Watanabe said. ``To stop where we are means we are decaying.''
This from a company that by the end of this year could surpass GM as the world's largest car manufacturer. Apparantly, Toyota has learned how to make cars faster and cheaper, and as a result are saving money - with plans to build a sixth North American factory in Texas this year . By comparison, GM and Ford are laying off workers and shutting down plants. Here's one more quote.
Watanabe, 64, was promoted to president after successfully scrutinizing the cost of every part to eke out savings. His new plan lumps engines, brakes and steering systems into modules, simplifying a Corolla engine that typically has 600 parts to make them cheaper.
Good ideas, forward thinking, eliminating "big company disease" - sounds like a good diet for a healthy company. I wonder if large American corporations have the will to try that kind of "diet"?
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