The Great Debate UK
from The Great Debate:
Toyota’s “exceptionalism” came back to bite
-- Edward Niedermeyer is the editor-in-chief of The Truth About Cars. The views expressed are his own. --
(Paragraph 7 corrected on February 10.)
Life rarely offers easy answers to important decisions, but up until a few weeks ago, it seemed that new cars buyers simply couldn't go wrong buying a Toyota. For decades, the Japanese automaker had built up an unmatched reputation for quality and reliability, on its way to becoming the best-selling automaker in the U.S and the top car producer worldwide. A Camry might not have been a particularly glamorous or exciting choice of vehicles, but consumers could buy one without doing a lick of research, and expect it to run reliably and efficiently for years. At least they could until a flurry of defects and recalls suddenly brought Toyota's untouchable reputation back down to earth.
In a matter of days, Toyota's good favor in the eyes of consumers has been replaced with suspicion and doubt. Having first ignored reports of unintended acceleration in its vehicles, Toyota then blamed floor mats before finally recalling some eight million gas pedals worldwide. When a brake software problem on the Prius hybrid emerged within days of the gas pedal recall, and Toyota's leadership moved slowly to get in front of the burgeoning PR nightmare, the automaker's spotless image suddenly found itself in shreds.
This rapid reversal of Toyota's fortunes indicates that its reputation as an unquestionably logical choice in car brands was already wearing thin. Having refined the most efficiency and quality-focused manufacturing system in the industry by the late 1980s, Toyota responded to currency fluctuations in the early 90s by cutting costs on the design-end of the business.
from Commentaries:
Why the carmaker in front is cutting back
Good news: global car capacity is being cut by 700,000 vehicles. Bad news: the company doing the cutting is the world's most efficient manufacturer, Toyota.
Across the world, governments are pledging money to keep local plants open, mostly plants which have no long-term future, and which are far less efficient than the production line in Japan that Toyota is closing.
Jaguar will make it through the recession – but in what shape?
- Professor David Bailey works at Coventry University Business School. The views expressed are his own -
The UK operations of Jaguar Land Rover lost £673.4m last year after a £640 million surplus the year before, it was revealed last week in accounts filed with Companies House. Adding in actuarial and pensions adjustments, “total recognised losses” at JLR topped almost £1.2bn last year. Not that this is much of a surprise of course. This is a “once in a century” downturn as JLR boss David Smith put it, and most car makers have posted record losses – including Toyota, for the time in its history.
from The Great Debate:
Revival of U.S. automaking awaits if UAW will follow Toyota
-- Peter Morici is a professor at the University of Maryland School of Business and former chief economist at the U.S. International Trade Commission. The views expressed are his own. --
General Motors and Chrysler are on the anvil of history. United Auto Workers President Ron Gettelfinger holds the hammer and will determine whether they emerge more competitive or shattered in pieces and sold to foreign investors.
from The Great Debate:
Green business and the conscience premium
Welch is the publisher and editorial director of Ogden Publications, home to Mother Earth News and Utne Reader. Any opinions expressed are his own.
Green business is arguably the most important marketing innovation of the century. And it’s here to stay.
