Hard financial times
at Toyota will be met with swift action when Akio Toyoda takes over as chief executive in June, the Financial Times
is reporting. Following the company's recent full-year loss of $8.6 billion
, Toyota is planning to replace 40 percent of its senior management. Toyoda is working to assemble his new team while he waits to be confirmed by a vote of Toyota's shareholders on June 23.
One of the biggest changes is likely to come here in the U.S., as FT suggests that Toyota might consolidate its California-based sales operation and its Kentucky-based manufacturing operation under one roof -- based in New York.
Yoshimi Inaba, who once led the company's sales and marketing operations in the U.S. and China (and who now runs the Nagoya, Japan, airport), will lead the overhaul effort in North America.
Financial Times (sub.req)
estreka says:
11:41 AM, 05/14/09
While not entirely warranted, senior firings will produce results. "Either give us results or get out."
msdaisy says:
11:56 AM, 05/14/09
It's nice to see at least one automaker making responsible decisions rather than waiting for bankruptcy and welfare to do so.
compliance says:
12:47 PM, 05/14/09
Sounds like an over reaction. Even the smartest management isn't going to get a profit when the business climate is bad enough. I'd say this qualifies as very bad.
brn says:
01:08 PM, 05/14/09
msdaisy, Toyota is taking government money too.
I'm with 'compliance'. This isn't how you run a business.
billt9 says:
03:48 PM, 05/14/09
This sounds nasty.
Hopefully the shareholders tell Toyoda he's insane and high on crack.
jederino says:
04:50 PM, 05/14/09
Sounds very much like warlord/dynasty rubbish. It's convenient to make heads roll when times are tough. It makes you look tough, even if you have no supportable business plan of what to change.
Now, if you wanted to specifically change the culture of a company that was struggling or corrupt, that could be justifiable. As much as Toyota is a non-player for my dollars right now, I don't seem them as a struggler.
altimadude00 says:
06:52 PM, 05/14/09
It's Japanese culture to see losses as personal shame, so the removal of the top management is culturally acceptable.
billt9 says:
07:22 PM, 05/14/09
...Removal of top management by harakiri.
None of that hanging yourself in a hotel room crap that's so popular with the Japanese businessmen nowadays. Hanging is boring, and you've made a mess in the hotel.
iskch says:
09:24 AM, 05/15/09
Looks like Mr. Toyoda wants to bring new ideas and concepts to Toyota. Out with the old (Toyota current line of BORING cars) in with the new revival of SUPRA and CELICA. Time will tell.
charlesb says:
06:24 PM, 05/15/09
Somebody better grab the wheel before Toyota ends up in the same economic ditch that G.M. and Chrysler are currently sharing.