Akio Toyoda has only been CEO of Toyota since June, but at a Japan National Press Club briefing today, he made numerous apologies on behalf of the world's largest automaker, the New York Times reported. Public apologies are an accepted part of business practice in Japan, but Toyoda covered topics that resonate plenty in the U.S., too.
First off, he acknowledged the company's $8.6 billion loss for the fiscal year ending in March 2008 and the likelihood of another substantial loss for the current fiscal year. The company was unprepared for the global economic meltdown, he said, and is now a step away from "capitulation to irrelevance or death." He added that Toyoda is "grasping for salvation." He reiterated again his plan to shift the focus away from maximum sales and give more priority to products that people want.
Then, he turned to the floor mat debacle in the United States spurred by several years of customer complaints and a recent fatal crash of a Lexus ES 350 dealer loaner car in California.
"Four precious lives have been lost. I offer my deepest condolences," Toyoda said. "Customers bought our cars because they thought they were the safest. But now we have given them cause for grave concern," he said. "I can't begin to express my remorse."
He didn't forget the impending closure of the NUMMI plant in Fremont, California -- a decision he called "agonizing."
"I know it's a big blow to the local economy," he said.
Finally, he admitted that Toyota just hasn't been building inspiring cars over the last several years, not even in the Japanese homemarket. "They say that young people are moving away from cars," said Toyoda. "But surely it is us -- the automakers -- who have abandoned our passion for cars."
Thanks to Bob Holland for the tip.
estreka says:
02:42 PM, 10/ 2/09
As someone who owns no stock in Toyota, apology accepted.
inlinesix says:
03:59 PM, 10/ 2/09
"But surely it is us -- the automakers -- who have abandoned our passion for cars."
I think we've discussed this before. This isn't all automakers but I appreciate Toyoda's simple realization for this company. I don't think the IS-F fits in an uninspiring car category but it sure isn't for a wide demographic.
canddmeyer says:
04:00 PM, 10/ 2/09
If Toyota thinks they're still going to keep their 20% market share in California after pissing off the NUMMI employee's, they're wrong. I like Toyota products, but this will weigh heavily when I go to make my next vehicle purchase as I have two acquaintances who are getting canned in the next year.
cwc1 says:
05:47 PM, 10/ 2/09
This sounds like the Obama strategy.
I do think that many of Toyota's products are boring, and would like to see more appealing ones. But on the other hand, it's a strategy that has worked well for Toyota for the past 20 years or more. So many buyers don't care as much about excitement, and have continued to by Camrys all these years because they're fine with a car being an appliance.
So now, he's decided that apologizing is the best way for Toyota to save face? It just sounds weak to me.
cino_iconic says:
08:08 PM, 10/ 2/09
Wasn't he trying to tell that Toyota will make a new products for young consumers? Well, the Floor mat accident was not his fault. He, only one, can't take care of millions of cars that was sold to consumers.
greenpony says:
06:13 AM, 10/ 3/09
Never apologize. It's a sign of weakness. See, he didn't apologize for wearing that godawful tie/sportcoat combination. Maybe he should have.
hollowtek says:
11:52 AM, 10/ 3/09
I agree with greenpony... That combination is terrible. However, I do like the tie. Getting back to the subject... It's good to know that he's trying his best to bring back desirable cars. I think I may see another supra in the near future in my driveway, assuming Toyoda is serious.
cino_iconic says:
05:07 PM, 10/ 3/09
Toyoda said "They say that young people are moving away from cars," said Toyoda. "But surely it is us -- the automakers -- who have abandoned our passion for cars.".
I'm really sure he's not following his grandfather's step for these few years. I know Toyota is ready to show a new beast " LF-A " the Kyubi, and Subieyota sport coupe. the Kyubi is very expensive while Subieyota is not very interesting. I'm looking forward to see a new Supra. I will get one tho.
billt9 says:
06:48 PM, 10/ 3/09
what toyota need to build is a new supra. problem solved.
Take the LF-A shell and put a $25,000 sports car mechanicals in it.
inlinesix says:
12:13 AM, 10/ 4/09
Yea a super-expensive supercar isn't the ticket for Toyota right now.
fbo says:
12:49 AM, 10/ 4/09
Reply to canddmeyer, Toyota didnt piss on Nummi workers, i am one of them. It was the Obama Administration that forced GM to pull the Pontiac VIBE out of our Nummi plant. By doing so, Toyota could not operate at that place because it cost too much, not to mention all the problems with the UAW and our lazy workers, some 700 of them sitting at home getting paid $940 a week for a scratch on their arm or so.
Also, We built GM car in NUMMI when GM pulled out of NUMMI Over night, they didnt give us $HIT. BUT Nummi and Toyota ARE going to give us a Package, Some say its not much, but its something and thats something that we didnt get from GM, so GM screwed us not Toyota, Thanks.
nissanfanatic says:
05:51 AM, 10/ 5/09
I think it is very noble for him to apologize even though I dont feel he needs to. He hasn't done anywhere near as bad as those guys over at GM. So to me his apology really isnt needed. I think the new affordable FR platform will help the "what people want" factor.
P.S.-This is an automotive forum people. Go over to Fox News or CNN if you're looking fo a political forum.