Monday, July 16, 2007

Brent's Blog: Toyota

Brent's Blog: June 2007:
"If you think this is far fetched—look at Toyota Motor Company, which is heavily subsidized by the Japanese government. Could that automaker have surpassed GM without such unfair advantages as cheap labor and cheap financing by Tokyo?"
Um...yes. They are the best manufacturing company in the world. Bar none. They have built plants all over the world, including the US, that have productivity 25 to 50% higher than US manufacturers. Hell, they even joint ventured with GM in California and taught GM the "Toyota Way". Of course, GM knew better and continued its way. See where that is going?
"Toyota’s exponential growth has come at the expense of declining quality in its products" Get a clue. Toyota's cars are far better than any US manufacturer. That is why they are number one and GM and Ford are headed to bankruptcy.


At Thursday, July 19, 2007 6:55:00 PM, Blogger Brent Clanton said...

Dear Jim--

Thanks for paying such close attention to what we're doing. You're correct, Toyota does make a superior product to GM's (or Ford's).
I believe part of the reason is that Toyota's employees' wages, and the development costs Toyota has invested, were partially made possible by their subsidization by the Japanese goverment. Japanese industry has also had access to zero-cost capital until just recently.
Meanwhile, across the Pacific, US Labor Unions have choked the Big Three automakers, who have not enjoyed the same cost/price support from our Government.
It's interesting, too, that both manufacturers are working under the same government-imposed guidelines for evironmental and mpg's, but Toyota clearly has had the upper hand for a while, with the full support of the Japanese government.

At Saturday, July 21, 2007 8:47:00 AM, Blogger Jim VAT said...

I guess Brent has forgotten the government bailout of Chrystler during the 1980's and the generous government contracts for cars.

True, the limited Japanese government subsidies allowed the car industry to gain hold, but Toyota's own ingenuity and the "Toyota Way" allowed it to thrive. Toyota has built profitable and productive plants all over the world, even here in the US. That indicates to me they are the better car company in all aspects of that business.

The decline of GM, Ford and Chrysler are their own fault as all three companies rejected the quality and manufacturing excellence so aptly applied by Toyota. They also failed to adapt to the new reality of higher gas prices (twice now). And for that, they will fail.


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