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TMW
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Interesting about Toyota
They may be growing faster than they should.
TW
Toyota: [Falling] Quality is Job One
By Frank Williams
August 18th, 2006 2,783 Views
Play word association with the average American consumer. Say the words ?quality cars.? Chances are they?ll respond with ?Toyota.? For decades, the
Japanese automaker has carefully nurtured and perpetuated a reputation for producing well-built/reliable cars and trucks. As a result, the company?s
US sales have grown like kudzu. As of last month, Toyota now sells more cars in the Americas than Ford. If you discount fleet sales (so to speak),
Toyota?s totals are within shouting distance of GM?s, both nationally and worldwide. Despite this startling, seemingly unstoppable success, or perhaps
because of it, the company?s supposedly impenetrable fa?ade has begun to show a few cracks.
Toyota?s first foray into US manufacturing began with a 25% federal tariff on foreign pickups. Toyota reacted to the punitive tax by importing bare
chassis and attaching the truck beds in an American facility. When The Big Three (who were about to introduce their first domestic small trucks)
pressured Congress into widening the tariff to include imported chassis, Toyota built an American plant to assemble complete trucks. Once the Japanese
manufacturer realized they could build competitive vehicles stateside, they began expanding their American operations.
To avoid the United Auto Workers (UAW), Toyota situated their new factories in ?right to work? states. As many industry analysts have concluded,
Toyota?s clean sheet factories (eventually aided by state-funded tax breaks) and non-union workforce gave them an immediate and unassailable advantage
over their ?domestic? competition. While GM, Ford and Chrysler were busy appeasing their unions, draining funds which could have been used to upgrade
their ageing products and antiquated production facilities, Toyota hit the ground running and never looked back.
At some point, Toyota became a victim of its own success. The company?s double quick expansion, from perennial underdog to voracious overlord, has
compromised their unique selling point: product quality. Specifically, Toyota has suffered a plague of recalls around the world. In 2003, the
automaker recalled 200k American vehicles. In 2004, the number increased fivefold, to a little over one million vehicles. In the following year, the
number leaped again, more than doubling to 2.2 million. So far this year, Toyota has announced five recalls affecting approximately 900K vehicles.
Again, Toyota?s rapid growth is to blame. For one thing, the company?s design centers have been understaffed. The shortage of in-house talent has
forced Toyota to outsource, relying on its parts suppliers to design key components. At the same time, the automaker has increased the amount of parts
sharing among different models. The practice has dramatically increased the scope of a "single" failure, as witnessed by last October's recall of
1.27m Japanese vehicles. Goldman Sachs estimates that design faults (e.g. rubber parts not thick enough to withstand engine heat and joints too weak
to hold together) account for 68% of Toyota?s 2004 recalls.
Andrew Phillips of Nikko Citigroup stated "Toyota's resources have been stretched quite a bit by the big increases in volume." Shinsei Securities
analyst Yasuhiro Matsumoto lays the blame for Toyota?s declining quality squarely on Katsuaki Watanabe?s shoulders. He claims the CEO?s constant focus
on cost cutting has created devastating production glitches. The resulting quality issues have become so alarming that Watanabe recently admitted, "I
take this seriously and see it as a crisis." It?s just as well; Goldman Sachs analyst Kunihiko Shiohara estimates that it may take Toyota four years
or more to achieve "a fundamental turnaround in quality levels.?
Toyota also seems to be off their game in predicting market shifts. True, the company displayed impeccable timing by importing the Yaris just as
American demand for smaller, higher mileage cars kicked into high gear. But Toyota?s also about to begin production on a larger, heavier and more
powerful full-size Tundra, assembled in a brand new $800m Texas plant. While Toyota sells the high mileage cars tree huggers love to hug, they also
have the thirstiest truck fleet on the market. And now that large truck sales seem to be tanking, they?re gearing-up to produce them in record
numbers. Only time will tell if they?ve made a smart move (i.e. if sales recover or GM goes bankrupt), but at this point their timing could hardly be
worse.
Earlier this year, Toyota announced they were delaying the introduction of the new Corolla for a year to focus on the launch of the new Camry. This
will leave the current generation Corolla in service for a Big Three-like six years. While the move could reflect a redoubling of Toyota?s commitment
to quality, it gives the model?s competitors some much-needed breathing room. Is this a minor setback in Toyota?s relentless march on American market
share or warning signs of a more fundamental, less easily solved problem? It?s too early to tell. But stay tuned. We?re on it.
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Bob H
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Corolla..... Camry...... who cares about those cars. Get a Ford truck and go anywhere with pride.
Bob H - an American with pride
The SAME boiling water that softens the potato hardens the egg. It's about what you are made of NOT the circumstance.
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Bruce R Leech
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| Quote: | Originally posted by Bob H
Corolla..... Camry...... who cares about those cars. Get a Ford truck and go anywhere with pride.
Bob H - an American with pride |
I agree 100%
but I am so disappointed in all newer cars as to the amount of plastic they are using.
Bruce R Leech
Ensenada
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David K
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"But Toyota?s also about to begin production on a larger, heavier and more powerful full-size Tundra, assembled in a brand new $800m Texas plant"
Does this count?
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Axel
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| Quote: | Originally posted by Bruce R Leech
| Quote: | Originally posted by Bob H
Corolla..... Camry...... who cares about those cars. Get a Ford truck and go anywhere with pride.
Bob H - an American with pride |
I agree 100%
but I am so disappointed in all newer cars as to the amount of plastic they are using. |
Bruce, I agree but its not so much the use of plastic its the use of the type of plastics and design. Being in the plastics industry all the plastic
can be made bullet proof but it all comes down to cost. Plastic has been so engineered in the last 25 years that it is being used to replace many
other material. The down fall is that many manufactures are cutting cost and only making things " good enough " so they can keep costs down. I for one
am getting very tired of this because you can not by quality anymore. I would gladly pay more for something that would not break in short use of it.
Manufactures are creating there own reputation. At one time things were built to last. It doesn't take much more but a little here and there adds up
on the finnished product and then it is priced out of the market.
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Bruce R Leech
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they seem to be making cars to last 10 years. where in the past you could expect 20 or 30 years of service with reasonable care.
Bruce R Leech
Ensenada
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thebajarunner
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You bought better cars than I did!?
| Quote: | Originally posted by Bruce R Leech
they seem to be making cars to last 10 years. where in the past you could expect 20 or 30 years of service with reasonable care.
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That is an amazing statement!
The last three new cars I bought were a 1994 SHO, 1999 F-150 and 2002 Honda CRV.
I have, respectively, 140,000 miles, 129,000 miles and 41,000 miles on these vehicles. I never had a reason to take any of them in for warranty, they
were "good to go" out of the box. None have had any serious problems, and the Honda only requires service, per the book, every 10,000 miles.
The stuff I bought in the 60's and 70's never once made 100,000 miles.
So, I believe, plastic and all, that today's car/ truck is simply a marvel of engineering and endurance. That is my personal experience, sorry about
yours.
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Bob H
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1-million miles and still going!!!
http://www.edmunds.com/used/1999/ford/crownvictoria/12847/ra...
Bob H
The SAME boiling water that softens the potato hardens the egg. It's about what you are made of NOT the circumstance.
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Frank
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My wife wanted another Camry, until we sat in a new one. Lots of plastic, and it didnt feel right to her.
She always liked the Ford Sport Trac {1/2 truck 1/2 suv} I told her we already have a F350 Crew. She drove it and picked the 2007 version. Just
so happens it comes with the Mustang GT V8 motor, transmission and brakes. God I love that woman!
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thebajarunner
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do the math
Let's see..
Cars 20 years ago got 10 mpg
today they get 25
cars 20 years ago went 99,000 miles
today they go 200,000 and you get tired of them
cars 20 years ago were in the shop a lot
today they never see the shop except for tires and lube jobs
cars 20 years ago had to have tuneups.
Tuneups????
Yep, those were the good old days, weren't they???
NOT!!!!!
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David K
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Hi guys... today (Aug. 19) my 2005 Tacoma is ONE YEAR old!!!
The odometer is at 35,777 miles...
Breakdowns: 0
Repairs: 0
Issues: Rear suspension should be stiffer, I don't like the ABS brake system on dirt roads, there was a squeel from the front right brakes until I had
new pads installed when it was time for them to be replaced, and the ABS engaged a couple times when I don't think it should have.
Would I recommend a Tacoma to a serious Baja driver: Yes, you bet. I have owned American vehicles and know what hell they can play upon you.
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Bob and Susan
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David this isn't 1970...
Toyota Motor Corp. produced more than 1 million vehicles at its North American assembly plants last year.
Toyota is now this country's fourth-largest automaker, will continue to produce as many vehicles in the United States it can sell.
Its list of North American-made vehicles includes
Camry,
Corolla,
Avalon,
Sienna
Tundra and Tacoma pickup trucks.
You have an American Made machine
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Sharksbaja
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Wait a second....
| Quote: | Originally posted by David K
Hi guys... today (Aug. 19) my 2005 Tacoma is ONE YEAR old!!!
Would I recommend a Tacoma to a serious Baja driver: Yes, you bet. I have owned American vehicles and know what hell they can play upon you.
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David, don't you lease those Tootas? So it's not really yours is it?
DON\'T SQUINT! Give yer eyes a break!
Try holding down [control] key and toggle the [+ and -] keys
Viva Mulege!
Nomads\' Sunsets
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Debra
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Sharks???? I have to wonder, just what is your point?
And David....Let's not be 'dising' American vehicles, I just sold my '90 T-Bird (guy at the corner store kept begging me) I've loved that car for
all of those years, never, ever had one bit of problem with it.....tires, battery replacement, normal stuff....she still gets 29 mpg! The only reason
I sold her was that I don't have a place to park her here, and she needed a good home. I almost backed out of the deal when I was driving her over,
Dang, that car drives nice! We made many a trip to Baja together (she wasn't enjoying the ride) Now I have my 'infamos' 4 Runner From Hell, that I've
replaced just about everything in (including 2 engines!) Brand new now......(well, except for the thrashing my son Dustin gave it on a camping trip)
Mean people suck!
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Debra
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Oh, I should also mention (discloser) I also bought a brand spanking new Ford Taurus in '04, 16 mpg! What's up with THAT?! ..... in the shop now for
Tranny problems, among other issues....AND, this isn't the first time! Got to love those "bumper to bumper warrenties!"
Mean people suck!
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Bob and Susan
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sharks...
possession is 99%
david has the truck...
it's in HIS garage...
he get to pay the license and insure it
he gets to pay to replace the brakes...
he get to wash it...
he feels GOOD about it...
his lease is just another way to pay for comfort and the "American WAY"...
again... this ani't 1970
People who buy cars and trucks are really out of the "real world economy"
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MICK
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From someone who tows cars for a living I can tell you that Toyotas break down just as much as fords or Gms. My son is a toyota mechanic and he makes
perrty good money and it's not from sitting around.
That said, I think toyota makes a great product both cars and trucks I own an f350 and my wife drives a lexus rx 300.(toyota) Some day I would like to
downsize and when I do it will be a tacoma. I think it's to bad that the big three in the us can't keep up with toyota. I think that when the new
toyota truck comes out ford will have there hands full. They made the mistake of putting all there eggs in the f-150 basket and they might be in
trouble. IF Ford wants back on top they better think of a way to compete with the camary and corolla. Also toyota is the only ones building a high
bred that works. Not that i would buy one but there is a market for them and with gas prices on the rise it's only a matter of time.
In the end I really don't care what I drive if it gets me to baja!! Maybe I'll get lucky and it will break down and I'll have to stay there.
MICK
Getting there is ALL the fun!
Ok being here is fun to
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David K
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Amen brother!
Hey guys, I never said my truck wasn't American made... just not an American company... Where ever the Toyota is made it continues to be an
exceptionally well made car/ truck... No rattles or poor fitting doors, stupid stuff, yah know.
Leasing and purchasing are the same... the lending institution owns the car until it's paid for! Leasing was the only way I could afford to drive a
$30,000 pickup... WE irrigators are not THAT rich!
Debra, American cars were great (once)... and maybe many are great again... I just can't afford to find out if that's true.
Have a great day amigos!
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Jack Swords
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Here's Autoweek's predictions for future Toyotas. Just got a new 4Runner, rides like a car. Now we'll see how it does in Baja. Still have the
Tacoma, but the skid plates are all bashed up so this winter we'll start in on the 4Runner.
Autoweek Predictions for Upcoming Toyota/Lexus Vehicles
In order to become the world's largest automaker you need a gameplan, and Toyota's apparently got one. AutoWeek has peered into its crystal ball and
consulted each one of its inside sources to chart the changes at Toyota and Lexus over the next five years. Here's what they foresee for the Japanese
juggernaut minus vehicles that have recently been introduced or substantially redesigned.
TOYOTA
* Prius – Redesign for 2010 or 2011 with plug-in capability, still odd looking
* Corolla – Redesign delayed until 2008 to combat Honda Civic and Mazda3
* Matrix – Redesign after Corolla in 2009, destination vehicle for Scion owners
* Camry Solara – Killed after 2008, coupe could return by 2010
* Supra – Not going to happen, all rumors to the contrary false
* Sienna – Redesign for spring 2009 with hybrid version
* Highlander – Redesign for 2008 on larger Avalon platform
* FT-SX – New large crossover for 2008 similar to Chrysler Pacifica
* Tundra – 2007 model arrives in January, heavy-duty versions possible
* Sequoia – Redesigned for 2008 on new Tundra platform
* Land Cruiser – Reengineered version arrives in 2008
Follow the jump to see what AutoWeek believes Lexus will be up to in the coming years.
[Source: AutoWeek]
LEXUS
* IS250/350 – Coupe variant for 2008 (What about the IS500?)
* LS460 – 2007 model about to bow with LS600hL hybrid version
* SC430 – Redesign in mid-2007 to compete with BMW 6-Series
* LF-A – Arrives late 2007, early 2008 with 500-hp V8
* RX350/400h – Redesign in early 2008 to compete with larger Acura MDX
* JX470 – For mid-2007 built off GS platform to compete with Infiniti FX35/45
* Small crossover – RAV4-based luxury mini-ute being considered
Detroit better get going on the Hybrids...a Sienna hybrid! Plugin capability for the Prius!
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Barry A.
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Speaking of Toyota---------
-I know that this expands the subject somewhat, but does anybody have any experience in the comparison of the new Toyota FJ-Cruiser and the Nissan
X-Terra? Both sound like great vehicles, from what I have read.
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