Toyota's chief tester? The boss
Hans Greimel
Automotive News
November 16, 2009 - 12:01 am ET

TOKYO -- Akio Toyoda believes firmly in the value of genchi genbutsu, the Toyota Motor Corp. doctrine of going on site to see for yourself. So the president of the world's biggest carmaker visits factories, drops in on dealerships and takes cars to test tracks.

Lots of cars.

By his own estimate, Toyoda, 53, test drives 200 cars -- Toyota's and rivals' -- a year. Executives say he takes three to the track each week, then pens detailed reports about them.

"It's unbelievable, the number of test-drive reports he sends me," Executive Vice President Yukitoshi Funo says. "I test drive maybe once a month, at best. He test drives all the time."

Toyoda sees his busy schedule behind the wheel as an embodiment of being a hands-on manager. The self-proclaimed car guy says it's more than keeping tabs on the competition. It's about injecting his products with style and flair.

The test drives stand as testimony to Toyoda's commitment to product. But they also raise questions about attempts to infuse the brand with the driving instincts of its boss.

"Beauty is in the eye of the beholder, and he's only one set of eyes," says Chris Richter, an auto analyst at CLSA Asia-Pacific Markets in Tokyo. "A lot of car companies have been driven into the ground by executives who say they have gasoline in their veins."

Chef executive officer

Toyoda compares his role to that of an expert chef seasoning a meal. First, the cook needs a good sense of taste.

"I would like to add some particular seasoning," Toyoda said at a press conference last month. "How can we find this particular seasoning or taste? Ever since I joined Toyota, I've been looking for that by driving myself."

By refining his taste in cars, Toyoda said he can refine the company's products. "As a restaurant analogy, I would like to become the owner-chef," he said. "I should be able to tell differences in tastes -- this is tasty, or maybe we should improve this for the customers."

Toyoda's weekly appraisals chronicle everything from a car's handling and interior to its ranking against rivals, according to Funo. For public consumption, Toyoda blogs about his impressions under the pen name Morizo on Toyota's marketing Web site, www.gazoo.com. In a July entry, he sang the praises of the Volkswagen Scirocco after grinding through its gears.

Toyoda, an avid racing fan, pushes cars beyond mere test spins. He also drives in the 24-hour endurance race at Germany's notoriously demanding Nurburgring circuit.

At last month's Tokyo Motor Show, Toyoda unveiled the Lexus LFA sports car, proudly declaring that he had "personally participated in the flavoring" of the car.

Indeed, Toyoda says he "forged the car" with grueling test drives at Nurburgring.

Need for speed

Few doubt Toyoda's car buff pedigree. As the grandson of the company's founder, he grew up surrounded by cars. The question is how well that translates to business instinct.

The LFA, for example, is an engineering tour de force. But it was launched during an unprecedented global recession with a $375,000 sticker. Even at that stratospheric price, it is expected to lose money.

"If his test driving is just a marketing gesture to show that Toyota is a car enthusiast's company, that's fine," says Tatsuo Yoshida, an auto analyst with UBS Securities in Tokyo. "But if he's really directing product planning based on that, it will be a complete disaster."

Yoshida says car companies need professional test drivers. The key is to drive a car from the perspective of the car's target customer, not from one's personal likes and dislikes, he says.

Speaking in June, shortly after he took office, Toyoda said his top brass often implores him to quit racing because of the risks. But he was adamant he won't slow down.

"It has a lot to do with the development of cars," Toyoda said. "Put another way, you can say that I'm staking my life to come up with a better product."

Chieko Tsuneoka contributed to this report.