Is Jim Lentz the right leader for Toyota amidst these tough times?
05-03-10, 06:15 AM
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Is Jim Lentz the right leader for Toyota amidst these tough times?
An article from Automotive News analyzes the pros and cons:
Toyota's nice guy on the hot seat
Is sales specialist Jim Lentz tough enough in a crisis?
by Mark Rechtin
The hardest part of Jim Lentz's job in Toyota's time of turmoil may be leading a company full of executives who have never known adversity.
"There are times I realize that everyone is looking at me to see if the boss is sweating," said the genial 54-year-old Denver native.
A Toyota retiree who came from Detroit put the problem this way: "You don't get seasoned with uninterrupted success. It breeds arrogance in a company."
Lentz is the first president of Toyota Motor Sales U.S.A. who did not experience the brutal U.S. recessions of the 1970s and 1980s. He did live through the tough endaka years of the mid-'90s when the soaring yen jolted all Japanese automakers.
But for the first time, the focus is squarely on Toyota. The media firestorm and congressional cyclone of unintended-acceleration allegations have thrown Japan's juggernaut off balance.
"Rarely is an executive tested at this level," said Adam Simms, general manager of Toyota Sunnyvale in California, who admires Lentz's courage under fire.
Said former Toyota executive Ed Ohlin: "He is in a very tough position with issues that are clearly outside his ability to control."
But Ohlin and others think Lentz could be a more forceful public presence, more in the mold of two high-profile predecessors: Jim Press and the late Bob McCurry.
Growth machine
The generation of executives before Lentz often emigrated west from besieged Detroit automakers. But most of Lentz's charges are Toyota lifers who joined in the 1980s and 1990s, when the automaker was more or less a growth machine.
If one executive can tame and transform the arrogance that can come with uninterrupted growth, it would seem to be Lentz. Many company insiders think his calm, steady hand is exactly what Toyota needs.
He joined Toyota in 1984 after four years with Ford's Denver sales region straight out of college. After many years in the field and the occasional stint at headquarters in Torrance, Calif., Lentz was put in charge of launching the Scion youth brand in 2001.
He didn't stay long. Press stated publicly that Lentz was "too old" at 46 to run the brand and named 41-year-old Jim Farley to run Scion while promoting Lentz to head of Toyota brand marketing.
Soon after, Lentz was handed the top job at Toyota Division. When Press was shifted to New York to head the corporate office in 2006, Lentz became executive vice president of Toyota Motor Sales and the U.S. sales arm's top-ranking American executive.
Lentz had massive shoes to fill. Press had guided Toyota through years of heady growth -- from 1.48 million vehicles in 1999 to 2.26 million in 2005.
But under Lentz, Toyota sales continued to soar, hitting 2.6 million in 2007 before the recession and Toyota's recent troubles pushed volumes downward.
Last year Toyota Motor Sales finished at 1.77 million units, its lowest level since 2002, although it held onto its share in a miserable market.
President in 2007
Lentz was named president in late 2007. At the time, insiders were complaining that the parent company was exerting too much control over U.S. operations. They hoped Lentz would hold more sway in Nagoya.
But some say Lentz's calm manner works against him in the current crisis.
"Lentz is too nice a guy," said one former Toyota executive who spoke on the condition of anonymity.
The source said Toyota's U.S. operation might need someone more like the charismatic, quotable Press or McCurry, the gruff ex-college football star who was Toyota's top U.S. executive in the 1980s and early 1990s -- "a real SOB who can argue with the Japanese."
Others say Lentz is plenty tough, with a polish that makes him effective. A Toyota retiree who worked with Lentz thinks he is much more than just a product of Toyota's culture of consensus and compromise.
"He's no pushover," the retiree said. "Jim won't fight in the press or publicly, but he has an edge. He is not timid. He can be tough when he needs to be, but he's been beat up lately."
Lentz, an athlete who still plays hockey, bristles at the characterization that he had too soft a touch with the home office. He said he has had many "aggressive" conversations with bosses in Japan.
"My experience is that pounding your shoe on the table is not the best way to get done what needs to get done," he said. "Toyota deals with facts, and building the facts to bring them to the decision. Getting emotional doesn't work."
Trusting lieutenants
Insiders say one of Lentz's strengths is admitting what he doesn't know. His product and engineering knowledge is secondary to his expertise in sales, marketing and distribution. But Lentz trusts lieutenants to make the right decisions.
When put in charge of Scion's launch, Lentz was shown a prototype of its flagship car, the xB. Lentz thought the boxy car would flop but listened to product planners, who insisted the car was perfect for the brand.
Lentz signed off on the project, unsure whether he had just shortened his Toyota career by hanging Scion with a kitchen appliance. Not only did the xB put Scion on the map; it spawned several imitators.
"I may be involved in critical decisions for our strategic direction," Lentz said, "but I leave implementation to the experts. You have to do what's most effective to get the end result you need."
Several sources say Lentz's limited product knowledge was one reason the U.S. sales company was slow in convincing management in Japan of the need to order a massive recall to deal with unintended acceleration.
"If the home office doesn't know what to do, does the wrong thing and the underlings don't argue, that makes it that much tougher to turn the ship around," a former Toyota executive said.
Lentz counters: "The decisions to do the recall were made in Japan. My engineering background, or lack thereof, didn't have an affect on decisions.
"But going forward, there will be lots of conversations with Japan about the mood of consumers and regulators, to make sure we act quickly and decisively."
Mixed reviews
Lentz got mixed reviews for his first testimony before Congress in February. Critics said he looked like a deer caught in the headlights when grilled by Rep. John Dingell, D-Mich. Others approved of his emotional, and sometimes contentious, debate as strongly representing the automaker.
Lentz's disclosure that his brother had died in a car crash 20 years ago was poignant. And he was apologetic, admitting that Toyota had "stubbed its toe" in the recall process.
He also said communications between Japan and the United States on recall-related issues were not as strong as they should be.
But Lentz chided Rep. Betty Sutton, D-Ohio, for Congress' folly in calling him to testify as head of the U.S. sales arm, when final recall decisions are made in Japan.
"There was a lot of piling on at the hearings that was orchestrated showmanship and didn't really address issues," said Simms, the California retailer.
"Jim navigated it as best he could, and he didn't let the brand or the dealers down."
Lentz said his head was a swirl of emotions during the first 15 minutes sitting alone before Congress, "starting with fear, then moving on to pride and excitement."
He said he wouldn't change a thing about his testimony, especially since the congressional panel dictates the direction of the debate.
Lentz and his boss, Yoshi Inaba, president of Toyota Motor North America, have increased communication within U.S. operations.
Last year, before the recall crisis erupted, Lentz began town hall meetings in a conference room, typically attended by about 100 employees.
Now the companywide meetings number a couple of thousand employees, and the company is linking its nationwide network into the proceedings.
The quality crisis has hit Toyota hard, Lentz said.
"When this initially hit, everyone was taken aback, thinking surely this can't be happening to Toyota," he said. "There was a phase of anger among associates, customers and dealers, wondering how can we have taken our eye off the ball like this.
"But we have quickly moved beyond that. Now it's time to roll up our sleeves and take care of our customers."
Loyal customers return
Some say the worst is over for Toyota. Strong March sales, fueled by incentives, pushed the company back into a strong second place in the industry. And April sales appear to follow that trend.
Lentz says that if there were widespread fear that Toyotas were unsafe, no amount of incentives would win our shoppers.
"If this had been a company with a perception of lesser quality, it wouldn't have made the news," he said.
"Will we have more recalls? Of course. Every manufacturer will. But most of our loyal customers are back."
Lentz said his management style has changed a bit during the current crisis.
"I have to keep a calm demeanor to make sure they understand we have a plan in place," he said.
"But I also am impatient in that we have to do things faster. We have been a company of study ... but in today's environment, we have to be a company of action."
JIM LENTZ
Age: 54
Title: President, Toyota Motor Sales U.S.A.
Education: University of Denver, B.S. and M.B.A.
Early jobs: Vacuum cleaner salesman, sporting goods salesman, pool inspector
Family: Married, 2 children
Activities: Scratch golfer; still plays hockey
Oft-heard descriptions: Reliable, honest, cautious, patient
http://www.autonews.com/apps/pbcs.dl...305039951/1179
Toyota's nice guy on the hot seat
Is sales specialist Jim Lentz tough enough in a crisis?
by Mark Rechtin
The hardest part of Jim Lentz's job in Toyota's time of turmoil may be leading a company full of executives who have never known adversity.
"There are times I realize that everyone is looking at me to see if the boss is sweating," said the genial 54-year-old Denver native.
A Toyota retiree who came from Detroit put the problem this way: "You don't get seasoned with uninterrupted success. It breeds arrogance in a company."
Lentz is the first president of Toyota Motor Sales U.S.A. who did not experience the brutal U.S. recessions of the 1970s and 1980s. He did live through the tough endaka years of the mid-'90s when the soaring yen jolted all Japanese automakers.
But for the first time, the focus is squarely on Toyota. The media firestorm and congressional cyclone of unintended-acceleration allegations have thrown Japan's juggernaut off balance.
"Rarely is an executive tested at this level," said Adam Simms, general manager of Toyota Sunnyvale in California, who admires Lentz's courage under fire.
Said former Toyota executive Ed Ohlin: "He is in a very tough position with issues that are clearly outside his ability to control."
But Ohlin and others think Lentz could be a more forceful public presence, more in the mold of two high-profile predecessors: Jim Press and the late Bob McCurry.
Growth machine
The generation of executives before Lentz often emigrated west from besieged Detroit automakers. But most of Lentz's charges are Toyota lifers who joined in the 1980s and 1990s, when the automaker was more or less a growth machine.
If one executive can tame and transform the arrogance that can come with uninterrupted growth, it would seem to be Lentz. Many company insiders think his calm, steady hand is exactly what Toyota needs.
He joined Toyota in 1984 after four years with Ford's Denver sales region straight out of college. After many years in the field and the occasional stint at headquarters in Torrance, Calif., Lentz was put in charge of launching the Scion youth brand in 2001.
He didn't stay long. Press stated publicly that Lentz was "too old" at 46 to run the brand and named 41-year-old Jim Farley to run Scion while promoting Lentz to head of Toyota brand marketing.
Soon after, Lentz was handed the top job at Toyota Division. When Press was shifted to New York to head the corporate office in 2006, Lentz became executive vice president of Toyota Motor Sales and the U.S. sales arm's top-ranking American executive.
Lentz had massive shoes to fill. Press had guided Toyota through years of heady growth -- from 1.48 million vehicles in 1999 to 2.26 million in 2005.
But under Lentz, Toyota sales continued to soar, hitting 2.6 million in 2007 before the recession and Toyota's recent troubles pushed volumes downward.
Last year Toyota Motor Sales finished at 1.77 million units, its lowest level since 2002, although it held onto its share in a miserable market.
President in 2007
Lentz was named president in late 2007. At the time, insiders were complaining that the parent company was exerting too much control over U.S. operations. They hoped Lentz would hold more sway in Nagoya.
But some say Lentz's calm manner works against him in the current crisis.
"Lentz is too nice a guy," said one former Toyota executive who spoke on the condition of anonymity.
The source said Toyota's U.S. operation might need someone more like the charismatic, quotable Press or McCurry, the gruff ex-college football star who was Toyota's top U.S. executive in the 1980s and early 1990s -- "a real SOB who can argue with the Japanese."
Others say Lentz is plenty tough, with a polish that makes him effective. A Toyota retiree who worked with Lentz thinks he is much more than just a product of Toyota's culture of consensus and compromise.
"He's no pushover," the retiree said. "Jim won't fight in the press or publicly, but he has an edge. He is not timid. He can be tough when he needs to be, but he's been beat up lately."
Lentz, an athlete who still plays hockey, bristles at the characterization that he had too soft a touch with the home office. He said he has had many "aggressive" conversations with bosses in Japan.
"My experience is that pounding your shoe on the table is not the best way to get done what needs to get done," he said. "Toyota deals with facts, and building the facts to bring them to the decision. Getting emotional doesn't work."
Trusting lieutenants
Insiders say one of Lentz's strengths is admitting what he doesn't know. His product and engineering knowledge is secondary to his expertise in sales, marketing and distribution. But Lentz trusts lieutenants to make the right decisions.
When put in charge of Scion's launch, Lentz was shown a prototype of its flagship car, the xB. Lentz thought the boxy car would flop but listened to product planners, who insisted the car was perfect for the brand.
Lentz signed off on the project, unsure whether he had just shortened his Toyota career by hanging Scion with a kitchen appliance. Not only did the xB put Scion on the map; it spawned several imitators.
"I may be involved in critical decisions for our strategic direction," Lentz said, "but I leave implementation to the experts. You have to do what's most effective to get the end result you need."
Several sources say Lentz's limited product knowledge was one reason the U.S. sales company was slow in convincing management in Japan of the need to order a massive recall to deal with unintended acceleration.
"If the home office doesn't know what to do, does the wrong thing and the underlings don't argue, that makes it that much tougher to turn the ship around," a former Toyota executive said.
Lentz counters: "The decisions to do the recall were made in Japan. My engineering background, or lack thereof, didn't have an affect on decisions.
"But going forward, there will be lots of conversations with Japan about the mood of consumers and regulators, to make sure we act quickly and decisively."
Mixed reviews
Lentz got mixed reviews for his first testimony before Congress in February. Critics said he looked like a deer caught in the headlights when grilled by Rep. John Dingell, D-Mich. Others approved of his emotional, and sometimes contentious, debate as strongly representing the automaker.
Lentz's disclosure that his brother had died in a car crash 20 years ago was poignant. And he was apologetic, admitting that Toyota had "stubbed its toe" in the recall process.
He also said communications between Japan and the United States on recall-related issues were not as strong as they should be.
But Lentz chided Rep. Betty Sutton, D-Ohio, for Congress' folly in calling him to testify as head of the U.S. sales arm, when final recall decisions are made in Japan.
"There was a lot of piling on at the hearings that was orchestrated showmanship and didn't really address issues," said Simms, the California retailer.
"Jim navigated it as best he could, and he didn't let the brand or the dealers down."
Lentz said his head was a swirl of emotions during the first 15 minutes sitting alone before Congress, "starting with fear, then moving on to pride and excitement."
He said he wouldn't change a thing about his testimony, especially since the congressional panel dictates the direction of the debate.
Lentz and his boss, Yoshi Inaba, president of Toyota Motor North America, have increased communication within U.S. operations.
Last year, before the recall crisis erupted, Lentz began town hall meetings in a conference room, typically attended by about 100 employees.
Now the companywide meetings number a couple of thousand employees, and the company is linking its nationwide network into the proceedings.
The quality crisis has hit Toyota hard, Lentz said.
"When this initially hit, everyone was taken aback, thinking surely this can't be happening to Toyota," he said. "There was a phase of anger among associates, customers and dealers, wondering how can we have taken our eye off the ball like this.
"But we have quickly moved beyond that. Now it's time to roll up our sleeves and take care of our customers."
Loyal customers return
Some say the worst is over for Toyota. Strong March sales, fueled by incentives, pushed the company back into a strong second place in the industry. And April sales appear to follow that trend.
Lentz says that if there were widespread fear that Toyotas were unsafe, no amount of incentives would win our shoppers.
"If this had been a company with a perception of lesser quality, it wouldn't have made the news," he said.
"Will we have more recalls? Of course. Every manufacturer will. But most of our loyal customers are back."
Lentz said his management style has changed a bit during the current crisis.
"I have to keep a calm demeanor to make sure they understand we have a plan in place," he said.
"But I also am impatient in that we have to do things faster. We have been a company of study ... but in today's environment, we have to be a company of action."
JIM LENTZ
Age: 54
Title: President, Toyota Motor Sales U.S.A.
Education: University of Denver, B.S. and M.B.A.
Early jobs: Vacuum cleaner salesman, sporting goods salesman, pool inspector
Family: Married, 2 children
Activities: Scratch golfer; still plays hockey
Oft-heard descriptions: Reliable, honest, cautious, patient
http://www.autonews.com/apps/pbcs.dl...305039951/1179
05-03-10, 06:22 AM
#2
Lexus Fanatic
All Toyota (and Lexus) need to do, IMO, is to start building vehicles again, quality-wise, like they did in the 1990's (and, for the Prius, until just recently), and most of their problems will disappear. We can argue endlessly about who should be at the helm and why, but if a ship springs a leak and starts to sink, it won't matter who's captain (or who's steering) until the leak gets repaired.
And not all Toyota vehicles, IMO, have suffered a quality drop either. Ironically, the Yaris, one of the cheapest models, still shows commendable build quality inside and out. The Corolla, despite the recent power-steering controversy and spongy brakes, still seems well-built except for a few flimsy interior *****. The big Land Cruiser, though expensive and not a big seller in the U.S., is also just as impressive as ever....perhaps even more so.
Sometimes, moving "Forward" can require looking back, admitting mistakes, and most important, do AGAIN what you once did correctly. This applies not only to Toyota but to other automakers as well. Unfortunately, for some automakers like Saturn and Pontiac, they won't get another chance.
And not all Toyota vehicles, IMO, have suffered a quality drop either. Ironically, the Yaris, one of the cheapest models, still shows commendable build quality inside and out. The Corolla, despite the recent power-steering controversy and spongy brakes, still seems well-built except for a few flimsy interior *****. The big Land Cruiser, though expensive and not a big seller in the U.S., is also just as impressive as ever....perhaps even more so.
Sometimes, moving "Forward" can require looking back, admitting mistakes, and most important, do AGAIN what you once did correctly. This applies not only to Toyota but to other automakers as well. Unfortunately, for some automakers like Saturn and Pontiac, they won't get another chance.
Last edited by mmarshall; 05-03-10 at 06:45 AM.
05-03-10, 01:36 PM
#4
Lexus Fanatic
You don't want Toyota to go through THAT, do you?
05-04-10, 12:53 PM
#5
Lexus Fanatic
I'm expecting some musical chairs on executive row at Toyota, that's okay.
Toyota/Lexus can refocus on the quality aspect, especially since they are still at or near the top even in these supposedly darker times (as portrayed by the media).
Toyota/Lexus can refocus on the quality aspect, especially since they are still at or near the top even in these supposedly darker times (as portrayed by the media).
05-04-10, 03:34 PM
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All Toyota (and Lexus) need to do, IMO, is to start building vehicles again, quality-wise, like they did in the 1990's (and, for the Prius, until just recently), and most of their problems will disappear. We can argue endlessly about who should be at the helm and why, but if a ship springs a leak and starts to sink, it won't matter who's captain (or who's steering) until the leak gets repaired.
And not all Toyota vehicles, IMO, have suffered a quality drop either. Ironically, the Yaris, one of the cheapest models, still shows commendable build quality inside and out. The Corolla, despite the recent power-steering controversy and spongy brakes, still seems well-built except for a few flimsy interior *****. The big Land Cruiser, though expensive and not a big seller in the U.S., is also just as impressive as ever....perhaps even more so.
Sometimes, moving "Forward" can require looking back, admitting mistakes, and most important, do AGAIN what you once did correctly. This applies not only to Toyota but to other automakers as well. Unfortunately, for some automakers like Saturn and Pontiac, they won't get another chance.
And not all Toyota vehicles, IMO, have suffered a quality drop either. Ironically, the Yaris, one of the cheapest models, still shows commendable build quality inside and out. The Corolla, despite the recent power-steering controversy and spongy brakes, still seems well-built except for a few flimsy interior *****. The big Land Cruiser, though expensive and not a big seller in the U.S., is also just as impressive as ever....perhaps even more so.
Sometimes, moving "Forward" can require looking back, admitting mistakes, and most important, do AGAIN what you once did correctly. This applies not only to Toyota but to other automakers as well. Unfortunately, for some automakers like Saturn and Pontiac, they won't get another chance.
I think one of the main areas where Toyota needs to focus on quality is its North American operations, and stop using subpar parts from other domestic auto manufactures in their cars, namely GM. I mean, seriously, I have never heard of a motorcraft(Ford) part in a GM as OEM eqquipment. Or a Dodge product using AC Delco parts(GM) as OEM eqquipment.
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