All right so I thought this was interesting. Heh, my domestic buddies got a real kick out of this! This post is long. And really, at the end of it.. I went "Meh."

RANTS by Peter M. De Lorenzo of Autoextremist


Dear Mr. Toyoda...

Detroit. Not to rain on your parade this morning, especially after your induction into the Automotive Hall of Fame in Dearborn last evening, but how can I put this other than to say that all of a sudden things aren't looking so good for Toyota in the U.S. market after years of unprecedented ascension and current dominance? I know you're "just" the honorary chairman of Toyota, but you're the direct link to the founding Toyoda family of the Toyota Motor Corp., and from what I understand, you're still "the straw that stirs the drink" in the company and you still set the tone for the entire Toyota organization.

So on your tour of the U.S. headquarters in California this week, where you are expected to be debriefed about all of the latest developments with the Toyota juggernaut in the U.S., rather than getting the story from your Japanese and American operatives, I thought I'd give you the straight story from the heart of the U.S. auto industry here in the Motor City.

What does the "Detroit Three" have to do with the future of Toyota? After all, isn't the domestic automobile business in the U.S. just the trash heap on the side of the road fading in your rearview mirror on the way to becoming The Greatest Automobile Company the World Has Ever Known?

As we like to say around here during football season, not so fast, and here's why:

Those executives walking out the door? Those aren't just due to the ebb and flow of normal business operations. And no, I'm not talking about Deborah Wahl Meyer here, since her abilities have yet to be tested on a genuinely tough marketing challenge, and her value to the Cerberus-owned Chrysler is still a giant "wait and see." I'm talking about Jim Press and Jim Farley. Press you know very well, as it is said that you were his mentor in the company. Sure, you can chalk it up to the mercenary aspect of the situation, as Press could potentially make more personally than you've made over your entire career several times over, but you know better than probably anyone that there's a deeper undercurrent to Press leaving. He was elevated up and out of the fray, and at the end of the day your company made it very clear that the highest-ranking American at Toyota would never be more than that - just another deckhand on the Toyota ship. That's perfectly logical, given that Toyota, at the end of the day, is a Japanese company, but then again, the message it sends is not exactly comforting to the U.S. managers toiling on your behalf, now, is it?

Even though Press was moved out of the way before his departure, his stamp is all over your U.S. operation, right? And now his avowed mission is to help resurrect a U.S. brand and give you and your organization fits, which can't make you very comfortable or happy. Yes, I questioned Jimbo's moral compass in all of this because after all, he worked for 37 years to make Toyota No. 1 on your family's behalf and now all of a sudden he's as American as an Uncle Sam actor in a Fourth of July parade, which is a bit disingenuous, to say the least, but nonetheless, one of the architects of Toyota's unequaled success in the U.S. is now playing for the Dark Side.

But then again, you can sit back and philosophically chalk that up to the fact that Press is getting on in years and he really wasn't worth that much to the organization anymore, right? Or at least that is what your internal spin-meisters are going to tell you this week to assuage your concerns.

But then what are we to make of Jim Farley's departure to the Ford Motor Company?

Certainly no one can live up to the press clippings that the fawning automotive media has bestowed on young Mr. Farley, right? Yes, that is true, but - and we're talking a giant "but" here - it's very clear that Farley was the best and brightest star in your entire U.S. organization, no? He was the Heir Apparent, the Dude Who Would Be King and the guy who was eventually going to lead your money-printing operations for the next 20 years. And there's no way you can gloss-over his loss is there? No, you can't. And get ready, because I'm hearing there will be more departures of Americans from your U.S. operations shortly.

And the free pass you've been getting from the automotive and mainstream media for the last 10 years? It's about to evaporate into thin air. That little dustup generated by your Cheerleader in Chief, Tom Friedman, of The New York Times, two weeks ago over Toyota's apparent less-than-Jolly Green Giant marketing initiatives into gas-guzzling trucks and SUVs and the fact that you're siding with the Detroit Three in their quest for saner CAFE legislation is just the tip of the iceberg. You can dismiss most of it, because Friedman, like most of his Green Posse brethren, is totally clueless about the scope of Toyota's business model here in the U.S. (they're just now catching up to the fact that the Prius isn't how you make your money over here, and they're shocked, shocked that this is so). All of your accumulated "we're the most benevolent car company on the planet" goodwill and all that money you've spent on "hugs and smiles" marketing campaigns is about to get blown up real good. And with your Golden Marketing Boy gone and your organization reeling from his departure, your ability to respond in the necessary fashion will be compromised, at best...

No individual or company can stay as hot as Toyota has for as long as it has. Yes, I know the mantra around your place is that "complacency is the enemy" and all the associated platitudes that go with that statement, but what do we know about Toyota of late, besides the fact that your Green halo is getting caught in the crossfire between the rabid Friedmanistas and the reality of making money in the U.S. - which is still the single most important market in the world?

Let's review, shall we?

Yes, you're about to become the biggest car company in the world, but at what price? Should I remind you of the unprecedented recalls by your company over the last three years? Or about the 470,000-vehicle recall in your home market that you just announced today? And the fact that other manufacturers are getting dangerously close and in some cases equaling and even surpassing Toyota's vaunted quality statistics in the most recent surveys?

And how about the news yesterday from Consumer Reports magazine, that bastion of self-promoting automotive objectivity and the magazine that literally propelled Toyota to its lofty quality perch over the years? They reported that the quality of cars made by Toyota had slipped so much that the magazine no longer will automatically recommend them. Ouch. And ironically, the magazine released the results of its 2007 annual Car Reliability Survey yesterday in Detroit. Double ouch.

Consumer Reports reported that two of your most crucial and all-new for 2007 models, the perennially best-selling Camry V-6 and the new four-wheel-drive Tundra pickup scored below average. And as you know, CR won't recommend any model scoring below average to its readers. Toyota used to get a free pass from the magazine for its previous record of reliability and quality. Not anymore. The magazine announced that it would no longer recommend any new or redesigned Toyota-built models without reliability data on a specific design. That kind of shoots holes in the old Toyota=Good, Detroit=Bad formula floating around the mainstream media now, doesn't it?

That's got to be daunting to you and your organization, because after all, without your (formerly) unimpeachable reputation for quality what is Toyota left with, exactly?

The environmental high ground? Hmmm, how is that working out for you of late? What about exciting cars and trucks? Uh, not so much. Your company has struggled for years to convince consumers that you indeed build emotionally involving products, and you've failed miserably at it. You build the rolling equivalent of automotive pabulum, and you know it. As a matter of fact, there are some people (including me) who are highly skeptical as to whether or not you're even capable of building anything but vanilla-flavored transportation devices. After all, isn't it your company that has been unable to record even a single victory in Formula 1 after spending upwards of $2 billion with a capital "B" over the last five years? That's right, not one.

And what about the U.S. market? You've had to spend unprecedented cash on rebates and incentives in an attempt at seeding the new full-sized Tundra pickup in this market. And even with that unseemly business, your company has had three - count 'em - three straight months of downward sales numbers. That's unprecedented, too, at least in your recent double-digit-sales-increase-every-month history.

Just wondering, but are you going to do a Vince Lombardi for the troops in California and say, "What the Hell is goin' on out there?!?" Nah, not your style, I would bet, but you will be asking them that in so many words, won't you?

Yes, Mr. Toyoda, in this 50th Anniversary year of your operations here in the U.S., you have serious problems looming at every turn. And to make matters even worse, your main rival - General Motors - has finally emerged from its 30-year slumber/coma and is coming out with a variety of cars, trucks and SUV/crossovers that are uncomfortably competitive, even threatening, in some cases. Not to mention the fact that Toyota's Greener-than-thou persona is about to be seriously challenged over the next two years by GM (and every other car maker in the world, for that matter).

For instance, the new GM Volt is a game-changer, and despite your company's public, "What, Me Worry?" stance, privately, it has you deeply concerned, doesn't it? GM is out to dislodge you from your emerald precipice, and much to your chagrin, they could very well do it by 2010, couldn't they? And that, combined with the fact that GM's latest contract negotiations with the UAW will put them in a very competitive financial position by 2011, leaves you with a heaping bowl of not good - right, Shoichiro?

So, I hope you enjoy your stay in the States, and congratulations again on your induction into the Automotive Hall of Fame. And just remember one thing - it's a lot easier to be in pursuit of a goal than it is to know what to do once you've attained it.

It looks like we'll see what your company's really made of over the next couple of years, won't we?

Thanks for listening, see you next Wednesday.

 

I'm not even a big Toyota lover, never owned one but in reading forums and reading press releases, everyone is jumping on the "down with the Toyota juggernaut" bandwagon.

Not to long ago, these same writers were saying other companies should follow Toyota's lead and how impressive their rise is.

In the end you have to take the good with the bad and this is another test for this company.

 

im reading Lorenzos United State of Toyota book, its very good. I'm about halfway in and reading all the failures on GMs part in the past few decades is staggering

http://www.amazon.com/United-States-...3074389&sr=8-1

 

I recall the bashing when their cars first were on the roads here. 70's, 80's, 90...always a roller coaster of automotive press comments. Like watching grain stalks get blown by the wind as they sway back and forth. It's like the writers have no real backbone but praise and bash with the tides.

 

Toyota makes quality, reliable and affordable cars. I think they see the auto industry as a chance to do more than just make money. I own 4 chevy's (pre 84) and I can tell you, I wouldnt own many GM's newer than that...

 

Well I think it's a kinda glass half-full/empty scenario with Toyota. The Autoextremist article takes a more half-empty view. I say the current situation is on-the-fence, and yes recent news has included troubling elements. However there's still a strong customer base, strong sales, etc. What is next to come?

 

Just as a correction to this statement... you OWN a Toyota and have OWNED a Toyota... just check the glass on you GS... Mine says the same thing "Toyota Motors Corporation."

 

I hope no one takes this offensively, but does anyone else get the impression that this guy sounds like a house-wife when he writes?

nag nag nag

 

Considering the writer of the article used football as an analogy, I'll continue with that.

In football when you win, other teams want your players, coaches and staff. It's a proven fact. That's why a lot of teams that win the Super Bowl have an unlikely chance of repeating. Not only do other teams want those players and personnel, but they are also willing to pay out the ying yang for them. The writer of the article failed to take into account that the big wigs that have been leaving Toyota and Lexus may not be leaving just because they are dissatisfied with the brand, but the mere fact that those other companies could have given them offers that would be impossible for them to turn down. If you win, your stock value goes up dramatically. If you lose, you fade into oblivion. It's just that obvious... just think about this... where are the execs that just got replaced by the former Toyota execs??? Exactly...

 

lorenzo will bash on everyone. He bashes on domestic companies BIGTIME in his United States of Toyota book

 

people just dont like toyota because its not an american car. they say the reason that american car companies are going out of buisness is because of cars like toyota, honda, nissan, ect, but i mean its just pushing the other companies to make better cars, and if they cant, they should improve, not get all down and ***** about it. so i guess we will see if toyota can hold their spot as top car or fall like gm and ford did, o and i dont have anything agianst american cars

 

I just can't stand reading anything from Detroit anymore...

 

If his is a GS430 it actually now says Lexus on the glass Just messing with you. I forget the exact model year date, but I think in 2001 the changed all the etching on the glass from Toyota to the Lexus name. Makes is much harder to do a JDM Aristo conversion.

 

Yeah, after watching my dad's struggle with GM I think that I will stay away. Oh and my Subaru is made in the U.S.A., not Mexico or Canada.

 

Ironically enough, it's the Japanese car companies like Toyota, Honda and Nissan that kicked the Big Three in the butt to start producing some quality cars. They did America a huge favour otherwise the Big Three would've been happy to continue building cars that failed and can be taken into the dealer for service. These people don't understand.

It's like someone who has eaten fast food and cheap buffets all their lives. When they're presented with gourmet food in smaller portions, they think it's trash. They don't understand the value of the gourmet food and would rather take the cheap buffet.