Toyota CEO Apologizes for Lack of Profit, Floor Mat Scare, NUMMI Plant, Boring Cars

[AG4]

Toyota CEO Apologizes for Lack of Profit, Floor Mat Scare, NUMMI Plant, Boring Cars
By Erin Riches | October 2, 2009


Akio Toyoda has only been CEO of Toyota since June, but at a Japan National Press Club briefing today, he made numerous apologies on behalf of the world's largest automaker, the New York Times reported. Public apologies are an accepted part of business practice in Japan, but Toyoda covered topics that resonate plenty in the U.S., too.

First off, he acknowledged the company's $8.6 billion loss for the fiscal year ending in March 2008 and the likelihood of another substantial loss for the current fiscal year. The company was unprepared for the global economic meltdown, he said, and is now a step away from "capitulation to irrelevance or death." He added that Toyoda is "grasping for salvation." He reiterated again his plan to shift the focus away from maximum sales and give more priority to products that people want.

Then, he turned to the floor mat debacle in the United States spurred by several years of customer complaints and a recent fatal crashof a Lexus ES 350 dealer loaner car in California.

"Four precious lives have been lost. I offer my deepest condolences," Toyoda said. "Customers bought our cars because they thought they were the safest. But now we have given them cause for grave concern," he said. "I can't begin to express my remorse."

He didn't forget the impending closure of the NUMMI plant in Fremont, California -- a decision he called "agonizing."

"I know it's a big blow to the local economy," he said.

Finally, he admitted that Toyota just hasn't been building inspiring cars over the last several years, not even in the Japanese homemarket. "They say that young people are moving away from cars," said Toyoda. "But surely it is us -- the automakers -- who have abandoned our passion for cars."

Thanks to Bob Holland for the tip.

The New York Times

- Straightline, Insideline

[scharnhorst]

Iba talaga ethics ng mga hapones.

[green_machine]

Wow saludo ako sa kanya! That's one attitude of the Japanese that I really like: yung importance ng honor at respeto. Sa pag-acknowledge ng kamalian at kakulangan, dyan nagsisimula yung passion para mag-improve at ma-reinvent ang sarili.

[oj88]

I just hope this will trigger new car designs with a bit more pep than the current ones.

I missed the Celica and MR2 days. Probably Toyota's biggest mistake was to stop production of these babies.

[cbcnestormn]

- Straightline, Insideline

I wonder what this means for the supposedly few but significant no of Innova and Fortuner Diesel D4D owners who suffer unexpected expensive fuel system repairs ? Many have read the long thread about this Innova D4D diesel choking problem.

[AnitoKid]

I second this!

Iba talaga ethics ng mga hapones.

[tidus1203]

I wonder what this means for the supposedly few but significant no of Innova and Fortuner Diesel D4D owners who suffer unexpected expensive fuel system repairs ? Many have read the long thread about this Innova D4D diesel choking problem.

The difference between 1st world and 3rd world. A 1st world family dies because of their product the President has to apologize in front of the media. Hundreds of 3rd world victims of poor products not a word... In other words, they really strive to make quality products for 1st world and if may mali they correct it IMMEDIATELY. Pag 3rd world asa ka pa!

[Ventoy]

Alam kaya ng CEO yung D4D issues dito sa Pinas or takot lang sila sa KANO pero sa mga Pinoy parang walang paki alam yata mga hapones!!! kaya BANSAI sa mga Bunsai!!!!He!!! HE

[kevin3000]

iba ata ang d4d sa u.s puro v8 at v6 kaya iba ang design ng engine