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Posts Tagged ‘Akio Toyoda’

Schumpeter: In the black stuff

Tony Hayward is almost as unloved as the boss of Goldman Sachs; he is still the right man to lead BP out of the slick

BARACK OBAMA’S administration has promised to keep its boot firmly applied to BP’s neck. Many people would be happier if the boot were a blade. Fishermen who worry that their livelihoods are in peril; shareholders who have seen the value of BP’s shares plunge; local Democratic politicians who want to make sure they cannot be blamed for reacting too slowly: the list of boot-and-blade wielders is growing longer by the day.

In practice BP’s neck means Tony Hayward’s. Just a few weeks ago Mr Hayward was one of the world’s most celebrated chief executives, responsible for delivering $5.6 billion in profits in the first quarter of this year. Now, after the collapse of a rig leased by BP in the Gulf of Mexico, costing 11 lives and threatening environmental catastrophe (see article), he is in the meat grinder of public opprobrium along with Lloyd Blankfein, chief executive of Goldman Sachs, and Akio Toyoda, president of Toyota. …

Evening Crunch Crumbs: Clay Aiken Keynote Gay Rights Rally Speech; Matt Damon As Robert Kennedy; Michelle Trachtenberg Rapping; Pole Dancing At The Olympics?

-Michelle Trachtenberg does her best Nicki Minaj impression! Not bad…..
-Matt Damon will play fellow famous Bostonian Robert Kennedy in an upcoming biopic about the senator’s life….
-Clay Aiken is lending his support to a gay rights rally in North Carolina by delivering a speech at the event this weekend….
-Slumdog’s Freida Pinto joining Dawn of War….
-Sade’s comeback [...]

The machine that ran too hot

The woes of Toyota, the world’s biggest carmaker, are a warning for rivals

AS EXECUTIVES from Toyota, including the firm’s boss, Akio Toyoda, squirmed before their tormentors in America’s Congress this week, there was little public gloating from rival carmakers. Although it is Toyota that is currently in the dock after a crushing series of safety-related recalls across the world, competitors are only too aware that it could be their turn next. After all, there is not a single big carmaker that has not modelled its manufacturing and supply-chain management on Toyota’s “lean production” system.

That said, there is a widespread belief within the car industry that Toyota is the author of most of its own misfortunes and that its mistakes hold lessons for others. In testimony delivered to the House oversight committee on Wednesday February 24th, Mr Toyoda, the carmaker’s boss, acknowledged that in its pursuit of growth Toyota stretched its lean philosophy close to breaking point and in so doing had become “confused” about some of the principles that first made it great: its focus on putting the customer’s satisfaction above all else and its ability “to stop, think and make improvements”. …

If you can keep your head…

Learning new things is one of life’s little joys. If you had asked me at the beginning of last week what a ‘double McTwist 1260′ was, I’d have probably guessed it was something to do with a well known fast food chain. It is not. It is the name for a snowboarding manoeuvre that involves quite a bit of twisting and flipping. I am not all that into winter sports, but the guy who pulled that one off in Vancouver last week had my undivided attention and considerable admiration (he already had the gold and didn’t even have to do it). As, indeed, did some of the other competitors in other events.

I guess the thing is, whether you are a winter sports fan or not, the competition for Olympic medals is about human endeavour and competition on an epic scale. People train for years and then push themselves to the absolute limit. The guys who failed spectacularly in the two-man bob also got my attention last week. It had all gone horribly wrong for them but, again, I guess we can empathise on a certain level.

We have all failed at something at some time or another and we have hopefully learned something from that experience. Saying sorry and working hard to correct something that has gone wrong occasionally goes with this territory.

Dealing with Kipling’s ‘two imposters’ of triumph and disaster is a part of life, whoever you are and whatever business you are in. And sometimes it’s how you deal with the bad stuff that is particularly important; how you cope in a crisis can be more revealing about character than how you milk the plaudits in the good times.

Toyota president Akio Toyoda – new to the job last year – has had a pretty tough time of late and I would assume that his decision-making is governed by what he believes is in the best interests of his company and its customers. And of course, he is no doubt in receipt of plenty of good advice and wise counsel from his close associates.

He also needs to bear in mind how things are perceived and how the media interprets things. Sometimes the media is unfair in the way it treats things and we have seen plenty of evidence of that here in the UK since the ‘Toyota recalls’ story first broke last month. The media – in the broadest sense – is on the case and some of the nuances of what a recall actually is, quality versus safety concerns and so on, have been a little lost at times – especially in the non-specialist media.

To some degree, it is a no-win situation for Toyota. The bad PR is already out there and the priority is to limit damage and repair confidence (among customers, dealers, suppliers, employees) as soon as possible. Storms do eventually move off. Dire situations become less dire if you do the right things. Do Mercedes-Benz customers today worry about the firm’s serious quality troubles of a few years ago? No. It was very effectively dealt with.

If there was ever a time for effective and decisive leadership at Toyota it is now. And anything that can be interpreted as prevarication or indecision – however unfair that interpretation may in fact be – is certainly not going to be helping.

US: Toyota confirms recall document subpoenas as president flies in

It’s not stopping…

More recalls deliver further blows to Toyota’s battered reputation

ANNOUNCING the latest recall of Toyota vehicles, Akio Toyoda, the company’s chief executive, invoked the principle of genchi genbutsu, an integral part of the car company’s production system. It urges managers to experience problems for themselves rather than relying on reports and then attempting a fix one or two steps removed. On Tuesday February 9th Toyota said that it would recall over 400,000 Prius and other hybrid vehicles worldwide to address problems with their brakes. Later Mr Toyoda promised that he will shortly visit America, the car company’s largest market, where he will see the damage to Toyota’s reputation for himself. Finding a fix is another matter entirely.

Recalling another few hundred thousand cars may seem to be only a moderate additional problem for a company that has already shocked customers with the recall of more than 8m vehicles worldwide. On its own the recall of new Priuses, some Lexus models and other hybrids would not have caused the company much anxiety. But coming on top of the recall of cars with accelerator pedals that can jam open, another over brake pedals that sometimes refuse to operate is dreadful. Even before the latest news Toyota put the cost of the recalls at $2 billion. The adverse publicity has hit sales in America, which plummeted by 16% in January compared with the year before. Its shares have fallen by some 20% since the recalls were announced last month. …