[Reporter:] I remember a story related to me by a supplier company: They entered into a contract to supply axles for pickup trucks. It was the first contract his company had with Toyota. He said he was awarded the contract with no discussion of price. It was all based on whether his company's processes and quality were acceptable to Toyota. He was flabbergasted. Is that a common way Toyota does business?
[Executive:] Toyota's thinking based on the Toyota Way is teamwork with suppliers. This teamwork is going to be a long-lasting relationship. Price is only one element. Trust is a more important element. The relationship is a sharing concept, and should always be win-win. Price is important, too. But trust is perhaps more so. This is an idea that American business schools have come to preach. IBM (IBM), General Electric (GE), and other companies talk about how important the mission of the company is. Toyota is only doing intelligently what the business schools are teaching.
In the church when you get married, the priest or minister doesn't ask each partner how much each will get from the other in terms of money. You're asked about how well you get along. What is your commitment to one another? [Emphasis mine -- RD] Now, in real-life situations, some companies practice this, and some don't. Some practice this in the U.S. Some don't. It's the same in Japan. So there are fantastic achievements in both countries, and there are bankruptcies in both countries. So, it isn't a Japanese issue or an American issue. It's a company-culture issue.
Toyota quality
Thursday April 26, 2007
You see the news that Toyota has passed General Motors to become the world's No. 1 car retailer? In this interview with a BusinessWeek automotive correspondent, Toyota's top US auto executive explains that money isn't the most important arbiter of successful business practices:
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About Crunchy Con
Rod Dreher is an editorial columnist for the Dallas Morning News, and author of "Crunchy Cons" (Crown Forum), a nonfiction book about conservatives, most of them religious, whose faith and political convictions sometimes put them at odds with mainstream conservatives. The views expressed in this blog are his own.
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PS BTW Rod: Last week, on 4/19 at 10:30, Dreher said: "Gonzales will be gone by this time next week". "Gone" was a typo...Rod meant to type 'done'. (Could I be the next Scott McClellan or James Carville?) And so Alberto is; 'done', but the Prez doesn't realize it. Gonzales is done, but Bush is leaving him on the flames, and the result is that several people will become burned rather than one. Hang around and watch what blackened mess ultimately comes off that grill. These guys are lightweight bit-player fools with a lot of power....scary...like watching toddlers in a sea of electrical wires.
Rawlins Gilliland: Gonzales is done, but Bush is leaving him on the flames Well...care to make a prediction that is more accurate? Of when Gonzales will be GONE? Currently, he is not done, he is the top dog. Remember Clinton did a lot worse and made it out, slick as a whistle.
In Japan, executive take pride in their company and bonus come with time & success. In the USA, executives are compensated astronomically no matter what the condition of the company is.
I love Toyota. I own a Corolla, bought it new with six miles on the odometer. Today, it has 87,000 and, aside from routine maintenance, I have never experienced a single problem with it. I used to buy American, but I found them to be too unreliable. Matt | 04.27.07 - 5:10 pm | # 1997 Corolla here. Bought it in 2000 with 86k miles, now at 167k it still purrs like (almost) brand-new. Other than routine maintenance (and I still sometime go 5-7k miles between oil changes) I've only had to replace the radiator for a mere $200. It's averaging over 38mpg combined city/hwy. The wife has a 2000 Ford Escort (bought at 10k now has 106k miles), and while we haven't had to put any money into major repairs yet, the engine sounds like it's going to shake out of the compartment (of course it was doing that at 10k miles), and the transmission has decided to start shifting very hard (despite replacing tranny fluid and filter at the recommended interval). It's averaging around 27mpg combined city/hwy.
I've always driven American cars. After I forgot my father's experience with his Ford Tempo, I got a Taurus. By the time that vehicle had 80K miles on it, I had spend almost $3000 on repairs with another $2000 needed. I sold it for dirt and bought a Corolla with a reputation for getting 200K miles on it. Sadly I said good bye to purchasing only "American" cars not because "foreign" manufacturers make better cars, but because the term American no longer applies. Many American automakers have foreign ownership, close factories in the USA and invest in such facilities in other countries while at the same time foreign automakers are building factories in the USA and employing American workers who make good wages and benefit.
The definition of American and foreign companies have blurred to the point that I have no problem buying the most reliable car with the best resale value and fuel economy that's within my budget. If that happens to be Toyota, Hyundai, Honda, Volkswagon rather than Ford or GM then so be it.
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