Toyota CEO Writes Op-Ed in Wall Street Journal

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Akio Toyoda, scion of the Toyoda family (pun intended), has written an open letter to the Wall Street Journal. Here are the highlights:

1. This wasn’t an apology.

Toyoda didn’t ever say he was sorry, nor did he offer an apology. While one could argue that technically Toyota has done nothing wrong – they’ve followed the letter of the law, if not the spirit – that’s really not the point.

Now is the time to tell the American public that mistakes have been made, and that you’re sorry for the panic and the poor way these problems were managed. Apologizing is the FIRST thing Toyoda should be doing. Instead, this letter says nothing about all the mistakes that were made.

2. Toyota is further expanding their retroactive brake-to-idle failsafe installations.

We called for this move a few months ago – Toyota’s “smart throttle” or “smart pedal” system completely and totally eliminates the possibility of unintended acceleration. Toyota is going to add this feature to a big chunk of their line-up, going all the way back to some 2005 models. Perhaps it Toyota had made this decision back in November, they wouldn’t be dealing with so much negative publicity…perhaps not.

3. Toyota’s CEO claims that Toyota acted in good faith.

This one is a little hard to believe:

it is clear to me that in recent years we didn’t listen as carefully as we should—or respond as quickly as we must—to our customers’ concerns. While we investigated malfunctions in good faith, we focused too narrowly on technical issues

Really? That’s why you delayed the recall on the floormats? Are you sure it didn’t have to do with saving $100 million by “negotiating” a smaller recall? When will Toyota understand – lies aren’t going to make this go away. Admit that you and your executive team put greed ahead of safety. Fire the execs. Clean house. America will forgive you (we’ve forgiven Ford, GM, and others for doing the same type of thing in years past), but you can’t be forgiven until you admit guilt.

4. Toyota is making transparency a priority.

I pledge that Toyota will set a new standard for transparency and speed of response on safety issues

That proclamation is nothing short of miraculous. Toyota is one of the most secretive companies in the world. They hide everything. Committing to transparency – even if that’s only in regards to safety issues – will require a major corporate transformation, and frankly it seems improbable….but it’s a worthy goal.

5. We got a nice history lesson.

Toyoda pointed out all of the quality awards they’ve won, all of the workers they’ve hired in the USA, and the fact that the company has been successful for a long time. Great. This is America – What have you done for us lately?

Culture Clash In Action

Toyoda’s op-ed illustrates a crucial point – Toyota is an international company that still believes it’s a Japanese company. The CEO doesn’t apologize in this letter because he doesn’t want to “lose face.” He hesitates to testify in front of congress because he wasn’t “formally” invited. Toyota’s PR machine couldn’t respond to pedalgate for more than a week because Japan hadn’t found a solution yet, all while Akio Toyoda avoided public comments.

Toyota managers – Do you see the pattern here? Your company’s biggest problem in the U.S. is that it’s too much like Japan, a closed, private society that would rather live a lie than admit fault. It’s time for a change.

Filed Under: Auto News

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  1. Joe Smith says:

    His arrogance or face saving tactics pale in comparison to the crap we have been fed by his competition. Once again I am happy to have an opportunity to weigh in on the alternatives. Until the US Govt has no hand in the US automotive industry this consumer will not willingly part with one thin dime for them at purchase time. He can be “Japanese” all he wants as long as his products provide a viable alternative to Govt Motors.

    Of course they are already confiscating money from me every week and propping their sorry — up. Here’s to looking forward to April 15th.

    Now where were we…

  2. Jason says:

    Joe – I think you make some valid points, but I don’t want to give Toyota a pass here. Just because GM, Ford, and Chrysler have all done it before doesn’t make it OK. Am I saying that I’ll never buy another Toyota again? Absolutely not. I like the product just as much today as I did 5 years ago. However, Toyoda and all his cronies – and all the guys that sat in the boardroom over the last 5 years – need to take a long hard look at themselves. THEY are just as much a part of the problem as they are the solution.
    ##
    Frankly, I think Toyota should follow Ford’s decision to hire an outsider. Ford hired Alan Mullally, one of Boeing’s smartest execs, and let him run the show. The result is that Ford is stronger, has better quality, and is actually profitable. If Toyota setup Toyota USA as more of a free-standing company, and then hired a smart outsider to take over, I think the product and service would improve considerably. At the very least, the P.R. team would be able to act.

  3. Joe Smith says:

    Jason you are certainly more rational in your approach than I can be right now. Ford, due to it’s size, was more nimble than GM and that has served them well. I expect it won’t be long before Washington draws down on Ford in some fashion because I am convinced the Administration was not happy that Ford refused the bailout money and retained their independence from govt intrusion.

    Time will tell.

  4. Jeremy says:

    RECALLMAGEDON LOOMS CLOSER!

  5. mk says:

    I think the govt. was happy ford did not take the bailout money instead of what joe smith said being govt. was NOT happy with ford on taking bailout money. If goes to show the american public ford does not need a handout to survive and hopefully never will. I say if GM and Chrysler make a go of it eventually and repays the govt. loans back in say I’m guessing the next 10 years hopefully, it will be a good thing for all of us making competition improve quality and lowering prices.
    I agree with Jason on this one that toyota higher ups need to look long and hard at this one and instead of being typical Japan shutting up and laying low, need to step up to the plate and admit fault where it needs to and man up and get it right from here on out. Otherwise, they are in deep doo-doo. How is that for being technical savvy?

  6. Mickey says:

    Jason are they really going through and put in these smart throttle in all vehcilces back to 2005?

  7. Jason says:

    Joe – Thank you.
    ##
    mk – Thanks. I agree that Toyota needs to man-up. If they had taken the time to get in front of this issue a few years ago, Akio wouldn’t be sitting in hearings today.
    ##
    Mickey – Some of the cars and trucks will get smart throttles all the way back to the 05′ model year, but most of them will be 07+. The Tundra isn’t going to get one, btw.

  8. Mickey says:

    Well that right there states the Tundra doesn’t have the issue with unintended accelleration.

  9. Sidney says:

    Yhea Joe, the Goverment is out to get ya! Apparently some people do not understand the overall consequences of GM and Chrysler falling. The unemployment rate would have sky rocketed. How many small businesses around the country produce and supply parts to the these companies. Not to mention the dealerships and mechanics. Then the banks would be in hurt, bigger then they already are or were, and the APR would be outrageous on a loan due to the repo’s then foreclosures. No one would beable to afford to finance a vehicle. Not to mention the competion is good for business, especially for different manufactures. What do you Toyota is right now, they are a puppet on a string for the Goverment. If you don’t think so then why are they standing before congress? Here is a Japanese owned company answering to a different country. So apparently Goverment Motors extends further than you think. What is going on with the report of Toyota saved millions negotiating the recalls? It doesn’t sound good.

    http://money.cnn.com/2010/02/2.....htm?hpt=C1

  10. Jason says:

    Sidney – I happen to agree that letting GM and Chrysler fail would have been worse than handing them money, but no one can now for sure. Personally, I was thinking of all the dealers in addition to the union and salary workers and suppliers. It was just a massive number of people. If GM had ran out of cash in 06′ or 07′, I don’t think it would exist today.

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