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Toyota Set to Become World’s #1 Automaker in ’06 or ’07

1 of View/ Kazuyoshi Abe: – ENGLISH

Here is a piece from a Japanese newspaper that gives a pretty good short historical overview of Toyota's entry into the auto business. Toyota only started making cars in 1937 and will most likely be #1 in the world (in production volume) by their 70th anniversary.

Many people don't know that it wasn't always rosy for the Toyota auto business:

In December 1949, the automaker faced possible bankruptcy because it was unable to cover a debt of 200 million yen. It was Takeo Takanashi, a Bank of Japan branch manager, who saved the company from embarrassment. … extended a cooperative loan to save the company from going broke. In 1950, Toyota implemented restructuring measures, including the axing of 1,600 employees and the splitting of sales and manufacturing divisions into separate entities.

Labor unions staged a strike for two months in opposition to dismissals. To settle the dispute, Kiichiro Toyoda stepped down and was replaced by Taizo Ishida, who headed the loom works, which was the most profitable of the group companies at the time.

Toyota had its crisis. Chrysler, Ford, and GM have all had a major crisis in the past 25 years…. but how did they and how will they respond?

The article says: “GM is advancing corporate restructuring to tide over financial difficulties, and its production is declining.”

Waste reduction or corporate restructuring? Blaming workers or taking responsibility for management failures? Which path should they go down? Is that what they'll really do?

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Mark Graban is an internationally-recognized consultant, author, and speaker who has worked in healthcare, manufacturing, and startups. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent book is the anthology Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also the VP of Improvement & Innovation Services for the technology company KaiNexus. He is currently writing his next book, tentatively titled Measures of Success.

1 Comment
  1. […] is old news if you’ve been a regular reader on this blog, as I posted a link to this last month. I won’t gloat about the slow cycle time of the “mainstream […]

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