Record annual profits for Toyota. That seems to happen every year now. Profits = Cash = Investment = More Profits. It's a nice cycle to be in. But the cash-rich Japanese rival is stepping up the pressure on its rivals on all fronts, with plans to increase research spending more than 10 percent this year to $8.4 billion. It will also boost its already-high capital spending.
“Because of their success, they can put down poker chips on a lot of different areas and technologies,” said Michael Robinet, vice president of CSM Worldwide, a Farmington Hills forecasting firm.
When I searched google for “toyota profits fiscal year,” it somehow turned up this New York Times article from 1987.
The headline:
Toyota Profits Fell 24.5% in '87
Still Toyota earned almost $2B that year. GM earned $3B. That's $3.56B and $5.34B in 2006 dollars. So, Toyota is doing about $8B better and GM is doing about $16B worse.
Another flashback tidbit from the 9/25/87 article:
“Toyota also said it had named more than 40 new United States suppliers for its Georgetown, Ky., plant, which will start production in mid-1988. They will bring the number of American suppliers to 100.”
It's an amazing contrast from 20 years ago, when NUMMI was the only North American Toyota presence.
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Mark Graban
Mark Graban is an internationally-recognized consultant, author, and professional 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 a Senior Advisor to the technology company KaiNexus. His latest book has been released as an "in-progress" book, titled Measures of Success.