Toyota Developing New Ultra-Low-Cost Production Process

Toyota Motor Co is developing a radically different carmaking process that will drastically cut costs across the entire chain of production, President Katsuaki Watanabe said in an interview with the Financial Times.

"The focus is on low-cost technology," Watanabe said. "Everything from design to production methods will be radically changed and we are thinking of a really ultra-low-cost way of designing, using ultra-low-cost materials, even developing new materials if necessary." Watanabe said the company will review each step in the production process to lower costs for a new model and then to apply the lessons across its line-up.

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A4ORCE - 1/22/2007 12:23:36 PM

+2 Boost

I'm sure builders of the hand-built cars from way back when had the same sentiments when they were supplanted by high speed assembly line cars. I think it's a good way to experiment with technology and keep competitors on their toes. They're probably sick of being undercut by Korean cars and fear the eventual coming of Chinese cars which would be a whole lot worse. I mean, assuming you only use a car for transportation rather than joy of driving, if a Chinese car cost a couple grand, you could buy one every 6 months! lol

At the very least, I think even if they don't succeed on this concept overall, they'll at least get some good useful bits out of this research and experimenting.

1970toyotamarc - 1/22/2007 4:17:23 PM

+3 Boost

This cannot, in any way, be construed as bad news, corporate greed, or a lack of commitment to quality. Cars are becoming insanely expensive with all the content, technology and features consumers demand. Mfrs need to look at new materials and processes to slow down the inflation. This is good news.

Furthermore, if you read the article closely, it refers to the need to develop these technologies for low cost cars in emerging markets. To further global growth (world domination) Toyota needs to go head to had against other mfrs who have low cost, de-contented product for sale in markets other then US, Japan and Western Europe. If they still want to sell their legendary quality, then they will have to come up with new ways to cut costs, rather than just putting out cheap tin boxes on wheels.

jon21 - 1/23/2007 2:07:52 PM

+2 Boost

IMHO, I think these new low cost autos are meant for the countries like India, China and other similar market. I think most people in those countries are just making enough money to feed the family, put clothes on their body and put the roof over their heads. Will really love to own a nice reliable and cheap car. Where cheap car are necessity.

austintyson - 1/26/2007 5:52:24 AM

+1 Boost

This is funny.. Toyota makes cheap cars.. yeah what are they thinking. Cheap means junk.. a Pinto is and was a cheap car.. I see Toyota decdied to be number one it has to build CHEAP cars.. Cheap designs>? this can't mean anyting good.. maybe they should say instead low cost cars.. it at least sounds better.

austintyson - 1/26/2007 5:54:13 AM

+1 Boost

sorry I got to readign the post after reading the story.. Toyota did say low cost.. my bad