Toyota moves from strength to strength: saves $2.7B per year

Toyota’s march to the top of the world’s sales lists continues and at the same time the Japanese mega-maker is looking to cut costs at every possible point. The savings will come from improved quality, reduced waste and human resources development in addition to their new “Value Innovation” (VI) plan.

Toyota’s previous cost-cutting plan, somewhat awkwardly labeled “Construction of Cost Competitiveness in the 21st Century” (CCC21), saved $9 billion over five years. In an interview with Toyota Motor Corp. President Katsuaki Watanabe, Reuters quoted the leader as saying that he expected savings to be at least 300 billion yen ($2.7 billion) per year, and that less savings would be “meaningless.”
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1970toyotamarc - 12/14/2007 1:55:10 AM

+5 Boost

thats a horrible and completely off base comparison. There are many successful corporations throughout the world. None, by the very nature of their existence, can thrive without earth-damaging flaws. But to randomly dump them in with the scourge of retailers is just wrong.

austin219 - 12/14/2007 9:44:33 AM

+1 Boost

GET A GRIP!!!!!

CarbonBlue - 12/14/2007 11:25:59 AM

-2 Boost

I agree they continue to profit while their employees suffer.

sold2early - 12/14/2007 11:35:20 AM

0 Boost

If their employees were truly suffering, they would quit. But they aren't so they don't.

RealitySmack - 12/14/2007 11:47:47 AM

0 Boost

@ CarbonBlue. Are you smoking something?

From having worked at Toyota, I can say that if their employees were suffering than all their plants would be unionized. But, they're not! Unfortunately, the same can't be said for the Big 3.

silver1 - 12/17/2007 9:52:54 AM

0 Boost

"MidEngine"

Your right! Most of these dumb heads on here don't know that Toyota Motor Corp. is the 4th richest company on earth...

XYZZ - 12/14/2007 3:12:33 AM

+7 Boost

"...is still a corporate secret, but it does include using lightweight materials and designing the cars for not just fuel efficiency but also cost efficiency."


it will take a lot of brainpower and sharp pencils to find yet more savings. toyota is ALREADY the most efficient car maker, needing less man-hours to build most of its cars.

in the book "The Machine That Changed the World" it was found it took toyota less time to assemble near perfect cars, than it took mercedes to FIX already built cars that were "set aside" at the end of the line due to defects in assembly.

toyota puts almost as much thought and engineering talent into designing assembly plants, as the cars themselves.

RealitySmack - 12/14/2007 11:52:14 AM

+1 Boost

Yea, I would have to agree.

The time to build a car is VERY short compared to others'. When I was there, quality was a religion and everyday as an engineer, I would be involved in some sort of quality improvements projects, even if they weren't needed!

I won't say that there quality is what it was like back in the day but, the key thing is that they know and are doing something about it. Unlike others.

Designer1 - 12/14/2007 4:20:11 AM

+1 Boost

One curiousity I have here, how can you improve quality by cutting cost? That sounds to me Toyota is planning to reduce its quality.

austin219 - 12/14/2007 9:42:42 AM

+2 Boost

Nope, my friend, TOYOTA will always produce high quality vehicles, it is in their nature. It is a natural thing fo them to do, honestly they couldn't produce anything less if they tried. This is why they are #1, and they don't have to come up with bs like the infamous "A PLAN". Because anyone that would like to drive a great vehicle for than 3 years b4 it starts breaking down, buys TOYOTA@!!!!!!!!

XYZZ - 12/15/2007 4:49:56 AM

+2 Boost

some years back (i think just before intro of current generation corolla), toyota was really feeling the pressure from hyundai.

they charged a special team with finding ways to cut production costs so could remain competitive with the koreans, WITHOUT sacrificing toyota quality. the new corolla was the first result, followed by yaris, aygo, etc.

they likely used some cheaper materials and improved/streamlined production processes, but tried to keep the MECHANICAL goodness and reliability up at the usual toyota standards.

they may have slipped slightly in the latter, causing the recent glitches and recalls so UNCHARACTERISTIC of toyota. but as RealitySmack said, they have ACKNOWLEDGED this and are working on fixes.

BigShow50 - 12/14/2007 9:19:06 AM

+2 Boost

There is no loss of quality in what Toyota does on the assembly line. It's simple efficiency. Would rather run up 100 stairs and feel real tired at the end? or would you rather pace yourself up 100 stairs and feel less tired?...

RealitySmack - 12/15/2007 8:02:11 AM

+1 Boost

Yea, one of the most advanced auto plants is in Japan. Called the "Legendary Tahara" plant which produces various Lexus models including the IS. Now, that plant is AMAZING because most of it is fully automated and has one of the most highest quality standards in Lexus. Assembly lines in Toyota are pretty efficient from a "lean" standpoint.