Isn't Toyota's Refusal To Layoff Permanent Workers The Same As A Jobs Bank?

Sales are off and production is down, so workers at the Toyota Tundra truck factory here are taking classes: how to handle tools safely, how to get along better with colleagues of varying backgrounds. Some have even cleaned local parks and fed the hungry while collecting Toyota paychecks.

“We’d rather be building trucks,” said Mike Goss, a Toyota spokesman. “I’m trying to imagine how many trucks we would be selling, with gas prices where they are now, if people were spending money.”

But people are not spending money these days, and sales of the Tundra and other Toyota vehicles have hit a wall. The sales slowdown, and some of the accompanying business problems, that have engulfed the Detroit automobile makers are rapidly spreading to the world’s strongest auto companies. To cope, Toyota, Honda, Nissan and Hyundai are all slowing American production, and many foreign auto companies are putting off plant expansions.



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mini22 - 12/29/2008 1:32:29 PM

+2 Boost

Does it really matter? Toyota is still in a much better financial position then the big 3. Further they are not asking for a bailout. This is all a moot point. obviously if the economy continues to affect auto sales Toyota will have to let go of some of it's permananet workers.

g2ok - 12/29/2008 1:37:30 PM

+3 Boost

No because it's not mandated by a union contract. Also, it really is a different mind set at Toyota that stems from Japanese management style. Like being a part of big family that looks out for each other when times are tough. I know that seems too idealistic, but it's big factor why Toyota would keep their employees and try to train them with new skills. In the end, it's about building good cars not just keeping your stock price up. They are in the game for the long run.

LauderdaleDriver - 12/29/2008 1:44:38 PM

+1 Boost

Toyota gets a constant financial stimulus from the Japanese government that is delivered in two tranches.

First, currency manipulation stimulates exports, and gives Japanese carmakers a pricing advantage of somewhere from 10%-30% per unit.

Second, after four years, excruciating vehicle inspections mandate that used cars are shipped from Japan to the rest of Asia, forcing owners to replace their vehicles with new cars on a very short cycle.

As for labor, it's probably a good move to keep trained workers on payroll. Only Alabama pays to train workers for foreign companies.......that I know of.

Had to change my user ID, not trying to fool anyone, but technical glitches seem to have erased my previous profile "Georgemia."

Agent009 - 12/29/2008 2:26:14 PM

+1 Boost

The biggest kicker for the future IMHO is the break from artificially manipulating the Yen for a price advantage.

It served the Japanese makers for decades to have this big price advantage. In the later years it still worked even if the cars were more expensive to the consumer because then the profit margin was wider allowing for more extensive R&D.

Agent009 - 12/29/2008 2:22:11 PM

+1 Boost

Well since they don't have a union at these facilities, it serves the same purpose.

kablaam - 12/29/2008 9:52:39 PM

0 Boost

GM was the largest and one of the most profitable companies in the world a few years ago.

It all starts somewhere and some place.....anyone who has owned a 2003+ Toyota knows that Toyota's quality isn't what it used to be. I think they better get back to their roots or history will inevitably repeat itself.

LauderdaleDriver - 12/30/2008 1:21:26 AM

+2 Boost

They yen has been estimated to be worth 10-30% more than the value that the government allows it to float at.

Japan, Korea, and China all do it.