Report: Japan's Toyota City Hurting as Troubled Economy, Industry Takes Hold

According to the Los Angeles Times, a town three hours southwest of Tokyo called Toyota City has gone from being the envy of Japan's economy to the city with the country's highest unemployment rate seemingly overnight. What happened? As its name implies, this town is comprised almost entirely of men and women who work for Toyota, the largest automaker in the world – the very same manufacturer that is facing its first year-long operating loss in company history.

Because the city's well-being rises and falls right along with the automaker that it is so dependent on, Toyota City's finances are looking pretty dire for the upcoming year, with a projected drop in corporate tax collections of 96.3 percent. Interestingly, city officials have found an American analog with which to compare themselves: Detroit.

Norio Seki, general director of the city's industrial labor division, says of Detroit, "I'd like to know how they handle unemployment at this scale. I'd like to know what other industries they are looking into. How can you use the technology used in the auto industry for other kinds of enterprises?"

Perhaps Toyota can let Detroit know when figures that one out.


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_43LE - 3/24/2009 11:58:02 AM

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And everywhere else too it seems.-

camrydriver - 3/25/2009 4:02:21 PM

0 Boost

Letting people go is better than working them to death like they do in some countries.

camrydriver - 3/23/2009 8:34:18 PM

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david969 is right on the money. There is nothing to see here, move along...

inspirion7 - 3/24/2009 12:12:38 PM

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?

inspirion7 - 3/24/2009 12:16:16 PM

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So, no such thing as unemployment? When no money is coming in, where do they pull money out of, their ass? With over 40% of the automotive market is a depression, where do you get money? I must have missed economics 101.

david999 - 3/24/2009 9:41:44 PM

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Don't get sucked-in by david969.

lexworld - 3/23/2009 9:23:21 PM

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Yep..Another hater yuppie. Have to agree with the intelligent guys here, Toyota is solid and on a serious comeback now that Akio Toyoda is president and heir of the Toyota dynasty. You can bet he's responsible for Toyotas enthusiast image return. The return of the Celica is just the tip of the ice burg. I would love to see them create a new rearwheel drive mid-size sedan or convert the Solara into a rearwheel driver. Anyway, my next car is an 05 GS430...man that is a great rearwheel drive sedan to own and is very fast for it's size.

camrydriver - 3/23/2009 11:57:58 PM

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Why all of the rear-drive talk? Toyota's best cars of all time are front drivers: Corolla, Tercel, Camry, Scion, Sienna, Avalon, ES, RX, Celica, Yaris, Prius, RAV4, Matrix, etc. etc. etc. Front-Drive Baby!

inspirion7 - 3/24/2009 12:12:55 PM

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?

kpaxx - 3/25/2009 9:08:44 PM

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Is camrydriver serious? or just senile!

_43LE - 3/24/2009 11:57:29 AM

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Yes Crappy, we all know what you hate.

kpaxx - 3/24/2009 10:22:48 AM

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Every car company is suffering and that includes the car companies in Asia, toyota is no exception!

Just accept it!

crslmn - 3/26/2009 10:27:46 PM

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The Tercel is not one of Toyota's best cars neither is the Yaris. Which Scion its a division not a model? The Corolla at on time was rear wheel drive as was the Celica. The Supra was Toyota's best car and it was RWD.