U.S. Sales Disaster Forcing Toyota To Drastically Reorganize Operations

Toyota Motor Corp. is considering a major reorganization of its U.S. operations, bringing sales and manufacturing under one powerful executive, in an effort to keep closer tabs on its American business, which traditionally has been Toyota's biggest source of profit but is now losing money.

The Japanese automaker's top managers are expected to decide how to structure the U.S. operations this month, say people familiar with the situation. A decision would be formalized in June, at the same time that Toyota will anoint a new president in Japan, Akio Toyoda, the grandson of the company's founder.

The prospect that Toyota may install an executive in the United States with over-arching powers appears likely now that the management in Japan has taken the unusual step of rehiring a former top executive with U.S. experience. Yoshimi Inaba, who retired abruptly in 2007, is returning to take a position with Toyota in the United States.


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roundwego - 4/8/2009 11:55:08 AM

+1 Boost

Toyoda will be running Toyota. HA HA HA.

tango - 4/8/2009 12:22:13 PM

+2 Boost

Toyoda was the original name of the company, named after the family name of the founder. It was changed to Toyota in the late 30s because of semantic and strategic reasons. The Toyoda family didn't change their name, however. Not that funny, when you think about it. But you know, what is funny? The more American that Toyota became (building more trucks, cancelling their worldwide sports programmes to concentrate on NASCAR) the more money it lost. They (like SAAB) need to go back to their roots before it is too late.

inspirion7 - 4/8/2009 12:29:52 PM

-2 Boost

Toyota, like other squatter companies, assemble vehicles here, they are not made here. But I digress, if Toyota is having such a difficult time, like the domestics, then what are they doing wrong? I my understanding is domestic auto problems is due to poor products and weak foresight (all true). It goes to show no matter how good the companies products, the economy doesn't discriminate.

Anthony - 4/8/2009 6:56:21 PM

+3 Boost

The more "American" they became, yes. Meaning that the larger they expanded their operations to GM proportions, not necessarily their decision to make a Tundra, or enter a Camry into NASCAR...

Agent009 - 4/8/2009 1:16:20 PM

+3 Boost

We will see when the financial reports come out. But Toyota made a critical mistake by place the majority of its profitable eggs in one basket. The market sours and they instantly go down with it.

hyundaifansdotcom - 4/8/2009 6:02:49 PM

+4 Boost

Toyota is not doing fine. No manufacturer is.

XYZZ - 4/9/2009 9:19:16 PM

+2 Boost

009:
"...majority of its profitable eggs in one basket."

and just which basket mite that be? i'm sure they're STILL almost printing money with camry and corolla sales.

inspirion7 - 4/8/2009 12:33:30 PM

+3 Boost

david969, I wish it was true. Don't want to see any company do bad. Every car a manufacture makes represents a family and their livelihood. Yeah we joke about the CEO's but thousands depend on the success of the company. We are all concerned about the future of the auto industry. Design schools for the first time are not hiring designers. The industry has been turned on its side.