Though Toyota’s September sales were not off by as much as some of its Detroit and Japanese rivals, the automaker’s new president, Akio Toyoda, says that the company is “grasping for salvation” during this dire stretch.
Toyoda cited the five stages of corporate decline organized by How the Mighty Fall author Jim Collins by warning that his company has entered the fourth step.
The automaker is on the edge of “capitulation to irrelevance or death,” Toyoda said at a news conference in Tokyo. “Toyota has become too big and distant from its customers.”
Toyoda did cite one factor beyond his ability to alter that has led to his company’s financial troubles: The weak dollar to yen exchange rate.
“When you get to this level, it makes it difficult to return to profit on sales growth alone,” he told reporters.



10/02, 9:29 AM
posted by:
Need more KY for GM
Paging Dr. Fill, paging Dr. Fill……..
10/02, 9:31 AM
posted by:
Need more oil for GM dumbass
Toyotas are full of defects and recalls. They suck in comparison with GM. Toyota is gonna die. Everybody will buy GM. Hahahahhah. What a dumbass I am…..hahahhaha
The Chevy Volt is the car that will destroy Toyota hybrid . Everyone will be lined up out the door to get into a Volt. Consider Toyota dead.
Be American. Buy American. Buy GM
10/02, 9:36 AM
posted by:
lemonade
It’s funny to hear Toyota crying about the the weak dollar to yen exchange rate. This news comes as sweet justice for American domestics after all the years of Japan’s monkey-business with devaluing the yen against the dollar.
Life is so interesting. What comes around goes around.
10/02, 9:51 AM
posted by:
05Z88Path
Yeah and their horrid designs aren’t helping either!
10/02, 9:57 AM
posted by:
Bosley
I see more consolidation in Toyota’s future, like the others. Too many blue collar people and factories take away from the profit the over paid execs are making. Toyoda should get paid a dollar like the Wagoner did in GM till Toyota begins to recover. (It was GM wasn’t it?) But Toyota has a more efficient just-in-time inventory system than most so hopefully that might help keep costs and car-inventory levels down…..
10/02, 9:59 AM
posted by:
geobaum
I love it. The sooner Toyota fails the better. People who have bashed GM, saying they have made poor executive decisions will have no excuse for Toyota, since they watched what happened to GM and continued on anyway thinking they are somehow invincible. I feel sooo bad for poor Toyota about the exchange rate, their enormous current recall, and reality setting in. Time for Akio Toyoda to commit suicide, for it is the true Japanese way.
10/02, 10:02 AM
posted by:
bghewy
Exact opposite here in Australia. Toyota has the best reputation for quality product and is currently number one and has been for the last few years. They are the only company to have sold over 200,000 units in one year. This figure is a drop in the ocean in world terms but for a country that only yesterday achieved a population of 22 million its a big deal. Out of the top 20 cars sold each month 7 are Toyota’s, of which 2 models are assembled in Australia (Camry and Aurion). Toyota has a 21% market share, Holden 12.5 and Ford 10.5. Mazda rounds out the top 4. with about 8.5 percent. American makes (like Dodge, Chrysler, Jeep) over here don’t really get a mention because of a number of factors including poor build quality. Tough conditions for cars out here, and only the toughest live. Holden has learn t in the last few years that build quality is of high importance to Australian consumers and has lifted its game with local product, but letting itself down by using GM Daewoo products for the rest of its line up instead of the quality European imports it used to use. Ford has chosen to stick with European models along with Falcon and they are slowly regaining market share. Ford should look at Falcon for the US very closely, i think it would be one way they could help grow there market share in the US without relying on just small cars to boost sales.
10/02, 10:15 AM
posted by:
Road_AMS
Well Dr. Fill, you should probably start looking for a job at another dealership…preferably one for a brand that doesn’t suck.
10/02, 10:15 AM
posted by:
HoosierHero
I’m glad Akio Toyoda recognizes Toyota’s complacency. They still have time to prevent what happened to GM. I welcome them returning to quality, dependable cars. Companies like Apple have proven that bigger isn’t always the best way to profitability. Now, a list for them to do:
1. Bring back the Celica and Supra.
2. See #1.
10/02, 10:21 AM
posted by:
Veda
Doesn’t matter, their gov won’t let their biggest company fail. It’ll probably be the same as GM. But yea, their only solution is to touch the emotion of the market that being back to making cars that are exciting so that people would buy them based on impulse, not need which isn’t present at the current economy. Just look at Audi…
10/02, 10:24 AM
posted by:
RaineMan
Amen HoosierHero!
Toyota needs to work on making some fresh exciting cars. There isn’t much future in marketing your entire brand towards the 40+ crowd… just ask Buick or Lincoln.
I maintain the opinion that Toyota could resurrect the Supra right now using all the old parts and stampings. Make a few minor tweaks to improve performance, economy, and emissions… and start selling at $24,000 for the base model and $28,000 for the Turbo. People would be lined around the block to get one. Toyota could instantly compete with Mustang, Camaro, 370Z, Genesis Coupe, and Challenger.
But apparently they’d rather be known as the “Geriatric Car Company”
10/02, 10:25 AM
posted by:
johnnycanuck
Thanks bghewy. I enjoy hearing information about Australia’s car market. It’s interesting that you mention the population since Canada is over 30 million and we have virtually no dedicated brands or models. Of course our place on the map kind of makes it redundant being next to the US, but if you take away the climate issue (which I’m sure is why you have so many RWD models compared to us) the majority of our geography is probably as rugged as yours if not more so. And I’m sure everyone on this board would agree that Ford should look at bringing the Falcon to North America. Maybe they wouldn’t screw it up like GM did with the Pontiac G8.
10/02, 10:34 AM
posted by:
HINKS
Toyota needs to work on their design and craftsmanship, because going on reliability alone isn’t enough for most buyers, especially in a bargain market like we’re in now. Ford, Nissan, Hyundai, and Chevy to name a few are beginning to match Toyota’s reliability in most of their models, while offering more compelling designs.
10/02, 10:45 AM
posted by:
leftwingagenda
i doubt toyota could bring a supra here for 24k…i can’t imagine a 24k supra would be that much different from a genesis coupe, too…and certainly wouldn’t compete with a 370z…having a supra in the line up would help their image with enthusiasts for sure, but i’m doubtful a supra would add much in terms of profits….the shrinking US market and weakening of the dollar really exacerbates their financial struggle…
10/02, 11:06 AM
posted by:
bghewy
Thanks Johnny. Based on conversations with friends from Canada I have no doubt your terrain would be as rugged as ours over here, but as you said the climate would be the big difference. Yeah GM has really screwed up the G8 thing and now we are getting a special model with the left over bits. The key thing is though that product is now some three to four years old, but is looking extremely dated; especially when parked against the equivalent Ford Falcon product. The outside of the Commodore is still fairly fresh, its just the inside that has really not aged well at all. Ford has some interesting things in the pipeline over her including the new turbo charged Coyote V8 and a new 4 cylinder turbo charged engine to go into the Falcon with which they claim will lower Falcons fuel consumption to about 8.3 litres per 100kms. Far cry from Holden’s new V6 which is 9.3 litres per 100kms. If you have any questions about whats happening here in our industry i would be happy to answer them for you. You can contact me on bghewy@yahoo.com.au
10/02, 11:16 AM
posted by:
johnnycanuck
Thank you bghewy. Not that I hope I’m anywhere near having to worry about it but one of the big ticket items on my bucket list is to visit your country. I’ve always found Australia fascinating and that was before I even knew anything about your car culture.
10/02, 11:45 AM
posted by:
DenverGuy217
can totally understand Toyotas problems. Except for a couple Hardbody-based Pathfinders and a still beloved Prelude, we’ve pretty much been a Toyota-Lexus household buying at least a dozen of their vehicles over the past two decades. Now when we drive through a Toyota or Lexus dealership, the only product I would consider buying is a Tacoma but since that is due for replacement I would hold off on it as well. The days of doing an impulse purchase with them are pretty much over. The products coming out of GM and Ford (and some from Honda but they are too ugly to consider) are hitting the size and value proposition that we have always looked for. Toyota got greedy and followed the old GM/Ford strategy of upsizing and uppricing which may have worked in the old economy, however not-so-much now.
and yes, bring back the Supra with a targa roof!
10/02, 11:56 AM
posted by:
Francois_1616
Im with bghewy. Here is South Africa Toyota is still the number one seller. the whole range does well from the Yaris to the Hilux and Lexus. And Toyota is a better brand then GM in my eyes. Some of you Bash Toyota but atleats they are still alive. The only reason GM is Baraly alive is because of the billion dollar bailouts they got. And i’m pretty sure that was only given to save jobs not because GM is Such a “great brand”. Don’t get me wrong i’m not like NMOFGM. GM isn’t a bad brand. but people here start acting as if GM is a GOD
10/02, 12:00 PM
posted by:
Payton Byrd
Just as Nissan lost its soul when it cancelled the Z, Toyota lost its soul when it cancelled the Supra. Nissan got its mojo back and has been one of the more successful makes over the last few years. Toyota needs more than a bad-ass pickup to interest American buyers. Having Supras and Celicas on the lot will bring in young people who may leave in a Corolla or Scion due to practicality.
As for the suggestion of just bringing back the old Supra…. That’s a bad idea. The 3.8 Gen Coupe already trounces the non-Turbo Supra for less money and when Hyundai gets serious about putting the Tau V8 in the Gen Coupe…. Plus, Mustangs are playing in the rarified air that the Supra used to play, and for less money than a Supra costs 10 years ago.
10/02, 12:02 PM
posted by:
CiNO
I can say n.th, but I believe Toyota will have new strategies. Bring back the Supra( maybe the FT-HS).
10/02, 12:36 PM
posted by:
JakeK66
bghewy -
Thanks for all the info! I’ve always been partial to the Aussie’s as they sometimes seem to get America better than most Americans do. Good to hear some reasonable voices on that side of the Pacific. IIt’s an interesting market I’ve spent some time studying myself, as it’s somewhat similiar to America, only the Australians expect a little more from their cars than the Americans, which is hard to believe.
10/02, 12:40 PM
posted by:
reedfast
Geobaum, that was pretty dark about the “traditional japanese way”.
Congatulations!!!!!
10/02, 12:45 PM
posted by:
ricky_b
I’ve never owned a Toyota but am not opposed to them as a company. The reason I have never bought one is because “Toyota has become too big and distant from its customers.†Looking at their lineup over the past few years, I just didn’t feel that they were aiming any of their products at people like me. At least their admitting to it.
10/02, 1:12 PM
posted by:
Borat
Thank you Francois_1616 and bghewy for introducing world opinion, which is lacking on this site. We tend to wrap ourselves into pseudo patriotic aura and forgetting that there is a lot of land out there.
What amazing to me, that Toyoda started this conversation and started soul searching of the company. I am not Toyota fan, although I have one (which is GM badged), but who can point when Bill Ford looked into his ancestors company and said “we suck”; Ford is still in financial trouble: 150 billion loan obligation are not disappearing any time soon. 12 months ago Wagoner was bellyaching about price of gas and did not mention bankruptcy yet (and Fritz along with PutzLutz did not contradicted him either). I think Toyota as business entity made an important step: acknowledge the problem. Now they can fix it. Dr. Fill has been acting unreasonable for a while, but his job is fairly safe: in US Toyota either #1 or #2 and it is not a bad place to be in.
10/02, 1:20 PM
posted by:
TomF
The info on the Australian car market is indeed interesting. I was there visiting this summer (and rented a bright red Ford Falcon, which ROCKED — I would buy one of those in the States in a New York Minute!) and noted Toyotas everywhere. The Land Cruiser, especially, is everywhere once you get outside the big cities. Aussies go touring and camping and caravan-ing and off-roading a lot more than Americans do I think, and the roads can be in rough shape sometimes, so an SUV in Australia has to actually do what it looks like it’s meant to do. In the States most people buy SUVs to go to the supermarket in — they never take them off-road, or do any serious towing. It is easy to see why Toyota reliability matters in the Aussie market, and why US SUVs with crap build quality (looking at you Chryco) don’t cut the mustard.
What puzzles me is why Mazda is a strong #4 in the Aussie market, far ahead of Honda and Nissan. Nice little cars, a little more style and personality than Toyotas, but why are they so strong in Oz? I have a MAZDA3 myself and it’s fine, but Mazda is barely a blip on the screen in the US market.
Finally, it is good to see Mr. Toyoda acknowledge the dullness and caution that has crept into Toyota design — they really are soulless appliances for the most part, and not cars that interest me as a buyer. Acknowledgement is the engine of change, and he sure beats GM execs who blamed the market for their problems rather than their own abortive products.
10/02, 2:42 PM
posted by:
Hyperion
Akio Toyoda may very well be correct in that the market itself and current exchange rates make it difficult to turn a profit today. Toyota’s product lineup and general appliance-feel exterior designs can’t be left out of the equation though. The new 086A/Celica and ANY other product that makes us have a reason to think of a Toyota as unique cannot arrive any sooner. I remember the Cressida being a nice, stately car. Since when must us pay Lexus money for a similar car from Toyota? Great cars for many practical reasons but there are so many choices out there today that people can make their buying decisions based on a little finesse. We are keeping our cars longer these days anyway so why have reasons to enjoy them?
10/02, 2:59 PM
posted by:
DaSpyda
You guys do not understand Japanese culture.
These folks are self-abasing and humble to a afault.
To acheive greatness in a difficult environment, you lower expectations, and then surpass them. Business 101.
Trust me, they are setting the stage for a transformation of new and exciting products.
10/02, 3:44 PM
posted by:
alsvw
Toyoda.. = Gm of 20 years ago. boo hooo.
10/02, 5:33 PM
posted by:
tyler_is_aero_tt
Except that they’re a trillion times more dependable than what GM products were 20 years ago.
10/02, 8:54 PM
posted by:
rpmfan
Hey Francois_1616, with your knock on GM getting billions in tax dollars, you forgot to mention Japan subsidizing Toyota and EVERY other company in their country. That’s their motto, not mention Japan screwing around with their Yen also.
Which brings me to the comment in the article about : “The weak dollar to yen exchange rate”. LOLOLOL, what comes around goes around. Good enough for Japan. Glad it is coming back to bite them.
10/02, 8:56 PM
posted by:
bghewy
Mazda is number four here in Australia because of their reputation for quality and reliability. The Mazda 3 is currently outselling the Ford Falcon, and in January this year was the top selling car in the country taking the title away from the Holden Commodore. Its a funny market over here. Last month the Toyota Corolla was the top selling car followed by the Holden Commodore, Mazda 3, and Ford Falcon. Toyota had a further 6 vehicles in the top 20.
10/03, 7:39 AM
posted by:
alsvw
toyoda’s stock is at its peak. not a good idea to keep it around. it may start in 2 years or earlier. but, the stock it going to crumble. hence, toyoda being what GM was 20 years ago. toyoda does have the japanese government to back them every step of the way. but, that can only last so long.
by the way. hyundai had a 27% increase in sales last month. and that is with enterprise rent a car and many other rental car agencies buying up tens of thousands of camry’s and corolla’s. the main rental car in orlando right now is the camry. you see them everyware when you get to the tourist part of town.
10/03, 9:35 AM
posted by:
The Pill
Now that the truth within Toyota has started to bubble up we have all noticed that a certain mouthpiece infamous for posting his garbage strewn, degrading filth has gone missing-in-action. Funny how the light of truth can cause hypocritical fanboy commenters into the cracks like roaches scurrying away into the dark!
10/03, 12:11 PM
posted by:
alsvw
the pill…. you can’t be talking about d.filledwithcrap ? haha
10/03, 12:39 PM
posted by:
The Pill
Bingo! That “tail” that is now being wagged by the dogs of truth has shut him up!
10/03, 4:00 PM
posted by:
DrFill
Toyota rulz
And you all are mad
Toyota is doing great!
If this is a problem time for Toyota
Than no one else has a shot when the economy comes around
I see NO COMPETITION for Toyota
Not even a little
I’m walkin on sunshine!
Don’t playa-hate
Appreciate!
DrFill
10/03, 4:33 PM
posted by:
DrFill
This speech is just a little kick in he pants
Hard to keep best company in the world hungry and motivated
Not that anyone of you haters would know about being on a winning team…..
Here I’ll play a game
You guys come up with one reason Toyota isn’t totally owning the American Market
And I will give you TWO reasons it is!
DrFill
10/03, 4:41 PM
posted by:
alsvw
dr.filledwithcrap. have you checked out your abilify level? maybe you should go back to the old thorazine. it might help with reality.
why would a supposed american worship a jap company. maybe he was not held as a child.
sorry to turn the knife. but hyundai up %27 last month. haha. and that was with all the fleet toyota’s being sold to rental agencies.
10/03, 4:43 PM
posted by:
johnnycanuck
Thanks, Doc. You had us all worried. One of those conspicuous by your absence deals. I’ll check back in later. I always enjoy a little light reading before bedtime.
10/03, 4:56 PM
posted by:
DrFill
John
I was watching “Gorillas In The Mist”
ALS
Nothing, plus 27%, is still nothing
Oh boy……..
DrFill
10/03, 5:15 PM
posted by:
alsvw
haha, your such a child. dr.filledwithcrap.
we love you, glad you could pay your cable bill to get back online.
10/03, 5:44 PM
posted by:
DrFill
Hey, thanks for walking your Mom’s down to the bus stop so she could take care of that for me
I was a little behind
But she knows I’m good for it!
DrFill
10/03, 6:31 PM
posted by:
alsvw
you never could answer why you are so anti american? and so pro jap.
yes, people that worship basement level cars like toyoda, that are not american. are anti-american. i could see someone worshiping an exotic auto like ferrari. but, toyota. you just hate america don’t you?
10/03, 6:40 PM
posted by:
ktulu
Toyota is da devil, and has never made an x-ting car, but mayB dsa Supra 20 yrs ago
just dia!
10/03, 8:05 PM
posted by:
DrFill
Never was anti-american
I WISH GM was as strong as it was 30 years ago
But the planned their own obsolescence
With their “Planned Obsolescence”!
I’ve said this before, many times
GM has the best lineup out right now
Period
But they pissed on their already weak name
Now they can’t sell great vehicles!
Too little, too late
They earned their fate
Most thinking people know Ford has always made crap
Then they promise you 5 years from now, we’ll make some really nice crap
Today, or 5 years from today
It always smells the same
DrFill
10/03, 9:08 PM
posted by:
alsvw
yep, toyoda is gm of 30 years ago. it will be a pleasure to see toyoda fall.
10/03, 10:04 PM
posted by:
johnnycanuck
Doc, that’s an interesting perspective. I’ve said this many times before: never discount the ability of the sheeple to be distracted by shiny objects. GM was a very shiny object mere months ago but shiny in a bad way- it hurt to look. Now, thanks to a few bright objects of their own such as the Camaro they are shiny all over again only this time it’s much easier on the eyes. Crisis, what crisis.
Ford also has a lot of shiny objects of their own right now. In fact it’s difficult at times to tell which is the brightest.
Which brings us to Toyota. I think they’re over reacting and your buddy Mr. Toyoda is a drama queen. All they have to do is get off their woe-is-me soapbox and bring out a few shiny objects of their own. If there are deeper issues those will distract the sheeple just long enough to polish out the rough spots. Sometimes it’s not all about the profits.
10/04, 12:14 AM
posted by:
DrFill
John
What do you think the Prius is?
The LF-A will give Lexus a shot in the arm
The increased competition is good for Toyota
They’ve been fighting for 25 years to get to the top
Now they have a bigger fight on their hands to stay there
They have the talent, and the smarts, to do it
Do they have the will?
I vote yes
If people want shiny cars, that might run, there are a dozen companies they can run to
Shiny doesn’t win the race
Just ask Hyundai!
DrFill
10/04, 1:03 AM
posted by:
johnnycanuck
Doc, the LF-A, the LF-A, the LF-A. Let’s just see it already. Are its 4 wheels going to be rounder than anyhing else’s? Is it going to blow away every other supercar in its first go round that other marques have been perfecting for decades? Is that why it’s taking so long to make its world debut because someone finally had the balls to say maybe it just doesn’t have the props? And did someone at the top actually listen?
I’ll give you the Prius. However seeing as this is an enthusiast forum first and foremost it’s easy to dismiss it as a tool for the sheeple. And I just hate it when someone calls me a tool.
10/04, 3:23 AM
posted by:
DrFill
To see the LF-A
To hear the LF-A
To drive the LF-A
Is to LOVE the LF-A
I’ve done 2 out of 3 (Not Bad)
By 2015, I believe you will see Toyota selling at least 2 dedicated sports cars
Celica level and Supra level
Given the history
Toyota knows how to build spectacular sports cars
Toyoda has said it himself
He’s a sports car enthusiasts
And he wants more spark in the lineup
DrFill
10/04, 3:28 AM
posted by:
DrFill
The LF-A will be second only to Italia when it arrives
It won’t be able to overcome the Italia’s 300lb weight advantage
But it will have a much better interior
And be able to work as a grand tourer supercar
Hopefully, a sub-$200k price is the target
My money’s funny
And my credit won’t get it
DrFill
10/04, 6:24 AM
posted by:
alsvw
spectacular sports cars? thorazine may be your only option. ghettosupra and the slow celica those were the only toyoda sports cars, and they both were sissy sports cars. nissan is the only jap sports car maker. toyota is for the sissy bland owners.
10/04, 10:19 AM
posted by:
DrFill
John
Did you hear something?
DrFill
10/04, 11:53 AM
posted by:
johnnycanuck
Doc, if Toyoda’s a man of his word- and rumor has it the Japanese seem to take that sort of thing very seriously- I don’t think it’s going to take until 2015. Just as it’s unlike them to blab their intentions to the world until there’s something to actually blab about. Now who does that remind you of?
And no, I didn’t hear a thing. Must be your imagination.
10/04, 1:27 PM
posted by:
reedfast
it really doesn’t matter anymore,
because, according to nissan, we will all be driving this soon.
http://www.seriouswheels.com/cars/2009/top-2009-Nissan-Eporo-Robot-Car-Concept.htm
I’m scared
10/04, 1:58 PM
posted by:
ghettocowboy
I see lots of Haters in here. How many times American Car Makers restructured the companies?? How many times the government jumped in to bail them out? How many bankruptcy chapters they have filed? And dont forget, clunker cash programs Benefit Toyota the most and what does this tell you: Toyota is still the most trusted auto maker. They did not become the world biggest auto maker for no reasons. People are not idiots to buy Toyota and help them to become the Giant Auto Maker overtaking GM and Ford which have been in car makings over 100 years. Well, lemme restate what I just said: not all people are idiots and that is why you see Toyota on the street.
Quote of the day: Be American Idiot, Buy American, Buy Junk
10/04, 6:39 PM
posted by:
rpmfan
ghettocowboy,
How many times have the ACM been bailed out or restructured? Last I checked, ONCE, not the the several times you imply with your post.
10/04, 10:31 PM
posted by:
alsvw
hmm, from what wall street journal has stated. all jap brands have been helped out by the jap government for a very long time. they have been supsudized for many years, and still are able to sell in the united states without an extra tax. yet, american car companys are taxed to sell in japan. i agree toyoda did sell some of the best products for a long time. but, today toyoda is all about profit and is selling cheap products. look at the yaris. the interior has yugo plastics, a cardboard head liner, and drives like crap. american car company haters are just losers that are pissed off anti americans. hence, ghettocumboy and drfilledwithcrap.
10/05, 3:50 AM
posted by:
CiNO
alsvw@ yeah, I don’t like the interior in yaris either, but it looks funny. if toyota can build what was the interior in the FT-HS concept, there will be a big improvement. yet no competition, no improvement.
I’m a Japanese car fan, but I do love what Ford do to their Mustang and F-series. I’m waiting to see what will Toyota have to beat the Nissan Z, even Mustang. or maybe never.
10/05, 3:53 AM
posted by:
CiNO
Oh well, and I will wait to see what Japanese Kyubi got? I mean the Lexus LF-A( Kyubi)
10/05, 3:57 AM
posted by:
CiNO
Kyuubi* wrong typing.
10/05, 11:12 AM
posted by:
bd394
Well I drove a Prius for a couple days while on business. What a POS. It was the worst driving experience I have ever had.
10/05, 11:49 AM
posted by:
Need more oil for GM
Toyota will fail in the end. Victims of the American Revolution. Dr. fill should be looking for a new job at General Motors instead of sticking up for the sushiwagons. You’re not an American are you. Otherwise you are an embarrassment to Americans for your insubbordintaion and treason.
Be American. Buy American. buy GM. Die Toyota.
10/05, 1:57 PM
posted by:
alsvw
WORD ^^^