“Automaker Sacrificed Quality And Got Burned”

January 29, 2010

For 75 years, success and lucrative profits had come from building high-quality, affordable vehicles. Those same two ingredients had propelled the company into the number one spot. But a new generation of bosses came in one day and decided those profits just weren’t good enough. So they hatched a new plan and implemented it with extreme aggression. Over the next few short years all expectations were met. Profit margins soared. Executives celebrated, became hero’s, and were richly rewarded for their accomplishments. But suddenly one day it all came crashing down — their past caught up with them. What to do, what to do??

These modern-day bosses knew the company’s reputation for building high-quality autos was one of only two ingredients that had led them to becoming the worlds number one car maker. But driven by greed, they chose to sacrifice quality. They would build a new car with cheaper parts and materials, which would result in higher profit margins. And if all went well, no one would ever be the wiser — until it was too late. Unfortunately for them, all didn’t go well.

These new bosses had believed they would have their pockets filled and long gone before anyone found out. Those who had gone before them and been caught just hadn’t done it right — but they would do it the “right” way. But what they didn’t know, or at least wouldn’t accept, that there is no right way to scam the public and be assured of getting away with it.

My, my, my! What a story!

I could be talking about any one of the “big three” American automakers. In fact, those same words could have easily been written two decades ago about any one of them. But today they apply to a different maker – Toyota.

Toyota’s latest woes were caused by the exact same thing that brought down the American manufacturers — greed. Japanese automobile analysts are saying that “Toyota sacrificed quality for global growth”. Toyota’s own top executives don’t dispute it. That’s something you’ll never hear that from an American executive.

Hundreds of critics have blamed the demise of the American automaker on unions and “high labor cost”. In fact, without exception, these same people pointed toward Toyota’s success, as well as other foreign car makers, as models of how successful auto makers could become if they would just do away with union labor and pay sub-standard wages. But with the exposure of  Toyota’s latest problems, those critics are in hiding.

Toyota has been the number one car maker for many years now. That’s because they have consistently built high-quality vehicles that people could afford. However, even if they’re able to quickly resolve their current problems, damage has been done that will leave a scar for many years to come. But with the Japanese being quick to learn and willing to admit to their own mistakes, they’ll probably recover faster than most, although they could very well fall from the top and never regain that status again.

American automakers have never been willing to do what the Japanese are doing. They, along with their corporate cheering sections, prefer to blame their self-inflicted wounds on others — mainly the workers of America.