Toyoda Worries For Toyota's Future

You know the global economy is not doing well when the world's top automaker, Toyota, worries for its own future. Toyota Motor Co. president Akio Toyoda said that the company he took over three months ago is “grasping for salvation”. And that Toyota is at the fourth of five stages—the fifth being bankruptcy. This talk came not long after the announcement that 3.8 million vehicles in the U.S. would be recalled due to faulty floor mat installation, which led to the deaths of four people in an accident.

However, that massive recall pales in comparison to the sagging sales and unfavourable dollar-yen exchange rate, which resulted in Toyota losing about USD 8.6 billion, its first loss in six decades, for the 2008 fiscal year ended March. Year to date, Toyota's U.S. sales dropped 23% and worldwide sales by 28%, and an even larger loss for the 2009 fiscal year is expected. Toyota failed to take adequate measures to counter the current crisis from the onset, Toyoda added.

As for solutions, Toyoda wants Toyota to build more inspiring cars—something that he thinks has not been done over the last few years—and to pay more attention to what customers really want and need.

Beyond the financial numbers, Toyoda's words teach a lesson—one that majors on tackling complacency. Toyota is the biggest automaker in the world, producing cars of often impeccable quality. And if they feel the need to improve on their cars and their attitude, shouldn't Proton be inspired to do so, for the good of all Malaysians?