„Wenn sich die Dinge nicht ändern, werden wir nicht überleben“: Selbst Toyota fühlt sich derzeit nicht sicher

This article is almost useless. Doesn’t clearly state the problem/risks Toyota is seeing and reacting to, only mentions this four paragraphs in…

> The problem isn’t just one thing, either. It’s everything, everywhere, all at once. Chinese automakers are gaining ground quickly and setting a new standard for manufacturing costs. Software is becoming a core part of cutting-edge vehicle. Tariffs are still a thing. The auto industry has seen more upheaval in the last few years than it did over the last several decades.

Toyota is just seeing cost and pricing pressure. That’s all.

Their solution?

> The brand is implementing something that it calls „Smart Standard Activity.“ This is meant to slash overly-engineered quality standards and lower costs. Essentially, Toyota believes it will lower the price of its components and cut back on wasted parts.

AKA bean counting – putting finance people in charge of engineering and product decisions. The very thing that rotted the US automotive industry’s market dominance over a few decades.

Also similar to putting insurance companies in charge of healthcare decisions. See how well that works out for patient outcomes in the US 🙂

Good job, Toyota. Abandon the one thing you’re known for, but still not be able to compete with Chinese vehicles on price because you don’t have a labor cost advantage.

->More and more base models are shitty at starting price while most desirable features are pushed to top models costing 1.5x-2.0x advertised price

->Toyota EV continue to be a laughing subject among consumers, charging top dollars for sub 250 mile EV

->Toyota failing year on year to innovate on software and purely relying on historic brand image to pull the brand forward is bound to fail

Maybe they could start by dropping the absolutely stupid commitment to hydrogen.

The billionaires have capped Capitalism so that it will only function for them – the rest of the world is catching up and surpassing the US in categories that US industries were once leaders. That is how the empire ended.

How come when the auto industry was dominated by 4 countries (US, Germany, Japan & Korea) everything was fine? Adding 1 new player and suddenly they’re questioning their own viability

China is only gaining ground because they don’t have to out source anything. Tell them to innovate and develop something better, and it all falls apart. It’s no surprise that they could only lay the foundation for their electric vehicles after Tesla created the market. There’s a reason why western talent doesn’t get scouted out by China. Once China incurs costs associated with innovation they’ll get out muscled every time.

Company that didn’t invest in new technology fearful new technology will replace it

So reading the article… they are going to cut quality (presumably so their cars don’t last as long) and cut service parts? (presumably so when your car breaks you have to buy a new one) Sounds like what american car manufacturers have been doing my whole life… I don’t think this approach will save Toyota.

Open letter to Toyota:

Just make good vehicles.

Chinese automakers are not setting a new standard. They are subsidized at every step in the chain to produce cars for less than they cost to make.

The steel is provided to them under cost.
The labor is provided to them under market rate.
The electronics are provided by government funded developers.

It’s not a fair playing field.

>This is meant to slash overly-engineered quality standards and lower costs. 

RIP the Corolla as the most reliable vehicle in history

So sacrifice people’s lives for profit…kaayy

Toyota’s.used.to be good cars for a good price. Now they have gotten way more expensive and aren’t the value proposition they once were.