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Toyota Posted by on Feb 19, 2010 in Uncategorized

Toyota (トヨタ) has been in the news recently, and not for very postive reasons. A series of recalls, including the most recent recall for anti-lock brakes in Toyota hybrids, has consumers worrying about the safety of Toyota cars. The recalls have coincided with Toyota’s struggle to emerge out from the recession. Due to the recalls, Toyota plants in the U.S. have also been affected. Toyota dealerships and plants in the U.S. are already cutting workers and preparing for the worst. As a whole, Toyota may lose profits numbering in the billions.

Before any of the recalls took place, Toyota was a small company headed by Kiichiro Toyoda (豊田 喜一郎 or とよだきいちろう) in 1937. The inspiration for the name Toyota came from Kiichiro’s last name Toyoda. However, Toyoda in kanji means “fertile rice paddies” and Toyoda wanted to avoid this agricultural connotation with the company. He decided to modify the name of his company to Toyota, which in katakana is composed of eight strokes. Eight is considered a lucky number in Japan, and so it was thought that Toyota would be a more fitting name for the company.

Although it’s hard to believe now, Toyota received its first Quality Control Award in the 1980s. With the oil crisis in 1973, Toyota was the preferred choice for American consumers who wanted fuel economy cars. One of the phrases best associated with Toyota was, “I love what you do for me, Toyota!“. In fact, in a poll conducted by Rasmussen in 2010, Toyota was viewed favorably by 59% of Americans, 22% viewed Toyota very favorably, with only 29% viewing Toyota unfavorably. Perhaps there is a chance after all for Toyota to recover from this recall crisis.

Toyota’s philosophy has centered on five golden principles: (1) (チャレンジ) challenge (2) (かいぜん) improvement (3) (げんちげんぶつ) go and see (4) (けい) respect (5) (きょうりょく) cooperation. These principles have made Toyota successful over the years. These principles however, have not been indoctrinated in factories outside of Japan. As a result of the recalls, training institutes in places like the U.S. are being established. The recalls have an effect not only in Japan, but in Europe, Asia, America and Latin America. Hopefully this will be the last of recalls, but we’ll have to see…

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