To Find a Problem - or Not?

Is it better for Toyota to find a problem or not? Jerry Flint writes for Forbes and addresses this question quite well in his article. Here is the question:

What's worse for Toyota? Discovering that some electronic mishap is making its cars run wildly out of control? Or finding no electronic mishap or anything else wrong?

Answer: the latter is worse--much worse. If it finds an actual problem, Toyota can fix it once and for all. But if they can't find a problem, if no one can find a problem, if it seems to be driver error--stepping on the accelerator instead of the brake--then the questions go on and on. People in accidents will continue to believe they did nothing wrong, lawyers will continue to file suits, the press will continue to regurgitate the same stories day after day and Toyota will stay in the hole.

Interesting! It appears that really, it's a no win situation... Even though Toyota has literally spent many years studying, researching, and testing the electronics, they have found no problem... no smoking gun. But, according to Mr. Flint, unless Toyota DOES find a problem, things will be "worse - much worse".

Toyota is one of the best problem solvers in the world. They pride themselves on finding the actual problem, identifying the root cause to the specific problem, and implementing countermeasures for the root cause so that the specific problem will never reoccur. Other problems may happen, but if they do, the same problem-solving procedure is applied. The idea is to never have the same problem occur again... never!

Toyota has even asked a third-party company of electronics experts to test the electronic throttle control system to see if they can identify any potential problems. Their report is due soon. You can click here to go to a site that will give you all the latest news about Toyota from respected news sources.

So, I not sure if we should wish for Toyota to find a problem or not. The one thing I do know is that Toyota is getting better, stronger, communicating faster, and listening more intently. After all, it's the customer that matters the most, regardless of the media, the politics, the competition, and the frustration. Toyota will continue to take the high road. It's a long road - but it's the right road. It's the road that puts the customer first!

Watch Out!

A co-worker passed this to me..... enjoy!

Roy Exum: Toyota's Silent 'Mule'
by Roy Exum
posted March 3, 2010

There is a story told about an old prospector ambling into a cowboy town with his pack mule when suddenly the swinging doors at the saloon burst open and a gun-slinging dandy stumbled out to cry, "Hey, old man! Do you know how to dance?" A jeering crowd quickly gathered as the old miner replied, "No, but I've always wanted to."

Well, that young, drunken cowboy then fired both of his shiny pistols towards the ground at the old man's feet. With the flying bullets kicking up dust, the prospector danced a mighty jig indeed. The crowd loved it and, when the cowboy's guns finally clicked empty, he spun them just so, jauntily tipped his hat to his gleeful followers, and turned to step back into the saloon.

But as he did, the gaiety suddenly stopped because the cowboy and the crowd alike could clearly hear both big hammers being pulled back on a 12-gauge, double-barreled shotgun that had been in a scabbard on that old smelly mule. As the red-faced cowboy gulped and gingerly turned back to face the old prospector, he was asked the question, "Sonny boy, have you ever kissed the south end of a north-bound mule?"

Indulge me for a moment, but all those people who have laughed and pointed at Toyota's torment in the past few weeks are getting ready to echo what that cowboy had to tell the prospector: "No sir, but I've always wanted to."

You see, there have been two important events that have already occurred this week if you've been following the story of how the world's largest automotive manufacturer has been ridiculed and debased after recalling 8.5 million automobiles due to a variety of acceleration, transmission and floor mat issues.

First, General Motors just recalled 1.3 million cars on Monday for steering problems. What? You didn't see that? Where were the TV cameras? Where were the righteous who demanded that, no, the American president of Toyota (Jim Lentz) wasn't good enough, that our "pound of flesh" must come from the "big man" himself - Akio Toyoda - so that he could be publicly humiliated last week? Don't dare think the government is going to slap GM after last year's bail-out.

Secondly, on Monday Toyota announced it will now sell any new car or truck to a qualified buyer by providing that person with a five-year, zero-interest loan. Further, Toyota will change the oil and offer complete maintenance for free for the first two years. And, yes, on top of that there will be rebates up to $3,000 on certain models. That's strong.

Listen, gunslinger, General Motors doesn't have bullets like that. Toyota's third-quarter earnings last year were $1.7 billion, exactly the same amount lost during the third quarter of 2008. The company also just sold 2.07 million vehicles from October to December so, with the recall embarrassment, now there is a firm-jawed resolve to make the overblown travesty "the mother of all recalls."

Right now Toyota is processing 50,000 recalled vehicles a day, somewhat easily, too, I might add. To do so, their dealers are loaning cars while repairs are being made, paying rental fees and even taxi receipts. The simple fact is that never in the history of the auto industry has there been such an intense response. General Motors, on the other hand, will not offer a similar assistance program to the 1.3 million owners in this latest recall because, quite frankly, it doesn't have the clout nor the "want to" that Toyota does right now.

Listen to this - J.D. Power has just announced the best luxury car in the world right now is a Lexus, the premium brand of Toyota that just dominated four of J.D. Power's five main categories. This week Consumer Reports, not a government agency but one of the most respected quality-assurance sources in our country, returned eight different Toyota models to its "recommended" list. Go ahead, look it up. While you're at it, buy the Consumer Reports' car annual; you'll see for yourself Toyota is a tight No. 3 overall while GM and Chrysler are solidly "dead last."

What our jeering Congress members actually did last week while ridiculing Toyota was to make the company more determined, more results-driven and, yes, even a bit angry. Those that mock Toyota as "Japanese" are too stupid to realize today there are 175,000 Americans who are paid each day by the auto manufacturer. My goodness, look how many plants they have built in the United States in the last 10 years while American manufacturers have been stagnant.

Those who laugh and point have not yet been to Blue Springs, Miss., a sleepy town in the northeast part of the state. Toyota has just spent $300 million building a new plant in that poverty-riddled area that will soon employ 2,000 job-starved people. Toyota also pledged $50 million to "better educate" potential workers in Mississippi, but had to delay the plant's opening because of a lagging market and (gulp) the hysteria resulting from the recent recall, which is expected to cost the company $2 billion.

Has this country gone completely crazy? Instead of slapping Toyota around and forcing Mr. Toyoda to bow before a sadly-arrogant Congressional committee, we should instead have gracefully allowed the largest manufacturer in the world to clean up its own mess in the same way we have afforded other car companies to handle their own recalls for years.

What's that? The other companies? Automotive recalls protect consumers when, in truth, very few actual cases are ever found. But what you need to know is that, in the last 20 years, there have been 569 recalls of Toyota vehicles. At the same time, there have been 3,498 recalls of General Motors vehicles. Yes, there have also been 2,691 Ford recalls and 2,419 Chrysler recalls, too. Do those numbers tell you anything, particularly if you are a fortune-teller?

So now America - our Congress and all of us they call constituents - must "behold the mule." You see, all Toyota has to do is wait. General Motors doesn't have "the bullets" to play in a high-stakes card game that offers zero-percent financing, free maintenance, rental cars and taxis, and - most importantly - has its "hold cards" the best-made vehicles with the highest reliability and safety ratings in the whole world.

Just in case you weren't listening as Aiko Toyoda bowed before Congress last week, you should have heard both big hammers being pulled back. You mark this down; those men in Congress, the ones who took the UAW contributions and strutted about like proud little roosters, should have fallen for the ploy, but, far worse, they should have never laughed.

"Sonny boy, have you ever kissed the south end of a north-bound mule?"

royexum@aol.com

Mr. Toyoda Goes to Washington...

Last week we witnessed an extraordinary event when the President of Toyota Motor Corporation testified in Washington D.C. at a House of Representatives committee hearing. While it is common knowledge that these opportunities give the representatives, yet, another political window to grandstand a bit, it also provides the public a chance to see and hear from top executives that often are seldom seen and heard. I never dreamt that I would see Mr. Akio Toyoda in this venue, much less treated as he was. I understand that everyone has an opinion and different viewpoints, but frankly, I was hurt and embarrassed at the way he was treated. "Guilty!" seemed to be the collective cry of the interviewers! Even though they were there to seek answers and gather facts, they appeared to do nothing more than denounce and belittle any attempt Mr. Toyoda made to testify.

Akio Toyoda

But really..... it's what I expected. Many of our political leaders are only interested in doing the things that promote their own political careers, by stroking the egos and wishes of their constituents - no matter who gets trashed in the process. The line of questioning was so biased it was almost comical - although I know the Japanese at the front table found no humor in it. There were so many comments that were simply inaccurate and lacking a factual basis. As much as the representatives tried to look informed and intelligent regarding the topic, it was clear they were not, and were simply regurgitating comments and information handed to them by their ill-informed staff.


I have met Mr. Toyoda several times. The latest was when he visited our engine plant in Huntsville in May, 2009. He is a charming, intelligent, warm-hearted leader that genuinely cares for Toyota's team members and our customers. When I picked him up at the airport in my Sequoia, I said "Welcome to Alabama, Mr. Toyoda." He said, "Thank you. I came to see your face." We had a wonderful visit with him before he departed for his next stop. But, on the way back to the airport, I asked him to sign a car magazine that one of our team members had given me. He did so, graciously - even writing a personal note!

February 24, 2010 Congressional Hearing

As one of my colleagues noted, "If an American executive, say.... Bill Gates, had to fly to Japan and do the same thing, I know he would have been treated with much more respect and dignity." I tend to agree. I have been to Japan 35 times in the last 22 years. Every time, I have been treated with the highest regard by the most polite people I have ever met - no lie! It doesn't matter if it's a high ranking executive or a taxi cab driver. Try to get high regard and politeness from a taxi cab driver in the U.S. - or from members at a Congressional hearing...

Mr. Toyoda visits Huntsville

Nevertheless, I was so proud of Mr. Toyoda's perseverance and tactfulness. I believe he genuinely represented his worldwide employees very well. After the hearing, he spoke to the many dealers and team members that had traveled to Washington in an effort to show support. Mr. Toyoda had to stop a couple of times as he choked-up while thanking everyone for their support. He said he could really feel it!

The Toyota Corporation is the most honest, dedicated, "customer-first", high integrity company that I have ever seen. Toyota is not perfect, but once we see a problem, we fix it ASAP. We implement countermeasures to ensure it doesn't happen again. There really isn't such a thing as a "Best Practice" because we are always looking for ways to improve everything. We will get better and stronger as a result of the latest recalls. What started out as a public thrashing of the world's #1 automotive company's president, will no doubt come back to haunt the competition in the near future. Be careful what you ask for... Toyota will propel to the next level of Safety, Quality, and transparency like never before seen in this industry.

Maybe I should thank the House committee members for waking us up.... there is a renewed energy and commitment in the company that will no doubt.... Move us Forward!

Read his Op-Ed piece in the WSJ.

Letter to the Editor

This was published in the Sunday, February 7, 2010, edition of the Huntsville Times as my letter to the editor:

First let me apologize for the trouble and concern we have caused our customers with recent recalls. Those affected should be receiving letters soon explaining the steps you should take to allow our dealers to resolve the issues. The remedies are simple, effective and thoroughly tested. Our dealers are working overtime to ensure the job is done fast and right. We know what the problem is, we know how to fix it, and fixes have already begun.

Two core values of The Toyota Way are ensuring we keep our Customers First and that we build Quality and Safety into every process. We are obviously not perfect – but when we see a problem, we fix it as soon as possible. It is fundamental to our Toyota culture.

Even though many media reports have been warranted, please remember that we are trying to do the right thing regarding these recalls. Here in Huntsville, we have always strived to be a good corporate citizen, provide stable employment, and continue to expand our local engine plant. We recently announced an additional 240 jobs and millions of dollars in additional investment. We are very proud of our team members at Toyota.

I understand that this situation for Toyota is rare and may be a much bigger media event than normal. But, I hope the citizens of this community will see through some of the negative press and remember that we are committed to the Customer, committed to our Team Members and committed to this Community.


Sincerely,

James T. “Jim” Bolte
President
Toyota Motor Manufacturing Alabama, Inc.
One Cottonvalley Drive
Huntsville, AL 35810
256-746-5149