Toyota chairman fears of USA nationalistic sentiment if GM, Ford collapsed

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Old 06-08-2005, 10:21 AM
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Toyota chairman fears of USA nationalistic sentiment if GM, Ford collapsed

Toyota boss fears policy backlash if GM,Ford crumble - - Reuters / June 08, 2005 -- Source: Automotive News

OSAKA, Japan -- The outspoken chairman of Toyota Motor Corp. said on Wednesday he feared the possibility that U.S. policy could turn against Japanese automakers if local giants such as General Motors and Ford were to collapse.

"Many people say the car industry wouldn't revisit the kind of trade friction we saw in the past because Japanese automakers are increasing local production in the United States, but I don't think it's that simple," Hiroshi Okuda told a news conference.

"General Motors and Ford are symbols of U.S. industry, and if they were to crumble it could fan nationalistic sentiment. I always have a fear that that in turn could manifest itself in policy decisions," he said, speaking as the head of the nation's biggest business lobby, the Japan Business Federation.

Okuda, who as chairman is removed from the automaker's day-to-day operations, raised eyebrows and invited criticism on both sides of the Pacific when he said two months ago that Toyota should think about ways in which it could aid U.S. automakers -- such as by raising product prices -- as they reel under massive health-care costs and sliding sales.

In the latest sign of tough times at Detroit's Big Two, GM Chief Executive Rick Wagoner told shareholders on Tuesday of plans to cut at least 25,000 manufacturing jobs and close more U.S. assembly and component plants over the next few years.

Both GM and Ford have been cutting back output as they lose sales to Asian brands led by Toyota, which now controls 13.3 percent of the U.S. car market, the world's biggest.

Asked what he thought of GM's latest restructuring plan, Okuda said: "If you think about GM's current output volume and vehicle lineup, laying off 25,000 to 30,000 employees is inevitable."

GM, the world's biggest automaker followed by Toyota, lost $1.1 billion in the first quarter and is riding out its worst financial crisis in more than a decade. It has been closing and idling plants over the past four years and will have cut its annual North American assembly capacity to 5 million vehicles by the end of this year from 6 million in 2002.

Meanwhile, top Japanese automakers are adding jobs and assembly lines in North America to meet growing demand there, prompting executives, including Toyota President Fujio Cho, to dismiss concerns that their success would reignite a political backlash.
Old 06-08-2005, 10:24 AM
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I am starting to like this guy. He is trying to be as open minded as possible about a country he does not live in. He is trying to make sure he understand America since he sells so much product there. One cant blame him for that. If every big company boss did that, foreign companies would have been a lot more successful in the USA.

In my opinion, he is exaggeration a little, but certainly some nationalistic backlash could surface if GM and Ford get in real trouble.

What I think will happen is that Ford and GM will find a way to come back into consistent growth. If things get a lot worse and I mean, A LOT worse, the possibility of a merger is a possibility with HUGE layoffs and reorganization. Hopefully that should translate into a stronger company.
Old 06-08-2005, 10:27 AM
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Originally Posted by gavriil

In my opinion, he is exaggeration a little, but certainly some nationalistic backlash could surface if GM and Ford get in real trouble.
Interesting coincidence:

Here is one of the reasons why I think the Toyota chairman is exaggerating:

American consumers largely ignore 'Made In USA' pitch - - Source: Automotive News

Perception study finds young adults the least likely to own U.S.-made cars

The good news for beleaguered U.S. manufacturers: Americans believe "Made in the USA" stands for quality and value. The bad news: Consumers -- especially young adults entering their prime buying years and richer households who have money -- aren't inclined to look for products made at home.
Old 06-08-2005, 10:34 AM
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Gav, no one cares about the "flyover states" anyway

in jest!
Old 06-08-2005, 10:51 AM
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he makes a good point, but if GM starts to collapse, they better make good cars cause otherwise im not buying them

and Ford is going no where, its really only about GM
Old 06-08-2005, 11:29 AM
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The only reason that it seems like the sky is falling is that the US manufacturers put so many of their eggs in the truck/SUV market. Now that that segment is shrinking fast, the big three's fortune is going down with them. Once we settle back to realistic levels of SUV to car ratio and the domestics come up with some more desirable cars sales will be just fine. It's going to be a painful transition - but it's not Toyota's fault.

Of course middle America might not see it that way.
Old 06-08-2005, 11:58 AM
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Originally Posted by biker
The only reason that it seems like the sky is falling is that the US manufacturers put so many of their eggs in the truck/SUV market. Now that that segment is shrinking fast, the big three's fortune is going down with them. Once we settle back to realistic levels of SUV to car ratio and the domestics come up with some more desirable cars sales will be just fine. It's going to be a painful transition - but it's not Toyota's fault.

Of course middle America might not see it that way.
Werd.
Old 06-08-2005, 12:48 PM
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Originally Posted by gavriil
I am starting to like this guy. He is trying to be as open minded as possible about a country he does not live in. He is trying to make sure he understand America since he sells so much product there. One cant blame him for that. If every big company boss did that, foreign companies would have been a lot more successful in the USA.

In my opinion, he is exaggeration a little, but certainly some nationalistic backlash could surface if GM and Ford get in real trouble.

What I think will happen is that Ford and GM will find a way to come back into consistent growth. If things get a lot worse and I mean, A LOT worse, the possibility of a merger is a possibility with HUGE layoffs and reorganization. Hopefully that should translate into a stronger company.

open minded? It's business, imho....no need to kill off the domestics through a price war when the domestics are doing it to themselves.
Old 06-08-2005, 12:51 PM
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Originally Posted by gavriil
Interesting coincidence:

Here is one of the reasons why I think the Toyota chairman is exaggerating:

American consumers largely ignore 'Made In USA' pitch - - Source: Automotive News


if the economy tanks and car companies can't recover etc., is what they are planning for.
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