Toyota: Growth has a bad side
The automaker's chief says global expansion has been a factor in quality problems.
TOKYO - Toyota Motor Corp.'s president acknowledged yesterday that the company's rapid global growth was partly behind a surge in problems that has plagued it in recent years.
Katsuaki Watanabe said the Japanese automaker had improved quality controls and was sticking to its sales targets, including those in North America, despite worries about a credit crunch and a slowdown in the vehicle market.
Speaking at the Japan National Press Club, Watanabe said the reasons behind defects in Toyota vehicles were varied and included issues with development, design, production, suppliers and maintenance.
He said that at least some of the problems, including time pressures and a shortage of experts, stemmed from the company's dramatic growth in recent years.
Watanabe generally has been frank about acknowledging challenges facing Toyota as it enters new markets and builds new plants.
Still, his comments highlight a sense of crisis at the company, which is trying to maintain its sterling reputation for quality as it seeks to expand globally, especially in emerging markets such as China, Russia and Brazil.
"The fact that Toyota is growing globally suddenly shouldn't be used as an excuse," Watanabe said.
Last year, Toyota, which makes the Prius gas-electric hybrid and Camry sedan, overtook General Motors Corp. as the world's No. 1 automaker in global vehicle production, although GM retains the top spot in global vehicle sales.
Toyota manufactured a record 9,497,754 vehicles worldwide in 2007, up 5.3 percent from the previous year, beating GM at 9.284 million. But Toyota sold fewer of those vehicles - 9.366 million, compared with GM's 9,369,524. GM has been the world's top seller for 77 years.
Watanabe said he had ordered a six-month delay in introducing some products since the problems surfaced to tackle quality-control issues. He did not give details.
Toyota has gone over the problems, one by one, tracking causes, analyzing them, and coming up with ways to prevent recurrence, Watanabe said.
He even referred to a trend he dubbed "big-company disease," caused by arrogance within Toyota's ranks.
Since 2006, when the alarming rise in recalls began to surface, Watanabe has apologized repeatedly at news conferences in Japan.