Ford vs. Toyota

tom j

Active Member
Joined
Aug 15, 2004
A MODERN PARABLE:

A Japanese company (Toyota) and an American company (Ford) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race. On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action. Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.

Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion. They advised, of course, that too many people were steering the boat, while not enough people were rowing. Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents, and 1 assistant superintendent steering manager. They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners, and free pens for the rower There was discussion of getting new paddles, canoes, and other equipment, extra vacation days for practices and bonuses.

The next year the Japanese won by two miles.

Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India.
Sadly, the end.

Here's something else to think about: Ford has spent the last thirty years moving all its factories out of the US, claiming they can't make money paying American wages.
TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter's results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.
Ford folks are still scratching their heads.
IF THIS WEREN'T TRUE, IT MIGHT BE FUNNY.
 
They shouldn't have to scratch their heads. The problem is obvious!
UAW
 
They shouldn't have to scratch their heads. The problem is obvious!
UAW


If the big 3 file bankruptcy, it's on again. They can then get out from under UAW control.

I've seen the inside of Toyota's management and it's just as bad. Some of the risks taken are insane. I know of one portion of their company that is a total cluster right now, seriously. The market has gone south so they are trying to get their personal projects in to help preserve job security. The problem is everyone is over spending on projects by the millions. Most of my team just laughs because it's not just Detroit with the problems now.

It's a good company but, it has it's problems too. And... yes they have layers of management that just slow everything down. The part about them building more plants in the US is true but, I give it less than five years and things will take a dramatic turn towards the lessons Detroit has already learned. They too have line workers that make 100K plus just to turn bolts on a car.

It will be interesting to see how autos change over the next few years.
 
TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.
Ford folks are still scratching their heads.


Did it even dawn on you that the difference is based on the value of the Yen. While Toyota and the rest of JapanInc has the Japanese government keeping the Yen high thus boosting their profits the US gov is keeping the economy in a recession. Riddle me this? How's it that Toyota can post double digit sales losses like the domestics and still post a record profit? Even a 5th grader could figure that one out. Just compare GMs profits from China alone and you'll see why they are making money in China and both the markets(China and US) are selling the same number of units.:rolleyes:
 
Did it even dawn on you that the difference is based on the value of the Yen. While Toyota and the rest of JapanInc has the Japanese government keeping the Yen high thus boosting their profits the US gov is keeping the economy in a recession. Riddle me this? How's it that Toyota can post double digit sales losses like the domestics and still post a record profit? Even a 5th grader could figure that one out. Just compare GMs profits from China alone and you'll see why they are making money in China and both the markets(China and US) are selling the same number of units.:rolleyes:

I was in Tokyo a few weeks ago on business, and the idea of the recession in the US was worrying them more than the people I talk to in Texas.

If Toyota posted record anything in 2008 it was due to one time deals and not due to records car sales. They are already dealing with a cheap US dollar... a Cheap US dollar and reduced US buying will be like sticking a knife in and twisting.

The US can recover from a recession way faster than Japan can. When their economy turns down it stays down for a while. People just stay home and don't spend money. Americans go to the mall and spend at the first sign of an improving economy.
 
They too have line workers that make 100K plus just to turn bolts on a car.

It will be interesting to see how autos change over the next few years.

Not the average line workers.

The total hourly compensation for the average GM line worker is over $75/hr
The same average for a Toyota worker is only $43.
 
Japan refused to let any of their businesses fail in the 90's and it did not help much when they bailed out the Jap firms - seems like nothing has been learned
 
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