Friday, May 13, 2011

TOYOTA to stay on in Japan

Toyota plan to continue to manufacture cars at Japan, in spite of the devastation & disruption to production. It may take a long time to get things back on track, or 'assembly line/just in time' ! Even the rising input costs or shortage of power or even unfavorable rate of Yen will not make them change them to move production out of their country. Their own CFO says, '...current environment makes it very, very difficult' !

I wonder... !
  • Toyota is placing their country above the interests of the shareholders. Is it fair ? Also, they want to create jobs in Japan, in these bad times... Very patriotic..!
  • May be they want to ensure they produce in Japan to ensure quality, esp in view of their recent recalls?? They may still pull off on cost-front with better inventory .... can it be 'better', as they are already very good ?? 
  • Higher input cost may mean the end-customer may not be getting the 'best' price...
  • Other key players, Nissan & Honda, seem to be making more 'prudent' business decisions..
As a global brand, should they not be focussing on giving the best quality, at best price and creating jobs where they can ensure same ? 

These are the questions a customer will have... not in Japan, but in other key markets, including Middle East, where they enjoy dominant market share... 
 

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