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Toyota's response to GM problems and US's future?
In this CNN article, the Toyota chairman, Hiroshi Okuda, said on Wednesday that he feared the possibility that US policy could turn against Japenese auto makers if the big U.S. companies like GM and Ford were to go under.
Japanese auto makers have tried to reduce this possiblity by increasing local production in the US. Many Toyotas are now built in the US. But Okuda fears there will still likely be policy changes in the US.
As GM lays off more workers and closes more US plants, the question is what can be done?
Some blame the unions with their sweetheart health-care and pension deals that they've bullied through over the years.
Some blame it on GM for not making anything people want to buy.
Some blame it on GM's management in being short-sighted by putting too many eggs in their gas guzzling SUVs and not investing enough in fuel efficent cars.
The number one thing GM needs to do along with all US companies is to innovate. Innovate to improve productivity, reduce costs, improve reliability. It requires innovation and hard work at every level. That's the only long term solution to GM, Ford and all other US companies.
I have to admit, it's not easy. Capitalism may be the best economic system, but it's essentially a non-violent war. Play by the laws and be ethical, but remember, it's a war.
