Data rigging scandals threaten to undermine Toyota's growth drivers
Ideas:
Articles never tell the whole story or the real story about what might have happened. In this case, there might be a sort of romantic idea about Toyota as this model company and when something happens the real story might be completely unknown, as, normally companies try very hard to keep their image clean.
For example, how does Toyota or those in the Toyota group really treat their employees, and more importantly how do they treat their suppliers? Do they insist on certain prices that might not be good for the suppliers or do they treat their suppliers correctly, not forcing them to accept certain prices, and if they don't they remove them as suppliers.
The Toyota group is a large group of companies, and it might not be easy to make sure all of the companies within the group are doing exactly what the main Toyota company wants and needs.
As with any name-brand company, such as Toyota, the more sales and profits they get the more the stockholders and shareholders expect the same each quarter, which might put extreme pressure on a company to maybe do things they normally wouldn't do, such as cut corners or quality control.
There is no real evidence that Toyota or Daihatsu did anything on purpose as most likely it was just neglect and or having to keep sales and production at a certain level.
Again, with any name-brand company, once something happens its doesn't easily go away for example maybe the Nissan Carlos Gohsn situation.
This shouldn't be a black-mark on Toyota as maybe it was just within the Daihatsu group, to keep up production and sales, as most likely Toyota has nothing really do to with it.
At the same time, not to be too negative, this could be the tip of the iceberg, related to cases of cheating on quality control, as car companies, are under tremendous pressure to keep sales and profits at a certain level.
Again, this doesn't mean the other Japanese car companies did or were doing the same thing with quality control issues, as, again, it might just be one company and what they did and not the entire Japanese car industry.
Globally, these days, all car companies are attempting to do the same thing, with some more and some a little less as all global car companies are now, as always, in a race to produce the latest, newest, and most innovative car possible, that customers want and need.
This might put unheard of pressure on many car companies and their suppliers and affiliates as all chase profits to keep shareholders happy.
No car company can afford any blackmarks or scandals that happened at Toyota and Daihatsu and globally it world is now inter-connected even more and news spread fast globally these days.
Not to say the Toyota didn't know, but as the same time, most times companies always try to deny or hide any facts that might make the company look bad.
Toyota had to know, that someone within the company was creating undue pressure for the Daihatsu group to keep sales up.
Again, Toyota might not be this model/perfect company that they want to be known as, as this latest situation just goes to show how much large companies put put pressure on their smaller affiliates to meet sales and profits targets.
And yes, Toyota might have expected too much or too much within a limited time schedule and the affiliates just couldn't meet the expectations.
No one should blame the affiliates as parent companies, such as Toyota, put too much pressure to meet unrealistic demands to remain number one.
The smaller affiliates were probably under too much pressure and if they didn't meet the targets or demands, the parent group Toyota, move the affiliates out of the main group.
"Might have been delicate" is putting it lightly, as most likely suppliers were reluctant to say anything for fear of not being a suppler in the future, as is the case with many main companies and suppliers.
As with this situation, the relationship between Toyota and its suppliers might been going on for decades and suppliers just had to accept whatever Toyota wanted and needed, without saying anything.
Again, most likely what is happening between Toyota and its suppliers is what is happening with other large Japanese car companies, as the suppliers are afraid to say anything and just accept what the main company wants and needs.
Yes, there should have been more communication, but in reality, suppliers are too afraid to voice their concerns to the main company for fear of losing the main company's business.
For example, if there was a shortage of engineers the supplier should have said something to Toyota, but again, maybe they were afraid to say anything that would make them look not very good to Toyota.
So in this case, Toyota is to blame for the situation and they didn't allow for clear communication and they didn't communicate to the suppliers. whatever they needed they will help.
This situation could in the future hurt Toyota's attempt to hire the best talent needed or possible. High salaries, these days, only go so far, as younger workers are looking for better work life balances, and if a young worker or college graduate knows or hears what is going on with Toyota and it suppliers or affiliates they might think twice about wanting to work for Toyota.
No one wants to work for a company that has constant unrealistic production, sales, or profit targets.
Toyota might continue to get some of the best talent possible, but over time, young workers are going to reject Toyota and maybe even its affiliates as they know Toyota puts too much pressure on it own workers and its affiliates.
Have a nice day and be safe!
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