Japan: auto manufacturers entered

　　In the current round of crisis, Japanese auto manufacturers represented by Toyota suffered unusual impacts. In the fiscal year of 2008, profits of Japanese auto manufacturers plunged at that time the fiscal year of 2009 was also expected to be loss-based. Even the leader Toyota came across losses for the first time in 74 years. All these exposed executives replaced collectively and products frequently recalled internal damages has surprised the industry. Prior to that Toyota has been the synonymous of the automotive industry’s leading company.

　　The so-called internal damages refer to problems hard to discover through simple external observations. However, it is clear pre-development strategies and management problems that have accumulated with regard to the current crisis broke out together this time. The details are still analyzed and addressed by Japanese car firms themselves.

　　Toyota recall issue is hard to handle as the company highly rely on overseas. The U.S. government is bound to go all out to protect the local automotive industry due to the crisis of Big Three. The expanding negative news of Toyota will certainly lead to a very deadly effect to the company.

　　However, more than 70% of respondents believe compared to GM, Toyota still has self-repairing capability. Different from GM who carried out global mergers and acquisitions with great confidence when highly capitalized, Toyota’s expansion model is very robust and solid. Besides Daihatsu Motor in its native country, all of the overseas expansion belonged to its self-built model, which helped prudent Toyota maintain a good financial status for a long time.

　　The adjustments of strategic and management models will soon be carried out. Short-term losses may last one to two years. It will not be ruled out that Toyota will soon be repaired and re-shape its competitiveness in a relatively short period of time. If revolution proves effective, the long-term status will still be bright.

　　The online automotive surveys of GASOO website has showed that Toyota related core parts suppliers suffered substantial losses, directly reflecting problems lie in Toyota’s expanding strategy and management models in recent years. The vast majority of people believe that over-reliance on North American market and the yen’s appreciations are the main reasons for Toyota’s loss. However, strategic and management deficiencies are more fundamental factors. In fact no matter in the United States or Chinese market, there are more and more quality problems of Toyota. Drastic revolution including the replacement of key management now has already been under way.

　　Although the online survey also showed that the Toyota brand has been adversely affected in the current round of crisis, the majority of experts interviewed believe that the one to two years period of adjustment, giving a positive rival Volkswagen and long-term potential rival Hyundai a opportunity to catch up, is actually the biggest loss.

　　Although internal damages of Toyota still need time to heal, from medium-term and long-term perspective, perhaps it is not a bad thing for Toyota’s development since once effective changes are carried out, the company will develop more healthily after recovered. As oil prices go high, both Toyota’s economy cars and new energy cars have the dominant position and strong profitability. Respondents believe Toyota is the most competitive auto manufacturer in terms of t new energy vehicles.

　　(Translator: yalong/ Jessie)

　　See original Chinese report Please click: http://auto.sohu.com/20100324/n271049500.shtml