Akio Toyoda is about to take over as President of Toyota, and he needs all the help he can get as the automotive industry falls into its deepest slump in decades. Toyota will soon announce its first annual loss since 1950, which it expects to come in around a staggering $4 billion. The New York Times did an article on Toyoda's management philosophy, which can be summed up in the Japanese phrase "genchi genbutsu", which literally translates into "go to the spot."
We have high hopes for Mr. Toyoda as he brings the principle of Go To The Source center stage. Mr Toyoda ran the company's operations in China himself. He frequently shows up at the General Manager of Lexus' office in the U.S. to discuss new ideas. During a recall last year he even made an unannounced visit to an Ann Arbour, MI pick-up truck dealership and got down to examine the undercarriage of a truck in his business suit. This type of hands on, in the field approach will be critical for all of the major automakers as they try to get their businesses back on track. They must have their fingers on the pulse of their businesses. So far, Akio Toyoda is setting an example that his employees and the U.S. CEOs should learn from.
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