Avoiding the trap of the Toyota dream

Toyota Motor Corp. President Akio Toyoda is pictured during a press conference in Beijing, capital of China, March 1, 2010. Akio Toyoda apologized to Chinese consumers for recall of Toyota cars on Monday. Photo: Xinhua

To Chinese public, the high point of Toyota's dramatic crisis seems to be the company chairman Akio Toyoda's public, and much publicized, apology to Chinese consumers. But Chinese enterprises would do well to carefully study every stage of this crisis. The worst crisis ever faced by Toyota is replete with lessons for Chinese factories.

Pursuing growth faster than the speed at which the company could develop manpower and the organization is to blame for Toyota's quality flaws in the US, Akio Toyoda admitted at a US Congressional hearing.

For long, Toyota symbolized the essence of Made-in-Japan: impeccable quality. With such a record, Toyota was crowned the world's No.1 automaker in 2008. Obsession with quality also explains the success of other Japan-made products that have long been favored by consumers worldwide for their durability and reliability.

Toyota Motor Corp. President Akio Toyoda is pictured during a press conference in Beijing, capital of China, March 1, 2010. Akio Toyoda apologized to Chinese consumers for recall of Toyota cars on Monday. Photo: Xinhua