Toyota today posted 35.1% net operating gain for the past quarter compared with year ago. The operating profit for the past half year reached 9.1 billion US dollar. The whole year projection is 18.3 USD. As a huge contrast, the combined loss of Big three last year is 7.6 billion.
The whole world is stirred by this announcement, especially the financial and auto industry world. Wall Street Journal, New York Times, Detroit Free Press, etc. are all covering it.
Main factors of the gain are: Sales up worldwide, internally cost control, favorable weak Japanese yen.
It is predicted Toyota very soon will pass GM as the world biggest auto maker, with worldwide sales around 9 million.
The same pattern repeats again and again – whenever there is fuel price hike, Bid Three is losing market share, while Toyota and Honda pick up.
Is Toyota able to avoid the problems of being big? It is labeled big-company disease by Toyota senior management. It looks like they are well prepared to face this challenge. A big concerns being big is operating efficiency. Toyota is able to copy its TPS to the worldwide when it sets up new plants. However, the expansion rate should be controlled moderate and should be planned carefully. Its suppliers need to make sure follow closely. The plants should be built with flexibility in mind. They should be able to switch product very fast. For the past, Toyota never resort to acquisition for grow. The reason might be TPS could only be built from scratch. Union is a big hurdle for TPS implementation.
Ordered the book of Toyota Product Development, how to organize to come up with a product fast is another concern being big.
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