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Toyota to delegate authority.
Keywords:
One of the severe problems noted in the recall disaster of 2010 was that practically all important quality and safety decisions are made in Japan. Without key American decisionmakers in the process this leaves Toyota exposed to all sorts of errors like the errors that ocurred in stalling the National Highway and Traffic Safety investigations into acceleration and braking accidents in Toyota vehicles. To compound theses errors managment at Toyota focussed on the $100 million in savings that avoiding or minimizing the recalls would generate, as revealed in internal documents. Early warning signs of similiar problems in Europe were not linked to problems in the U.S.. All this was ocurring against the backdrop of a change in management at Toyota- with the Toyota family once again regaining control of the company- and the failure of the management under Watanabe and previous CEO's to put quality before rapid expansion. The new changes are to have 2 new senior executive positions in the U.S. to focus on quality and safety. A chief safety executive will focus on safety and recalls, and a chief quality officer coming from the top ranks of the American operation will now sit on a special committee for Global Quality led by CEO Akio Toyoda. The commitee for Global Quality will address the global quality issues around one table with the highest ranking executives at Toyota right at the table to talk things out.
Toyota Panel makes its recommendations for changes in global management structures
03/01/2010
Reforms and restructuring after the 2010 recalls. The Toyota panel said there needs to be one executive responsible for the entire U.S. operation. Before the crisis in vehicle safety Toyota had separate engineering, sales and production operations, but no head of the entire U.S. operation. Honda and Nissan have a head of U.S. operations. Another problem the panel sees is the insularity of the Japanese headquarters management. It recommends foreign directors be appointed to the board. Even after the safety crisis and a change in management structure to a smaller board, the lack of foreign directors remains a serious unaddressed problem.
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Linked Articles
Detroit News 03/01/2010
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