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Long Term Short - Toyota

|Includes: Toyota Motor Corporation (TM)

We are getting daily leaks that Toyota is no longer a quality producer of autos.  This should not be a surprise as Toyota publicly made the strategic decision to be the #1 auto producer in the world a few years ago. 

At the time Toyota was riding high with hybrids and top customer satisfaction.  No one seemed to pay attention to the idea that maybe a worldwide, disributed manufacturing company can not be the #1 producer AND the #1 in quality.  Maybe it's just the Japanese ego that lead them to believe that such a transition in strategy would not come at the cost of quality.

I am assuming that is why Toyota is being very shy about just coming out with facts on a timely basis as to their production quality problems emerge.

In the meantime I think Toyota is a short here.  They are producing at the levels they want, however quality is going away (gone already?) in all models.  This sounds too much like the GM and Ford of 10+ years ago - maintaining market share was predominant - at all costs.

Interesting that you still are getting sound bites of long term Toyota customers who believe that Toyota will fix their problems since historically it has not been a problem.  Blind faith is usually not a good idea.



Disclosure: No positions in Toyota