All Will Drive

The curse of being the world’s largest car manufacturer

Early in the 20th century, automobiles were manufactured in a tedious process. A group of workers would crowd around a single car and put it together for more than half a day. The craft was hard but meticulous. And had car-making continued at this pace, it was highly unlikely that the world would have been motorized in its entirety. Thankfully, Henry Ford perfected the concept of the assembly line.

The seamless, moving assembly line was born in 1913 at Ford’s Highland Park facility in Michigan, five years after the Model T had been introduced. The assembly line, of course, meant faster production time. It featured workers that performed the same tasks on slow-moving cars over and over again. Because a worker merely repeated a single task assigned to him (or her), he (or she) achieved the fastest possible time to finish it. Try it. Remove the lace of your shoe and put it back again. Do this a dozen times and clock yourself each time. I guarantee you that your time on your 12th try will be significantly faster than your time on your very first attempt.

Indeed, the assembly line greatly hastened the manufacture of the Model T. In 1908, when the car was launched, Ford workers took 12 hours and eight minutes to produce one unit. With the advent of the assembly line, the unit production time was drastically cut to one hour and 33 minutes. Model T units rolled off the factory so fast that the body-paint section couldn’t keep up--at the time, paints didn’t dry as fast as they do today. Only black paint had a decent drying time, prompting Ford to stop offering other colors. This is the story behind Henry Ford’s famous quote: “The Model T is available in any color you choose, so long as it is black.”

In 1914, a year after the inception of the assembly line, Ford was able to produce a total of 308,162 cars. This number was remarkable because it was more than the total of all the other carmakers in the world combined. Thanks to the assembly line, Ford practically owned the automotive market. Soon, its rivals had no choice but to adopt the same manufacturing process. It is said that those who refused to follow suit eventually went out of business.

Apart from the faster production time, the assembly line yielded another important benefit. And that was the reduction of production costs. In 1908, at the Model T’s launch, the car had a price tag of $825 (around $19,000 or P885,000 today if adjusted for inflation). Thanks again to the assembly line, the Model T would cost just $260 in 1924 ($3,300 or P154,000 after inflation). Imagine that! As a result, even Ford’s own factory workers were soon able to afford a Model T themselves--which was Henry Ford’s vision to begin with.

But Ford was forced to retire the Model T in 1927 after having produced 15,000,000 units. That was because its sales had been rapidly declining--understandable for a two-decade-old model. To further complicate matters, Ford had nothing to replace the Model T with, due in large part to Henry Ford’s stubborn refusal to develop a new car that would succeed his beloved Model T. He probably thought it would sell forever. Such is the first curse of being a global leader: complacency, or the unwillingness to innovate. Ford would hastily roll out the Model A, but by then Chevrolet had quickly established itself as a serious threat to Ford’s market dominance.

Since then, car companies have continuously refined the assembly line and shortened the vehicles’ development time in order to cope with global demand and also to outsell each other. Ultimately, the focus shifted on volume rather than quality. Bragging rights were earned by the carmaker that produced the most number of vehicles in a year. For the better part of the last century, that distinction went to General Motors. But as the sad fate of GM proved, just because you manufacture and sell the most number of cars doesn’t mean you’re successful. Because sooner or later, as you get more and more intoxicated with sales figures, you will begin to lose sight of the important things: innovation, customer satisfaction and high quality. All that really matters to you now is to keep churning out those cars.

This, I believe, was the major factor that did GM in. It became obsessed with sales data, believing that market leadership rested on numbers instead of consumer trust. To sell more units, the company acquired as many brands as it could. Sadly lost in all this expansion was quality control. A number of cars made by GM from the Seventies to the Nineties are now regular fixtures on any “Worst Cars Ever” list. Chevrolet Caprice and Citation, anyone?

Enter Toyota of Japan. For a carmaker that almost folded in the early Fifties, Toyota has done pretty well. It went on to expand outside its home country and develop a solid presence in the world’s most important market, America. From its launch of the luxury brand Lexus in 1989 to its introduction of the youthful Scion division in 2002, Toyota made it clear that it was out to become the biggest carmaker in the world.

While Toyota bosses didn’t want to admit it--perhaps for fear of a backlash in the US market--the goal all along had been to supplant GM as the global industry leader in terms of production volume. Toyota ultimately reached that goal in 2007, when it finally surpassed GM’s vehicle production by some 200,000 units, effectively ending its American rival’s 76-year reign as the undisputed global leader in vehicle assembly.

But now, finding itself at the top this time, Toyota apparently has compromised a few things and overlooked a couple of values that brought it to its current status in the first place, just to keep up with production demands. Those few things include bulletproof quality and an exacting attention to details. This, I believe, is where Toyota committed some of its missteps. Everyone’s favorite car company suddenly forgot its priority--which is customer satisfaction, not global market leadership.

If you’re manufacturing around nine million vehicles a year, it’s very easy to commit mistakes here and there. That’s the problem with being a giant car manufacturer. Hyundai could be headed in that direction as well if it isn’t careful. What Toyota needs to do now is to go back to the very basics--back to when it knew how to treat every single car as a masterpiece. Yes, back to when it didn’t care about market shares as much as it did about pleasing the customer.

If it’s any consolation to Toyota, at least it can learn from this debacle a very important moral: It’s infinitely better to manufacture few but excellent vehicles than to produce countless but mediocre ones.

 
 
 
 
 
 
 

COMMENTS

  • Feliciano Sarabia Ababon III says Hoping for Toyota's fast recovery...>>>..[+] (06 February 2010)
  • francis says yeah sana makarecover kagad ang toyota! sa lahat ng negative ang sasabihin wag na magcomment ndi kailangan ^_^...peace! (06 February 2010)
  • tonski29 says Ngayon pa sila nagkamali kung kelan stiff ang competition sa car industry....this is not only a minor case of mistake but a serious one...sana makabawi Toyota for them to "move forward"....further!....and much more better... (06 February 2010)
  • maranello_5775 says I hope Toyota learned a lot of lessons with these recalls.Toyota's were one of the finest automobiles in terms of quality and durability,I hope they were able to find solution to the problem immediately in order to regain public trust. (06 February 2010)
  • Feliciano Sarabia Ababon III says @francis: yah dapat positive comments natin d2...its Good to be true and honest....responsible naman ang Toyota since they are on the move na to solve this problems!.. (06 February 2010)
  • goldcrow says I believe Toyota's recall shows its dedication to please its customers. Dunno about the situation here in the Philippines. Besides the D4D issues of old, Toyota's reliability is rock solid. (06 February 2010)
  • CAR says That's why we need the Lemon Law. Attention Congressmen and Senators! Please pass it! (06 February 2010)
  • torque88 says How do you call it RESPONSIBLE?if they don't hear the problems of our complainant here in our country..Global recall must do here also in our land,because many owners patronizing that Toyota is the best car..How you clarified this such thing if they don't have acion...:( (06 February 2010)
  • suv says @francis we cannot have a healthy blog kung puro positive dapat balanse, freedom of a press, the best advise is just be a responsible blogger, at any rate this would be helpful to those would-be buyers at sa mga inosente na rin (06 February 2010)
  • merc350 says great article vernon... insightful, well-research, fair and balanced..the way it should be..good job! (07 February 2010)
  • Juan Miguel Reantaso Mendoza says buti yan sa toyota! buti pa si suv at su torque88. tama nmn sabi nilang dalawa e. masyadng nagmamadali ang toyota sa paggawa ng mga modelo at saka dapat double check muna ang kotse bago ilabas sa publiko!!! the new no. 1 is mitsubishi it will take many years before the toyota recovers to no. 1 or maybe toyota will never be back at no. 1. (07 February 2010)
  • goldcrow says @juan miguel. Malaki ang pagkakaiba ng pagpopost ng isang valid argument sa pagiging isang diehard na fanboy. (07 February 2010)
  • Juan Miguel Reantaso Mendoza says totoo lng nmn sinasabi ko goldcrow!!!! (07 February 2010)
  • M1911 says @juan miguel, salesman ka ba ng mitsu... may mga discount ka ba dyan...or baka cheerleader ka doon sa showroom... give me an M..an I..hahaha! (07 February 2010)
  • Juan Miguel Reantaso Mendoza says @ MI911 FAN AKO NG MITSU BAKA FAN KA NG TOYOta give me a T..O..Y..O..T..A TOYOTA!!! (07 February 2010)
  • goldcrow says @juan miguel: For some reason I have a hard time believing arguments based on the idea of "Mitsubishi rules!!!". Please check your other post for reference, while doing that you can also check your other friends comments and see if they all say the same thing. (07 February 2010)
  • Juan Miguel Reantaso Mendoza says matanong nga goldcrow saan ka boto toyota ba? (07 February 2010)
  • merc350 says @goldcrow, don't waste your time engaging @juan miguel. his mind is lost in mitsuland. (07 February 2010)
  • Juan Miguel Reantaso Mendoza says what the hell is mitsuland merc350 one of your fantasies? (07 February 2010)
  • Juan Miguel Reantaso Mendoza says @ merc350 doon nga sa "we are in crisis" isyu ni toyota chief nag comment pa nga sa'yo si torque88 @ si suv parehas silang tama ng commento sa'yo binasa ko kaya. (07 February 2010)
  • goldcrow says @merc350, you're right, its impossible to have a decent debate with close minded individuals who are just stage 1 thinkers. For all we know, these "people" are just one person using different names. (07 February 2010)
  • Marie says the truth about mitsubishi, tinatago nila ang problema ng kanilang mga defective unit..believe me! (07 February 2010)
  • merc350 says youre right goldcrow.. it would be like debating a kid.. pointless and hopeless. you could be right, it might just be one person. I'm no toyota fan, but a fair and balanced discussion would is better appreciated by all, rather than these blatant bias...on both sides of the issue. (07 February 2010)
  • Justine says Halo,lahat tayo dito sa mundo nagkakamali, hindi perfect, except GOD. Tingnan nyo sarili nyo uy! huwag na kayo magcomment ng negative pls. TOYOTA will be more stronger company after this. Makakabawi rin! Sa mga nag post ng negative, walang sasakyan yan kundi sapatos lang nila. (07 February 2010)
  • Juan Miguel Reantaso Mendoza says i don't believe what marie said. but goldcrow is right my first name used here is jm mendoza then juan mig then juan miguel. (07 February 2010)
  • Marie says walang recall sa mitsubishi kasi konti lang ang mga unit sold nila hahahahahah.... (07 February 2010)
  • Juan Miguel Reantaso Mendoza says nakakainis ka marie alam mo ba yun (07 February 2010)
  • OldSchoolHack says There is a difference between production errors (when Quality Controls are lower causing the production of faulty products) and design errors (where a selection or choice component or material or part of a product). The woes of Toyota in the past decade (not the past years) from engine seizing up with black sludge (the 1996-2007 recall) to the accelerator pedal getting stuck and now the Prius brake issues are mostly design errors. The article presents well production issues. Toyota is suffering from design issues. Production issues is when out of 100 vehicles one comes out a lemon (1% failure). Design issues is, well check Toyota's problems in the last decade. (07 February 2010)
  • CL says @juan miguel ang p*ng*t m* pikon hahahah kakaunte! ang sales ng mitsu hahahaha!!! naniniwala ako kay marie hahaha at etu papala dba cheerleader ka magcheer ka nlng sa mitsu na wala n cla pagasa hahaha saka nga pala wala na rin akung pakielam sa mga sasabihin mo sakin hahahahahah!!! (07 February 2010)
  • Juan Miguel Reantaso Mendoza says @CL at marie, magtulong tulong pa kayong mga ahente ng Toyota, kaya naman maraming sales ang toyota ay dahil nga sa vios na pangtaksi at sa mga baduy na OFW bumibili ng inova at fortuner (07 February 2010)
  • vic says @JUSINE who cares what you think about toyota, kung ikaw kaya nakasakay sa toyota at ang pedal mo nagkakaproblema, sasabihin mo ok lang yun dahil love ko toyota??? e kung naaksidente at namatay lahat ng pamilya mo at ikaw lang buhay, ok lang ba yun??? PLEASE! GROW UP!!! if your brand doesnt deliver, move on!!! walang kotse???? i buy EUROPEAN!!!! i learned... compare mo ang mga SUV, SEDANS or any model between jap, kor and euro in the same price range... walang safety and mga jap at korean.. tanungin mo nga kung bakit... toyota doesnt give a BLEEP!!!! (07 February 2010)
  • 500Jeffersson says Might be a design errors withToyota causing their losses now & lives of Toyota owners & innocent car owners involved in accident . Then Toyota phil & japan said, they were not affected? how come a Japs made RAV4 is just the same design with a US biult one? Phil--Do not but TOYOTA unless they will start RECALL on their defective models. (08 February 2010)
  • John Martin C. Balinghasay says Toyota units in US, China and Europe were recalled due to a sticking accelerator pedal made by an American parts maker - CTS corporation. The pedals in Japan, thailand and Southeast asia including phil are made by DENSO corp so they are not included in the recall and so far they dont have the same problem with the pedals made in the US (08 February 2010)
  • keithdb says About mitsubishi, di naman perfect yan. If I recall, they had a very big scandal in japan about 3 to 4 years ago where they deliberately hid defects. This caused a massive recall and an ensuing investigation resulted in their previous top executives being sued and jailed. I think that at that time their sales suffered greatly in japan because of that. (08 February 2010)
  • vbsarne says @OldSchoolHack: Good comment! I wish all comments here were as insightful as this. Anyway, yes, I know that production and design issues are two different things. My column actually pertains to both. I wasn't just talking about the physical aspects of the manufacturing process--the actual tightening of nuts and bolts, so to speak. I was referring to every aspect of producing a car, including its research and development. Hence, the line: "Car companies have...shortened the vehicles' development time in order to cope with global demand and also to outsell each other." That's the whole point. When you're trying to meet quotas for millions of vehicles and roll out new models in record time, you tend to cut corners. And when you cut corners, that's when you become prone to errors, which include the vehicles' electronics and computer software. But thanks for pointing this out. (08 February 2010)
  • jclogan says this is probably the reason why Toyota has the 'lease to own' program & they have the longest financing schemes..they want customers to buy their product because of the schemes but not because how reliable their vehicles are..glad, TV Patrol has aired their D4-D woes..kung hindi pa nagrecall sa US, the D4-D problems of Toyota will die a natural death here..hanggang sa forum lang mapag-uusapan..Now, they have the public's attention.. (08 February 2010)
  • Apolonio Julio Leonor says Very well said Mr. Sarne! (08 February 2010)
  • suv says kudos to oldschool,vbsarne and jclogan's sensible thoughts, hope toyota fans follow suit...and the admittance of guilt (08 February 2010)
  • Vernon says @vic...grabe ka namang mag judge ,wala pa namang proof na yun na talaga ang cause ng accident, precautionary measures lang ang recall na ito, lahat tayo nagkakamali, ikaw nga if i know mali mali buhay mo. (08 February 2010)
  • rosebud79 says hey guys our family is a big fan of toyota, i practically grew up with corona (during the defunct delta motor days) and corolla as our family car! But, after my sad experience with my 2008 fortuner i shifted to other brands... I was driving my forts at the star tollway in the middle of the night (sobrang dilim po sa hway na yun) when suddenly i lost power, total shutdown buti po i was able to reach the emergency side of the expressway before my suv came to a complete stop. I tried to restart the engine but to no avail and total black out po! After, 15 mins I restart again the engine and I was surprised the machine started to function normally again as if nothing had happened. The next day i brought the fortuner to the dealer but hindi po nila maipaliwanag yung sudden lost of power. I hope toyota would still recover from this crisis and regain their loyal follower. But for now, im satisfied with my new mitsu montero! and after my horrible experience with the fortuner it will take a long long time before i consider buying a toyota brand again! (08 February 2010)
  • torque88 says @rosebud79..nice comment...montero sport..rules!!!!over Fort.hehehehe (08 February 2010)
  • valentine88 says thanks @rosebud79 for sharing your experience with the fortuner! I placed an order for the fortuner which is due for release anytime soon but with all the problems plaguing the toyota including the unexplained loss of power of fortuner im beginning to reconsider my first option of buying montero sports se although it will take 2 months of waiting due to demand in sales!! Thanks also to Top Gear Phils for having this website wherein would-be car buyers can get an info b4 purchasing their new vehicle.. (08 February 2010)
  • hehow says positive comments lang? bakit in denial ka ba sa situation? whether its toyota mitsu honda hyundai etc.. its better to have positive and negative comments (08 February 2010)
  • gilbert says im not a mitsu fan but i believe mitsu was no. #1 during the early 90s. You guys are commenting like grade 4 kids. (08 February 2010)
  • pistolero says ha! ha! ha! To the crazy toyota fanatic out there what can you say bout d complain of @rosebud79.. I agree wid @torque88.. montero sport rules!! Dapat iphase out na ang fortuner... Enjoy d ride.. (08 February 2010)
  • Bob says Mas ok yan na may mga pagkakamali rin. Di ka matututo kung di ka magkakamali. Yan ang "experience". (09 February 2010)
  • abugeorge says I did have experiences the same problem as rosebud79 have some ten years ago, but it was on a different car and system, it was an "EFI" type fuel system. I have the habbit of topping my tank when the gauge needle pointed to Empty, and this work out very badly for the fuel pump, as it is made with plastic parts and place inside the fuel tank, those plastic part rub against each others, and worn down faster in the absence of the fuel that also lubricate them if the tank get empty. The engine stopped when there is sudden punping, this also happened to my boss mercedes 380. (09 February 2010)
  • jazzim magtanong says @rosebud79 nakakatakot naman yang storya mu sana ndi mangyari sa fortuner namin,ay saka nga po pala kasi po ung fort namin 2.7 gasoline pede po ba un mangyari samin tulad ng nangyari kay rosebud? please po pede may sumagot ng tanung ko kasi kinakabahan po aku eh..... (09 February 2010)
  • suv says relax ka lang jazzim, it does not mean na nangyari kay rosebud mangyari din sa iyo posible na few cases lang just pray na you are not one of them (09 February 2010)
  • Joy says This post was deleted due to its inappropriate content. Please click this link to read our posting guidelines. – Webmaster
  • Pinky says at least ang toyota naging number no.1 in the whole whole world, eh ang mitsu kahit nga philippines hindi...accept the reality guys! kahit babagsak toyota babangon rin yan, hindi mo na erase sa history ng cars yan. (09 February 2010)
  • jazzim magtanong says @suv tnx,nagchochoke din ba po ang 2.7 na variant ng fortuner? (10 February 2010)
  • hmm says @pinky the only car that mitsucrap fanatic knows is the mitsucrap...they don't know that suzuki, hyundai-kia are on top 10 of car makers worldwide...and mitsubishi is no where to be found....you're wasting time arguing with pea brain morons...@jazzim its the D4D variant, not the gasoline... (10 February 2010)
  • torque88 says @jazziim,no problem sa VVT 2.7 variants ng Toyota..kaya safe ka..Dun lang sa Scrap D-4D variants nila ang matutulad kay Rosebud79,So,@hmm,Pinky,ur reliable car is not safer anymore.Yeah!! ur true hindi na ma erase sa mga namatayan,at vehicular accident sa Toyota it woluld be a History...tama ka dyan..Tama c Gilbert early 90's Mitsu is No.1 till now..HAhaha .Mag Montero Sports na kayo truly my peace of mind while you "DRIVE @EARTH..not the other claimed WORLD IS MINE!!!but sunddenly "WORLD STOP ANYTIME"hahahaha.Monty rules over Fort.Cheers walang pikon.. (10 February 2010)
  • maxpayne says palagay ko wala na chance na makabawi pa yung toyota sa nangyari dahil yung 2nd best manufacturer, yung mitsubishi, parang isang yapak na lang nyan, best-selling na yung mitsu... at wala pa ako nababalita mga product recall ng mitsu... (10 February 2010)
  • lurker says Seriously, people, what satisfaction do you get from posting asinine comments? Based on most of the comments I see here, I predict Manny Villar will be the next president and Bong Revilla will top the Senate race. Jologs rule!! Heaven have mercy on this country. (10 February 2010)
  • torque88 says @maxpayne,bro tama ka dyan.Anyway pumalpak din nman ang Mitsu b4 but suddenly they cover up immediately to become no.1!!pero they never never cla nagkaron ng ganitng problem na totally Global... and never na ganitong klase ng problem,accelerator and brake?omg..you are out na sa US and Mitsu will replaced you..Mitsutics!!!thumbs up.. (11 February 2010)
  • suv says @lurker - you need not to post comment if you feel a jologs' world anyway we are not elite, perhaps we are just really simple to be satisfied with nonsense comments. Yes, Heaven have mercy on this country for having people like you. (11 February 2010)
  • keithdb says mararating din ng mitsu ang narating ng toyota or even nissan sa US. After maybe 50 years. ang liit ng marketshare ng mitsubishi sa US. mas malaki pa kia at hyundai. (11 February 2010)
  • lurker says @suv: There is a thin line between simple and st*p*d. I don't mind simple, for I'm a simple woman myself. (11 February 2010)
  • vic says @VERNON wala naging mali sa buhay ko dahil i made the right decisions because i think it thoroughly bago ko gawin ang isang bagay. i dont think toyota can comeback anytime soon, 10 to 15 years maybe.. kia and hyundai will have the issues soon.. the korean bubble will burst big time.. (11 February 2010)
  • vbsarne says @vic: Just to clarify, I (the author of this column) am not the same person as the one who uses the "vernon" handle. I believe the person just happens to have the same first name as mine. My official handle here is "vbsarne". Although there were a few entries in the past attributed to "vbsarne" that were not mine. At that time, the comments feature of this website still didn't have a security feature that allows a particular handle to be exclusively assigned to just one person. I'm just explaining this to avoid any confusion. Thank you for your support of this website. (11 February 2010)
  • lug_in says I guess Toyota became too complacent with their products. Just to remind them there were complaints here in the Philippines about the early D4D innovas losing power and going on limp mode without any warning. Toyota just kept mum about the predicament that their customers were experiencing. They should have issued a recall so they could check what the problem was. (11 February 2010)
  • K says @ VIC....ano ka manghuhula??? hulaan mo nga kung manalo ka sa lotto hehehe... (11 February 2010)
  • torque88 says hay...kawawa nman ang mga Toyotics reklamo na nga c@lug_in,about sa D-4D problem nya,.sorry kc un iba imbes na sumuporta sayo sa problem about ur car..hindi nila makain ang pride nila na pinagpipilitan na wala problem ang TOYOTA nila.sana magkaisa na kayo mga Toyotics na ipaalam sa BOSSING ng TMPC na hwag na dumating un time na may masaktan pa or alam mo na?kainin na ang pride for ur safety..ilantad ang totoo sa D4D problems..concern lng kami mga MItsutics.. (12 February 2010)
  • vic says @K wait and see... wala ka naman siguro experience sa economics o any issues sa buhay mo... korean automakers will go down... give it 5 years.. (12 February 2010)
  • borikyo says those people who are being pessimistic about their toyota car should tell us first how they handle their car. Maybe they're giving it a hard time. (12 March 2010)
  • MaLdiTo says shut up toyota fans...all of you guys try to comfort yourselves because you can't accept the reality na ang toyota talaga matagal ng bulok ngayon nyo lang nalaman yan.MAY ENTRY BA TOYOTA SA DAKAR RALLYE?SA WORLD RALLYE CHAMPIONSHIP?remember sino nag backout sa F1 team diba toyota kasi alam na nila na BULOK na sila.... (26 March 2010)
  • MaLdiTo says wag na kayo mahiya guys alam ko naman pride lang umiiral sa inyo di nyo matanggap na talaga namang pabulusok na ang rate ng TOYOTA.just want to inform here na part ng HYUNDAI ownership is MITSUBISHI CORPS.wahahahaha (26 March 2010)

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