Automotive industry crisis of 2008 10Automotive dealers have a number of objectives to meet with respect to stock levels. The repercussions of a North American auto business collapse are massive. Imagine hundreds of thousands of workers no longer contributing towards revenue tax, Overall health-care, pensions or unemployment insurance. Instead these very same workers now turn out to be a drain on our society as they all rush to the unemployment line at when.
Automakers saw an opportunity to capitalize on this demand by developing the more profitable truck sector of their business. Canadians might recall the retail differences in between U.S and Canadian costs when the Loonie was at, or above, par with the American Greenback. A single could accuse the automakers of raking in earnings at the expense of the Canadian customer. In brief, absolutely everyone wanted a piece of the great times pie. Enter the greatest economic downturn because the Fantastic Depression.
Millions of cars recalled due to quality issues, multiple lawsuits, government investigations and a very public apology from the company’s president have seriously broken Toyota’s once-unassailable reputation. What do these issues say about the famed Toyota Production System? What will these troubles and the wider economic crisis bring for the country’s automotive market more generally? These authors recently visited Toyota and a number of automotive systems suppliers in Japan. Their observations and assessments of how the industry will fare in the years ahead are the basis for this post.