There are two ways to react to financial crisis:<\/p>\n
Bartel Schmidt at Truth about Cars<\/em> compares GM and Toyota’s responses to the financial crisis:<\/p>\n General Motors hasn\u2019t made money on its core auto business since 2004 – and did nothing. Same cars, same talk, same mismanagement. GM is in the government\u2019s intensive care, hangs on a the tax payer\u2019s money drip, and still hasn\u2019t changed.<\/p>\n Contrast that to Toyota. Toyota will announce its first operating loss in its history – approx $1.6b, less than GM\u2019s monthly cash burn – and Toyota went to battle stations months before the announcement.<\/p><\/blockquote>\n And that involves choices much tougher than “Do I take my corporate jet to DC to beg for a bailout, or do I take a Caddy?”<\/p>\n While GM was betting on SUVs and available credit, Toyota aims to take the lead in the industry by introducing not only the most environmentally friendly cars but also budget vehicles for emerging countries and (yes) slick models that can spark young people\u2019s interest in cars.<\/p>\n While GM was fleecing its suppliers and even drove its own Delphi into bankruptcy, Toyota is worried about the health of its suppliers. Toyota has conducted an emergency poll of around 50 parts suppliers, to grasp their fundraising situations. The upshot is that their financial health is rapidly worsening. \u201cWe will possibly need to help them secure necessary funds,\u201d said Senior Managing Director Atsushi Niimi, who is in charge of procurement.<\/p>\n While GM coddled the UAW, Toyota slashed most temporary workers, and may let unionized workers go also.<\/p><\/blockquote>\n The results?<\/p>\n Toyota officially replaced General Motors Corp. as the world\u2019s No. 1 automaker in 2008. At Toyota, this is already regarded as an embarrassing non-event. Everybody knows that the reason is GM\u2019s poor performance, rather than Toyota\u2019s strong results. There were no celebrations at Toyota.<\/p><\/blockquote>\n