Toyota & Honda are in trouble... And now, they have new leaders too! But really, have the batons been passed onto the right man? Will they deliver?
Two companies, Toyota Motors Corp. & Honda Motor Co. – the former worth an awe-inspiring $99 billion, and the latter sitting pretty at a tubthumping $42.9 billion on the bourses... Two companies, hailed to become the next auto super-agents... Two companies being run by seasoned professionals, making billions for their shareholders... (Snap!) End of dream; now wake up!
Two companies, which have under-delivered after a better-than-ever optimistically forecasted 2008-09. Talk about share price? Toyota’s has plummeted by a considerable 44.39% to touch $60.66 (March 3, 2009; NYSE) in the past two years & Honda’s has seen no better days either, scrambling at $22.83, a fall of 38.45% in the same period! Talk about earnings? After recording a heroic $99.66 billion in operating profits in the past half-a-decade, Toyota is finally letting-off gas, having lost $3.69 billion in Q3, FY2009, a figure further estimated to swell to a painful $4.9 billion for FY2009 (for the records, it’s Toyota’s first ever annual loss since 1950!). As for Honda, it reported a deplorable operating loss of $40.19 billion in the last quarter of 2008 alone, enough to reduce its cumulative operating gain of $40 billion in the past half-a-decade to shame! Now let’s talk about leaders, about not-so-young leaders in their 50s... and both seem to have a lot in common in this regard too!
Where on one hand Akio Toyoda (grandson of Kiichiro Toyoda, founder of Toyota Motor Corp) walked-in as the new President of Toyota, Honda named outsider Takanobu Ito as the CEO & MD, replacing Takeo Fukui, who’d been in charge for the past six years... Heading the two biggest names in the ailing auto industry is not a job too easy during times when the world seems to have chosen to shut their garages forever! At present, the situation for Ito seems to appear less troublesome, all thanks to Honda’s ‘hallowed’ absence from the heavy-truck segment.
Two companies, Toyota Motors Corp. & Honda Motor Co. – the former worth an awe-inspiring $99 billion, and the latter sitting pretty at a tubthumping $42.9 billion on the bourses... Two companies, hailed to become the next auto super-agents... Two companies being run by seasoned professionals, making billions for their shareholders... (Snap!) End of dream; now wake up!
Two companies, which have under-delivered after a better-than-ever optimistically forecasted 2008-09. Talk about share price? Toyota’s has plummeted by a considerable 44.39% to touch $60.66 (March 3, 2009; NYSE) in the past two years & Honda’s has seen no better days either, scrambling at $22.83, a fall of 38.45% in the same period! Talk about earnings? After recording a heroic $99.66 billion in operating profits in the past half-a-decade, Toyota is finally letting-off gas, having lost $3.69 billion in Q3, FY2009, a figure further estimated to swell to a painful $4.9 billion for FY2009 (for the records, it’s Toyota’s first ever annual loss since 1950!). As for Honda, it reported a deplorable operating loss of $40.19 billion in the last quarter of 2008 alone, enough to reduce its cumulative operating gain of $40 billion in the past half-a-decade to shame! Now let’s talk about leaders, about not-so-young leaders in their 50s... and both seem to have a lot in common in this regard too!
Where on one hand Akio Toyoda (grandson of Kiichiro Toyoda, founder of Toyota Motor Corp) walked-in as the new President of Toyota, Honda named outsider Takanobu Ito as the CEO & MD, replacing Takeo Fukui, who’d been in charge for the past six years... Heading the two biggest names in the ailing auto industry is not a job too easy during times when the world seems to have chosen to shut their garages forever! At present, the situation for Ito seems to appear less troublesome, all thanks to Honda’s ‘hallowed’ absence from the heavy-truck segment.
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Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
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IIPM : The B-School with a Human Face
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