Comments on: Toyota US president worried about supplier chain

By: Bret

Bret — Wed, 18 Mar 2009 00:05:20 +0000

Phil Says:
March 15th, 2009 at 11:13 am
“For companies like Toyota who rely heavily on a strong supply chain to have their very lean JIT manufacturing processes working properly, this would be a concern.”

Phil, you are seriously deluded if you think that JIT is a toyota thing that nobody else does. JIT is universal accross all car manufacturers, and I doubt that Toyota invented it either, as I think it came from another industry.

By: Lukaas

Lukaas — Mon, 16 Mar 2009 02:56:44 +0000

Atleast some here will hopefully understand that, the Industry doesnt benefit when a major competitor goes down.

It never does.

Because many smaller companies rely on the big companies to make a living.

Merging companies is a better solution.

By: Wheelnut

Wheelnut — Sun, 15 Mar 2009 11:05:39 +0000

It’s a similar situation here in Australia if Holden close it will have a flow on effect to both Ford and Toyota partiuclarly in terms of the cost of locally sourced parts.

Because there are a number of companies that make similar parts for all 3 of them. However; if one Holden was to leave the suplliers would recover the loss of income that they got from Holden by upping the price of parts to Ford and Toyota which could make one of them look oveseas instead.. forcing the parts suplliers to close resulting in even more uneployment.

By: Phil

Phil — Sun, 15 Mar 2009 00:13:12 +0000

For companies like Toyota who rely heavily on a strong supply chain to have their very lean JIT manufacturing processes working properly, this would be a concern.

By: Dlr1

Dlr1 — Fri, 13 Mar 2009 04:06:01 +0000

This is one of the reasons why many expect the US government to keep propping up GM and Chrysler. If one of them fail, expect plenty of their suppliers to go down with them. If that happens many of the US plants may be forced into further shut downs because one of these suppliers cant supply them with the components they are contracted to supply. It’s a bit like a house of cards. Pull any one out from anywhere and the whole industry risks collapse.

By: Frontman

Frontman — Fri, 13 Mar 2009 04:05:42 +0000

This just backs up what a lot of us have been saying for a long time. This is the hard part about letting GM & Chrysler LLC collapse. Sure they (seemingly) deserve to but it is the flow on effect caused that would reap havoc throughout the whole industry. I mean a 40>50% downturn creates problems imagine if you took away 50% of their customers as well.
Unfortunately the situation is even more tightly entwined in Australia.

By: Frenchie

Frenchie — Fri, 13 Mar 2009 02:51:44 +0000

As I said before, if GM fails watch the industry collapse.
I don’t think it will be allowed to happen.
Just goes to show how interwoven the auto industry is.

By: Bret

Bret — Fri, 13 Mar 2009 02:14:20 +0000

This paints an interesting picture of the nature of the auto world’s inter-twinning web of supplies-manufactures-dealers.

By: Bret

Bret — Fri, 13 Mar 2009 02:13:14 +0000

This paints an interesting picture of the incestuous nature of the auto world’s inter-twinning web of supplies/manufactures/deakers.