Autoworkers, Analysts Weigh In From Toyota City

GUY RAZ, host:

This is ALL THINGS CONSIDERED from NPR News. I'm Guy Raz.

On this Super Bowl Sunday, you might catch one of these expensive ads by some of the big carmakers.

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Unidentified Announcer #1: Introducing the Accord Crosstour with available four-wheel drive.

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Unidentified Announcer #2: The all new Hyundai Sonata.

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Unidentified Announcer #3: With 13 different models, it's a whole new Volkswagen and a whole new game.

RAZ: GM and Ford opted to save their cash this year and pass on advertising during the Super Bowl. So did Toyota, which has been running a slightly different ad on TV lately.

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Unidentified Announcer #4: In recent days, our company hasn't been living up to the standards that you've come to expect from us or that we expect from ourselves.

RAZ: An ad by Toyota addressing its decision to recall some eight million cars because of acceleration problems.

GM, Ford, Chrysler and Hyundai are among the carmakers sweeping in to take advantage of Toyota's misfortune. Those companies are offering $1,000 rebates to customers who trade in one of those recalled Toyota models.

We begin the hour with a look at Toyota's troubles; and, in a few minutes, why this issue might just be the tip of the iceberg for what lies ahead with Japan's overall economy.

First, though, to NPR's Louisa Lim in Japan who's covering the story. And Louisa, what are you hearing about a possible recall of the Toyota Prius models?

LOUISA LIM: Well, it does look as if we are moving closer to a recall. The Japanese press is reporting that it's likely to happen sometime in the next few days. They say that we're now waiting for approval from the Japanese government.

We are, however, hearing that the fix seems to be relatively easy. The Kyodo News agency says it takes just an hour and can be done in dealerships. But I think that the real significance is the damage to Toyota's reputation. This Prius was its so-called halo car. It was the gold standard. So to admit any flaws with it is deeply embarrassing.

RAZ: I understand you've just come back from Toyota City, which is a little bit like the Detroit of Japan. What are people who live there telling you? Are they distressed?

LIM: The mood is very downbeat. People are very depressed indeed. This is a city that revolves around Toyota. But interestingly, the older workers haven't really been that surprised. Many of them believe that, in fact, the problems stem from this extraordinary corporate culture, that philosophy of production in Toyoson(ph).

One of the main tenants is eliminating any kind of waste, and for example, one of the ideas in this lean production technique is to use the same auto part in lots of different models. But of course, if there's a problem, for example, as there was with this gas pedal, it means a huge number of models are affected.

So people fear that the cost-cutting just was too great, and that's really affected Toyota's reputation for safety and quality, which were always its watch words.

RAZ: I've read that some in Japan suspect a deliberate American ploy behind all this, a ploy to boost U.S. auto sales. Are you hearing any of that?

LIM: People are pointing out that the U.S. government owns 60 percent of GM. So these, Toyota's problems, are going to be good for GM and good for American automakers. And there was one auto analyst, who I interviewed, who said he felt that the U.S. government had really bounced Toyota into these recalls. It hadn't followed the proper procedures, as it normally does. And other people are saying, they're pointing out that Ford is also recalling hybrids, but it isn't getting the same amount of publicity. So there are people who believe there could be a conspiracy theory.

RAZ: That's NPR's Louisa Lim in Tokyo. Thank you.

LIM: Thank you. Transcript provided by NPR, Copyright National Public Radio.