Toyota Blamed For Japan's Falling GDP, Loss To China
Toyota is getting in big kuso (doo-doo) back home.
Up until now, the company could do no wrong. Largest company in Japan. Largest employer. Provided income to countless publishing houses that printed books about the Toyota Way.
Now, Toyota is being blamed for Japan’s falling reputation abroad, political difficulties, and just about everything including the bad weather (it snowed this morning in Tokyo,) and the falling GDP.
Yes, the falling GDP.
Toyota’s recalls could end up slicing up to 0.2 percentage points off Japan’s GDP, says a study by the Daiwa Institute of Research, that got in the hands of the Nikkei [sub].
Toyota’s problems “present a downside risk for the economy,” says the institute’s Mitsumaru Kumagai. We’ll spare you the gory details, but Daiwa sees people all over the world shunning Japanese cars and other Made in Japan products. Some 49,000 jobs could be lost as a result. Fire and brimstone will rain from Mount Fuji.
What’s with a lousy 0.2 percent, did you say? Japan’s national pride is at stake! China is breathing down Japan’s neck GDP-wise. By all accounts, from the IMF, through the World Bank to the CIA Factbook, Japan is the world’s second largest economy behind the U.S.A..
However, China looms big in Japan’s rear-view mirror, and as the inscription says, it may be closer than it appears. According to the CIA Factbook, China was only some lousy $291b behind Japan in 2009. Japan’s GDP contracted 5 percent last year, says the Economist. In 2009, China booked a GDP growth of 8.7 percent, and it is looking at more than 10 percent growth in 2010.
“In 2010, Japan may fall to number three behind China,” said Takahide Kiuchi, chief economist for Nomura Securities in Tokyo, and it doesn’t take his exalted position to come to that conclusion.
It will be a national tragedy. And who will be blamed for it? Toyota and its pedals.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Careful tsofting, certain people (sadly) are above criticism -- you're going to get this thread locked.
I dont think people are dumping made in Japan stuff. Look at where the largest market for Lambo Mercielagos are... Cant have them without producing the cheapest shit on the market, and making a boat load of profit. That's why.. we cant just walk away from made in japan stuff. It also wont change over night. Now.. maybe people will look at other cars as face value, rather than just shun them.