Over at Automotive News [registration may be required] Hans Greimel reports that the newish president of Toyota isn’t seeing all sun and roses like in those Prius ads:

Toyota is ‘grasping for salvation’ as losses continue, chief says

Founder’s grandson says company is too big, distant from customers

Toyota Motor Corp. President Akio Toyoda said his money-losing automaker is “grasping for salvation” as it struggles to return to profit.

The world’s largest car company was once targeting annual sales of 10 million vehicles but now expects sales of 7.3 million this year, down from 8.97 million in 2008, Toyoda said today at a news conference here.

Citing the five stages of corporate decline outlined by Jim Collins, author of How the Mighty Fall, the Toyota chief warned that his company has slumped to stage four, which Collins calls “grasping for salvation.”

“We are grasping for salvation,” Toyoda said, adding that the company already has spiraled through the first three stages: (1) hubris born of success, (2) undisciplined pursuit of more and (3) denial of risk and peril. His self-admonitions echoed the apologies commonly made by Japanese executives who take responsibility for financial turmoil or corporate scandal.

{…}

“When you get to this level, it makes it difficult to return to profit on sales growth alone,” he said.

Toyoda repeated Toyota’s aim to return to profit at the parent level “as soon as possible,” even as it expects global sales to fall 18 percent from 2008 to 7.34 million vehicles this year. That would leave about 30 percent of the company’s production capacity unused.

My, my . . . doesn’t that look a lot like the GM of old? You’d think that the Japanese would have learned that lesson as they saw the great U.S. automotive giant slowly collapse into insolvency, but it becomes apparent that hubris, thy name is the mega-international-corporation.

Oh and BTW — This isn’t gonna help much!

Technorati Tags: Toyota, Akio Toyoda, grasping for salvation

The rumors had been flying all weekend but this AM it is official. GM announced that the Pontiac brand will be no more, along with the Saturn, Hummer and Saab brands as well as shedding of 42% of its selling dealers and 28% of its manufacturing plants — and the elimination of 21,000 jobs — all by this year’s end. Is this a death spiral for GM or the start of real survival? The LA Times writes:

The automaker announced the sweeping moves as part of a revised business plan it is submitting to the Treasury Department.

“The objective here is not to survive, the objective is to develop an operating plan that helps us win,” said Fritz Henderson, GM’s president and chief executive in a morning conference call. “It’s a difficult period, it’s a challenging period, it’s a very painful period.”

Henderson conceded, however, that a bankruptcy filing would still be a possibility if the company is unable to reach accords with stakeholders.

“What’s good for General Motors is good for the USA” — boy, that’s sure dated now, isn’t it? Or, maybe not — I know that I need to go on a diet! But Okie, why all the fuss about a low-performing division of a car company in dire straights? History — personal history that is. Pontiac has some special meaning for me, let me explain . . .

       Classic Pontiac “Wide-Track” advertising illustrations.The year was 1967, and for some reason I had waited several months after my 16th birthday to even attempt to get my driver’s license. Anyone who has known me since then would not have believed that, as I’ve been auto-addicted ever since. Many a forest has been felled to satisfy my auto mag hungers over the years, and if my current subscriptions are any indication, many more trees will have to die in the future!

I had been taking private driving lessons in a ’67 Mustang coupe, but the dude from the driving school didn’t show up at the DMV on my test day. Arrrrrrgh! Not wanting to wait another week for a reschedule I decided to take the test in the car that my mom drove us there in — her ’66 Pontiac Bonneville 4-door sedan. That was like going from a tidy ski boat to a 40 foot Chris-Craft. I made a few practice attempts at parallel parking the beast and then promptly aced the sucker. My eyes and reflexes were so much better four decades ago — I just hope that my judgment and experience level makes up for the deterioration I notice now.

My first car that I bought with my own coin was a 1966 Pontiac LeMans “Sprint”, which had GM’s then brand new OHC six, with a humongous Rochester Quadrajet 4-barrel carb and four-on-the-floor. Man, did that little six moan when the peddle was buried in the carpet, or mat — I can’t remember now which it was. $450 bought a lot of show, but the go part came with some caveats — I didn’t exactly pick the most reputable used car lot and was smitten by the looks — has happened a few times since, too (wish that I was only talkin’ about cars!)

The magnificent six was a sludge monkey — the previous owner evidently never changed the oil — and after a hard run it would belch up about 3 quarts of hot, smelly oil and sludge up and over the fill pipe onto the ground. Lots o’ fun, that. A totally plugged line from the crankcase to the blowback valve was the culprit, and when that was cleared the toxic-oil-spills were defeated. However, the hydraulic lifters that made this OHV engine so quiet and maintenance free compared to the European’s with their solid lifters and constant need for valve clearance adjustment were plugged with the sludge and the cam lobes were getting flattened at an alarming rate. My friend with super mechanic skills helped me through an upper tear-down and a flushing of the oil pan and circulation system with gasoline and an electric drill spinning the oil pump — don’t try that at home kiddies! Yikes! Also, don’t fire up the motor at 4 AM with no mufflers attached in the garage attached to the house, with your parents’ bedroom window just off the garage door! “Uh, no dad, we didn’t know what time it is — sorry?”

I hit a horse with that car. Don’t tow a white car home at 2 AM with the driver’s side covered with thick-dark-red blood, the roof crushed and the windshield caved in without calling first — “Un, no mom, dad. I’m OK. The horse isn’t so good though. You guys look a little pale — you all right?”

Amazing how a car only two model years old could have been such a piece of junk! It also had a few electrical problems, something to do with fuses covered with gum wrapper foil. Gotta LUV that used car dealer! After a couple of hours of my dad and I lying under the dash replacing burnt wiring so that we could get home from his drug store where I worked after school, instead of going home we went to the American Motors lot where I got a brand-spankin’ new 1969 Javelin — Big Bad Blue edition, with a 290, Carter AFB, 4-speed and reclining seats! (That’s a different story altogether.) Thank the fates for a college scholarship — which left me with money for that ride — which I kept for over 5 years.

My next Pontiac was 34 years later — a 2001 Bonneville SSEI which you can see featured in this blog’s footer. Amazing what three and a half decades of engineering advancement does: solid unibody construction, 4-wheel independent suspension and disc brakes, power almost everything, dual-zone climate control, satellite radio with Bose sound, and not to forget, an Eaton supercharger that made puttin’ pedal to carpet way too much fun!

Good bye, Pontiac — it was good to know ya!

According to the New York Times, our Prez Barry ‘O’, the new real CEO of GM (Government Motors) has a plan. Go to Vegas bankruptcy court for a quickie divorce BK, split the ol’ gal into a “good” GM and a “bad” GM, sell off the assets of the good company and let the guvment take on the toxic assets of the bad one. Cost to us, Joe Taxpayer? Make that 70+ Billion smackaroos. Yup, that be a “B” in front of “illion”. Ed Morrissey at Hot Air has this:

Basically, this is a shell game. GM’s investors get to buy up all the good assets, while dumping the rest into the corpse of GM. Once that happens, the taxpayers will be on the hook for those toxic liabilities, adding another $70 billion or more to our existing entitlement liabilities, only on the terms of the pensions negotiated privately. Even getting off the hook will gain GM’s investors an extra $7 billion in taxpayer cash.

Sweet deal … for them. For each American family, that will cost $1000, or a good down payment on a car.

I’m good — I’m good! Please! Can I stop being stimulated now?