A Few Thoughts on Toyota

As a 17 year resident of Japan, I can see clearly the problem. Japanese culture is not good at transparency. It is the land of nuance and the unsaid. But that's no excuse. Japanese multinationals should know better when operating outside their backward. I've been telling this to Japanese leaders for a good part of that 17 years and I'm not the only one. The Japanese people are beginning to demand the same transparency as well.

Indeed in the financial sector in Japan regulators require immediate disclosure of issues. I've been there and the FSA doesn't tolerate even 24 hours delay. So why would Japanese car maker expect any differently in the USA.

In any case here's what should have happened:

1) immediate disclosure and recalls as soon as issue identified.

2) disclosure to appropriate regulators as soon as possible.

3) autonomy to the US corporate leadership to get the word out quickly. If you don't have the right person in the job or can't trust him (or her) - then get someone else?

But let's also keep things in perspective. Other car companies have also had these problems. Remember exploding gas tanks on the Pinto and accelerator problems on Audi's? There was a joke about not wanting to be between the two!

Also what if GM had a similar problem. Doesn't US ownership of GM present a conflict of interest with US regulators? Would the Dept. of Transportation response be as robust? Just asking!