The “Toyota Bomb”

February 25, 2010 Leave a comment Go to comments

The most popular question of the day:

“Do you think Toyota is being treated unfairly by our government?” … YES.

Why?

Because what is happening is something we try to make sure never happens in the corporate world, and is setting a precedent that could have some serious ramifications later in all corporate businesses.

And that is? ….. Conflict of interests. Really, really, big conflict of interests.

The U.S. government, because of the bailouts now effectively owns part of the U.S. car manufacturers (or at least some of them). That puts them in a very dangerous place where doing any regulation on the car manufacturers they do not own sets precedents to allow that to happen on a regular basis in real business.

This could set the scenario where an exec sits on one company and also on an another company selling or manufacturing like products allowing for price fixing, and monopolizing of an industry or product.

That happending could end up being a huge problem nobody in business wants, besides a few top controllers of the corporate world. It could also set the precedent of government control of businesses (and not in a good way).

What should be done with the Toyota issue?

There should have been a panel assembled of experts and representatives from the auto and safety industries from all countries where Toyota sells. They should have been the ones to review the Toyota recall issues and publish a decision and recommendations on those findings. All of the countries involved should have agreed to go by those published findings and decisions. This would have eliminated the conflict of interests legal issue our government has with handling this themselves.

The Toyota issue is not only hurting Toyota, it is hurting all auto sales from foreign companies, especially from Japan. Speaking to my father, who sells Honda, their sales are being hurt from this issue too. It’s helping the American companies, but way before they fix their own issues … and that’s another problem.

Think also, how many more people are employed in this country by companies like Toyota, Honda, etc. The good paying jobs and up being more numerous in those companies than in the American ones (I know this from how well Honda treats my father with bonuses, etc and how poorly I saw him treated when selling and working for the American car companies. I also have friends that worked for Chrysler, GM, etc and moved over to Toyota or Honda that are much happier now).

If the government messes up on this issue, it could end up hitting us even further in the economic groin … further rendering us useless as a financially powerful country.

We may want to think this one out a little further before putting a bullet in Toyota’s head, or we may end up dead from the ricochet. Issues like this are ones where you want to make sure you are thinking out how the resolutions you give will determine how that industry or business goes over the next five years, not just today or this month, etc.

Yes, Toyota needs to work on things like transparency …. but so do our companies. As they say “the one that has done no sin may throw the first stone.” I don’t think the U.S. is qualified to throw the first stone.

Well, since it is so deserving, SWB is handing out it’s frst never-ending clueless trophy. It’s good for as long as the U.S. Government is around, for as good as it is designed, the clueless will always be present within it.

The “Toyota Bomb” is ticking … will our government stop the show in time before it blows?

-SWB

PS – Our government needs to get back to governing. The people are quite capable of not buying Toyota’s if they don’t like them or don’t trust them.

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