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Industry Report: Toyotas Simple Slim Cuts Costs of Camry 3.5L Engine by Large Margin

February 25, 2006
by Trevor Hofmann / American Auto Press

Can General Motors and Ford Keep Up?

There are two ways to increase your income; 1) spend less or 2) make more. While no one questions whether or not Toyota Motor Company will have any problem achieving the second, the automaker is already a tightly run ship. Nevertheless, about 300 of its most creative engineers have figured out how to cut build costs of its popular 3.5-liter engine, by a significant margin.

How much is significant? Most bean-counters would be thrilled if their production departments managed to trim the cost of fabricating a single item by one or two percent, especially when dealing with such high volumes that a mere fraction of a percent could present a major difference to the bottom line. Such small increments of efficiency gains wouldnt be good enough for Toyotas Executive Vice President Kosuke Shiramizu, mind you, who announced a new goal of reducing production costs by 50 percent to foundry workers at the Bodine Aluminum Troy, Missouri engine facility back in 2003.


(A very insightful article on Toyota's amazingly successful efforts with their new V6 -- much more to read in the full article)
 

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Tony - You come up with the GREATEST articles 8)

Seeing how Toyota is currently doing business wise... makes me wonder where their stock is headed. A few years ago I bought 10 shares at around $105. I sold it a year or so later for around $55 :(

Here's what it's done in the past year --> http://moneycentral.msn.com/investor/charts/chartdl.asp?Symbol=TM&ShowChtBt=Refresh+Chart&DateRangeForm=1&CP=0&PT=5&C5=2&C6=2006&C7=2&C8=2006&C9=0&ComparisonsForm=1&CE=0&DisplayForm=1&D4=1&D5=0&3=0&ViewType=0&PeriodType=5 :roll:
 
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A few months back I read an article that stated the folowing;

Toyota invests into R&D as much as Nissan MAKES in a year.

To me thats a major indication as to why Toyota is so much more successful. I'm looking for the article and will post Link when I find.
 

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One thing about excessive standartization is that it puts all eggs into one basket. Just imagine what is going to happen in case of a recall.
 
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