NEW YORK — Toyota Motor Corp. next year will launch the first model manufactured under its new "Value Innovation" design process that attacks unnecessary costs at the very earliest stages of development.

Although executives won't name the first "VI"-designed vehicle to hit the streets, it's a good bet that car will be the all-new Corolla (http://www.edmunds.com/insideline/do/ViewModelDetail/make=Toyota/model=Corolla), which is slated to come to the U.S. about this time next year.

Kazuo Okamoto, Toyota executive vice president responsible for vehicle engineering and design research and development (among other activities that include the company's Motor Sports Division), says the first VI-developed vehicle will be in showrooms first in Japan next year and will be followed by launch in the U.S. That fits the timeline for the new Corolla, Toyota's seminal compact car that has been in production since 1966.

If this "Value Innovation" sounds like nothing more than good 'ol cost-cutting that will cheapen what we see and feel, Okamoto tells Edmunds' AutoObserver (http://www.autoobserver.com/2007/09/toyota-downplay.html) the result will be "totally opposite:" By eliminating money wasted in its old-school design-and-development processes, Toyota will be able to design and manufacture "a more value-added car." He said cost savings generated by the VI design process can be used to upgrade features, materials and equipment levels.

If indeed the first VI-developed vehicle is the next-generation Corolla launching next year, the VI advantage would serve Toyota well, as competitors such as Honda's latest Civic (http://www.edmunds.com/insideline/do/ViewModelDetail/make=Honda/model=Civic) and the Volkswagen Rabbit (http://www.edmunds.com/insideline/do/ViewModelDetail/make=Volkswagen/model=Rabbit) have come to market with interior materials and safety and convenience features that far surpass the current Corolla.

OK, so maybe Toyota's motive for VI isn't completely altruistic. The company plans to use some of the savings to increase net profits, Okamoto says, grinning and placing his hand in his jacket pocket. But we figure Toyota knows exactly how much of the VI cost savings it should keep for itself.

What this means to you: Toyota's future vehicles will cost the company less — but you're allegedly going to get more.


http://www.edmunds.com/insideline/do/News/articleId=122600

Oh goody, Toyota is starting to take lessons from GM.

Well, not exactly, if that were true, then they would pocket all the money. If they can save 2000 bucks on production and put 1500 bucks of refinements into the car, the value added end product will be better for us, for the same price, and still make them more money..

The GM way would be to use cheaper plastic so they can pocket 12 cents more per car. It never gets reinvested or reallocated except into the pockets of the grey hairs running the company.

Well, not exactly, if that were true, then they would pocket all the money. If they can save 2000 bucks on production and put 1500 bucks of refinements into the car, the value added end product will be better for us, for the same price, and still make them more money..

The GM way would be to use cheaper plastic so they can pocket 12 cents more per car. It never gets reinvested or reallocated except into the pockets of the grey hairs running the company.


Yeah thats it.....:rolleyes:

Well, not exactly, if that were true, then they would pocket all the money. If they can save 2000 bucks on production and put 1500 bucks of refinements into the car, the value added end product will be better for us, for the same price, and still make them more money..

The GM way would be to use cheaper plastic so they can pocket 12 cents more per car. It never gets reinvested or reallocated except into the pockets of the grey hairs running the company.

Wow....

It will be interesting to see how this turns out.Maybe I am paranoid,but I never seam to get more for less money.

after reading this article, subaru better be learning something.... good things not bad ones

Well, not exactly, if that were true, then they would pocket all the money. If they can save 2000 bucks on production and put 1500 bucks of refinements into the car, the value added end product will be better for us, for the same price, and still make them more money..

The GM way would be to use cheaper plastic so they can pocket 12 cents more per car. It never gets reinvested or reallocated except into the pockets of the grey hairs running the company.


:lol:

wow

Subaru has had this for years. that's why you get a nice steering wheel and shift knob (you touch alot) and crappy visors (you touch once or twice while driving.)

Well, not exactly, if that were true, then they would pocket all the money. If they can save 2000 bucks on production and put 1500 bucks of refinements into the car, the value added end product will be better for us, for the same price, and still make them more money..

The GM way would be to use cheaper plastic so they can pocket 12 cents more per car. It never gets reinvested or reallocated except into the pockets of the grey hairs running the company.

Not sure why people are "wow"ing this post, because it pretty much is dead on as to the old-school Detroit way of buying cars.

Not sure why people are "wow"ing this post, because it pretty much is dead on as to the old-school Detroit way of buying cars.

You sir, deserve a cigar!

Oh goody, Toyota is starting to take lessons from GM.
actually they are just using thier own Lean 6 sigma(the toyota way) business model. they have probably been researching what to change for years, collecting data, and finding ways to streamline processes. (i'm a lean 6 green belt, with some blackbelt training)

actually they are just using thier own Lean 6 sigma(the toyota way) business model. they have probably been researching what to change for years, collecting data, and finding ways to streamline processes. (i'm a lean 6 green belt, with some blackbelt training)

yep why would Toyota have to follow GM. Toyota is the leader in manufacturing efficiency. everyone and everything with management is trying to be like Toyota.

Toyota has been doing cost cutting on major items all along: twist beam axels, drum brakes and the latest cost cutting show up in Camry interior. Toyota and other Japanese car company introduced advanced suspensions, brakes, high quality interior to the American market, now they are slowly taking it away. Maybe they finally learned the American's business principle: making quick money first, quality is job #2.

maybe we'll got back to optional air conditioning and vinyl seats

What Toyota is saying is that they are using a system called "Lean and 6 Sigma" to save money and pass it on to the customers and themselves.

You sir, deserve a cigar!
:confused:

Toyota has been doing cost cutting on major items all along: twist beam axels, drum brakes and the latest cost cutting show up in Camry interior. Toyota and other Japanese car company introduced advanced suspensions, brakes, high quality interior to the American market, now they are slowly taking it away. Maybe they finally learned the American's business principle: making quick money first, quality is job #2.


This post wins my vote!!

What Toyota is saying is that they are using a system called "Lean and 6 Sigma" to save money and pass it on to the customers and themselves.
beat you on post 12

After driving a prototype version of Toyota’s new minicar (http://www.motorauthority.com/news/concept-cars/revealed-toyota-iq-minicar-concept/), the carmaker’s President Katsuaki Watanabe came away content with the design but sought more in terms of cost reduction. The new model is aimed at emerging markets such as India, China, Russia and Brazil and, despite its low-cost ambitions, the final car will still maintain the brand’s trademark image of reliability and quality.


Speaking with reporters from Automotive News at the Frankfurt Motor Show, Watanabe admitted “there was still room for quality improvement.” Japanese reports suggest the car will be priced below €5,000, but at that price Watanabe explained that it likely won’t “incorporate the safety and quality level Toyota wants to offer.”


Toyota is also reportedly planning a low-cost model for Europe to compete with a similar model expected from Volkswagen based on its new up! concept (http://www.motorauthority.com/news/concept-cars/vws-up-concept-the-beetle-legacy-continues/), but don’t expect either of these to cost less than €5,000.