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From the Magazine | Time Bonus Section October 2005: Global Business
Toyota's Tough Boss
Katsuaki Watanabe can't wait for the carmaker's next challenges
By WILLIAM GREEN, MICHIKO TOMOYA
SUBSCRIBE TO TIMEPRINTE-MAILMORE BY AUTHOR
Posted Sunday, Sep. 18, 2005
After a 41-year apprenticeship at Toyota Motor, Katsuaki Watanabe became its president in June. Best known for a cost-cutting initiative that squeezed suppliers and saved nearly $10 billion over five years, Watanabe, 63, takes charge at a time when Toyota (2004 sales: 7.5 million vehicles) is on track to eclipse General Motors as the world's largest carmaker. He spoke to TIME's WILLIAM GREEN and MICHIKO TOYAMA at his company's headquarters in Toyota City, Japan.
TIME How can you avoid the dangers of what you have called "Big Business disease"--of Toyota becoming too large and complacent?
KATSUAKI WATANABE Everyone should be dissatisfied with the present situation and should constantly try to improve or change things. It's important to realize that there is always something more we need to aim at. That's what needs to be recognized by every individual. When you're growing, you're satisfied with the status quo, and that's no good.
TIME What's your first priority as president?
K.W. Our present concern at our plants around the world is the quality and cost of production. We're concerned with what level each factory is at so we can assess its capability. If there's any gap, we have to fill it.
TIME You're renowned for cutting costs. Is there still a lot of fat to trim at Toyota?
K.W. There's plenty. Look, there are two p.r. people right here.
TIME So you're going to fire one?
K.W. Yes, one is enough ... Regarding costs for design, engineering, quality control, production, work force and management, there are still gray areas with waste and room for...
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