Toyota too diversified?

[Drew Dowdell]

Some Toyota Companies Have No Automotive Connection

Link

Situation

1. Toyota has many non-automotive businesses, including prefab houses, consulting, health-care, advertising

2. Revenue for Toyota's nonauto businesses was up 15.5% in 1st Q, to $10.3B

3. Toyota claims it finds synergies in businesses that have nothing to do w/ cars

4. Says it borrows knowhow from Toyota Production System in many nonauto endeavors

5. Analysts, investors not always pleased w/ nonauto pursuits, but usually turn blind eye due to company's overall success

Significant Points

1.  Toyota builds prefabricated houses at plant in Kasugai, Japan

2.  Other nonauto companies controlled by Toyota include Nagasaki Sunset Marina, Toyota Financial Services Corp

3.  Nonauto companies brought in just under 6% of Toyota's overall global sales of $180B

4.  But broken out separately those nonauto businesses would rank at #192 among companies on Standard & Poor's 500-stock index

Remember the days when GM owned ElectroMotive, air-conditioning and appliance companies, rental car companies, and probably many others?

Are we seeing Toyota's 2006 that will roughly end up being GM's 1957...without the style?

At least most of GM's endevors had some sort of tie in to the main business. What does building pre-fab houses have to do with building cars?

[Flybrian]

General Motors was also a larger defense contractor than it presently is back when it had Hughes under its wings.

[toyoguy]

GE is pretty diverse too, look how unsucessful they are.

[Flybrian]

GE is pretty diverse too, look how unsucessful they are. 

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The difference is General Electric has become a major player in many significant fields. Toyota has not. Honda has. GM was.

[Drew Dowdell]

GE's divisions are all releated in some way.

Lightbulbs, appliances, generators, electric motors, locomotives, jet engines

What does building pre-fab houses have to do with building camrys?

[sciguy_0504]

It's makes Toyota some extra money and extends its influence. Having your own healthcare company and advertising firm help control costs. Almost every auto company has some sort of banking/financial wing to lower costs and not rely on outside banks.

[siegen]

No big deal.

Honda has Asimo. That certainly isn't directly related to cars, unless they plan on putting them to work on the assembly line :AH-HA_wink:

[chevelle454]

Hers what they have in common

Prefab houses=generic, no style

Toyota cars=generic no style

[toyoguy]

GE's divisions are all releated in some way.

Lightbulbs, appliances, generators, electric motors, locomotives, jet engines

What does building pre-fab houses have to do with building camrys?

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GE makes tons of random things

http://www.ge.com/stories/en/20438.html?ca...roduct_Business

Toyota essentially invented JIT or Just-in-Time, now implemented by virtually any manufacturing company. Yes, pre-fab housing has plenty to do w/a company known for its mass production prowness.