Chapter 1249 – Internal and External Troubles
Toyota also started to offer discounts for their vehicles. They foresee the rest of the companies’ promotions will not last for long, lowering everyone’s profit. It will be a lose-lose situation for all.
As expected, all major automobile manufacturers stopped their discount promotions. The discounts they offered are for their older models to clear their existing stocks.
Songjiang Motors is also the same. They cleared the earlier batches of the Olympics model by selling them at a cost price. These vehicles are taking up space in their warehouses, and they still need to pay for it. Another reason is Songjiang’s Olympics are not selling well overseas.
Toyota is offering a discount on their latest model. All of their older models had been sold, and this caused a big problem for their sales.
Other companies are clearing their old models, and their newer models are selling higher. The consumers can also understand this, but Toyota is selling their new models at a discount. After they adjusted back the prices, people are no longer interested in their cars.
Last week, the cars were much cheaper, and the prices have suddenly gone up again. People will feel being taken advantage of. Cars are depreciating assets, except for collectors’ antique cars.
So, when the rest of the automobile brands resume normal sales, Toyota’s sales stopped!
Simultaneously, the people who had bought Toyota’s cars a month ago came back to demand an explanation. “How can you all lower the prices of the cars one month later?”
These people who had just bought the cars demanded Toyota to refund them the difference. But Toyota cannot refund them the difference. If they refunded them, all car owners who had bought their cars would be demanding refunds.
Toyota refused to refund, and problems start to arise at their sales outlets, affecting their reputation.
These few years, Toyota had grown fast, and the higher management is very concerned with the current crisis.
Fujio Cho was scolded by his Chairman during their board of directors meeting. How can he make such a stupid decision? Other people offer discounts on their cars, and you copied them without even checking which models they discounted. How can a professional do such things?
The two heads of the US and Europe markets bow their heads low and dare not say anything. Asia market head, Junichiro Watanabe, almost touched the table in front of him. The US and European markets’ heads had questioned this decision. Still, Junichiro Watanabe told them it was the President’s decision and must carry out the orders.
Fujio Chu also knows he was in a rush that day and had not considered this decision carefully. But he did not expect Junichiro Watanabe did not tell him about the other two heads’ questions.
If Junichiro Watanabe had feedback to him, he might not make this mistake.
But it has happened, and they must resolve this immediately.
Fujio Chu had made significant contributions to Toyota, and it was because of him, Toyota can grow so big.
Of course, Toyota had also rewarded with the company’s shares. Many major automobile manufacturers had tried to poach him with high salaries.
But Fujio Cho rejected those offers. This shows his loyalty to the Chairman, or else, it might be worse.
“Now, what should we do? Also, why are those manufacturers targeting us?”
Fujio Chu gave Junichiro Watanabe a stare, and he stood up and bow. “Chairman, it’s my fault. Songjiang Motors had introduced a big CC SUV and Pickup and is a threat to us. I thought we can contact the other manufacturers to suppress this new Chinese automobile manufacturer. Still, I did not expect them to turn around and target us.”
“You thought? You did not expect this? What position are you in?! Is the company paying you a low salary? Is this the way you repay the company? Junichiro Watanabe, I am removing you from your position of Asia Market Head now! You are not suitable for this role, and the company will get someone to replace you! The company will reassign a new role for you!” The Chairman announced.
Junichiro Watanabe is stunned. How come it’s so serious? He immediately looks at Fujio Chu, hoping he can put in a few good words for him. But Fujio Chu looks away.
When one cannot even save himself, he will not care about others.
“Fujio Chu, how are we going to settle this issue? Have you come up with any measures for this?” The Chairman asked.
Fujio Chu immediately reply. “We have thought about it. We will introduce a new model, and continue with the discount on our current cars. As for those who had bought our cars one month before we commenced our promotions, we will offer them free maintenance and some free gifts to appease them.
“Introduce new models? Our current cars are just introduced not long ago, and you want to introduce new cars? Do we have new models now?” The Chairman asked.
“We can change the exterior designs, upgrade the interior fittings, and give it a new name. Then it will become a new model. Although the profits of our older model will drop, we will not suffer any losses. It can also increase this year’s total sales volume, and it will be good marketing for our company.” Fujio Chu quickly thought of a solution.
This is not a good solution, but this is what he can come up with. Also, it can lower the negative impact.
“Ok. Go ahead with this. I don’t want to see any failures again! Or else, you will not get paid a single cent and still have to compensate the company’s losses base on your contract!” The Chairman warned.
Fujio Chu is relieved and quickly bow to acknowledge.
After the meeting is dismissed, Fujio Chu called Junichiro Watanabe to his office and told him not to be anxious. He promised to resume his duties within a year and asked him to stay in another department first.
When Fujio Chu started working seriously, he is very efficient. But before they can settle their problems in the US and European markets, another problem arises in Japan.
Honda, which has been suppressed by Toyota, offers discounts on their cars with other Japanese manufacturers in Japan. Japan is Toyota’s turf, and Toyota will not give up its market share to other companies.
So, Toyota is facing both internal and external troubles. Fujio Chu is furious. Why are all the automobile manufacturers going against Toyota?!
What is going on?!
