In Toyota City, Japan, the Good Times Rolled…Away

Many analysts predicted problems with excessive debt and sub-prime mortgages in the US, but few expected that the woes would rapidly spill over into the world’s most successful companies. The global economic recession hits hard at company towns like Toyota City in Japan: “Unlike in Detroit, where years of steady decline preceded the current financial crisis, Toyota City's fortunes went from cruise speed to brick wall,” writes John Glionna for the Los Angeles Times. Toyota was poised to overtake General Motors as the world’s largest auto manufacturer, but now prepares to post an annual net loss. The pain is extended to employees, suppliers and communities, with layoffs, shift reductions, reduced tax payments and plummeting property sales and prices. The people of Toyota City and Detroit alike recognize the danger of relying on one industry and seek to transfer their skills and technology to new endeavors. – YaleGlobal