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Rise of the Machines at Toyota
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"Humans are weak," declared CEO-san. "They must be replaced with something stronger, more efficient, something... that doesn't ask for overtime pay."
One imagines a conversation such as this one preceded Toyota's (NYSE: TM) decision to increase massively the number of "advanced robots" that will take over the jobs of mere mortals at all five of Toyota's Japanese factories. According to a report published in Nihon Keizai Shimbun yesterday, and CBS Marketwatch earlier today, Toyota has been troubled in recent years. Troubled by thoughts of Japan's declining working-age population and troubled by the worry common to so many Western nations recently -- the threat of low-cost labor posed by China.
Back in June, fellow Fool Seth Jayson described how all the major automakers have essentially adopted an "if you can't beat 'em, outsource to 'em" strategy in response to the Chinese threat. Every big name in the auto-making world, it seems, is already making cars in-country there, including the Big Threes of both the U.S. and Japan. In the U.S., that's General Motors (NYSE: GM), Ford (NYSE: F), and DaimlerChrysler (NYSE: DCX); in Japan it's Toyota, Honda (NYSE: HMC), and Nissan (Nasdaq: NSANY). But having already successfully joined the Chinese labor-rush, Toyota is now going to take another shot at "beating 'em."
Already a big user of low-tech robots as replacements for humans working in hazardous conditions, welding parts and wheezing in paint fume-filled rooms, Toyota will attempt to push its labor costs down to Chinese levels by using new, advanced robots to decrease the number of workers who, well, ask for salaries.
As a first step, the company has already introduced several dozen advanced robots -- capable of doing most assembly tasks that humans can do -- in its Motomachi, Japan, plant. Assuming that pilot project works out well, Toyota hopes to ramp up to about 1,000 robots in Japan, and then begin extending the program to its foreign plants.
So, now we have machines that are pretty much capable of taking over the business of making other machines. It seems that all we have to do now is get them each an American Express (NYSE: AXP) card and teach them how to max it out, and we can take humans completely out of the loop. It shouldn't be too hard. In fact, I'll bet the cards are already in the mail -- preapproved.
Read all about Toyota's other high-tech automotive coup in:
- Toyota Under Porsche's Hood?
- Toyota for President
- Toyota: Resistance Is Futile
- Toyota Versus Bill Gates
Fool contributor Rich Smith owns no shares in any company mentioned in this article.

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