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Looking at Toyota's profit and total cash, which is near 19 billion dolar, I think it's the later rather than the former. I mean, if engineers from one company can do it, then i'm pretty sure engineers from another can do the same thing. So it all comes down to profit. Toyota wouldn't be where they are today if they hired all stupid engineers.
yeh, well. it probably is all profit-driven. but you must remember, money isn't everything. i'm sure toyota engineers aren't stupid, but (for example) neither are microsoft's. and yet microsoft, another multi-billion dollar company, continues to push out sub-par products riddled with flaws, and security problems, which are easily outperformed in many categories by competitors. i'm not saying toyota's cars are filled with defects, but rather that all the money in the world won't necessarily buy you the greatest of anything. so "if engineers from one company can do it," that doesn't really mean anything for another company.
edit: a better example would be to compare toyota or honda to GM or ford (the two largest car companies in the world). i've known some people that worked at GM and/or delphi automotive, and there are a LOT of incredibly brilliant and talented people there. and yet for so many years they have been producing products that are just second rate at best. so again, money and the size of your company doesn't mean shit