Toyota Motor Corporation

TOYOTA HISTORY
• Founded by Kiichiro Toyoda
– Part of the Toyoda Industries established by his
father
• 1920 to 1935 conducted research in motor
vehicle production which included traveling
to US and Europe
• 1935 – Prototypes of Toyota G1 Truck and A1
Passenger Car are completed
 TOYOTA HISTORY
• 1936 – Toyota Logo is established
• 1937 – Toyota Motor Co., Ltd., is established in Japan
• 1947 – Toyota begins building the BM truck, SB small
truck and SA compact passenger car
• 1950 – Toyota Motor Sales Co., Ltd., is established in
Japan
• 1955 – The Toyopet Crown, the Toyopet Master and
the luxury Toyopet
Crown Deluxe are introduced
 TOYOTA HISTORY
• 1957 – Toyota arrives in the United States
– August 25, 1957 Two Toyopet Crowns are
imported.
• 1957 – October 31st, Toyota Motor Sales USA.,
Inc., is established
• 1966 - The 2000GT makes its debut at the San
Francisco Auto Show
– This changed the view of
Toyota vehicles
 TOYOTA HISTORY

• 1972 – Toyota begins manufacturing operations in

the United States
• 1982 – Toyota Motor Company and Toyota Motor
Sales merged into one company, the Toyota Motor
Corporation
• 1984 – Toyota entered into a joint effort with GM
called the New United Motor Manufacturing, Inc.
(NUMMI)
– A plant in Fremont, CA
– This American Life - NUMMI
 TOYOTA HISTORY
• 1989 – Toyota launches Lexus with LS 400 and ES
250
• 1999 – Toyota is listed on the NYSE as TM.
• 2000 – The first Toyota hybrid vehicle is sold in
the United States
• 2002 – Scion is announced and its first concept
cars are released
• 2005 – Toyota ranked eighth on Forbes 2000 list
of world’s leading companies
 TOYOTA HISTORY
• 2006 – Toyota introduces its first hybrid SUV
• 2007 – The new Tundra Full Size Truck is
released
• 2007 – Toyota Tundra was named “Truck of the
Year” and Toyota Camry was named “Car of
Year” by Motor Trend
• 2010 – Recall of vehicles
• 2011 – Production stop due to disaster in
Japan
 TOYOTA BRANDS: LEXUS
• Higher end model: Focuses on Luxury
• Offers sedans, SUVS, convertibles, hybrid &
performance vehicles
• Vehicles starting out at $30,000

• Lexus
 TOYOTA BRANDS: TOYOTA
• Targeted to the broadest demographic of
three Toyota brands
• Known for affordability and quality
• Offers cars, minivans, SUV’s, crossovers,
trucks and hybrids
• Cars starting at $12,995
• Toyota
 TOYOTA BRANDS: SCION
• Targets the younger demographic
• Newest brand for Toyota Motor Corporation
• Allows for extensive customization
• Cars starting at $15,675
• Scion
 TOYOTA CORPORATION FACTS
• TMC is the world's largest automobile
manufacturer by sales and production
• In 2010, Toyota employed 320,590 people
worldwide
• Toyota Motor Corporation is headquarters in
Toyota City,
Japan.
• TMC is part of the Toyota Group, one of the largest
conglomerates in the world
• Toyota provides financial services
• Builds robots
 TOYOTA WORLDWIDE OPERATIONS

• Toyota conducts its business worldwide:

– 51 overseas manufacturing companies in 26 countries
and regions.
– Toyota's vehicles are sold in more than 170 countries
and regions.
 TOYOTA WORLDWIDE OPERATIONS

• Countries of Manufacturing
Canada Kenya
United States South Africa
Argentina China
Brazil Taiwan
Mexico India
Venezuela Indonesia
Czech Republic Malaysia
France Pakistan
Poland Philippines
Portugal Thailand
Turkey Vietnam
United Kingdom Australia
Russia Bangladesh
 TOYOTA WORLDWIDE OPERATIONS
• Number of Distributors per region
Region Distributors  
North America 3 
Latin America 43  
Europe 29  
Africa 49  
Asia (excluding Japan) 15  
Oceania 14  
Middle East 17  
Overseas total 170
 Guiding Principles at Toyota
• Honor the language and spirit of the law of every nation
– undertake open and fair business activities to be a good corporate citizen of the world.
• Respect the culture and customs of every nation
– contribute to economic and social development through corporate activities in their respective
communities.
• Dedicate our business to providing clean and safe products
– enhancing the quality of life everywhere through all of our activities.
• Create and develop advanced technologies and provide outstanding products and
services that fulfill the needs of customers worldwide.
• Pursue growth through harmony with the global community via innovative management.
• Work with business partners in research and manufacture to achieve stable, long-term
growth and mutual benefits, while keeping ourselves open to new partnerships.

Established in 1992, revised in 1997. (Translation from original Japanese)

 Toyota Global Vision
"Rewarded with a smile by exceeding your expectations“

Toyota will lead the way to the future of mobility, enriching lives
around the world with the safest and most responsible ways of moving
people.

Through our commitment to quality, constant innovation and respect

for the planet, we aim to exceed expectations and be rewarded with a
smile.

We will meet challenging goals by engaging the talent and passion of

people, who believe there is always a better way.
 Toyota Visionary Management :
The Tree Metaphor

• Toyota has employed a tree metaphor-focusing on "roots", "trunk" and

"fruit"-in expressing the Toyota Global Vision
 Toyota Production System

• Changed the way of manufacturing, specifically car

manufacturing
– A production system which is steeped in the philosophy of "the
complete elimination of all waste" imbuing all aspects of production
in pursuit of the most efficient methods.
– The Toyota Production System (TPS) was established based on two
concepts:
• "Jidoka" (which can be loosely translated as "automation with a human
touch") which means that when a problem occurs, the equipment stops
immediately, preventing defective products from being produced;
• "Just-in-Time," in which each process produces only what is needed by
the next process in a continuous flow.
 TOYOTA
PRODUCTION SYSTEM
TPS Concept
• JIDOKA

• — Highlighting/visualization of problems —
Quality must be built in during the manufacturing process!

1) Jidoka means that a machine safely stops when the normal processing is completed. It also
means that, should a quality / equipment problem arise, the machine detects the problem on its
own and stops, preventing defective products from being produced. As a result, only products
satisfying quality standards will be passed on to the following processes on the production line.

2) Since a machine automatically stops when processing is completed or when a problem arises
and is communicated via the "and on" (problem display board), operators can confidently
continue performing work at another machine, as well as easily identify the problem's cause to
prevent its recurrence. This means that each operator can be in charge of many machines,
resulting in higher productivity, while continuous improvements lead to greater processing
capacity.
 TOYOTA
PRODUCTION SYSTEM
TPS Concept
• JUST – IN - TIME
— Productivity improvement —
- Making only "what is needed, when it is needed, and in the amount needed!"

Producing quality products efficiently through the complete elimination of waste, inconsistencies, and
unreasonable requirements on the production line.

1) When a vehicle order is received, a production instruction must be issued to the beginning of the
vehicle production line as soon as possible.

2) The assembly line must be stocked with required number of all needed parts so that any type of
ordered vehicle can be assembled.

3) The assembly line must replace the parts used by retrieving the same number of parts from the parts-
producing process (the preceding process).

4) The preceding process must be stocked with small numbers of all types of parts and produce only the
numbers of parts that were retrieved by an operator from the next process.
 THE TOYOTA WAY
• Sharing the Toyota Way Values
– The Toyota Way 2001 clarifies the values and business methods that all
employees should embrace in order to carry out the Guiding Principles at
Toyota throughout the company's global activities.

– With the rapid growth, diversification and globalization of Toyota in the past
decade, the values and business methods that had been passed on as implicit
knowledge were identified and defined in 2001.

– In order to continue fulfilling its role as the backbone of all

Toyota operations, the Toyota Way must evolve amid an
ever changing business environment.

– The Toyota Way is supported by two main pillars:

• "Continuous Improvement"
• "Respect for People".
 TOYOTA
SALES & PRODUCTION
• Production by Region
Region 2001 2002 2003 2004 2005 2006 2007 2008 2009
North 1,088 1,205 1,278 1,444 1,535 1,519 1,636 1,404 1,189
American

Latin 19.6 17.5 27.8 58.1 80.4 138.5 177.9 183.1 194.8
America
Europe
219.5 383.6 466.1 582.5 638.1 808.8 806.5 688.3 507.3

Africa 77.5 75.5 93.3 108.8 121.1 143.8 145.7 179.2 102.8
Asia 282.7 371.8 548.4 717.0 1,029.2 1,137.7 1,387.3 1,590.0 1,501.4
Oceania 94.6 86.6 113.6 109.9 109.2 111.6 148.9 141.4 96.8
Overseas
Total 1,780.3 2,150.5 2,558.0 3,042.7 3,571.2 3,899.0 4,308.6 4,198.4 3,579.0

Japan
3,354.4 3,485.2 3,520.3 3,680.9 3,789.6 4,194.2 4,226.1 4,012.1 2,792.2
Worldwide
Total 5,134.7 5,635.7 6,078.3 6,723.7 7,360.9 8,093.2 8,534.7 8,210.5 6,371.3

(1 Unit =1,000 vehicles)

 TOYOTA
SALES & PRODUCTION
• Sales by Region
Region 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

North
America 1,742.8 1,869.0 1,908.9 2,031.3 2,230.3 2,436.1 2,738.3 2,822.2 2,441.8 1,975.4

Latin
America 129.1 132.0 128.8 162.1 214.9 270.5 339.4 379.4 370.2 293.6

Europe 671.9 672.3 764.8 851.5 946.9 995.2 1,124.1 1,238.6 1,119.5 886.0

Africa 121.8 126.5 139.8 160.6 206.7 227.2 265.7 313.5 288.1 201.4

Asia 371.7 380.3 493.4 682.4 846.3 1,062.9 1,106.7 1,329.6 1,438.6 1,533.9

Oceania 176.7 162.2 182.2 215.1 232.8 236.9 250.3 275.9 277.7 231.2

Middle East 168.7 204.3 220.3 251.4 270.9 325.3 404.8 482.7 590.1 482.5
Overseas
total 3,382.6 3,546.7 3,838.3 4,354.5 4,948.8 5,554.1 6,229.3 6,841.9 6,526.1 5,604.0
Japan 1,771.7 1,715.2 1,680.5 1,715.9 1,758.8 1,713.1 1,692.3 1,587.3 1,470.0 1,375.5

Worldwide
total 5,154.3 5,261.9 5,518.8 6,070.4 6,707.6 7,267.3 7,921.6 8,429.3 7,996.1 6,979.6

(1 Unit =1,000 vehicles)

 TOYOTA
COMPETITIVE ANALYSIS
• Main competitors: Ford Motor Company,
General Motor Company & Honda Motor Co.,
Ltd.
• New Competitors: There have been sale
increases in Hyundai, Kia and Volkswagen
• All of these companies offer similar products
– Luxury vehicles, sedans, SUVS, trucks and hybrid
vehicles
– All varying prices
 TOYOTA
COMPETITIVE ANALYSIS
• Opportunities for Competitors:
– With recent quality issues facing Toyota, Competitors have an
opportunity to gain some ground -
• Ford Motor Company
– Brand loyalty in the United States –
• Ford Motor Company & GM
– New innovations – Toyota is no longer the only innovator of green
technology, however, they are still the leaders.
• Market outlook:
– With the economic downfall the auto industry began to slip with many
companies downsizing.
– Due to the economic downfall many companies have been forced to
restructure.
– Vehicle sales have begun to increase
 TOYOTA
MARKETING STRATEGIES
• Different marketing strategies due to the many different markets it
inhibits.
• Tag Lines:
– United States: Toyota – Moving Forward
– Canada: Toyota – Makes things Better
– India: Toyota – Quality Revolution
• Commercials:
– “Swagger Wagon” – Depiction of the younger and modern family.
Showing that minivans are for the younger family and does not
mean mom jeans.
• Swagger Wagon
– “Toyota Etios: My First” - Depiction of young family, shows tradition.
• My First
 TOYOTA OUTLOOK

• Toyota has faced some setbacks the last year or so:

– Massive recall of floor mats and sudden acceleration
– Japanese Earthquake has forced the shutdown of Japanese
Manufacturing and even some American Manufacturing

• Investment in quality and safety marketing campaign

• Sales have not diminished drastically, however the effects of

these are yet to be known.

• Toyota remains the worlds leading car manufacturer and although

companies are catching up. Toyota’s innovation, manufacturing
and company model is one to envy.
QUESTIONS