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TOYOTA By Clyde Williams Table of contents History
3-6 Financial Data
6-12 Mergers and Acquisitions
..12-15 Competition
16-17 Foreign Interest
.17-18 Future Expectations
...
18-19 Would You Buy This Stock and Explain Why
.19-20 Conclusion
.20 Bibliography
21-22 Toyota is Japans largest automaker and the thirdh largest in sales worldwide. Located in Toyota City, Toyotas focuses on expanding its global manufacturing capabilities. While growing its production base worldwide, Toyota is also committed to developing alternative-fuel vehicles primarily powered by fuel cells. The companys aim is to enrich society through car making. Toyotas goal is to stride to be a good corporate citizen, and the company aims for stable long-term growth while striving for harmony with people, society, and the environment. History Toyota Motor Company got its start when the owner of Automatic Loom Works, one of the leading manufacturers of weaving machinery, sold the rights to the loom he invented. He gave the proceeds to his son Kiichiro Toyoda in 1930 to begin an automotive business. Kiichiro who majored in mechanical engineering from the Tokyo Imperial University then opened an automotive shop within the loom works plant in 1933. His inspiration came from the American automotive industry during a visit to the United States several years earlier (Toyota 10-11). In 1936 when protectionism legislation was passed that improved the prospects of Japanese automakers, Kiichiro spun the auto business off from the Loom Works Company. In 1937, Kiichiro took the company public and changed the name to Toyota, inspired from a contest designed to generate suggestion for a new logo (Toyota 12). The company was started with a capital of 12 million yen ($90,056.00) with Risaburo Toyoda placed as president and Kiichiro Toyoda appointed as executive vice president. It was decided while creating the organization, to make it as simple as possible and conductive to coordinated control. Toyota wanted to produce low-priced, high-quality vehicles through the cooperation and have cohesion throughout all the departments (Toyota 12). During WWII the company survived by making military truck but financial problems plagued the company after the war. The company then experienced its one and only strike which caused Toyota to reorganize in 1950 (www.toyota.com). Labor and management emerged from the stoppage, committed to the principles of mutual trust and dependence; a philosophy that is still guiding the company today. With a new organizational commitment to research and development, success was created for the company with the introduction of the four-wheel-drive Land Cruiser in 1951, the full-size Crown in 1955 and the small Corona in 1957 (Toyota 13-14). Toyota entered the United States market in 1957 with the introduction of the Toyopet Crown, the name causing the connotation of both toy and pet (Butte). Because the Crown seamed under powered for the US consumer, it did not do well. Toyota had better success in 1965 when it introduced the Corona into the US market, which eventually became the companys best selling car of the time. The Corona was the first import car tailored to the American motorists needs, with automatic transmission and air conditioning (Butte). By 1970, Toyota ranked as the worlds fourth largest car dealer and its growth in the US market expanded rapidly (Hoovers 614). The demand for more fuel-efficient cars became evident in the United States with the oil crisis of the 70s. Toyota took this crisis and turned it into an opportunity to grab its part of the US market share. The year 1972 marked fifteen years in the business, the millionth Toyota was sold in the United States to a Boston social worker and his wife. The new emphasis of the company now became focused on quality (Butte). In 1975, Toyota became United States #1 auto importer, outranking even Volkswagen. Southeast Toyota introduced many innovated sales policies and became a dominant force in setting volume-sales records (Hoovers 614). In 1984, Toyota began auto production in the United States through a joint venture with GM. The Lexus line was launched in 1989 (Hoovers 614). Expansion into the European market was slow because of restriction put on the Japanese auto imports until 2000. Toyota gained access by agreeing to the distribution of the Volkswagen in their country and through the creation of an engine plant in the United Kingdom (Hoovers 614). Toyotas introduction of mini-vans and light trucks was spurred by sport utility vehicle in the 90s. Hiroshi Okuda, who had 40 years of experience with Toyota, was appointed as the first non-family member to run the company. He succeeded Tatsuro Toyoda as president in 1995. The following year the company consolidated its North American production units into Toyota Motor Manufacturing North America. In 1997 Toyota introduced a hybrid electric and gas powered vehicle called the Prius. The following season Toyota started Toyota Mapmaster, a tracking system used in car navigation, and increased its commitment in Daihatsu mini-vehicles (Hoovers 614). Okuda replaced Shoichiro Toyoda as company chairman while Fujio Cho moved into the presidents slot. Toyota agreed to form a joint venture with Isuzu to manufacture buses during the same year. Toyota also announced plans to invest $800 million to boost United State auto production by 16% (Hoovers 614). In 2000, Toyota moved into the technological age by announcing its plans to build an online web site for replacement parts using i2 technology. It also announced it was forming a financial service company and brokerage firm. Toyota made plans to purchase a 5% share in Yamaha and increased its involvement in the truck maker, Hiro Motors. Their international development included a joint venture with Chinese carmaker Tianjin Automobile Xiali to produce passenger cars for sale in China (Hoovers 614). A new plant was opened in France in 2001 and an agreement was formed for a joint venture with PSA Peugeot Citroen to produce cars in Europe by 2005. Toyota also increased its involvement in Hino Motors to 50% (Hoovers 614). Financial Data Overview: Toyotas business segments are automotive operations, financial services and other operations. Automotive is Toyotas most significant segment, accounting for approximately 90% of Toyotas total revenues . Automotive Market Environment: The automotive market is highly competitive.
Approximate Word count = 4033
Approximate Pages = 16.1
(250 words per page double spaced)
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