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Global Presence of Toyota Motors

Global Presence of Toyota Motors

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  • 1. Global Strategy Presented By- Group 6 Manvi Bajpai (26) Tanmoy Bhattacharyya (49) Varun Goel (50) Yamini Yadav (53)
  • 2. Toyota Motor Corporation o Headquartered in Japan o Founded by Kiichiro Toyoda in 1937 o Revenues 18.9 trillion Yen in 2010 o 71,116 employees o Operations in North America, Latin America, Europe, Africa, Asia, Oceania and Middle East
  • 3. Globalization Efforts o Domestic Problems o excessive capacity, choosy customers, surplus workforce and intensified competition within Japan. o In 1998, Japan sales accounted for a mere 38% of the company's total sales, as compared to 52% in 1990 o In June 1995, Toyota announced the 'New Global Business Plan’ aimed at o advancing localization (of production) o increasing imports (through collaboration with foreign automobile companies) over a three year period. o A major objective of this plan was to increase Toyota's offshore production capacity to 2 million units by 1998. o Toyota focused on increasing overseas production significantly by establishing new plants and expanding the capacity of the existing plants
  • 4. Steps involved in Globalization Establish a local sales network and launch brand promotion Build Auto parts manufacturing bases Establish JVs with local players and build automobiles there
  • 5. Globalization Time line
  • 6. Production Bases
  • 7. Hurdles in Globalization o Quality Assurance o “no matter where Toyota vehicles are made, they have the same quality.” o Made by Toyota o “ The Toyota Way” needs to be spread across all locations o Minimize the necessary support that comes from Japan and let each of the overseas bases become self-reliant o Respect for people in local community and Toyota’s local employees
  • 8. Globalization Pay offs o By 2003, Toyota was present in almost all the major segments of the automobile market that included small cars, luxury sedans, full-sized pickup trucks, SUVs, small trucks and crossover vehicles. o Global vehicle production increased by 3.3 times since the early 1960s, Toyota's production had increased by 38 times 2010 Global Vision o Aimed at achieving 15% market share of global market and surpassing GM o The theme of the new vision was 'Innovation into the Future,' o Recycling Based Society o Age of Information Technology o Development of Motorization on a Global Sale o Diverse Society
  • 9. Global Production Center o To ensure that all across the overseas bases the value of Toyota remain the same o Best Practices need to be determined and followed o Initially established with Motomachi plant in 2003 o Activity Goals: o “Human Resources Development” o “Localization of Model Switchovers” o Helping plant personnel learn how to prepare for the production of redesigned and/or different vehicle models o In 2006 GPC were opened in United States, United Kingdom and Thailand to ensure skill training and HR development in their respective regions
  • 10. Globalization and Localization Manufacturing o During the almost 50 years since they first began exports, Toyota vehicles have found their way to over 170 countries and regions throughout the world o Currently there are 52 bases in 27 different countries and regions. o In addition, there are design and R&D bases in seven locations overseas “from development and design to production, sales and service, Toyota has now achieved consistent globalization as well as localization.” - Koichi INA, Senior Technical Executive, Toyota Motors
  • 11. The Global Toyota • The reaches of Toyota extend throughout the world. • Toyota has plants located in every continent except Antarctica, with many more still under construction. • Even in Europe, production by Toyota subsidiaries will increase from 500,000 units to 610,000 units made in the United Kingdom, France, and Turkey by 2006 • The first Chinese-built Toyota, the VIOS, was made in October 2002 • As a measure of attempting to tap into the Chinese market, Toyota hopes to capture 10% of the market by 2010 • In North America alone, upwards of 175,000 people are employed by Toyota subsidiaries. • As of today, the majority of Toyotas purchased in North America are built in North America. • In North America, the Avalon, Camry, Corolla, Matrix, Sequoia, Sienna, Solara, Tacoma and Tundra are produced. • At TMMAL, more than 120,000 engines are produced annually for the Toyota Tundra , which in turn is built by TMMI. • More than 150,000 Tundras will be built at TMMT, a plant to be built in Texas by 2006. • Even the Toyota Tacoma will be produced in Mexico starting in 2005 • A joint venture between General Motors and Toyota, known as NUMMI (New United Motor Manufacturing, Incorporated) is currently based in Fremont, California • As a part of Toyota policy, much of the steel used in production is purchased locally
  • 12. Thank You