Chairman: Hiroshi Okuda



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Toyota




Chairman:

Hiroshi Okuda

Founded:

By Kiichiro Sakichi in 1933 within Toyoda Automatic Loom, “independent” as of 1937

Headquarters:

Toyota City, Japan (US HQ in Torrance, CA)

Philosophy
“The Toyota Way”:

1. Belief in “Mono-zukuri” (Making good products); Just-in-time => Lean Management

2. Principle of “Customer first”; Customer Satisfaction No.1, Quality No.1

3. Respect for People (employees); “Mono-zukuri” is “Hito-zukuri” (Making good product is equal to making good people); Mutual trust of management and employees





















Business Units:

    • Daihatsu Motor Co., Ltd.

    • New United Motor Manufacturing, Inc.

    • Toyota Motor Credit Corporation

    • Toyota Motor Sales, U.S.A., Inc.

    • Toyota Motor Thailand Company Limited



And, as of 1984:

    • Toyoda Automatic Loom

    • Aichi Steel

    • Toyoda Machine Works

    • Toyota Auto Body

    • Aisin Seiki

    • Nippon Denso

    • Toyota Gosei

    • Kanto Auto Works

    • Koito Works

    • Aisan Industries




Products:

  • the Lexus line of luxury cars

  • Prius (hybrid-powered [gas and electric] sedan)

  • Cars, pickups, minivans, and SUVs including:

    • Camry

    • Celica

    • Corolla

    • 4Runner

    • Echo

    • Land Cruiser

    • Sienna

    • WiLL

  • V-8 Tundra pickup truck

  • Industrial vehicles

  • Cellular phones

  • Financial services



















Manufacturing:

Japan (15 plants), Rest of East Asia (17), North America (8), Latin America (5), Europe (4), Middle East & Southwest Asia (4), Africa (2), Oceania (1)







R&D:

Japan (1 HQ, 1 tech center, 1 proving ground), USA (1 engineering, 1 design), Belgium (1 engineering, 1 design), France (1 design)

Financial Data – Millions $ (FY ends 12/31)






2000

1999




Sales

119,656

105,797




Net Income

4,540

3,746




Employees: World

214,631

183,917













Site Background:

Toyota’s Tsutsumi factory is located in Toyota City, close to the worldwide headquarters of Toyota Motor company. In and around this site in Aichi Prefecture are situated a total of 12 Toyota plants.
This factory was opened in 1970 and employed 5,700 workers by 1999. This makes it the third largest Toyota plant in Japan, by workforce.
The factory occupies an area of 600,000m2 on a site nearly twice as large.
As of March 1999, according to our data, the main products being produced here were the Camry, Caldina, Corona, Mark II, Vista, Windom (ES300). However, we’ve been told to expect to see the production of Lexus luxury vehicles at the plant so either there have been some changes to the plant’s lines or some of our information is wrong.








Toyota Paper: Introduction

Welcome to the MIT Sloan 2001 Japan/Korea Trip Toyota Team Paper
In this paper we aim to present some information essential to understanding Toyota and its place in the Japanese economy and the global auto industry, to prepare for our visit to the company and its production facilities on Monday 26th March 2001.
We have designed the paper as easily-digestible chapters which can be read stand-alone in spare moments while in transit around airports and on buses, to suit the specialized needs of Trip participants.
To cut down the overhead in reading this paper we have as much as possible removed “filling” sections such as transitions from chapter to chapter, and kept introductory remarks extremely brief.
The chapters are as follows:
ONE State of the global auto industry
The main trends in automobile production and marketing today

TWO Characteristics of the Japanese auto industry


What’s special about the way this industry developed?

THREE History of Toyota


A straightforward account of the timeline from 1937 to 2001

FOUR Current company facts


Financials and production figures; stated strategy and direction

FIVE Toyota Production System


A primer, with glossary of terms, to this famous system

SIX Toyota’s relationships


How Toyota deals with its employees, suppliers and customers

If you have any further questions, please contact one of us:

Aaron Fyke

Gary Mi

Tony Palumbo



Yukihiro Wada

Grace Webber



March 19th, 2001

ONE: State of the Global Auto Industry
In 2001, there are four major trends impacting the global auto industry:



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