Toyota was started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder’s son, Kiichiro Toyoda. Its first vehicles were the A1 passenger car and the G1 in 1935. The Toyota Motor Co. was established as an independent company in 1937.
In 2008, Toyota’s sales surpassed General Motors, making Toyota number one in the world. In 1924, Sakichi Toyoda invented the Toyoda Model G Automatic Loom. The principle of Jidoka, which means the machine stops itself when a problem occurs, became later a part of the Toyota Production System. Looms were built on a small production line. In 1929, the patent for the automatic loom was sold to a British company, generating the starting capital for the automobile development. Toyoda Standard Sedan AA 1936
Vehicles were originally sold under the name “Toyoda” (トヨダ), from the family name of the company’s founder, Kiichirō Toyoda. In April 1936, Toyoda’s first passenger car, the Model AA, was completed. The sales price was 3,350 yen, 400 yen cheaper than Ford or GM cars. House of Toyota founder Kiichiro Toyoda, near Toyota City In September 1936, the company ran a public competition to design a new logo.
Of 27,000 entries, the winning entry was the three Japanese katakana letters for “Toyoda” in a circle. But Risaburō Toyoda, who had married into the family and was not born with that name, preferred “Toyota” (トヨタ) because it took eight brush strokes (a lucky number) to write in Japanese, was visually simpler (leaving off the diacritic at the end) and with a voiceless consonant instead of a voiced one (voiced consonants are considered to have a “murky” or “muddy” sound compared to voiceless consonants, which are “clear”).
Inside the house of Toyota founder Kiichiro Toyoda, near Toyota City Since “Toyoda” literally means “fertile rice paddies”, changing the name also prevented the company from being associated with old-fashioned farming. The newly formed word was trademarked and the company was registered in August 1937 as the “Toyota Motor Company”. First-generation Toyopet Crown Model RSD (1955/1 – 1958/10) Toyota at the Rally Dakar, 1992
From September 1947, Toyota’s small-sized vehicles were sold under the name “Toyopet” (トヨペット). The first vehicle sold under this name was the Toyopet SA, but it also included vehicles such as the Toyopet SB light truck, Toyopet Stout light truck, Toyopet Crown, Toyopet Master, and the Toyopet Corona. The word “Toyopet (Japanese article)” was a nickname given to the Toyota SA due to its small size, as the result of a naming contest the Toyota Company organized in 1947.
However, when Toyota eventually entered the American market in 1957 with the Crown, the name was not well received due to connotations of toys and pets. The name was soon dropped for the American market, but continued in other markets until the mid-1960s. By the early 1960s, the US had begun placing stiff import tariffs on certain vehicles.
The chicken tax of 1964 placed a 25% tax on imported light trucks. In response to the tariff, Toyota, Nissan Motor Co. and Honda Motor Co. began building plants in the US by the early 1980s. With over 30 million sold, the Corolla is one of the most popular and best selling cars in the world. Toyota received its first Japanese Quality Control Award at the start of the 1980s and began participating in a wide variety of motorsports.
Due to the 1973 oil crisis, consumers in the lucrative US market began turning to small cars with better fuel economy. American car manufacturers had considered small economy cars to be an “entry level” product, and their small vehicles employed a low level of quality to keep the price low. In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation. Two years later, Toyota entered into a joint venture with General Motors called the New United Motor Manufacturing, Inc, NUMMI, operating an automobile-manufacturing plant in Fremont, California.
The factory was an old General Motors plant that had been closed for two years. Toyota then started to establish new brands at the end of the 1980s, with the launch of their luxury division Lexus in 1989. In the 1990s, Toyota began to branch out from producing mostly compact cars by adding many larger and more luxurious vehicles to its lineup, including a full-sized pickup, the T100 (and later the Tundra); several lines of SUVs; a sport version of the Camry, known as the Camry Solara; and the Scion brand, a group of several affordable, yet sporty, automobiles targeted specifically to young adults. Toyota also began production of the world’s best-selling hybrid car, the Prius, in 1997.
With a major presence in Europe, due to the success of Toyota Team Europe, the corporation decided to set up Toyota Motor Europe Marketing and Engineering, TMME, to help market vehicles in the continent. Two years later, Toyota set up a base in the United Kingdom, TMUK, as the company’s cars had become very popular among British drivers.
Bases in Indiana, Virginia, and Tianjin were also set up. In 1999, the company decided to list itself on the New York and London Stock Exchanges. In 2001, Toyota’s Toyo Trust and Banking merged with two other banks to form UFJ Bank, which was accused of corruption by Japan’s government for making bad loans to alleged Yakuza crime syndicates with executives accused of blocking Financial Service Agency inspections. The UFJ was listed among Fortune Magazine’s largest money-losing corporations in the world, with Toyota’s chairman serving as a director.
At the time, the UFJ was one of the largest shareholders of Toyota. As a result of Japan’s banking crisis, UFJ merged with the Bank of Tokyo-Mitsubishi to become the Mitsubishi UFJ Financial Group. In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with French motoring companies Citroën and Peugeot a year after Toyota started producing cars in France.
Toyota ranked eighth on Forbes 2000 list of the world’s leading companies for the year 2005 but slid to 55 for 2011. The company was number one in global automobile sales for the first quarter of 2008. On December 7, 2004, a US press release was issued stating that Toyota would be offering Sirius Satellite Radios. However, as late as January 27, 2007, Sirius and XM satellite radio kits were not available for Toyota factory radios. While the press release enumerated 9 models, only limited availability existed at the dealer level in the US.
As of 2008, all Toyota and Scion models have either standard or available XM radio kits. Major Lexus dealerships have been offering satellite radio kits for Lexus vehicles since 2005, in addition to factory-equipped satellite radio models. In 2007, Toyota released an update of its full-size truck, the Tundra, produced in two American factories, one in Texas and one in Indiana. “Motor Trend” named the Tundra “Truck of the Year,” and the 2007 Toyota Camry “Car of the Year” for 2007. It also began the construction of two new factories, one to build the RAV4 in Woodstock, Ontario, Canada, and the other to build the Toyota Prius in Blue Springs, Mississippi, USA.
This plant was originally intended to build the Toyota Highlander, but Toyota decided to use the plant in Princeton, Indiana, USA, instead. The company has also found recent success with its smaller models—the Corolla and Yaris—as gasoline prices have risen rapidly in the last few years. In October 2012, Toyota announced a recall of 7.43 million vehicles worldwide to fix malfunctioning power window switches, the largest recall since that of Ford Motor Company in 1996. The move came after a series of recalls between 2009 and 2011 in which it pulled back around 10 million recalls amidst claims of faulty mechanics. Mission Statement
“Our Mission sets forth the rationale behind the existence of our Company and serves as the standards upon which we base our decisions and actions. To provide customer satisfaction through dynamic selling, timely delivery of products and service and excellent after-sales service; To provide outstanding service and solutions to our local customer base through our dedication, excellence and proven expertise of our Team Members;
To maintain a working environment that is truly protective of the health and safety of our Team Members, customers and the general public; To support good environment practices and information and constantly contribute to sustainable development by reducing environmental impacts; To provide equal opportunities for career advancement and personal development to our employees; and To foster competitiveness, sustainability and cohesion by optimizing procedures and improving the quality of service and products through Kaizen Practices.
Vision Statement”Our Vision is to be the nation’s INTELLEGENT CHOICE in the Toyota distribution network with a globally competitive team inherently focused on putting the customers first, and ensuring the best possible quality of products and services while promoting the health and safety of our Team Members and actively protecting the environment towards sustainable development.”
StrengthsGlobal organization, with a strong international position in 170 countries worldwide. High financial strength (1997, sales turnover, £131,511 million), sales growth of 29.3% Strong brand image based on quality, environmental friendly (greener), customized range. Industry leader in manufacturing and production. Maximizes profit through efficient lean manufacturing approaches (e.g. Total Quality Management) and JIT (Just in Time) manufacturing and first mover in car research and development. Excellent penetration in key markets (US, China, EMEA) and now the second largest car manufacturer in the world, surpassing Ford.
WeaknessJapanese car manufacturer – seen as a foreign importer. Production capacity. Toyota produces most of its cars in US and Japan whereas competitors may be more strategically located worldwide to take advantage of global efficiency gains. Some criticism has been made due to large-scale re-call made in 2005, quality issues.
History of Hyundais