Governments have implicated the car industry in to a socio-politic-economic corner. This company is strongly linked to policies of governments by the earnings of banks. Therefore countries try to develop this industry to rise profits and in develop countries is a gigantic pressure to maintain it. Likewise Toyota is a company that dominates more than a handful of firms.
“The company’s approach to dealing with political institutions has not always been brilliant. It tends to be good on technical issues, although it has not always fully presented the longer-term options, in order to make the choices and their implications clear.” Toyota had a lot of help from the local government, including tax break and facilities to operate their industry.
1.How stable is the political environment?
It’s very stable like we mention before is a gigantic industry that countries expect to continue developing and maintaining; moreover, Toyota is a leader in their field so by accepting Toyota to a country indirectly we are talking about profits.
2.Will government policy influence laws that regulate or tax your business?
Yes , Toyota “The company’s approach to dealing with political institutions has not always been brilliant” they most of the times they do not have a lot of taxes because consumers pay for it.
Toyota Company is has a huge share on auto mobile business which has been dominated in the XX century; moreover was consider as an economic phenomenon. Now a day’s all the industry is suffering a series of structural schisms and has become a riddled with contradictions and economic discontinues.
“For the capital markets and the finance sector, it has lost a lot of its significance, as a result of ever declining profits and stagnant sales”. At the same time de proliferation of products makes that the economic resources are wasting. A different future is possible for the industry, a highly but its is very difficult to achieve.
New investment by Toyota in factories in the US and China saw 2005 profits rise, against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen..
In 2003 Toyota knocked its rivals Ford to become the World’s second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. The company makes a large range of vehicles for both private customers and commercial organizations, from the small Yaris to large trucks.
Toyota markets most of its products in the US and in Japan; therefore it depend of economic and political conditions those markets also by the movements in exchange rates.
One of the most successful and reliable companies in the world. Founded in 1933 by Kiichiro Toyoda, and in 2007 was the biggest enterprise on the industry of cars, getting over the big American companies like GMC and Ford.
Toyota, besides the massive production of cars, it’s constantly improving the technology of cars not just to show advance, because they are the top enterprise on the production of Hybrid and Electric cars, one example de Prius, that is one of the cars that everybody wants in America. In fact, the promotional slogan they use in US and Mexico, is “Moving forward”, that is related to the same vision that we mentioned before, of advance in many areas to help the society.
In 2010, Toyota was obligated to check 2,3 millions of cars, that were supposed to have a failure on the accelerator causing the death of 12 clients of Toyota, in the Social factor Toyota was really affected after by this, because many families demanded this company, they lost credibility on economic houses and they were not able to sell any more that car. The models that were called to revision are: Avalon, Camry, Corolla, RAV4, Matrix, Sequoia, Highlander, Tundra.
But Toyota is not only in the industry of cars, as their similar Honda, they designed and built a robot specially created to take care of old people in homes for elder people. Also they created specialized robots in the production of Cars and the entertainment.
They have a specialized area on Agricola biotechnology were they invest on little business, but trying to develop new technologies and new uses for other products. This are some examples of this specialized areas:
P.T. Toyota Bio Indonesia en Lampung, Indonesia
Australian Afforestation Pty. Ltd. in Australia Occidental y Australia Meridional
Toyota Floritech Co., Ltd. en Rokkasho-Mura, Distrito de Kamikita, Prefectura de Aomori
Sichuan Toyota Nitan Development Co., Ltd. en Sichuan, China
Toyota Roof Garden Corporation en Miyoshi-Cho, Prefectura de Aichi
In other industries, Toyota has bought several tiny soccer teams in different countries, many of this clubs were not able to continue playing by the problem of Money. Many of this teams are located in Argentina, where Toyota is one of the first sellers in the industry of cars. Apart soccer, they have been in other sports, like rugby in Australia and between 2002 and 2009 they had a Formula 1 team.
They also created a specialized way of working, called “Toyotismo” and is the relationship between the environment of where are they working, and workers. This was created in the 70´s during the petroleum crysis in US, and moved the lineal way working created by the big industry Ford, called “Fordismo”.
Toyota is one of the most powerful and biggest companies in the world, and that is why they are always looking to improve in many aspects, not only in cars.
“We are investing today to advance the vehicles of tomorrow” this do not refers to elegant or faster cars, this refers to eco-cars (zero impact on the environment cars). Toyota is one of the few companies that try to help the environment, and not just tries; this international company invests a lot in projects in favor of taking care of the environment. They spend a big part of their capital in the research of new combustibles that replace gasoline.
Toyota is researching in 4 specific alternative fuel sources, biofuels, hydrogen, electricity and natural gases. Toyota thinks that there is not only one solution to this problem, so they are covering many fields until they find a proper solution to the problem and a good idea to save the environment.
The Plug-In Hybrids, this development started in 2009, and they deliver over 500 Plug In Hybrid Electric Vehicle (PHEVs), they are only prototypes and they will be in market soon, this are the first-generation lithium-ion battery cars. They will start selling some and depending on the demand of the customers, they might start producing them massively.
Hydrogen Fuel Cell Hybrids, the Fuel Cell- Hybrid Vehicle (FCHV) they will be on market probably in 2015. This type of vehicle is not fully develop and the researchers are continuing developing and testing the FCHVs. There are some corporations helping Toyota to make this possible, the U.S.
Department of Energy, Savannah River National Laboratory and the National Renewable Energy Laboratory. The advances with this prototype will be that one single fill of compressed hydrogen gas will make you advance approximately 431 miles, in more years and with more investigation this will increase and will be in the market ready for the customers.
This are the two of most important advances in technology of Toyota in vehicles, it is a very good option and a great idea of taking care of the environment before it’s too late. Toyota fully understands the scarcity of the gasoline and they are hitting 2 spots in one shot, they are helping with the environment while they are creating the future cars, with the most advanced technology in eco-cars.