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Toyota

, abbreviated TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan. In 2010, Toyota employed 317,734 people worldwide,[1] and was the world's largest automobile manufacturer in 2010 by production.[2] Toyota is the ninth largest company in the world by revenue.

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors,[3] along with several "non-automotive" companies.[4] TMC is part of the Toyota Group, one of the largest conglomerates in the world.

Contents


Corporate governance

Toyota headquarters in Toyota City, Japan Toyota is headquartered in Toyota City, Aichi. Its Tokyo office is located in Bunkyo, Tokyo. Its Nagoya office is located in Nakamura-ku, Nagoya.[5] In addition to manufacturing automobiles, Toyota provides financial services through its Toyota Financial Services division and also builds robots.

In predominantly Chinese-speaking countries or regions using traditional Chinese characters, e.g. Hong Kong and Taiwan, Toyota is known as " ".[6] In predominantly Chinese speaking countries using simplified Chinese characters (e.g. China), Toyota is known as " "[7] (pronounced as "F ngti n" in Mandarin Chinese ). These are the same characters as the founding family's name "Toyoda" in Japanese, which translate to "fertile rice paddies" in the Chinese language as well.

Akio Toyoda, CEO Toyota, at the annual results press conference May 11, 2011 Typical breakdown of sales by region President of Toyota Motor Industries:

President of Toyota Motor Corporation:

CEO of Toyota Motor Corporation:

Chairman of Toyota Motor Corporation:

Toyota is publicly traded on the Tokyo, Osaka, Nagoya, Fukuoka, and Sapporo exchanges under company code . In addition, Toyota is foreign-listed on the New York Stock Exchange under and on the London Stock Exchange under . Toyota has been publicly traded in Japan since 1949 and internationally since 1999.[8]

As reported on its consolidated financial statements, Toyota has 540 consolidated subsidiaries and 226 affiliates.

Financial results

Calendar Year Total Japan United States
Production Sales Production Sales Sales
2008 9,225,236[9] 4,911,861[9] 2,153,197[9] 2,217,662[10]
2009 7,234,439[11] 3,543,199[11] 1,996,174[11] 1,770,147[12]
2010 8,557,351[13] 8,418,000[14] 4,047,343[15] 2,203,849[15] 1,763,595[16]
Calendar Year Production Sales Production Sales Sales
Total Japan United States

In 2010, the Toyota ranked first in units produced globally, with 8.6 million units. (Market share based on OICA 2010 global total of 77,743,862)[2] For the first half of 2011, Toyota had fallen to third place, with GM first and Volkswagen second. The OICA list is usually published in late July or early August of the following year.[17][18][19]

Toyota's financial unit has asked for an emergency loan from a state-backed lender on March 16, 2009, with reports putting the figure at more than . It says the international financial situation is squeezing its business, forcing it to ask for an emergency loan from the Japan Bank for International Cooperation. It is the first time the state-backed bank has been asked to lend to a Japanese car manufacturer.[20]

On May 8, 2009, Toyota reported a record annual net loss of , making it the latest automobile maker to be severely affected by the global financial crisis that started in 2007.

From November 2009 through the first quarter of 2010, Toyota recalled more than 8 million (accounts differ) cars and trucks worldwide in several recall campaigns, and briefly halted production and sales.[21][22] The US Sales Chief, James Lentz, was questioned by the United States Congress committees on Oversight and Investigations on February 23, 2010, as a result of recent recalls.[23] On February 24, 2010, Toyota CEO Akio Toyoda testified before the House Committee on Oversight and Government Reform.[24] On April 6, 2010, The US government sought a record penalty of from Toyota for its delayed response in notifying the National Highway Traffic Safety Administration regarding the defective accelerator pedals.[25] On May 18, 2010, Toyota paid the fine without an admission of wrongdoing.[26][27][28] The record fine and the high profile hearings caused accusations of conflict of interest. Senior managing director Takahiko Ijichi said that recall-related costs in the financial year that ended March 2010 totaled ().[29] the U.S. National Highway Traffic Safety Administration, NASA and Japanese Ministry of Transport have been involved in the investigations, driver error or pedal misapplication was found responsible for most of the incidents. This included sticking accelerator pedals, and pedals caught under floor mats.

On March 31, 2011, the Toyota Factory in Onnaing, France, was hit by a strike of several hundred workers asking for more pay.[30] [31]

Logo and branding

Employee at Toyota Museum explains development of Toyota name and brand In 1936, Toyota entered the passenger car market with its Model AA and held a competition to establish a new logo emphasizing speed for its new product line. After receiving 27,000 entries, one was selected that additionally resulted in a change of its moniker to "Toyota" from the family name "Toyoda." It was believed that the new name sounded better and its eight-stroke count in the Japanese language was associated with wealth and good fortune. The original logo no longer is found on its vehicles but remains the corporate emblem used in Japan.

Still, there were no guidelines for the use of the brand name, "TOYOTA", which was used throughout most of the world, which led to inconsistencies in its worldwide marketing campaigns.

To remedy this, Toyota introduced a new worldwide logo in October 1989 to commemorate the 50th year of the company, and to differentiate it from the newly released luxury Lexus brand. The logo made its debut on the 1989 Toyota Celsior and quickly gained worldwide recognition. There are three ovals in the new logo that combine to form the letter "T", which stands for Toyota. The overlapping of the two perpendicular ovals inside the larger oval represent the mutually beneficial relationship and trust that is placed between the customer and the company while the larger oval that surrounds both of these inner ovals represent the "global expansion of Toyota's technology and unlimited potential for the future."[32][33]

The logo started appearing on all printed material, advertisements, dealer signage, and the vehicles themselves in 1990.

Marketing

MEGAWEB, Toyota's permanent exhibition showroom and museum in Odaiba, Tokyo

  • United States advertising slogans

Toyota's marketing efforts in North America have focused on emphasizing the positive experiences of ownership and vehicle quality.[34] The ownership experience has been targeted in slogans such as "You asked for it! You got it!" (1975 1979), "Oh, what a feeling!" (1979 September 1985, in the US),[34] "Who could ask for anything more?" (September 1985 1989),[35] "I love what you do for me, Toyota!" (1989 1997), "Everyday" (1997 2001)", "Get the feeling!" (2001 2004), and "Moving Forward" (2004 present).[36]

Japan

Saitama]] In Japan, Toyota currently maintains separate dealership sales channels, called "Toyota Store" ( ) that was established in 1949, which sells large luxury sedans like the Toyota Century, and the Toyota Crown, and "Toyopet Store" ( ), that was originally established to sell the Toyota Corona and the Toyota Corona Mark II in 1957.(Toyota's five channel dealerships in Japan choronology in Japanese) Toyota also established a commercial dealership called Toyota Diesel Shop ( ) from 1957 until 1988 that sold various commercial platform trucks, including Hino products. The Diesel Shop also sold passenger cars that had diesel engines installed for a short time. When the Toyota Diesel Store was disbanded, commercial products were divided between Toyota Store and Toyopet Store locations.[37]

Currently, the "Toyota Corolla Store" ( ) was renamed from the "Toyota Public Store" ( ), which was established to sell the Toyota Publica in 1961, then renamed to sell the Toyota Corolla in 1966. Currently, the "Toyota Netz Store" ( ), established in 2004, sells the Toyota Raum and the Toyota RAV4, and replaced the "Toyota Vista Store" ( ), which was established at the introduction of the Toyota Vista, and the Toyota Cresta in 1980. "Toyota Vista Store" replaced the sales channel called "Toyota Auto Store" ( ) that sold the Corolla companion, called the Toyota Sprinter established in 1966. "Netz" is an acronym that means "N etwork of E nergetic T eams for Z enith"

Previous models sold at "Toyota Netz" have been rebranded as Lexus ( ), like the Toyota Altezza, and the Toyota Aristo. "Netz" locations are being repositioned to resemble the North American Toyota network, called Scion and is currently exclusive for the Toyota 86. Most models were exclusive to particular retail chains, while some models, like the Prius, are available at all sales channels. The following are models that are available at retail channels nationally, as retail chains in Tokyo and Osaka are different.

Vehicles sold at
ja: |Toyota Store]] (Nationally)

Toyota Century, Toyota Crown Majesta, Toyota Crown, Toyota SAI, Toyota Prius, Toyota Allion, Toyota Avensis, Toyota Succeed, Toyota Blade, Toyota Corolla RunX, Toyota Porte, Toyota Estima, Toyota Isis, Toyota FJ Cruiser, Toyota Comfort, Toyota Land Cruiser, Toyota Hilux Surf, Toyota Land Cruiser Prado, Toyota Dyna, Toyota Coaster, Toyota QuickDelivery, Toyota 2000GT, Toyota Carina, Toyota Carina ED, Toyota Brevis, Toyota Gaia, Toyota Cavalier, Toyota Classic, Toyota MasterAce, Toyota Hilux, Toyota Mega Cruiser, Toyota Soarer, Toyota Origin, Toyota Caldina

Vehicles sold at
ja: |Toyopet Store]] (Nationally)

Toyota Mark X, Toyota SAI, Toyota Premio, Toyota Prius, Toyota Belta, Toyota Mark X ZiO, Toyota Avensis, Toyota Succeed, Toyota Ractis, Toyota Blade, Toyota Porte, Toyota Harrier, Toyota Vanguard, Toyota Rush, Toyota Alphard, Toyota Succeed, Toyota Comfort, Toyota Hiace, Toyota Toyoace, Toyota Pixis Space, Toyota Mark II-Mark II Qualis-Mark II Blit, Toyota Corona, Toyota Corona EXiV, Toyota Corsa, Toyota Opa, Toyota Avalon, Toyota Progr s, Toyota Cami, Toyota ist, Toyota Platz, Toyota Soarer, Toyota Hilux, Toyota Cynos, Toyota Regius, Toyota Celsior, Toyota Origin, Toyota Caldina, Toyota Ipsum

Vehicles sold at
ja: |Toyota Corolla Store]] (starting 1966) formerly Toyota Public Store (Nationally)

Toyota SAI, Toyota Camry, Toyota Prius, Toyota Corolla Axio, Toyota Belta, Toyota Probox, Toyota Corolla Rumion, Toyota Ractis, Toyota Passo, Toyota Sera, Toyota Vanguard, Toyota Estima, Toyota Noah, Toyota Sienta, Toyota Town Ace, all Daihatsu products, Toyota Publica, Toyota Tercel, Toyota Windom, Toyota Scepter, Toyota Corolla Ceres, Toyota Origin, Toyota Nadia, Toyota WiLL, Toyota RAV4, Toyota Kluger, Toyota Sports 800, Toyota Celica, Toyota Supra, Toyota Corolla Levin, Toyota Celica XX

Vehicles sold at
ja: |Netz Store]] (starting 2004) formerly Toyota Vista Store (starting 1980) formerly Toyota Auto Store (starting 1966)(Nationally)

Toyota Vitz, Toyota SAI, Toyota Prius, Toyota ist, Toyota Auris, Toyota bB, Toyota Avensis, Toyota Raum, Toyota Wish, Toyota Voxy, Toyota RAV4, Toyota Vellfire, Toyota iQ, Toyota Allex, Toyota Fun Cargo, Toyota Altezza, Toyota Verossa, Toyota Curren, Toyota Aristo, Toyota MR-S, Toyota MR2, Toyota Starlet, Toyota Vista, Toyota Cresta, Toyota Sprinter, Toyota Blizzard, Toyota Chaser, Toyota Sprinter Marino, Toyota Carib, Toyota Granvia, Toyota Sprinter Trueno, Toyota LiteAce, Toyota Ipsum, Saturn S-series (1996-2003), Toyota 86

Sports

See Toyota Center, Toyota Park, Toyota Racing, Toyota Racing Development, and Toyota in motorsports

Company strategy

Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in developing.[38] Toyota's managerial values and business methods are known collectively as the Toyota Way.

In April 2001 Toyota adopted the "Toyota Way 2001," an expression of values and conduct guidelines that all Toyota employees should embrace. Under the two headings of Respect for People and Continuous Improvement, Toyota summarizes its values and conduct guidelines with the following five principles:[39]

  • Challenge
  • Kaizen (improvement)
  • Genchi Genbutsu (go and see)
  • Respect
  • Teamwork

According to external observers, the Toyota Way has four components:[40]

  1. Long-term thinking as a basis for management decisions.
  2. A process for problem-solving.
  3. Adding value to the organization by developing its people.
  4. Recognizing that continuously solving root problems drives organizational learning.

The Toyota Way incorporates the Toyota Production System.

Operations

New Toyota factory in Ohira, near Sendai, Miyagi Prefecture, Japan. A month after this picture was taken, the region was devastated by the March 11 earthquake and tsunami. The plant was only lightly damaged, but remained closed for more than a month, mainly due to lack of supplies and energy, in addition to a badly damaged Sendai port.

Toyota has long been recognized as an industry leader in manufacturing and production. Three stories of its origin have been found, one that they studied Piggly-Wiggly's just-in-time distribution system, one that they followed the writings of W. Edwards Deming, and one that they were given the principles from a WWII US government training program (Training Within Industry). It is possible that all these, and more, are true. Regardless of the origin, the principles described by Toyota in its management philosophy, The Toyota Way, are: Challenge, Kaizen (improvement), Genchi Genbutsu (go and see), Respect, and Teamwork.[39]

As described by external observers of Toyota, the principles of the Toyota Way are:[40]

  1. Base your management decisions on a long-term philosophy, even at the expense of short-term goals
  2. Create continuous process flow to bring problems to the surface
  3. Use "pull" systems to avoid overproduction
  4. Level out the workload
  5. Build a culture of stopping to fix problems, to get quality right the first time
  6. Standardized tasks are the foundation for continuous improvement and employee empowerment
  7. Use visual control so no problems are hidden
  8. Use only reliable, thoroughly tested technology that serves your people and processes
  9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others
  10. Develop exceptional people and teams who follow your company s philosophy
  11. Respect your extended network of partners and suppliers by challenging them and helping them improve
  12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu)
  13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly
  14. Become a learning organization through relentless reflection and continuous improvement

Toyota Pavilion at the Expo in Aichi Toyota has grown to a large multinational corporation from where it started and expanded to different worldwide markets and countries. It displaced GM and became the world's largest automobile maker for the year 2008. It held the title of the most profitable automobile maker ( in 2006) along with increasing sales in, among other countries, the United States. The world headquarters of Toyota are located in its home country in Toyota City, Japan. Its subsidiary, Toyota Financial Services sells financing and participates in other lines of business. Toyota brands include Scion and Lexus and the corporation is part of the Toyota Group. Toyota also owns 51% of Daihatsu, and 16.7% of Fuji Heavy Industries, which manufactures Subaru vehicles. They also acquired 5.9% of Isuzu Motors Ltd. on November 7, 2006 and will be introducing Isuzu diesel technology into their products.

Toyota has introduced new technologies including one of the first mass-produced hybrid gasoline-electric vehicles, of which it says it has sold 2 million globally as of 2010,[41] Advanced Parking Guidance System (automatic parking), a four-speed electronically controlled automatic with buttons for power and economy shifting, and an eight-speed automatic transmission. Toyota, and Toyota-produced Lexus and Scion automobiles, consistently rank near the top in certain quality and reliability surveys, primarily J.D. Power and Consumer Reports[42] although they led in automobile recalls for the first time in 2009.[43]

In 2005, Toyota, combined with its half-owned subsidiary Daihatsu Motor Company, produced 8.54 million vehicles, about 500,000 fewer than the number produced by GM that year. Toyota has a large market share in the United States, but a small market share in Europe. Its also sells vehicles in Africa and is a market leader in Australia. Due to its Daihatsu subsidiary it has significant market shares in several fast-growing Southeast Asian countries.[44]

According to the 2008 Fortune Global 500, Toyota is the fifth largest company in the world. Since the recession of 2001, it has gained market share in the United States. Toyota's market share struggles in Europe where its Lexus brand has three tenths of one percent market share, compared to nearly two percent market share as the US luxury segment leader.

In the first three months of 2007, Toyota together with its half-owned subsidiary Daihatsu reported number one sales of 2.348 million units. Toyota's brand sales had risen 9.2% largely on demand for Corolla and Camry sedans. The difference in performance was largely attributed to surging demand for fuel-efficient vehicles. In November 2006, Toyota Motor Manufacturing Texas added a facility in San Antonio.[45] Toyota has experienced quality problems and was reprimanded by the government in Japan for its recall practices.[46] Toyota currently maintains over 16% of the US market share and is listed second only to GM in terms of volume.[47] Toyota Century Royal is the official state car of the Japanese imperial family, namely for the current Emperor of Japan.

Toyota was hit by the global financial crisis of 2008 as it was forced in December 2008 to forecast its first annual loss in 70 years.[48] In January 2009 it announced the closure of all of its Japanese plants for 11 days to reduce output and stocks of unsold vehicles.[49]

Akio Toyoda became the new president and CEO of the company on June 23, 2009 by replacing Katsuaki Watanabe who became the new vice chairman by replacing Katsuhiro Nakagawa.[50]

Worldwide presence

Camry]] is assembled in several facilities around the world including Australia, China, Taiwan, Japan, Malaysia, Philippines, Russia, Thailand, India, Vietnam and the United States. Toyota has factories in most parts of the world, manufacturing or assembling vehicles for local markets. Toyota has manufacturing or assembly plants in Japan, Australia, India, Sri Lanka, Canada, Indonesia, Poland, South Africa, Turkey, Colombia, the United Kingdom, the United States, France, Brazil, Portugal, and more recently, Argentina, Czech Republic, Mexico, Malaysia, Thailand, Pakistan, Egypt, China, Vietnam, Venezuela, the Philippines, and Russia.

Toyota's net revenue by geographical regions for the year ended March 31, 2007[51]

Geographic region Total sales ( Yen in millions)
Japan 8,152,884
North America 8,771,495
Europe 3,346,013
Asia 1,969,957
Others 1,707,742

In 2002, Toyota initiated the "Innovative International Multi-purpose vehicle" project (IMV) to optimize global manufacturing and supply systems for pickup trucks and multipurpose vehicles, and to satisfy market demand in more than 140 countries worldwide. IMV called for diesel engines to be made in Thailand, gasoline engines in Indonesia and manual transmissions in India and the Philippines, for supply to the countries charged with vehicle production. For vehicle assembly, Toyota would use plants in Thailand, Indonesia, Argentina and South Africa. These four main IMV production and export bases supply Asia, Europe, Africa, Oceania, Latin America and the Middle East with three IMV vehicles: The Toyota Hilux (Vigo), the Fortuner, and the Toyota Innova.[52]

North America

Toyota Motor North America headquarters is located in Torrance, California and operates as a holding company in North America. Its manufacturing headquarters is located in Erlanger, Kentucky, and is known as Toyota Motor Engineering & Manufacturing North America, or TEMA.

A Toyota dealership in Fremont, California. Toyota Canada Inc. has been in production in Canada since 1983 with an aluminium wheel plant in Delta, British Columbia which currently employs a workforce of roughly 260. Its first vehicle assembly plant, in Cambridge, Ontario since 1988, now produces Corolla compact cars, Matrix crossover vehicles and Lexus RX 350 luxury SUVs, with a workforce of 4,300 workers. Its second assembly operation in Woodstock, Ontario began manufacturing the RAV4 late in 2008.[53] In 2006, Toyota's subsidiary Hino Motors opened a heavy duty truck plant, also in Woodstock, employing 45 people and producing 2000 trucks annually.[54]

Toyota Technical Center, Ann Arbor Twp., MI
Toyota Technical Center, Ann Arbor Twp., MI
Toyota has a large presence in the United States with six major assembly plants in Huntsville, Alabama; Georgetown, Kentucky; Princeton, Indiana; San Antonio, Texas; Buffalo, West Virginia and Blue Springs, Mississippi. Toyota had a joint-venture operation with General Motors at New United Motor Manufacturing Inc. (NUMMI), in Fremont, California, which began in 1984 and ended in 2009.[55] It still has a joint-venture with Subaru at Subaru of Indiana Automotive, Inc. (SIA), in Lafayette, Indiana, which started in 2006. In these assembly plants, the Camry and the Tundra are manufactured, among others.

Toyota marketing, sales, and distribution in the US are conducted through a separate subsidiary, Toyota Motor Sales, U.S.A., Inc.. It has started producing larger trucks, such as the new Tundra, to go after the large truck market in the United States. Toyota is also pushing hybrid vehicles in the US such as the Prius, Camry Hybrid, Highlander Hybrid, and various Lexus products.

Toyota has sold more hybrid vehicles in the country than any other manufacturer.

Product line

Electric technology

Toyota Prius, flagship of Toyota's hybrid technology

Toyota is one of the largest companies to push hybrid vehicles in the market and the first to commercially mass-produce and sell such vehicles, an example being the Toyota Prius. The company eventually began providing this option on the main smaller cars such as Camry and later with the Lexus divisions, producing some hybrid luxury vehicles. It labeled such technology in Toyota cars as "Hybrid Synergy Drive" and in Lexus versions as "Lexus Hybrid Drive."

The Prius has become the top selling hybrid car in America. Toyota, as a brand, now has four hybrid vehicles in its lineup: the Prius, Auris, Highlander, and Camry. The popular minivan Toyota Sienna is scheduled to join the hybrid lineup by 2010, and by 2030 Toyota plans to offer its entire lineup of cars, trucks, and SUVs with a Hybrid Synergy Drive option (Toyota has said it plans to make a hybrid-electric system available on every vehicle it sells worldwide sometime in the 2010s).[56]

Lexus LS 600h hybrid sedan.

Worldwide sales of hybrid vehicles produced by Toyota reached 1.0 million vehicles by May 31, 2007, and the 2.0 million mark was reached by August 31, 2009, with hybrids sold in 50 countries.[57][58] Toyota's hybrid sales are led by the Prius, with worldwide cumulative sales of 1.43 million by August 2009.[57] Toyota's CEO has committed to eventually making every car of the company a hybrid vehicle.[59][60] Lexus also has their own hybrid lineup, consisting of the GS 450h, RX 400h/RX 450h, the LS 600h/LS 600h L, Lexus HS 250h and the Lexus brand's latest entry-level Lexus CT 200h.

Toyota and Honda have already said they've halved the incremental cost of electric hybrids and see cost parity in the future (even without incentives).[61] Hybrids are viewed by some automobile makers as a core segment of the future vehicle market.[62]

Plug-in hybrids

Plug-in Prius concept Toyota is currently testing its "Toyota Plug-in HV" in Japan, the United States, and Europe. Like GM's Volt, it uses a lithium-ion battery pack, but unlike the Volt, it can run on the gasoline or electric engine alone. The PHEV (plug-in hybrid electric vehicle) could have a lower environmental impact than existing hybrids.[63][64]

On June 5, 2008, A123Systems announced that its Hymotion plug-in hybrid conversion kits for the Prius would be installed by six dealers, including four Toyota dealerships: Westboro Toyota in Boston, Fitzgerald Toyota in Washington D.C., Toyota of Hollywood in Los Angeles, and Madison Wisconsin-based Smart Motors.[65]

In April 2011, Toyota announced that the New Plug-In Prius will be arriving by 2012.

All-electric vehicles

Toyota is speeding up the development of vehicles that run only on electricity with the aim of mass-producing them in the early part of this decade. Road tests for the current prototype, called "e-com", had ended in 2006.[66] Toyota has made many concept electric vehicles, including the FT-EV and FT-EV II.

In May 2010, Toyota launched a collaboration with Tesla Motors to create electric vehicles. Toyota agreed to purchase of Tesla common stock subsequent to the closing of Tesla's planned initial public offering.[67] Tesla will buy Toyota's recently closed NUMMI factory for .[68][69] Toyota plans to release an electric version of the RAV4 by 2012 using components from Tesla and the platform of the RAV4.

Second generation Toyota Estima Hybrid
Second generation Toyota Estima Hybrid

Cars

As of 2009, Toyota officially lists approximately 70 different models sold under its namesake brand, including sedans, coupes, vans, trucks, hybrids, and crossovers.[70] Many of these models are produced as passenger sedans, which range from the subcompact Toyota Yaris, to compact Corolla, to mid-size Camry, and full-size Avalon.[70] Vans include the Previa/Estima, Sienna, and others.[70] Several small cars, such as the xB and tC, are sold under the Scion brand.[70]

SUVs and crossovers

Toyota crossovers range from the compact Matrix and RAV4, to midsize Venza and Kluger/Highlander.[70] Toyota SUVs range from the midsize 4Runner to full-size Land Cruiser.[70] Other SUVs include the Land Cruiser Prado and FJ Cruiser.[70]

Pickup trucks

2007 Tundra Double Cab

Toyota first entered the pickup truck market in 1947 with the SB that was only sold in Japan and limited Asian markets. It was followed in 1954 by the RK (renamed in 1959 as the Stout) and in 1968 by the compact Hilux. With continued refinement, the Hilux (simply known as the Pickup in some markets) became famous for being extremely durable and reliable, and many of these trucks from as early as the late 1970s are still on the road today, some with over 300,000 miles. Extended and crew cab versions of these small haulers would eventually be added, and Toyota continues to produce them today under various names depending on the market.

Riding on the success of the compact pickups in the US, Toyota decided to attempt to enter the traditionally domestic-dominated full-size pickup market, introducing the T100 for the 1993 US model year, with production ending in 1998. While having a bed at the traditional full-size length of 8 feet, the suspension and engine characteristics were still similar to that of a compact pickup. It proved to be as economical and reliable as any typical Toyota pickup, but sales never became what Toyota brass had hoped for. It was criticized as being too small to appeal to the traditional American full-size pickup buyer. Another popular full-size truck essential, a V8 engine, was never available. Additionally, the truck was at first only available as a regular cab, though Toyota addressed this shortcoming and added the Xtracab version in mid-1995.

In 1999 for the 2000 model year, Toyota replaced the T100 with the larger Tundra. The Tundra addressed criticisms that the T100 did not have the look and feel of a legitimate American-style full-size pickup. It also added the V8 engine that the T100 was criticized for not having. However, the Tundra still came up short in towing capacity as well as still feeling slightly carlike. These concerns were addressed with an even larger 2007 redesign. A stronger V6 and a second V8 engine among other things were added to the option list. As of early 2010, the Tundra has captured 16 percent of the full-size half-ton market in the US. The all-new Tundra is assembled in San Antonio, Texas, US. Toyota assembled around 150,000 Standard and Double Cabs, and only 70,000 Crew Max's in 2007. The smaller Tacoma (which traces its roots back to the original Hilux) is also now produced at the company's San Antonio facility.

Outside the United States, Toyota produces the Hilux in Standard and double cab, gasoline and diesel engine, 2WD and 4WD versions. The BBC's Top Gear TV show featured 2 episodes of a Hilux that was deemed "virtually indestructible".[71]

Luxury-type vehicles

As of 2009, the company sells nine luxury-branded models under its Lexus division, ranging from the LS sedan to RX crossover and LX SUV.[70] Luxury-type sedans produced under the Toyota brand include the Century, Crown Royal, and Crown Athlete.[70] A limited-edition model produced for the Emperor of Japan is the Century Royal.

Motorsport

Toyota has been involved in many global motorsports series. They also represent their Lexus brand in other sports car racing categories. Toyota also makes engines and other auto parts for other Japanese motorsports including formula Nippon, Super GT, formula 3 and formula Toyota series. Toyota also runs a driver development programme known as TDP (Toyota Young Drivers Program) which they made for funding and educating future Japanese motorsports talent.[72] Toyota Motorsport GmbH, with and headquarters in Cologne, Germany) was previously responsible for Toyota's major motorsports development including Formula One. Toyota Motorsport GmbH also developed cars for World Rally Championship and Le Mans Series. Toyota enjoyed success in all these motorsports categories. In , Toyota entered Formula One as a constructor and engine supplier, however despite having experienced drivers and a larger budget than many other teams, they failed to match their success in other categories, with five second places their best results. On November 4, 2009 Toyota announced they were pulling out of the sport due to the global economic situation.Toyota's nationwide driver hunt of drivers for Etios Motor Racing (EMR) Series ended up with selection of 25 drivers, who will participate in the race in 2013.[73]

TRD

Toyota Racing Development was brought about to help develop true high performance racing parts for many Toyota vehicles. TRD has often had much success with their after market tuning parts, as well as designing technology for vehicles used in all forms of racing. TRD is also responsible for Toyota's involvement in NASCAR motorsports.TRD also made Lexus's performance division "F-Sport".

Non-automotive activities

Aerospace

Toyota is a minority shareholder in Mitsubishi Aircraft Corporation, having invested in the new venture which will produce the Mitsubishi Regional Jet, slated for first deliveries in 2013.[74] Toyota has also studied participation in the general aviation market and contracted with Scaled Composites to produce a proof-of-concept aircraft, the TAA-1 in 2002.[75]

Philanthropy

The Toyota Municipal Museum of Art in Aichi, sponsored by the manufacturer Toyota is supporter of the Toyota Family Literacy Program along with National Center for Family Literacy, helping low-income community members for education, United Negro College Fund (40 annual scholarships), National Underground Railroad Freedom Center () among others.[76] Toyota created the Toyota USA Foundation.

Higher education

Toyota established the Toyota Technological Institute in 1981, as Sakichi Toyoda had planned to establish a university as soon as he and Toyota became successful. Toyota Technological Institute founded the Toyota Technological Institute at Chicago in 2003. Toyota is supporter of the "Toyota Driving Expectations Program," "Toyota Youth for Understanding Summer Exchange Scholarship Program," "Toyota International Teacher Program," "Toyota TAPESTRY," "Toyota Community Scholars" (scholarship for high school students), "United States Hispanic Chamber of Commerce Internship Program," and "Toyota Funded Scholarship."[77] It has contributed to a number of local education and scholarship programs for the University of Kentucky, Indiana, and others.[77]

Robotics

Toyota trumpet-playing robot In 2004, Toyota showcased its trumpet-playing robot.[78] Toyota has been developing multitask robots destined for elderly care, manufacturing, and entertainment. A specific example of Toyota's involvement in robotics for the elderly is the Brain Machine Interface. Designed for use with wheelchairs, it "allows a person to control an electric wheelchair accurately, almost in real-time", with his mind.[79] The thought controls allow the wheelchair to go left, right and forward with a delay between thought and movement of just 125 milliseconds.[79]

Agricultural biotechnology

Toyota invests in several small start-up businesses and partnerships in biotechnology, including:

Environmental record

Toyota has been a leader in environmentally friendly vehicle technologies, most notably the RAV4 EV (produced from 1997 to 2003) and the Toyota Prius (1997 to present). Toyota is now working on their next generation Prius and second generation RAV4 EV both due out in 2012.

Toyota implemented its Fourth Environmental Action Plan in 2005. The plan contains four major themes involving the environment and the corporation's development, design, production, and sales. The five-year plan is directed at the, "arrival of a revitalized recycling-based society."[80] Toyota had previously released its Eco-Vehicle Assessment System (Eco-VAS) which is a systematic life cycle assessment of the effect a vehicle will have on the environment including production, usage, and disposal. The assessment includes, "... fuel efficiency, emissions and noise during vehicle use, the disposal recovery rate, the reduction of substances of environmental concern, and CO2 emissions throughout the life cycle of the vehicle from production to disposal."[81] 2008 marks the ninth year for Toyota's Environmental Activities Grant Program which has been implemented every year since 2000. Themes of the 2008 program consist of "Global Warming Countermeasures" and "Biodiversity Conservation."[82]

Since October 2006, Toyota's new Japanese-market vehicle models with automatic transmissions are equipped with an Eco Drive Indicator. The system takes into consideration rate of acceleration, engine and transmission efficiency, and speed. When the vehicle is operated in a fuel-efficient manner, the Eco Drive Indicator on the instrument panel, lights up. Individual results vary depending on traffic issues, starting and stopping the vehicle, and total distance traveled, but the Eco Drive Indicator may improve fuel efficiency by as much as 4%.[83] Along with Toyota's eco-friendly objectives on production and use, the company plans to donate and five vehicles to the Everglades National Park. The money will be used to fund environmental programs at the park. This donation is part of a program which provides and 23 vehicles for five national parks and the National Parks Foundation.[84] However new figures from the United States National Research Council show that the continuing hidden health costs of the auto industry to the US economy in 2005 amounted to .[85]

The United States EPA has awarded Toyota Motor Engineering & Manufacturing North America, Inc (TEMA) with a ENERGY STAR Sustained Excellence Award in 2007, 2008 and 2009[86][87][88]

In 2007, Toyota's Corporate Average Fuel Economy (CAFE) fleet average of exceeded all other major manufactures selling cars within the United States. Only Lotus Cars, which sold the Elise and Exige (powered by Toyota's 2ZZ-GE engine), did better with an average of .[89]

History

Toyota 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.[90] 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.[91]

Mass production of Toyoda automated loom. Display the Toyota Museum in Nagakute-cho, Aichi-gun, Aichi Pref. Japan In 1924 Sakichi Toyoda invented the Toyoda Model G Automatic Loom. The principle of Jidoka, which means that 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.[92] Toyoda Standard Sedan AA 1936 Vehicles were originally sold under the name "Toyoda" ( ), from the family name of the company's founder, Kiichir 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.[93] House of Toyota founder Kiichiro Toyoda, near Toyota City [94] In September 1936, the company ran a public competition to design a new logo. Out of 27,000 entries the winning entry was the three Japanese katakana letters for "Toyoda" in a circle. But Risabur Toyoda, who had married into the family and was not born with that name, preferred "Toyota" () 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 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".[95][96][97] 1st 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" ( ).[98] The first vehicle sold under this name was the Toyopet SA[99] but it also included vehicles such as the Toyopet SB light truck, Toyopet Stout light truck,[100] Toyopet Crown and the Toyopet Corona. 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.[101] The name was soon dropped for the American market but continued in other markets until the mid 1960s.

By the early sixties, the US had begun placing stiff import tariffs on certain vehicles. The Chicken tax of 1964 placed a 25% tax on imported light trucks.[102] In response to the tariff, Toyota, Nissan Motor Co. and Honda Motor Co. began building plants in the US by the early eighties.[102]

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 in order 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 NUMMI, the New United Motor Manufacturing, Inc, 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 TMME, Toyota Motor Europe Marketing & Engineering, 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 the Japan's government for making bad loans to alleged Yakuza crime syndicates with executives accused of blocking Financial Service Agency inspections.[103] The UFJ was listed among Fortune Magazine's largest money-losing corporations in the world, with Toyota's chairman serving as a director.[104] 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 Citro n 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[105] but slid to 55 for 2011.[106] The company was number one in global automobile sales for the first quarter of 2008.[107]

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 Satellite Radio and XM Satellite radio kits were not available for Toyota factory radios. While the press release enumerated nine 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.

Production and sales numbers

Calendar Year Total Japan United States
Production Sales Production Sales Sales
1935 20
1936 1,142
1937 4,013
1938 4,615
1939 11,981
1940 14,787
1941 14,611
1942 16,302
1943 9,827
1944 12,720
1945 3,275
1946 5,821
1947 3,922
1948 6,703
1949 10,824
1950 11,706
1951 14,228
1952 42,106
1953 16,496
1954 22,713
1955 22,786
1956 46,716
1957 79,527
1958 78,856
1959 101,194
1960 154,770
1961 210,937
1962 230,350
1963 318,495
1964 425,764
1965 477,643
1966 587,539
1967 832,130
1968 1,097,405
1969 1,471,211
1970 1,609,190
1971 1,955,033
1972 2,087,133
1973 2,308,098
1974 2,114,980
1975 2,336,053
1976 2,487,851
1977 2,720,758
1978 2,929,157
1979 2,996,225
1980 3,293,344
1981 3,220,418
1982 3,144,557
1983 3,272,335
1984 3,429,249
1985 3,665,622
1986 3,660,167
1987 3,638,279
1988 3,956,697[108] 2,120,273[108]
1989 3,975,902[108] 2,308,863[108]
1990 4,212,373[108] 2,504,291[108]
1991 4,085,071[108] 2,355,356[108]
1992 3,931,341[108] 2,228,941[108]
1993 3,561,750[108] 2,057,848[108]
1994 3,508,456[108] 2,031,064[108]
1995 3,171,277[108] 2,060,125[108]
1996 3,410,060[108] 2,135,276[108]
1997 3,502,046[108] 2,005,949[108]
1998 5,210,000[109]
1999 5,462,000[110]
2000 5,954,723[111] 1,619,206[112]
2001 5,847,743[113] 4,046,637[113] 2,291,503[113] 1,741,254
2002 6,309,307[114] 4,138,873[114] 2,218,324[114] 1,756,127[115]
2003 6,826,166[116] 4,244,667[116] 2,305,635[116] 1,866,314
2004 7,547,177[117] 4,454,212[117] 2,387,556[117] 2,060,049[118]
2005 8,232,143[119] 4,611,076[119] 2,368,817[119] 2,260,296
2006 9,017,786[120] 5,085,600[120] 2,368,706[120] 2,542,524[121]
2007 9,497,754[122] 5,119,631[122] 2,261,515[122] 2,620,825
2008 9,225,236[9] 4,911,861[9] 2,153,197[9] 2,217,662[10]
2009 7,234,439[11] 3,543,199[11] 1,996,174[11] 1,770,147[12]
2010 8,557,351[13] 8,418,000[14] 4,047,343[15] 2,203,849[15] 1,763,595[16]
2011 7,858,091 3,483,464 1,783,521 1,644,661
Calendar Year Production Sales Production Sales Sales
Total Japan United States

Japan production numbers 1937 to 1987.[123] Global production since 1998, global and Japanese production, Japanese sales since 2001 consolidated incl. Daihatsu and Hino.

See also

References

External links

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