When introduced to the US in the early 1970s, Toyota product just ogled the eye. Box shape and small size make the US consumer-harassing sedan designed in the outskirts of Tokyo as a toy. Alternatively, if it was not considered a toy, not far from the image of the first generation Kijang like. Soapbox? In the midst of another car, even Japan's own products such as Mitsubishi Colt T120.
US society began to consider Toyota and other Japanese automakers after the oil crisis. Oil prices are more expensive to make American society began to look at cars from Japan because they can save fuel. This happens because the cars produced by the US tend to be wasteful of fuel.
And now for seven years in a row, Toyota topped the survey by J.D. Powers & Associates for car owners in the United States. Then, Toyota Camry gained the largest market for 7 years in a row, followed by the Accord (Honda). Previously, the best-selling car in the US compete with the Corolla and Civic (Honda).
In the luxury car segment, since 2001, beating Lexus automotive sales champion Germany, BMW, and Mercedes-Benz. Still not enough? Since its introduction in 1997, the Prius (sedan) immediately so car-selling gasoline-electric hybrid, followed by Estima (minivan) which is also made by Toyota. Then, in the truck segment, Tundra receives votes? Good? Safety testing conducted by the Insurance Institute of America, while competitor products such as Silverado (GM), Dodge Ram (DaimlerChrysler), and the Ford F150 (Ford) just got ratings? Marginal? Or? Poor?
With this achievement, it is no wonder that Toyota's market share in the United States exceeded 10% in 2001. Entering 2003, with 10% world market share, samurai Japan's auto industry is displacing DaimlerChrysler from the position of the Big Three. Then, in 2004 (Q3), the automotive company Toyota snatch the second position most on planet Earth from the hands of Ford Motor Co. who have defended for 70 years. In the calculation, enter sales Toyota Lexus, Daihatsu, and Hino Meanwhile, Ford takes into account the sale of Jaguar, Volvo, Land Rover, Aston Martin (but outside of Mazda shares only 30% owned by Ford).
"Our target is captured 15% global market share in 2010," said Fujio Cho. That is, although the CEO of Toyota did not say explicitly, enter the second decade of this new millennium Toyota will grab the top ranks of the world's largest automotive company.
A dream is too grandiose. Not really. When in early 1992 set a target to capture 10% share of the world market within 10 years, the entire automotive industry, experts, and observers laughed? However, at the same time, the Big Three (then all of Detroit) to show up because they feel that it is a prime target is their domestic market. Create alleviate the negative sentiment, while expanding production capacity in the US, Toyota launched a competition policy Kyosei aliases symbiotic; with the help inject GM products and others into the Japanese market.
With the extra hassles like the Toyota managed to hit the target so that in 2001 it also launched a new target: 15%. Their optimism is quite understandable. During capture market share, the company whose factory form a separate town in Japan that Toyota City, never having to sacrifice profits.
In March, Toyota's profit reached. 1.16 trillion (The US $ 10.28 billion), making it the first Japanese company to make a profit? 1 trillion more. Thus, although this year Toyota sales are still less than GM, according to Fortune obtains profit is greater than the combined earnings of GM, Ford, DaimlerChrysler and VW Group are in the top five. In the second quarter ended June 30, 2004, when all competitors broke down, the Japanese automotive industry samurai profit skyrocketed 29% to $ 2.6 billion, 50% more be obtained in the US.
How Toyota can be very strong? The answer is Evolution, repair small things but carried out continuously, so the quality of products / services rendered increasingly satisfy the customer. In the long run, this evolution appears as the result of a revolutionary.
Kaizen program comes from the idea of Sakichi Toyoda, who is none other than the founder of Toyota. In 1890, efforts to improve the quality of the machine continues. without the help of a third party, Toyoda developed a variant of the shuttle as the development of the invention 150 years earlier in Lancashire, England. Within 35 years, the findings Toyoda able to surpass European engine technology.
As a result, when Toyoda Automatic Loom Works Ltd. Which was established in 1926 (and now Toyota Industries Co.) developed the automotive division in September 1933, kaizen genes have been there in the new business that is still young? In 1934, Toyoda has been successfully produced its first engine: Type an Engine ago used in the first passenger car, the Model A1 (May 1935), and an army truck (August 1935) them. The next product, the Model AA passenger car was launched in 1936.
This rapid early development makes Sakichi Toyoda decided to separate its automotive division into an independent company. Here Toyoda held a contest to get a new name for an automotive company that is ready to be flown. Requirement: The name should be a word that is entirely new and easily called. Toyota name was chosen because it was closer to the old name although there is no meaning in Japanese (and so cannot be written in hiragana). Toyota is also considered being more hockey than Toyoda for writing in Katakana consist of eight brush strokes (as in Chinese culture, eight is a lucky number).
Kiichiro Toyoda pointed to his eldest son as boss of Toyota Motor Co. Ltd. As one of preparation, in the early 1930s, Toyoda Jr. was sent to the US to learn the mass production system developed by Henry Ford. Adjust to a small Japanese market, Toyoda Jr. who inherited her father's genius created a system that he called just in time. In this system, each process produces a number of components needed in the next step in the production line, just before it is needed.
The system that has been prepared is what allows a fast Toyota launched its first product. During World War II, like other Japanese automakers, they only produce trucks for the Kingdom forces who fought on various fronts Asia Pacific. To overcome the scarcity of raw materials in Japan, military trucks were made as simple as possible, for example, only one lamp fitted in the roof.
Japan was destroyed in the Great War. Even the two major cities, Hiroshima and Nagasaki were destroyed by atomic bombs. However, the "elements 8" on behalf of Toyota seems indeed bring prosperity: Emperor Hirohito surrendered to the war stops. and shortly before the Allied bombing, Toyota facilities in Aichi, central Japan, is realized. Not surprisingly, according to the planning have been made, they are able to produce the first commercial passenger car, the Model SA, in 1947. Even with the small-scale production capacity of 100 thousand / year.
Entering the 1950s, Toyota set up a subsidiary in the sale: Toyota Motor Sales Co. (In 1950, then merged with Toyota Motor Co. in 1982) and the Toyopet dealer chain (in April 1956). Subsequent developments, they also set up a special company to produce heavy vehicles (Hino Motors Ltd., in October 1966) and a small car (Daihatsu Motor Co. Ltd., November 1967). The first export Toyota Land cruiser SUV models to Australia once the company has successfully developed the Toyota Production System (TPS) were steady in the late 1950s.
TPS is now widely imitated by companies from various industries (not just automakers) that originated from when in 1956 the US Taiichi Ohno to visit The Big Three. The goal, as Toyoda Jr. about two decades earlier, for selectively intercepting technology and best practices from the champion of the automotive industry that has been established (not get a direct technology transfer so that it can remain independent). Interestingly, TPS idea that just does not come from the observation of the plant Ohno GM, Ford, or Chrysler. The Executive VP inspiration from a supermarket which has long been scattered in the US.
Impressed at the fact of how consumers are free to choose what and how they want, the idea arose Ohno developed a pull system. In this system, each production line into a supermarket for the next production line. Each line will only replace items, which are required or selected by the next line so that the system is very lean (commonly called lean production system). Ohno also created kanban (card marker) for charging stock components or assemblies results were not yet finished (subassemblies).
To enhance the automobile business, Toyota requires emotional network with a high degree of precision and material supply system is fixed and rooted. Everything should be facilitated properly as successful and productive framework. In addition, continued innovation such as the use of robots in the production process.
which makes Toyota turned into a champion in the car business is not only of technological innovation. Which makes it the winner in the car business is a superior human asset administration, and solid devotion to maintain the quality. HR in Toyota developed in the middle of the shortcomings and obstacles in the primary decade to create a solid framework into the corporate culture.
"At Toyota, training occurs not because we are sending employees to training seminars for several days in the Toyota Production System. The training was run by itself because we threw all employees in practice, day after day," said Ken Kreafle. "Then, as new people enter the work environment, he will be absorbed in the culture that has been formed."
Kreafle who have joined Toyota for 18 years explains the biggest challenge lean production system, not to tell TPS, is patience to apply it constantly, day after day, year after year. Because, once again, the gradual improvement made, little by little, but never stop.
That is why, when you want to apply TPS in the US, the bosses at Toyota City was not sure if it would work. Understandably, there is a wide cultural gap between people in Japan and in the US. Create exploring possibilities; Toyoda Jr. in 1984 signed a partnership with GM to ope rationalize a joint production facility called New United Motor Manufacturing Inc. in Fremont, California. The NUMMI plant produces the Corolla sedan and Tacoma truck (Toyota) and Chevrolet Prism (owned by GM). The result was positive.
"I know very well that the only way that TPS can be executed in the US is that every employee side by side in the same direction," said Gary L. Convis. Join the NUMMI management team since the beginning, Convis become second largest Toyota factory bosses were established in 1986 in Georgetown, Kentucky. "The core of TPS is to find ways to make all the employees involved," said the first non-Japanese who commanded this Toyota plant.
Coinciding with the development of the Georgetown plant, Toyota also established offices in Cambridge, Ontario (Canada). in 1996, Toyota re-opened processing plant in Indiana and established assembly in Erlanger, Kentucky. After that Toyota set up three processing factories and modern hardware in Huntsville, Alabama.
The success of Toyota to expand to the United States accompanied by the invasion of other continents: Europe, Australia, Africa, and Asia other than its own. Create serve the market are very diverse, they set up a research and design in few places outside of Japan, of course in the US.
Great attention to the US market (which indeed accounts for the biggest profit) has made Toyota experienced Americanized. "America is getting to be a global test lab Toyota," wrote Fortune in the December issue of 2003. Traditionally, according to the prestigious economic magazine-basis, Toyota conducted an experiment a new concept in the Japanese market and launched into the US after all the existing shortcomings patched. Now, Lexus introduced a luxury sedan in the US in 1989 will be shipped to Japan in 2005.
Moreover, Toyota also launched another new brand, Scion, in the US. More stylish, this product is targeting the youth as the target consumer. "We serve Generation Y ... concept other than the other!" said Jim Farley, Scion VP, in the launch of the first two models of the new product in L.A. Then, accompanied by frenetic hip-hop arose when two minivans unique silvery curtain lowered.
The shape? One, Scion xB, 15 cm shorter than the VW New Beetle but higher and angular (AKA shaped box). Using the same machine PK 108, the other one, Scion xA, more rounded and inclined like an egg. In short, what is shown Toyota with Scion very different from the Camry, Toyota Corolla or any other product that we know? Apparently, welcome Gen Y in the US is very festive. The next model is designed in the US and costs $ 16,500, the Scion tC, sold 6297 units during the three months since its launch last July.
Market acceptance among Gen Y's obvious Toyota relief officials. Known as a brand that has high reliability - not cool - the average age of buyers of Toyota no less than 48 years, one of the oldest among Japanese car buyers. Guyon among the automotive industry, Toyota Avalon is the best Buick that was not made by GM.
Therefore, without the Scion's success in attracting consumers, the company worth US $ 121 billion would slip and fall, because the brand Mercury (Ford) and Oldsmobile (owned by GM that has been discontinued). Understandably, the youth market is already saturated by a relatively inexpensive Korean cars (Hyundai and Kia), as well as low-end models from Nissan, Honda, Chevrolet, and Ford.
Therefore, as not to be stuck in the circle of low-end products only provide a thin margin, Scion relied on imaginative design, and reliability of the product is no longer as usual. That is, Toyota must do a quantum leap, alias Kaikaku.
In the history of Toyota, Kaikaku has swung several times (one of which is the opening of a factory in the US when the value of the yen rocketed unbearably). However, a quantum leap in design is a new thing for them. Here, the manager with a background (market) the US plays an important role. Admittedly, courage CEO Fujio Cho, Toyota's Georgetown plant skipper since its inception in 1987 until he returned to Japan in 1994, the Americanization is not small.
Jim Press is one of the officials from the Americas. He was one of two people who are not from Japan who was appointed as directors. He Has extensive experience and expertise in the fields of engineering, EVP and COO. He is the one who has the expertise and strengths in creating designs that suit the tastes of the world market.
Press start to show the sharpness of smell to taste persuade the US when in 1991 the Toyota engineers to change the design Previa which time it had become a machine in the middle of a minivan that consumers want: A large box with three rows of seats and lots of cup holders. After all, the new name is fluttering after in 1995 he is believed to fix the Lexus product line began to ripen. Toyota itself when it is being threatened by the appreciation of the yen and the planned increase in luxury tax proposed by President Clinton. With the launch of a luxury SUV under the Lexus banner (model LX450), Press provides a solution to the multidimensional problems.
When competitor such as BMW and Mercedes-Benz launching their exclusive SUV, Lexus has introduced the second-generation product. Even the Press brings Lexus crossover SUV to its product line. He updates this category by offering the Lexus RX300, the vehicle all-wheel-drive sedan that seemed built on the platform for passenger vehicles instead of trucks. Now RX (which has reached the RX330 models) became the best-selling Lexus products.
The success of Toyota in the hybrid product line also thanks to the sharpness of the Press reading tastes of consumers. The first to launch eco-friendly cars are Honda, the Insight, in 1999. When it launched the second-generation hybrid, Honda used the conventional Civic body. Press candidate futuristic design for the Toyota hybrid products so that people know the advanced technology inside. Consumers, including Hollywood celebrities, like so Prius steal the show at the Oscars.
When Press the fact that the (potential) customers will wait up to 6 months to get a Prius, he urged Toyota increases production of cars that are expensive and still subsidized. Therefore, Toyota also overtook Honda in the car category this future.
The success of Toyota minivan that dims revitalize the market is also not free from the interference Press. He suggested that Sienna, which was launched in 1998 and for US consumers too small redesigned. When Sienna 2004 model relief and costs the US $ 1,500 to enter the market, sales took off. The same strategy is applying to truck products.
With Scion targeting the youth market, efforts first started with Project Genesis, which failed because of Genesis only polish existing products, such as Echo, proved more interesting old quarters. Press, who first proposed to include two models are being tested in the Japanese market, Toyota its, to put the United States and given a new brand: Scion.
Make distribute Scion, Press decided dealers need not develop new distribution channels such as the Lexus 14 years earlier. Starting in 2003, he put this product in existing dealers, even with their own spatial and hip young staff. Less than two years Scion sales have to exceed the target of 100 thousand units. One success factor is the Scion tC models. By Press, sporty car that watched this development should use high-quality materials, such as aluminum instead of plastic trim.
By leaps of innovation in design in various production centers, is not an exaggeration if we say Toyota has done a global revolution that is beautiful. Development and production (Kijang) Innova - MPV, which has the same platform with the engine Hiluxpickup launched in Thailand at the same time. This is a global revolution that beautiful chain of Toyota. Change of marketing strategy with a local design makes Toyota became the best-selling products in many countries.
However, to realize Vision 2010 is not enough just to a quantum leap in design, although it has adapted to the local flavor. Toyota still must expand production wing for serving the increasing market demand. So far, the global strategy planned in the field of production has made samurai automotive industry has 46 factories spread in 26 countries outside Japan. In addition, they continue to immerse US $ billions, from Latin America to China and Indonesia.
Dana is certainly not a problem for companies with solid balance sheets and cash of US $ 20 billion more, plus shares of blue chips. Possible social constraints? Very small, if any.
Unlike when establishing a manufacturing facility in the US in early 1980, the government is now scrambling to woo Toyota to invest in his country. This is because the politicians are more interested in the development of their respective regions, rather than thinking about the fate of competitor Toyota. Even the US consumer does not care that GM, Ford, and Daimler Chrysler will fall due to excess production of them, especially the sedan car segment.
All walks of life in the US appears to have convinced even Toyota to build a factory outside the US will not help the sales of the car that are not competitive, which will only attract buyers if the discounted completely. In a state that has been worse this, it would be better if Toyota set up a production facility in the US alone. Transplant Toyota who thrived at least will provide lasting employment. Except that, when Toyota made in America was exported, certainly would bring in foreign exchange.
Trends in this direction started fast. In other countries? The situation is not much different, in the midst of the global economic system that is increasingly opened. With Thus, it seems there is little doubt that the Beautiful [R] evolution. Which was launched complement the legendary reliability of the products that will make Toyota were able to seize 15% of the global market as they are targeting? With the condition of GM that its market shares was less than 15% and continued to fall. It is quite possible they will displace the old giants of the throne Detroit was the largest automotive company in the world.
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