Toyota finally toppled General Motors to become the world's biggest carmaker for the first time in 2008. However, a series of problems, not least the tragic 2011 Japanese earthquake, caused sales to slump alarmingly at the turn of the decade. Toyota regained the #1 position once again in 2012. The company has a firm grip on its home country with controlling stakes in fellow carmaker Daihatsu and leading truck manufacturer Hino, and combined market share in excess of 40%. Above all, though, Toyota is keen to establish itself as a global motor manufacturer not a Japanese exporter. It has taken care to adapt its products to local tastes with region-specific cars like the Camry in the US and Avensis and Corolla in Europe, and has worked hard to shift the majority of its non-domestic production outside Japan. Never one to rest on its laurels, Toyota has consistently pushed into new areas, the most notable of which has been its pioneering success with the Prius fuel-electric hybrid. Yet not even the best-run of the world's auto manufacturers was able to withstand the impact of the sudden decline in the global car industry from 2008 onwards. This led to a substantial loss for the financial year, the first in Toyota's history. Potentially more damaging, though, were serious lapses in quality control which prompted a massive vehicle recall in 2010, and a criminal investigation by a US federal grand jury. Ultimately no technical faults were proven, but Toyota's reputation was sullied by the whole affair and it received a $1.2bn fine for failing to cooperate with investigators.
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Adbrands Weekly Update 30th Jul 2015: Carmakers have been having a generally good year, with sales in Europe in particulart, at their best levels since before 2008. At the top end of the market, Daimler shifted a record 500,700 Mercdes-Benz units in 1H, while revenues and earnings were both above expectations. Profit margins hit 10.5%, the first time in a decade the company achieved a double-digit margin. General Motors' 2Q profits quadrupled year-on-year to $1.2bn as it put recall and quality worries behind it. European losses also improved significantly. The numbers were ahead of expectations, although revenues slipped 5% to $37bn on currencies. Ford too had a great quarter, with net earnings up 44% to $1.9bn, and its biggest quarterly profit from automotive operations sicen 2000. A key element in all three companies' results was their continuing resilience in an otherwise slowing China market. However, rival Hyundai suffered a sharp fall. That contributed to a 6th consecutive decline in quarterly profits for the Korean manufacturer. The China slowdown also weighed on Volkswagen Group, but not enough to stop it from overtaking Toyota to seize the #1 spot in global sales for the first half of the year, with shipments of 5.04m vehicles. Toyota suffered a 1.5% decline to 5.02m vehicles, while GM remained in third place at 4.9m units.
Adbrands Weekly Update 2nd July 2015: Julie Camp resigned her post as chief communications officer for Toyota following her arrest for importing prescription drugs into Japan. When she was appointed to her role in April, Camp became the first woman ever appointed to Toyota's management board and one of very few high-level non-Japanese managers at the company. Last month she received a package from home containing the legally prescribed painkiller oxycontone, and was arrested at her hotel. Though this drug is available on prescription in Japan as well as the US, its importation is strictly controlled. With Toyota's support, she pleaded ignorance of the country's pharmaceutical laws, but the public embarrassment, especially of the company's top public relations executive, and its first non-male, non-Japanese managing officer, was deemed untenable.
Adbrands Weekly Update 14th May 2015: Toyota reported figures for the year ended March 2015. Exchange rates caused reported revenues and earnings to increase - indeed profits hit a high of almost Y2.2 trillion, a record not just for Toyota but for any Japanese company. Toyota expects a further, though smaller, increase in the current year. Nevertheless, there was a slight decline in the US$ equivalent, with revenues dipping to around $248bn and net profit to $19.8bn. Total vehicle sales for the year to March were 8.97m cars and trucks, down almost 2% as increased volumes in North America failed to offset a decline in Japan and the rest of Asia.
Adbrands Weekly Update 19th Mar 2015: Toyota has signed off a eight-year deal to become a top tier sponsor of the Olympics. The $1bn contract runs from 2017 to 2014 and includes the 2018 Winter Olympics in South Korea and 2020 Summer Games in Tokyo. It is the first automobile manufacturer to become a global sponsor, alongside McDonalds, Coca-Cola, Procter & Gamble, Visa, Samsung and others. In the past, other companies have agreed one-off domestic sponsorships, such as BMW for the London Olympics 2012 and Volkswagen for the 2014 Winter Games in Sochi. Toyota's deal shuts out Korean manufacturer Hyundai from the 2018 Games, and could potentially block Chinese and US manufacturers from the 2022 and 2024 events. Beijing and Boston are among the cities competing for those two bids.
Adbrands Weekly Update 12th Mar 2015: The Volkswagen car brand got off to a spectacular start for 2015, registering huge sales increases in China, Germany and several other European markets. According to market watcher Focus2Move, which compiles monthly sales data from over 120 global markets, the German giant raced past rival Toyota to become the top-selling car brand globally in January. Combined volumes jumped 11% to 620k units, compared to a 3% decline for Toyota to 612k.
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Free for all users | see full profile for current activities: The world's #1 car manufacturer. Not bad for what is still in some ways a family firm. Founded by patriarch Sakichi Toyoda in 1918, it is still run by a family member (although non-family executives held the CEO role from 1995 to 2009). The original Toyota business was very different from the motor manufacturing powerhouse of today. Sakichi Toyoda's company was the Toyoda Spinning & Weaving Company. But the development of automatic looms in the 1930s, and the engines to run them, suggested to Sakichi's son Kiichiro that he might be better off moving into a more productive industry. He renamed the company Toyota - easier to write in Japanese characters than Toyoda - and steered it in a new direction making automotives. The company turned out its first prototype vehicle, the Model AA, in 1936, and Toyota Motor Company was set up the following year. Nevertheless, looms remained a key part of the business for the next 15 years. It was only post-war turmoil that shifted the company's focus more firmly towards the motor industry.
Development in the 1950s was rapid. The company established overseas offices in Taiwan and Saudi Arabia early in the decade, and moved into industrial vehicles with the launch of a forklift truck in 1956. But the real step forward came in 1957 with the development of the Toyopet Crown automobile, the first model designed for export to the world's largest car market, America. Toyota Motor Sales USA was formed in 1958, and operations were quickly established in Brazil, Australia and South Africa in the years that followed. A UK office was founded in 1965. In fact the Crown was a failure in the US, designed for the compact Japanese environment rather than the wide-open spaces of the US. But Toyota refused to give up, and the Corolla, launched in 1968, was an enormous success, allowing Toyota to displace VW as America's #1 auto importer by 1975. From 1967 to 1982 the company was led by Eiji Toyoda, nephew of founder Sakichi Toyoda, and it was he who spearheaded its expansion into international markets.
Toyota spread around the world over the following years. In 1984, a joint venture was formed with General Motors, New United Motor Manufacturing, to build Toyotas in the US. A similar, but short-lived, operation was formed in Australia four years later. To broaden their range, the company launched its Lexus line of luxury cars in 1987 and in 1992 Toyota established the Duo sales operation to market Volkswagen and Audi cars in Japan. Toyota established another joint venture with General Motors in 1999 to develop environmentally friendly fuel cells to replace petrol, and launched Toyota Mapmaster to develop computerised car navigation systems.
The group pushed into electric cars with the full launch of the Prius, a hybrid "gas-electric" car competitive with conventional automobiles but twice as fuel efficient. Launched in Japan in 1997, it was rolled out globally from 2000. The Vitz, which launched in Europe in 1999 as the Yaris, was the company's bid in the ultra-compact car market. Also in 1999, the group launched an ambitious consumer project in Japan, forming an alliance with other manufacturers including Panasonic to launch separate products under a shared brand, WiLL. Toyota was the driving force behind the project launching the stylish WiLL Vi sub-compact car in 2000. Two further models followed, the five-door, five-seat WiLL VS in 2001, followed by the WiLL Cypha in 2002, a car with email and internet access facilities built-in. The project was eventually discontinued in 2004.
Meanwhile the company also began aggressively diversifying its business in Japan. In 2000, Toyota acquired a 5% stake in Yamaha Motor, a subsidiary of piano manufacturer Yamaha Corporation, for Y10.5bn ($96m); and increased its stake in ailing Hino to almost 34%. Japanese truck sales plummeted 28% in 1998, and Hino notched up losses of Y35bn ($326m). In April that year Toyota agreed to invest Y120bn ($1.13bn) in KDDI, a new Japanese telecoms group created by the merger of its IDO subsidiary with DDI and KDD. At the same time Toyota announced it would join with railway and cable TV operator Tokyu Corp and Sony to provide an internet service for broadband networks.
Meanwhile Hino continued to struggle. Toyota boosted its shareholding to over 50% in 2001 and installed one of its own executives as the company's President. Meanwhile the group formed a joint venture with PSA Peugeot Citroen, based in the Czech Republic, to manufacture small cars for launch in 2005. In 2002 the group agreed a joint venture with China's leading motor manufacturer First Automobile Works (FAW) to produce up to 400,000 cars annually by 2010.
Toyota announced an overhaul of its senior management team in early 2005. Fujio Cho, regarded as the architect of the group's aggressive expansion since 2000, announced his retirement from day-to-day management mid-2005. In a highly uncharacteristic situation for Toyota, the company was accused in 2006 of covering up vehicle defects and was ordered by Japan's Transport Ministry to improve recall procedures. The company had already recalled more than 1m vehicles in Japan, and also issued a recall of 400,000 SUVs in the US. See full profile for current activities
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