business plan of toyota

• Innovative Prompts
• Strategies Packs
• Skills Packs
• SOPs Toolkits
• Business Ideas
• Super Guides
• Innovation Report
• Canvas Examples
• Presentations
• Spreadsheets
• Discounted Bundles
• Search for:

No products in the cart.

Return to shop

Toyota Business Model

Toyota is one of the leading automakers in the world, and its strong brand recognition has assured a significant share of the worldwide market. Such a global position has made it a sustainable long-term business model . Let’s take a look at the Toyota business model .

A brief history of Toyota

The history of Toyota began in the 1920s, as a loom manufacturer founded by Sakichi Toyoda . In little time, Toyoda developed and sold the patent for an automated loom and, after that, decided to enter the automobile industry. The first vehicles were made in the early 1930s, but Toyota Motor Company would be established only in 1937.

The company started by manufacturing compact cars and, later, expanded to other types, such as pickups, SUVs, trucks, and sports cars. Nowadays, Toyota is one of the largest car manufacturers in the world, with more than 10 million vehicles sold annually. The multinational company is headquartered in Japan, but it has operations in 27 countries and sells to more than 170 countries in the world.

Who Owns Toyota

Toyota is a part of Toyota Motor Corporation, which has Takeshi Uchiyamada as the Chairman and Akio Toyoda as the President. Among many subsidiaries, the company has the following divisions: Lexus, Ranz, Scion (which had its activities suspended in February 2016), and Toyota itself.

Toyota’s Mission Statement

Toyota’s mission statement is “ To attract and attain customers with high-valued products and services and the most satisfying ownership experience “.

How Toyota makes money

It is true that 90% of Toyota’s revenue comes from automotive sales, but the company also generates revenue from other operations, such as financial services, investments, and machinery.

• Toyota’s Automotive Business: Most of Toyota’s automobile sales take place in Japan and North America. Its strongest and most profitable brand is Lexus, with more than 10 million sales all over the world;
• Toyota’s Financial Services Business: Its financial services division grows faster, but it still represents only around 6% of Toyota’s business model’s revenue. It focuses on automotive sales financing, credit cards, and others, operating in 30 countries (about 90% of Toyota Motor Corporation markets);
• Toyota’s other business: Toyota holds stakes in other automotive manufacturers, such as Subaru, Isuzu, and Mazda. It also has interests in biotechnology, robotics, aerospace, etc. Lately, the company has been particularly oriented towards developing hybrid electric vehicles and related technology.

Toyota’s Business Model’s Performance

Toyota invests in development, design, production, and after-sales in order to maintain top quality. That has put the brand among the top automotive ones in terms of reliability, quality, and durability.

Speed and dependability

Toyota has managed to reorganize its production flow, by focusing on simplicity, thus increasing the speed of delivery. Now, the company has a just-in-time production system, with a controlled cost structure.

Toyota aims at building a strong foundation at all stages of the supply chain, from development to after-sales. In order to reach that, the company has built close and trustworthy relationships with most of its suppliers, by minimizing the number of suppliers, thus creating a long-term partnership and, this way, achieving cooperation, cost reduction, and quick response to fluctuations and innovations.

Wide range and cost

Toyota’s business model is not based on just one car, instead, it provides a wide range of products to the customers, since the company produces different models for different markets, in a well-established flexible production system. Besides, Toyota has managed to manufacture high-quality vehicles at reasonable prices. The company has tested and implemented several initiatives to reduce its operating costs and focused on local production capacities to meet the customers’ demands.

Toyota’s Business Model Canvas

Let’s take a look at the Toyota  Business Model Canvas  below:

Download FREE!

To download Toyota Business Model Canvas today just enter your email address!

Toyota’s Customer Segments

Toyota’s customer segments consist of:

• General worldwide public
• Freight companies

Toyota’s Value Propositions

Regarding Toyota’s value propositions , it can be described as reliable and high-quality cars at a reasonable price.

Toyota’s Channels

Toyota’s channels consist of:

• Service Centers
• Social media

Toyota’s Customer Relationships

Toyota’s customer relationships consist of:

• Delivery time
• Personal assistance
• After-sales

Toyota’s Revenue Streams

Toyota’s revenue streams consist of:

• Sales of products (automobiles, commercial vehicles, and engines)
• Sales of spare parts
• Services of banking
• Financing, leasing
• Commissions
• Sales from non-automotive businesses

Toyota’s Key Resources

Toyota’s key resources consist of:

• Human resources
• Intellectual property

Toyota’s Key Activities

Toyota’s key activities consist of:

• Manufacturing
• Engineering
• Supply chain

Toyota’s Key Partners

Toyota’s key partners consist of:

• Manufacturers of parts and components
• Distributors

Toyota’s Cost Structure

Toyota’s cost structure can be described as lean-oriented, with low-cost operational expenses, which include:

• Manufacturing facilities and operations
• Raw materials and components
• Distribution and logistics
• Staff compensation
• Investments in technology and R&D
• Maintenance
• Marketing and advertising

Toyota’s Competitors

• Ford: Founded in 1903 by Henry Ford, Ford Motor Company is a  multinational automobile manufacturer headquartered in Michigan. With an impressive number of 4.2 million sold units in 2020, it has a revenue of around US$ 136.3 billion;
• Chevrolet: The automobile division of the manufacturer General Motors (GM) was founded in 1911, in Michigan, just like its rival Ford. Chevrolet had around 2.4 million vehicles sold worldwide in 2021;
• Nissan: It is a Japanese multinational automobile manufacturer, based in Yokohama, Japan, and accounts for an impressive number of 4.75 million sold units in 2020, with revenue of around US$ 90.8 billion;
• Honda: Another Japanese multinational automobile manufacturer, Honda is headquartered in Tokyo, Japan, and it is also responsible for designing, manufacturing, and selling motorcycles and power equipment;
• Mercedes-Benz: Headquartered in Stuttgart, Germany, Mercedes-Benz is a luxury and commercial vehicle automotive manufacturer founded in 1926. Although it competes in the luxury segment, Mercedes was has sold over 2.1 million units globally in 2020, making it the largest brand of premium vehicles in the world;
• BMW: Another German luxury and commercial vehicle automotive manufacturer, BMW is headquartered in Munich, Germany, and it is also responsible for designing, manufacturing, and selling motorcycles, which — same as its vehicles — compete in the luxury sector of the market;
• Tesla: Last but not least, Elon Musk’s automotive and clean energy company aims exclusively at electric vehicles — but not just that. It also works with battery energy storage, solar panels, solar roof tiles, and related services. As far as it concerns Toyota, Tesla sold over 930,400 vehicles in the year 2021, and over 295,300 units of Tesla’s Model 3 and Model Y were sold in the first quarter of 2022, according to Tesla itself.

Toyota’s SWOT Analysis

Below, there is a detailed swot analysis of Toyota:

Toyota’s Strengths

• Comfortable and practical: Most of Toyota’s cars are well-equipped, with a spacious trunk and yet greatly comfortable, practical, and with technological interior space;
• Fuel consumption: Toyota’s vehicles usually present very relatively efficient results in terms of fuel consumption;
• Brand reputation: Toyota’s brand is a strong one worldwide.

Toyota’s Weaknesses

• Pricing: When compared to its close competitors, some of Toyota’s vehicle models can be seen as expensive for what they provide to the buyer;
• Conservative models: Toyota’s cars are often considered kind of conservative, usually linked to middle-aged guys.

Toyota’s Opportunities

• Hybrid and electric vehicles: As sustainability rises even further each year, Toyota can keep it going with its hybrid and electric models.

Toyota’s Threats

• Electric vehicle competitors: Tesla and other companies that emphasize their value for sustainability can be a thorn in the side of Toyota in the near future.

-> Read More About Toyota’s SWOT Analysis

Toyota has always followed its “Five Main Principles” since its foundation. They have been revised and, nowadays, the company has a set of values and guidelines that actually guide all of its decisions and operations. Besides, according to its Corporate Governance Report from 2019, Toyota has been focusing on innovative technology, especially in robotics and artificial intelligence, in order to follow any tendencies and to create new mobility services. Moreover, the company has been a leader in environmentally friendly vehicle technologies and has set a goal of killing off carbon dioxide emissions from its automobiles by the year 2050.

As to the challenges Toyota may face, its biggest one should probably remain competition from many well-established brands around the world, particularly because the company competes in all classes of vehicles, all over the globe. That’s why the company is always investing in innovation and in developing new products and tools, in order to keep adapting and anticipating how the automotive industry might change, react accordingly, and avoid losses.

Daniel Pereira

Related posts.

Berkshire Hathaway Business Model

Berkshire Hathaway business model focuses on acquiring and managing varieties of companies in multiple industries. [...]

Ripple Business Model

The Ripple Business Model revolves around a decentralized digital payment protocol and a cryptocurrency known [...]

Alibaba Business Model

The idea behind the creation of the Alibaba business model was to rewrite the way [...]

Nespresso Business Model

The Nespresso business model is known as the razor-razorblade model. The razor-razorblade model, also known [...]

BlackRock Business Model

The BlackRock business model is based on providing clients with a range of investment products [...]

Bugatti Automobiles Business Model

The Bugatti Automobiles business model centers around crafting exclusive, high-performance hypercars tailored to an elite [...]

GoodRx Business Model

Founded only one decade ago, GoodRX has grown to become one of the largest players [...]

Acorns Business Model

The Acorns business model, developed by the innovative financial technology company nestled in Silicon Valley, [...]

Leave a Reply

Your email address will not be published. Required fields are marked *

RECEIVE OUR UPDATES

Username or email address  *

Password  *

Remember me Log in

Lost your password?

Toyota Business Model: Revolutionizing The Automotive World

The Toyota business model represents a paradigm shift in the automotive industry. Toyota has managed to build an empire by combining efficiency, quality, and innovation while putting customers at the center of its operations.

Toyota’s Core Values and Principles

Lean manufacturing: eliminating waste, just-in-time (jit) production system, total quality management (tqm), customer-centric approach, embracing innovation, collaborative supplier relationships, toyota production system (tps), sustainability and environmental responsibility, global expansion and localization, continuous learning and adaptation, toyota’s key achievements, toyota’s innovative technologies, toyota’s commitment to social responsibility, future outlook for toyota, toyota’s global impact, toyota’s competitive advantage, lessons from toyota’s business model, toyota’s commitment to safety, toyota’s vision for sustainable mobility, the toyota way: a guiding philosophy.

Let’s take a closer look at the key elements that make up Toyota’s business model.

At the core of Toyota’s business model is the “Toyota Way.” This guiding philosophy encompasses two main pillars: continuous improvement (kaizen) and respect for people.

Toyota believes in fostering a culture of learning, innovation, and respect among its employees, which ultimately translates into superior products and services.

One of the cornerstones of the Toyota business model is lean manufacturing. By eliminating waste and optimizing production processes, Toyota has been able to achieve remarkable efficiency.

The company focuses on value creation, minimizing defects, and streamlining operations to deliver high-quality vehicles at competitive prices.

Toyota’s just-in-time (JIT) production system is another critical component of its business model. By closely managing inventory levels and production schedules, Toyota reduces waste and ensures efficient resource utilization.

JIT enables Toyota to respond quickly to market demands, avoid excess inventory, and maintain a lean and agile operation.

Toyota’s commitment to quality sets it apart from its competitors. The company adheres to a rigorous Total Quality Management (TQM) approach, which emphasizes continuous improvement, error prevention, and customer satisfaction.

TQM is deeply ingrained in Toyota’s organizational culture and extends to every aspect of the business, from design and manufacturing to sales and after-sales service.

Toyota’s success can be attributed in large part to its relentless focus on customers. The company strives to understand customer needs and preferences, actively engaging with them to gather feedback and insights.

This customer-centric approach enables Toyota to design and deliver vehicles that exceed expectations, fostering long-term loyalty and driving sustainable growth.

Innovation has been a driving force behind Toyota’s business model. The company has consistently invested in research and development to pioneer groundbreaking technologies and sustainable mobility solutions.

From hybrid and electric vehicles to autonomous driving systems, Toyota continues to push the boundaries of innovation, shaping the future of the automotive industry.

Toyota recognizes the importance of strong relationships with its suppliers. The company fosters collaborative partnerships based on mutual trust, shared goals, and continuous improvement.

Toyota works closely with suppliers to ensure a steady supply of high-quality components, promote innovation, and enhance overall efficiency across the value chain.

The Toyota Production System (TPS) is a comprehensive approach to manufacturing that integrates various principles and practices. TPS emphasizes waste reduction, standardized processes, continuous improvement, and employee empowerment.

This system enables Toyota to achieve exceptional productivity, quality, and flexibility in its manufacturing operations.

Toyota is committed to sustainable practices and environmental responsibility. The company actively pursues initiatives to reduce carbon emissions, conserve resources, and promote eco-friendly mobility solutions.

Toyota’s business model aligns with its vision of creating a more sustainable future, making it a leader in the global drive toward cleaner and greener transportation.

Toyota’s business model extends beyond its home market of Japan. The company has successfully expanded its operations worldwide, establishing manufacturing plants, research facilities, and distribution networks in key markets.

Toyota’s strategy combines global scale with local adaptation, allowing it to cater to diverse customer preferences and effectively compete in different regions.

A notable aspect of Toyota’s business model is its commitment to continuous learning and adaptation. The company encourages a culture of innovation, where employees are empowered to identify opportunities for improvement and drive change.

Toyota’s ability to adapt to evolving market conditions and customer demands has been instrumental in its sustained success.

Toyota’s business model has led to several notable achievements in the automotive industry. Here are some of the key accomplishments:

• Top-Selling Automaker: Toyota consistently ranks among the top-selling automakers worldwide, demonstrating the success of its business model and the popularity of its vehicles;
• Leadership in Hybrid Technology: Toyota’s introduction of the Prius, the world’s first mass-produced hybrid vehicle, established the company as a pioneer in eco-friendly mobility solutions. Toyota continues to lead the hybrid market with a diverse lineup of hybrid models;
• Continuous Quality Recognition: Toyota’s commitment to quality has been recognized through numerous awards and accolades. The company consistently ranks high in reliability and customer satisfaction surveys, further solidifying its reputation for producing dependable vehicles;
• Lean Manufacturing Benchmark: Toyota’s lean manufacturing practices and the Toyota Production System (TPS) have become a benchmark for other industries seeking to improve operational efficiency and reduce waste.

Toyota’s commitment to innovation has resulted in the development of cutting-edge technologies. Here are some of the innovative technologies pioneered by Toyota:

• Hybrid Powertrains: Toyota’s Hybrid Synergy Drive technology revolutionized the automotive industry by combining the power of an internal combustion engine with the efficiency of electric motors. Hybrid vehicles offer reduced emissions and improved fuel efficiency;
• Fuel Cell Vehicles: Toyota has been at the forefront of fuel cell vehicle development with models like the Toyota Mirai. Fuel cell vehicles use hydrogen as a fuel source, emitting only water vapor and offering long-range capabilities;
• Autonomous Driving: Toyota is actively investing in autonomous driving technology to enhance safety and convenience. Through advanced sensors, artificial intelligence, and extensive testing, Toyota aims to bring self-driving vehicles to the market;
• Connected Cars: Toyota is leveraging the power of connectivity to create a seamless driving experience. Connected cars enable real-time data exchange, enhanced navigation systems, and remote vehicle management capabilities.

Toyota places a strong emphasis on corporate social responsibility. Here are some of the initiatives and commitments undertaken by the company:

• Environmental Sustainability: Toyota is dedicated to reducing its environmental impact. The company aims to achieve carbon neutrality by 2050 and has implemented various initiatives to promote recycling, reduce emissions, and conserve resources;
• Community Engagement: Toyota actively engages with local communities through initiatives focused on education, environmental conservation, and social welfare. The company strives to be a responsible corporate citizen wherever it operates;
• Diversity and Inclusion: Toyota promotes diversity and inclusion within its workforce, fostering an environment that values different perspectives and backgrounds. The company recognizes that diverse teams lead to better innovation and decision-making;
• Safety Initiatives: Toyota prioritizes safety by continuously improving vehicle technologies and promoting safe driving practices. The company actively collaborates with organizations and stakeholders to enhance road safety worldwide.

Toyota’s business model positions the company for continued success in the future. Here are some areas where Toyota is focusing its efforts:

• Electrification: Toyota is expanding its lineup of electric vehicles (EVs) to meet the growing demand for emission-free transportation. The company aims to offer a diverse range of EVs to cater to different customer needs and preferences;
• Mobility as a Service (MaaS): Toyota is exploring new mobility solutions beyond traditional car ownership. By embracing MaaS, the company envisions a future where customers have access to a range of mobility options, including ride-sharing, car-sharing, and multimodal transportation;
• Artificial Intelligence and Robotics: Toyota is investing in AI and robotics to develop advanced driver-assistance systems and autonomous driving technologies. The company aims to enhance safety, improve traffic flow, and provide a more seamless and enjoyable driving experience;
• Smart Cities and Sustainable Mobility: Toyota envisions a future where vehicles are integrated into smart cities, enabling efficient transportation systems and reducing congestion. The company is actively involved in collaborative projects that explore sustainable mobility solutions and urban planning.

Toyota’s business model has not only influenced the automotive industry but has also had a significant global impact. Here are three key aspects of Toyota’s global influence:

• Job Creation and Economic Growth: As one of the largest automakers in the world, Toyota’s operations have created employment opportunities in various countries. The company’s manufacturing plants, research centers, and dealership networks contribute to local economies, fostering economic growth and development;
• Supply Chain Integration: Toyota’s global presence has led to the integration of suppliers and business partners across different regions. By collaborating with local suppliers, Toyota has played a vital role in developing and strengthening supply chains worldwide, benefiting both local businesses and the global economy;
• Technological Advancements : Toyota’s commitment to innovation and research and development has resulted in technological advancements that extend beyond the automotive industry. Many of Toyota’s breakthroughs in areas such as hybrid technology, fuel cell technology, and robotics have broader applications, influencing other sectors and contributing to technological progress on a global scale.

Toyota’s business model has provided the company with a competitive advantage in the automotive industry. Here are three key factors that contribute to Toyota’s strong market position:

• Quality and Reliability: Toyota’s relentless focus on quality has earned the company a reputation for producing reliable vehicles. The high-quality standards set by Toyota give it a competitive edge, attracting customers who value durability and dependability in their vehicles;
• Operational Efficiency : Toyota’s lean manufacturing practices and the Toyota Production System (TPS) have enabled the company to achieve exceptional operational efficiency. By minimizing waste, streamlining processes, and optimizing resource utilization, Toyota can offer competitive pricing while maintaining profitability;
• Strong Brand and Customer Loyalty: Toyota has cultivated a strong brand image globally, associated with attributes such as reliability, innovation, and customer satisfaction. The company’s commitment to understanding customer needs and delivering vehicles that exceed expectations has resulted in a loyal customer base, further enhancing Toyota’s competitive advantage.

Toyota’s business model provides valuable lessons for businesses across industries. Here are three key takeaways:

• Continuous Improvement: Toyota’s emphasis on continuous improvement and the pursuit of excellence is a lesson for all businesses. By fostering a culture of innovation, learning, and adaptability, companies can stay ahead of the competition and drive long-term success;
• Customer-Centric Approach: Placing customers at the center of business operations is crucial for sustainable growth. Toyota’s commitment to understanding customer needs, engaging in feedback, and delivering exceptional value has resulted in customer loyalty and market leadership;
• Efficiency and Waste Reduction: Toyota’s lean manufacturing principles demonstrate the importance of efficiency and waste reduction in achieving operational excellence. Businesses can benefit from evaluating their processes, identifying areas of waste, and implementing strategies to optimize efficiency and resource utilization.

Safety has always been a top priority for Toyota. The company’s business model reflects its unwavering commitment to ensuring the safety of drivers, passengers, and pedestrians. Here are two key aspects of Toyota’s commitment to safety:

• Advanced Safety Technologies: Toyota invests heavily in research and development to advance safety technologies in its vehicles. From active safety features like collision avoidance systems and lane departure warning to passive safety features like advanced airbag systems and reinforced vehicle structures, Toyota integrates cutting-edge technologies to enhance vehicle safety and protect occupants in the event of an accident;
• Safety Education and Advocacy: Toyota goes beyond the development of safe vehicles by actively promoting safety education and advocacy. The company conducts extensive safety research, collaborates with organizations and institutions to raise awareness about safe driving practices, and supports initiatives that aim to reduce road accidents and fatalities. Toyota’s commitment to safety extends to all road users, with a focus on fostering a culture of responsible driving.

Toyota’s business model aligns with its vision for sustainable mobility. The company recognizes the global challenges posed by climate change, urbanization, and resource scarcity and aims to address them through its business practices. Here are two key elements of Toyota’s vision for sustainable mobility:

• Electrification and Alternative Fuels: Toyota is actively pursuing the development of electric vehicles (EVs) and exploring alternative fuel options to reduce dependence on fossil fuels and lower greenhouse gas emissions. Through its Toyota Environmental Challenge 2050, the company aims to achieve zero CO2 emissions from its vehicles and operations;
• Mobility Solutions for the Future: Toyota envisions a future where mobility is not limited to individual car ownership but encompasses a range of integrated solutions. The company is investing in initiatives such as connected cars, shared mobility services, and smart city integration to create a more efficient, convenient, and sustainable transportation ecosystem. As innovations emerge, owners may seek options to sell or trade in used Toyota models in any condition for fair cash offers through specialized services. By embracing buyback solutions like cash for Toyota in any condition , outdated vehicles can exit circulation sustainably. This allows consumers to upgrade while ensuring responsible recycling under Toyota’s vision for maximized ecology. By embracing these solutions, Toyota aims to contribute to reduced traffic congestion, improved air quality, and enhanced overall mobility experiences.

The Toyota business model has redefined the automotive industry, setting new standards for operational excellence, quality, and customer satisfaction. Through its principles of continuous improvement, lean manufacturing, customer-centricity, and innovation, Toyota has achieved remarkable success on a global scale.

As the industry continues to evolve, Toyota remains at the forefront, shaping the future of mobility.

More From Forbes

Toyota’s radical 3-year plan to redefine the company.

• Share to Facebook
• Share to Twitter
• Share to Linkedin

The LF-30 Electrified concept car points to a future with autonomous driving, wireless charging and ... [+] front door pickup.

In January 2018 at the Consumer Electronics Show, Toyota president Akio Toyoda announced that his firm would shift from being an automaker to become a mobility company. 

And to achieve this goal, Toyota joined forces with SoftBank, which focuses on AI development, to create a next-generation mobility services company called MONET Technologies Corporation boasting investment and cooperative relationships with Uber and Grab among others.

However, Toyota crowning achievement as it slowly morphs into a mobility company will be its highly ambitious Woven City complex to be built at the base of Mt Fuji. This “living laboratory” will include full time residents and researchers who will live in a fully connected ecosystem powered by hydrogen fuel cells while they test and develop technologies such as autonomous driving, robotics, personal mobility and smart homes in a real-world environment.

That all sounds supremely impressive, and it is, make no mistake. But the Toyota Group, which includes Lexus of course, is a car company, and generates its profits from making and selling cars. So while it’s busy spending hundreds of millions of dollars on Woven City, it will still focus the bulk of its energy on making next generation cars and SUVs. And according to Toyota the four main strategies for the next three years are as follows: 1) to expand the number of SUV models; 2) advancing and improving hybrid models; 3) introduction of sports models; and 4) expansion of EV technology.

In the SUV genre, over the next year, Toyota Group will introduce a new Land Cruiser 300, the Corolla Cross, a new Lexus NX, Then, in 2022, the group will launch a new Land Cruiser Prado and a new super luxurious Lexus SUV.

Slated for a September 2021 debut, The Land Cruiser 300 will employ a Toyota New Global Architecture (TNGA) platform and a newly developed 3.5-liter V6 turbo and a 3.3-liter diesel turbo. A planned 3.5-liter V6 hybrid has been put on the back burner until at least 2022, according to one Toyota insider.

Netflix’s Best New Show Has A Perfect 100% Critic Score

Samsung issues update warning for galaxy smartphones as google confirms new threat, hurricane beryl strengthens to category 5 and moves towards jamaica after pummeling other caribbean islands—photos.

An all-new Lexus NX crossover is expected to land in showrooms in October 2021 featuring slightly larger dimensions and the same TNGA platform as the RAV-4 and Lexus RX. The NX will offer a choice of either a new 2.5-liter hybrid or a 2.4-liter gasoline turbo.A plug-in hybrid version will come out a year later.

In terms of its second hybrid strategy, this phraseology actually refers to six powertrains—gasoline, diesel, hybrid, plug-in hybrid, electric vehicles and hydrogen-powered electric vehicles. From what we’re hearing out of Toyota though, the most effective way to reduce CO2 emissions is not to hybridize everything, but rather to improve the efficiency and emissions of the base gasoline and diesel engines. Toyota will also use its hybrid technology to boost the power of its high performance and racing engines that propel its World Endurance Championship entries, powerplants that have helped it win the famed Le Mans 24 hour race.

That brings us to the third strategy, that of sports cars. The firm will use its more than 24 years of hybrid knowhow—since the original Prius was launched—to build a new wave of sports cars. One example we could see as early as next spring is a next-gen hybrid-powered GT86 coupe. For 2022, we can also expect to see hybrid technology appear on the next Lexus IS F and a 660-hp LS F, a new Corolla Sports GRMN (short for Gazoo Racing Meister of Nurburgring), while in 2023, the Toyota Group is readying a GR Hyper Sports, and Supra GRMN.

While Toyota may have been late to the EV party, it will accelerate its electric efforts in the next few years starting with an EV SUV concept slated to be revealed at this year’s Tokyo Motor Show. It is also expected that Toyota will launch two EVs in the U.S. market this year and one plug-in hybrid. One of the EVs rumored to land in America by December is the C-HR EV, which is currently sold in China.

Toyota plans to sell at least 1 million EVs and fuel cell cars by 2030 with one of those cars being a production version of its radical LF-30 Electrified concept car first seen at the 2019 Tokyo Motor Show. Mirroring many of the technologies we can expect to see in future EVs and hybrids, the LF-30 employs wireless charging technology, in-wheel electric motors, self-parking and front door pickup. This is the future of mobility according to Toyota. And while most of this autonomous EV tech will probably be honed at Woven City, Toyota through its other ventures will remain a car company for the foreseeable future. There’s no doubt about that.

• Editorial Standards
• Reprints & Permissions

Join The Conversation

One Community. Many Voices. Create a free account to share your thoughts. 

Forbes Community Guidelines

Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space.

In order to do so, please follow the posting rules in our site's  Terms of Service.   We've summarized some of those key rules below. Simply put, keep it civil.

Your post will be rejected if we notice that it seems to contain:

• False or intentionally out-of-context or misleading information
• Insults, profanity, incoherent, obscene or inflammatory language or threats of any kind
• Attacks on the identity of other commenters or the article's author
• Content that otherwise violates our site's  terms.

User accounts will be blocked if we notice or believe that users are engaged in:

• Continuous attempts to re-post comments that have been previously moderated/rejected
• Racist, sexist, homophobic or other discriminatory comments
• Attempts or tactics that put the site security at risk
• Actions that otherwise violate our site's  terms.

So, how can you be a power user?

• Stay on topic and share your insights
• Feel free to be clear and thoughtful to get your point across
• ‘Like’ or ‘Dislike’ to show your point of view.
• Protect your community.
• Use the report tool to alert us when someone breaks the rules.

Thanks for reading our community guidelines. Please read the full list of posting rules found in our site's  Terms of Service.

Goals & Targets

The Toyota Environmental Challenge 2050 outlines Toyota’s global long-term aspirations for environmental sustainability. Mid-term milestones as well as short-term (five-year) targets have been established to support these aspirations.

Toyota Environmental Challenge 2050

The Toyota Environmental Challenge 2050 (Challenge 2050) is a set of six visionary, global challenges that seek to go beyond eliminating negative environmental impacts to creating positive value for the planet and society. Toyota Motor Corporation (TMC, TMNA’s parent company headquartered in Japan) announced these six challenges in 2015 after extensive research and internal and external consultation.

Toyota’s global goal of becoming carbon neutral across the vehicle life cycle by 2050 is illustrated on the left side of the graphic, under “Achieve Carbon Neutrality.” This is a big part of our efforts, but it is not our only focus. We are also working to find new ways to make a positive impact on our planet and society – this is illustrated on the right side of the graphic under "Achieve a Positive Environmental Impact." We seek to minimize environmental impact where possible through our focus on water conservation, increasing circularity and protecting biodiversity, all to help build a more sustainable future. 1

Through Challenge 2050, team members across the company, in every region of the world, are working to put Toyota’s global vision of Respect for the Planet into action. Challenge 2050 unites us all with a common purpose – working to be more than just good stewards of the environment and to create positive changes beyond our facility boundaries.

Within North America, we continue to refine a regional environmental sustainability strategy to align Toyota’s global values and Challenge 2050 with our regional focus areas – Carbon, Water, Materials and Biodiversity. In each focus area, we are working towards minimizing environmental impacts and, through outreach activities, to find new ways to make a positive impact on society and the planet.

[1] The long-term aspirations, mid-term milestones, and short-term targets and statements set forth on these webpages are forward-looking and relate to the manner in which Toyota intends to conduct certain of its activities based on management’s current plans and expectations. They are not promises or guarantees of future conduct or policy, and are subject to a variety of uncertainties and other factors which may make them unattainable, many of which are beyond our control, including government regulation, supplier and third-party actions, and market forces.

Mid-Term Milestones

TMC has established several global mid-term milestones, including those below, to help the company achieve the Toyota Environmental Challenge 2050.

[2] TMC’s science-based targets were validated and approved by SBTi in September 2022. These targets modify slightly the targets referenced in prior reports. This target applies to passenger light duty vehicles and light commercial vehicles. Emissions are measured in grams CO 2 e/km, well to wheel (includes GHG emissions from the production of fuel and electricity as well as GHG emissions during vehicle operation).

[3] TMC’s science-based targets were validated and approved by SBTi in September 2022. These targets modify slightly the targets referenced in prior reports. This target includes absolute Scope 1 and Scope 2 GHG emissions from all facilities (both manufacturing and non-manufacturing).

[4] This target was updated to align with the science-based targets validated and approved by SBTi in September 2022. The percent and baseline have been adjusted for consistency with the approved targets.

Environmental Action Plan Targets

North American environmental sustainability planning, strategies and actions are driven by Environmental Action Plans, which are five-year roadmaps that help achieve incremental progress towards the global milestones and the Toyota Environmental Challenge 2050.

Cookie Consent

• Business Solutions

The right options for your business.

Save valuable time and leave the work to us..

We'll help make financing your vehicles easier so you can get back to business. Whether you're looking to finance or lease, we'll be right there to walk you through the process and make sure your business thrives.

The benefits of our Business Solutions Finance Plans 1

Enjoy full-ownership benefits from day one.

• Competitive APRs
• Flexible terms up to 84 months
• Seasonal payment plans (not available in all states)
• Unlimited miles
• No excess wear and use charges
• Eligible new, certified and used Toyota vehicles, and new and used non-Toyota vehicles
• Balloon financing available in limited states

Consider this plan if you expect to use your vehicles for the long term and/or plan to operate them in a way that would exceed limits under a lease.

The benefits of leveraging our Business Solutions Lease Plan 1

Make the best use of your cash flow with lower monthly payments through a lease option. New and Toyota Certified Used Vehicles are eligible. 

Closed-end lease plan 2

Full use of your vehicle without the costs of ownership. It's a standard, closed-end lease with:

• Flexible terms up to 60 months
• Client responsibility for any excess mileage and excess wear and use charges at the end of the lease
• Early termination charges 3
• Opportunity to return the vehicle or purchase it for the residual value at the end of the lease

Consider this plan if you plan to replace your vehicles every two to five years and drive fewer than 15,000 miles per year.

Additional programs and services

We can help you save time and plan for the future with some additional offerings.

Vehicle credit line 5,6

Plan ahead and streamline the process of acquiring future vehicles for your business.

Benefits include:

• Pre-qualification good for 12 months, eliminating the need to go through the entire credit approval process each time you finance an additional vehicle
• Availability on all Business Solutions finance and lease options
• Helps free up cash to invest in other aspects of your business

Consolidated billing statements

Consolidate multiple billing statements into one monthly statement with summary details on individual accounts. Remit just one payment to cover all your accounts. Available on request for business customers with multiple vehicles financed.

Specialized customer service

Professional and knowledgeable customer service consultants will work closely with you getting to know you and your business so they can customize services to your needs. Call (866) 935-3388 .

Looking for more?

Here's more information and helpful vehicle and payment protection plans for business owners.

Protect yourself from unexpected covered repairs after your vehicle warranty expires. Find the right level of coverage for your needs.

Fill the gap between the insurance settlement and the amount owed on your total loss vehicle.

Avoid future payments and keep your business fleet protected.

Keep the road ahead smooth and simple with coverage for the end of your lease.

Have questions?

We've heard them all. Here are some common questions and their answers.

What types of businesses are eligible?

Small to medium-sized businesses doing business as legal entities (e.g. corporation, general partnership, limited partnership, Limited Liability Company or sole proprietorships) are eligible for TFS Business Solutions.

What type of documentation do I need to qualify?

First you'll download a credit application. Then when you meet with your Toyota dealer you should also bring: To find the Toyota dealer nearest you, use use our dealer locator. 

Who do I contact for more information on the TFS Business Solutions program?

Your local Toyota dealer can provide you with more information on the TFS Business Solutions program.

Vehicle eligibility requirements apply. Subject to credit approval through a participating Toyota dealer and Toyota Financial Services. Not all applicants will qualify. Programs not available in all states.

Usage exclusions: Vehicles used for rental, livery or for hire (e.g. taxi cabs), emergency, or law enforcement are not eligible to lease under the TFS Business Solutions Program.

Charges may be substantial if you terminate the lease early.

You are responsible for the difference between the net sale amount and the TRAC value, if the amount is less than the TRAC value

Finance and lease programs available on approved credit through participating Toyota dealers and Toyota Financial Services. Not all applicants will qualify. Programs may not be available in all areas. Programs are subject to change or termination at any time. Please see your Toyota dealer regarding finance terms, restrictions, state eligibility and program compatibility.

Vehicle credit lines are subject to additional terms and conditions.

Contact your local dealer to learn about offers in your area.

• Buy or Lease Quiz
• Buy a Toyota
• Lease a Toyota
• Rebate & Finance Programs
• Find a Program
• College Rebate Program
• Military Rebate
• Repeat Customers
• Special Offers
• Understanding Credit
• Your Credit
• Credit Tips
• Business Credit Application
• Toyota Rewards Visa ®

• Crown Signia
• Grand Highlander
• Land Cruiser
• Concept Vehicles
• Historic Vehicles
• 2025 Toyota 4Runner
• CALTY 50th Anniversary
• 2024 Toyota Land Cruiser
• 2024 Toyota Tacoma
• New Product Showcase
• Los Angeles
• Global Shows
• What’s New for 2025
• What’s New for 2024
• What’s New for 2023
• What’s New for 2022
• Images & Videos
• Latest News
• Sales & Financial
• Voluntary Recalls
• Takata Info
• Environmental
• Community Engagement
• Diversity & Inclusion
• Finance, Insurance & Banking
• Advanced Technology
• Research & Development
• Safety Technology
• Motorsports
• Company History
• Executive Bios

Media Contacts

• Takata Recall

Home > Corporate  >  Manufacturing

Toyota Texas to Expand and Add More Than 400 New Jobs

$531 million investment boosts plant’s capabilities; reinforces commitment to stable employment

SAN ANTONIO (June 21, 2024 ) –Toyota Texas is expanding its footprint with a $531 million investment bringing more than 400 new, high-quality jobs to San Antonio. The new on-site 500,000-square-foot facility will be dedicated to drivetrain parts production, further affirming Toyota’s commitment to reinvesting profits in its U.S. operations.

“Our team members are ready for this new opportunity to grow our plant’s capabilities and workforce,” said Susann Kazunas, Toyota Texas president. “They are highly capable, innovative and have a steadfast commitment to our products. We are proud to celebrate that spirit and the long-term job stability the investment represents, and we are excited to welcome 400 new team members to Toyota Texas.”

For nearly two decades, Toyota Texas has rolled out top-quality trucks and SUVs with more than 181,000 vehicles assembled last year. Toyota’s total investment in the plant has grown to more than $4.7 billion.

“Texas is proud to be the home of a global powerhouse like Toyota,” said Texas Governor Greg Abbott. “For more than two decades, Texas has been home to Toyota manufacturing. Toyota Texas’ new $531 million investment to expand their manufacturing facility in San Antonio that will create over 400 good-paying jobs is a testament to Texas’ unmatched business-friendly environment, low taxes and young, growing and skilled workforce. I thank Toyota for their continued expansion in Texas, and I look forward to strengthening our partnership as we build a bigger, better Texas for generations to come.”

$531 million investment brings more than 400 high-quality jobs and a new facility to Toyota Texas.

“This is an incredible victory for both the City of San Antonio and Toyota Texas,” said San Antonio Mayor, Ron Nirenberg. “Over 400 stable, high-quality jobs will be created in our community, demonstrating Toyota’s willingness to continue to invest in the people of San Antonio. We are extremely proud of this corporate partnership, and I look forward to all the great things that San Antonio and Toyota Texas will continue to build together.”

This investment also reinforces the plant’s flexibility with advanced manufacturing technologies as the company expands its diverse capabilities across its North American operations.

“It is exciting to see Toyota expand its footprint in Southern Bexar County. I look forward to the hundreds of new jobs and boost to our local economy, especially for the area school districts,” said Bexar County Judge, Peter Sakai. “Toyota has been a loyal and dedicated community partner for two decades, and this initiative shows the confidence one of the world’s leading companies has in Bexar County’s future.”

Team members help drive Toyota Texas forward.

“Job stability, growth and competitive pay are all reasons I found a passion for assembling trucks at Toyota,” said Christopher Rivera, Toyota Texas team leader. “During my 17-year career with Toyota, I have seen firsthand Toyota’s commitment to our team. It is exciting to help bring new capabilities to our plant.”

Toyota Texas is the exclusive home to the Tundra truck and all-hybrid Sequoia SUV, both assembled on the same production line.

Toyota Texas is hiring. To learn more, visit toyotatracktexas.com .

Additional quotes available for media use 

U.S. Senator Ted Cruz  “Texas is the best state in the nation for jobs and opportunity, and Toyota’s massive investment in the San Antonio area is further proof that if you want to do business in the United States, the Lone Star State is the place to be. This $531 million investment will bring over 400 incredible new jobs to San Antonio, and further support Toyota’s flourishing production and manufacturing in the U.S. This is a great move by Toyota, and an incredible win for the entire San Antonio region and Texas.”

U.S. Congressman Tony Gonzales  “Toyota’s expansion in San Antonio is a great achievement that will create hundreds of new jobs and spur manufacturing capabilities in South Texas,” said Congressman Tony Gonzales. “I look forward to continue working alongside Toyota to support innovation in the automotive industry.”

State Representative John Lujan  “As a proud Texas State Representative, I am delighted to see Toyota’s significant investment in our community. Investing in local infrastructure and workforce development, Toyota contributes to the overall well-being of the community. This kind of commitment fosters long-term relationships and enhances Toyota’s reputation as a responsible corporate citizen.  This expansion brings valuable jobs and underscores Bexar County’s growing reputation as a hub for advanced manufacturing and innovation,” said Rep. John Lujan.

Jenna Saucedo-Herrera, President & CEO, greater:SATX  “greater:SATX is proud to have supported Toyota Motor Manufacturing, TX Inc. (Toyota Texas) with their latest investment in our San Antonio region and we remain steadfast in our commitment to continue supporting their continued growth. Toyota Texas will invest more than $500M and create 400 new jobs for San Antonians, in addition to the more than 3,700 current direct employees and 5,600 employed by Toyota Texas’ on-site suppliers. With investments of this size and scale, particularly within the advanced manufacturing industry, we expect a significant ripple effect of additional jobs and economic impact to our region.”

Related Media

Related images.

About Toyota   Toyota (NYSE:TM) has been a part of the cultural fabric in the U.S. for more than 65 years, and is committed to advancing sustainable, next-generation mobility through our Toyota and Lexus brands, plus our nearly 1,500 dealerships.

Toyota directly employs more than 49,000 people in the U.S. who have contributed to the design, engineering, and assembly of more than 34 million cars and trucks at our nine manufacturing plants. By 2025, Toyota’s 10th plant in North Carolina will begin to manufacture automotive batteries for electrified vehicles. With more electrified vehicles on the road than any other automaker, Toyota currently offers 29 electrified options.

To help inspire the next generation for a career in STEM-based fields, including mobility, Toyota launched its virtual education hub at www.TourToyota.com with an immersive experience and chance to virtually visit many of our U.S. manufacturing facilities. The hub also includes a series of free STEM-based lessons and curriculum through Toyota USA Foundation partners, virtual field trips and more.

For more information about Toyota, visit www.ToyotaNewsroom.com .

Melinda Louden 210-748-6103 [email protected]

• + Select All
• - DeSelect All

TMMTX_Campus_Aerial

TMMTX_Supporting_Image_Team_Members

2024Toyota_Texas_Investment_HERO_Image

Related stories.

Four Reasons Why You Should Subscribe to Newsroom Connection

Toyota Alabama Expands Production With 350 New Jobs

Building on Greatness: Redesigned Toyota Camry Goes All-Hybrid at Kentucky Plant

Email sign up.

Enter your email address below to sign up for email alerts.

* Indicates Required

Thank you for subscribing. Please check your email to validate your sign up.

You are already subscribed, your mailing lists have been updated.

Copyright Notice

All materials on this site are for editorial use only. The use of these materials for advertising, marketing or any other commercial purpose is prohibited. They may be cropped but not otherwise modified. To download these materials, you must agree to abide by these terms.

We want to hear from you 📣

Can you help us by taking a few minutes to fill out a survey? Your answers will give us critical insight into what you expect (and want) from the San Antonio Report. 

Are you signed up for the Tuesday Business Report?

This new weekly digest of our business and development reporting is your must-read newsletter for local business news.

San Antonio Report

Nonprofit journalism for an informed community

Zoning commissioner asked to recuse himself from Toyota case after ‘questionable actions’

Share this:

• Click to email a link to a friend (Opens in new window)
• Click to share on Facebook (Opens in new window)
• Click to share on Twitter (Opens in new window)
• Click to share on LinkedIn (Opens in new window)
• Click to share on Reddit (Opens in new window)

The city’s Planning Commission on Wednesday signaled approval for a proposed land use plan that includes an industrial overlay surrounding the Toyota manufacturing plant on the South Side.

The commission gave a thumbs-up to the draft planning document, known as the Texas A&M-San Antonio Area Regional Center Plan , but only after softening the language around whether an industrial overlay would be implemented.

That move did not satisfy John Whitsett, a one-year member of the Zoning Commission, who has opposed the measure in public hearings and denounced it in multiple letters to officials at City Hall and executives at Toyota. 

Whitsett said an industrial overlay would unfairly affect landowners in the area, limiting future development, including affordable housing, while favoring the automaker which should pay for the land it wants to control. 

The city’s Planning Commission on Wednesday signaled approval for a proposed land use plan that includes an industrial overlay surrounding the Toyota manufacturing plant on the South Side. 

“You don’t make 3,000 people suffer for a million-and-five in the city to pay for what you deem to be important, being Toyota,” Whitsett said. 

A public input meeting focused on the issue is scheduled for Tuesday, July 2, from 4 to 6 p.m. on the Texas A&M-San Antonio campus. More information is available here . The city’s planning department set up the meeting at the urging of the zoning commission after dozens of residents who opposed it showed up at its last meeting.

The Industrial Compatibility Overlay District (ICOD) is a planning and zoning tool intended “to limit potential health, safety, and welfare conflicts between heavy industrial uses and surrounding commercial and residential uses,” according to city documents.

It is similar to overlays restricting development near the River Walk, military installations and the airport.

As the first industrial overlay in San Antonio, the ICOD would encompass the Toyota plant at 1 Lone Star Pass and create a 2-mile buffer zone where only industrial development and uses would be permitted. All existing uses are not affected. 

Overlay as tool

The proposed overlay is a component of the regional center plan that has been in development since 2018 and was offered as a “tool” the city could use to establish transitions between heavy industrial use in the area and residential and commercial development. 

“It’s an example of something that could be used,” said Rudy Niño, assistant director of the city planning department. 

He said including it in the plan addresses concerns the area stakeholders expressed in public input sessions and ensures the city is being transparent about what could happen with land use and zoning in the future. 

But the ICOD is drawn as a circle extending beyond the boundaries of the regional plan, into areas where the city has yet to begin developing regional plans, including to the east and west.

Andrew Nicholas told commissioners his land sits within the proposed overlay, but not the plan boundaries; he said he did not receive a notice about two public meetings held in April. 

“That’s really what I think everyone here today is really opposing, just the vagaries of language that extends beyond the plan boundary,” he said. “It may seem rather harmless, but the intent is to impact landowners who fall outside the boundaries of the plan.”

There’s no rush to make a recommendation, said Fermin Rajunov, a developer whose 34-acre property sits within a 3-mile Toyota buffer zone created through a 2003 Starbright Agreement. Rajunov has filed a lawsuit against the City and Toyota over the agreement.

At the hearing, the developer asked commissioners to table the item to allow more time for discussion, adding Toyota already announced it will invest another $500 million in upgrades at the plant. 

Rajunov also said he and others have not received a notice about the July 2 meeting. City staff stated that 13,000 notices were mailed last week to landowners and tenants in the proposed overlay district and to those whose property abuts the district.

Ethics question

Whitsett, who brought to the hearing three oversized maps of the area, and other documents, also spoke to commissioners. 

He pointed out that an overlay is not needed because the floodplain provides natural barriers to any kind of development south of the Toyota plant and he said the language in the plan was “feelings based,” using words like “appropriate” and “thoughtful.” “Who decides what appropriate is?” he asked. 

Whitsett said the overlay will harm landowners, limiting any future development except for industrial, and he opposes the overlay as a “private citizen who happens to be a zoning commissioner.”

In an email he sent Tuesday to city attorneys, the mayor, city manager, councilmembers and others, Whitsett said that if San Antonio officials “will not defend these thousands of owners someone has to help and I would be as guilty as the city attorneys and city manager by ignoring the knowledge I had discovered while trying to do my job as a zoning commissioner.”  

The commissioner also mailed a letter to Toyota President Susann Kazunas’ home address, asking to meet with her to “present the situation and some possible compromises.” An attorney representing Toyota said in a letter to the City of San Antonio that contacting the company’s employees using their personal addresses put them at risk of being publicly disclosed. “I want to bring to your attention … questionable actions on the part of a representative of the City of San Antonio and member of the City’s Zoning Commission,” wrote attorney Frank Burney in the letter dated June 25. “[Toyota] employees are certainly entitled to privacy in their personal lives. I request the City’s support in ensuring that such privacy is respected and maintained.”

Whitsett’s actions led Deputy City Attorney Susan Guinn in May to advise the commissioner to remain impartial and unbiased or recuse himself during the zoning hearing. City code states that a commissioner “shall not vote or participate as a member in any matter before the commission if the member has any interest in this matter, whether such interest is direct or indirect, financial or otherwise.

Whitsett told the Report in an email that while he does not comment on any zoning cases that involve private property owners, he won’t stop in this case. “I see no restrictions and will continue to speak up on their behalf,” he said.

Activism has characterized Whitsett’s last few years since retiring from an oil company. In addition to serving on the San Antonio Housing Trust, in 2016-17, Whitsett pressed the City for months to remove a Google Fiber hut installed in a park in his neighborhood, Oak Park-Northwood. In the end, Google removed the hut saying it was no longer needed.

District 10 Councilman Marc Whyte appointed Whitsett to the commission last year. 

“The fact that he’s showing up to Planning Commission and speaking out against this overlay, as far as I’m concerned, yes, he’s on the zoning commission, but he’s now doing that as a private citizen,” he said. “If it was brought to my attention he violated the ethics code, then I certainly would have to look at removing him as a zoning commissioner.”

Whyte also said that, while he does not direct the commissioner on zoning cases, if the industrial overlay had come before Council last week, he would have voted against it. “It looks like we’re taking away landowners’ rights here, and I don’t like that,” he said. 

Intense zoning

At Tuesday’s Planning Commission, the 10-member panel agreed upon changes to the regional plan that left open the possibility of an overlay, but did not assure it. The commissioners also voted in favor of applying the ICOD only within the borders of the plan.

Even with those edits to the plan, the process to implement the ICOD is moving forward, Niño said. 

Zoning will hear the case at their July 16 meeting, which starts at 1 p.m. at 1901 S. Alamo St. The zoning item will be delayed until 6 p.m.

Whitsett said he will attend that meeting and fight against what he said is destructive ICOD downzoning. “It is a waste of resources and is not needed except to fix the contract zoning issue associated with Starbright,” he said in an email to the Report.

Niño said the ICOD is unrelated to Starbright and more about a very large property with intense zoning. 

“So just like with any other major industrial district, there are some safety concerns,” he said. “You want to make sure that public health and safety is number 1, and that we’re maintaining a vibrant, economically viable industrial district on the South Side.”

City Council has the final say on all planning and zoning matters.

SOUTH SIDE LATEST

Toyota to expand plant, add 400 jobs after city and county offer economic incentives

Southside schools celebrate STAAR achievements, draw comparisons to Northside

More from san antonio report, listen: george hernández looks back on nearly 20 years as university health ceo, after 8 years, san pedro apartment complex for low-income and homeless renters nears completion, meet the organization doing the work that brings work here, shari biediger.

Shari Biediger has been covering business and development for the San Antonio Report since 2017. A graduate of St. Mary’s University, she has worked in the corporate and nonprofit worlds in San Antonio... More by Shari Biediger

• Personal Finance
• Today's Paper
• Budget 2024
• T20 World Cup
• Partner Content
• Entertainment
• Social Viral
• Pro Kabaddi League

Toyota to launch EV with advanced self driving system for China in 2025

Gac toyota is developing the system with momenta global, a startup that develops autonomous driving software for automakers including mercedes-benz.

The automaker also said it would roll out an iron phosphate lithium battery during 2026 and 2027 that could reduce the production cost of its bZ4X EV by 40%. (Photo: Reuters)

Listen to This Article

M&M may surpass Tata Motors, Maruti Suzuki in PV segment in June: Nuvama

Amara Raja signs licensing agreement with GIB EnergyX for Li-ion cells tech

Steelbird Hi-Tech eyes 30% revenue growth this year on high domestic demand

TaMo announces third price hike for CVs in 2024 amid rising commodity costs

Tata Motors-owned JLR drives up plan to invest Rs 1.9 trn till FY28

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 28 2024 | 11:07 PM IST

Explore News

• Suzlon Energy Share Price Adani Enterprises Share Price Adani Power Share Price IRFC Share Price Tata Motors Share Price Tata Steel Share Price Yes Bank Share Price Infosys Share Price SBI Share Price Tata Power Share Price
• Latest News Company News Market News India News Politics News Cricket News Personal Finance Technology News World News Industry News Education News Opinion Shows Economy News Lifestyle News Health News
• Today's Paper About Us T&C Privacy Policy Cookie Policy Disclaimer Investor Communication GST registration number List Compliance Contact Us Advertise with Us Sitemap Subscribe Careers BS Apps
• ICC T20 World Cup 2024 Budget 2024 Lok Sabha Election 2024 Bharatiya Janata Party (BJP)

Jun. 28, 1995

Toyota Announces New Global Business Plan

Tokyo―TOYOTA MOTOR CORPORATION (TMC) announced today a new global business plan that will provide mid- and long-term direction to its future business activities.

The plan was created in response to increased globalization of economies and to the new economic environment resulting from recent rapid valuation of the yen. It focuses upon "Further Localization" and "Increase of Imports", and will accelerate TMC's international business activities toward 1998. Toyota will work towards achieving the "Mid-Term Global Business Plan" announced in March 1994 as well as the plan announced today. The specifics of the plan are as follows:

Further Localization

• Local production of vehicles The proportion of overseas-produced vehicles in worldwide sales (excluding sales in Japan) will increase as production in foreign countries/regions is expanded further. Specifically, the percentage is projected to increase from the 1994 level of 48% to around 60% in 1996, and around 65% in 1998. The shift from vehicle exportation to local production will accelerate and be most evident in North America. In Europe, Asia, and Oceania, the ratio of locally-produced cars will be increased as well, taking in consideration the changes in economic circumstances such as the exchange rate.
• Procurement of parts, materials, and equipment Local procurement activities of parts, materials, and equipment will be further strengthened in each region through the seeking of capable suppliers and various support activities for current suppliers. Toyota will also engage aggressively in technology transfer, increased investment, and establishing regional parts complementary programs in areas where localization has previously been difficult. To further strengthen the relationships with overseas suppliers, a "Toyota Global Optimized Purchase System" will also be introduced at various locations worldwide. (See 2. Increase of imports for further details)
• Increase annual production capacity at Toyota Motor Manufacturing, U.S.A., Inc. (TMM) to 500,000 units in 1998. (1994 production was 285,000 units.)
• Increase annual production capacity at Toyota Motor Manufacturing Canada, Inc. (TMMC) to 200,000 units in 1998. (1994 production was 86,000 units.)
• Addition of models produced The models produced in North America will also be increased. Presently, there are four models: the Corolla, the Camry, the Avalon, and the Tacoma. The addition by 1998 of three to four vehicles, including a new minivan, will be considered.
• At present, the 2.2- and 3.0-liter engines are produced in North America. The machining operation on the engine blocks, heads, connecting rods, and crankshafts of 3.0-liter engine production will be localized, similar to the 2.2-liter engines.
• In addition to the engine plant currently under construction in Canada, U.S. production of Corolla engines will be considered. (Localization of assembly to machining operations, combined production targets are to be around 350,000 units/year)
• In addition to large-size stamped parts, approximately 300 mid- and small-sized stamped parts will be made in North America by 1998. Mid- and small-sized stamping requires particular precision and thus has been difficult to localize.
• Increase of exports Vehicle exports from North America will also be further increased. Toyota will especially work towards increasing vehicle exports from the U.S. (1994 figure: 63,000 units)
• Increase in local production capacity Annual production capacity at Toyota Motor Manufacturing (UK) Ltd. (TMUK) is targeted to increase to 200,000 units in 1998. (1994 production: 85,000 units)
• Addition of models produced In addition to the Carina E currently produced, TMUK is to start producing a car in the Corolla series from 1998.
• Engine production capacity will be increased to 170,000 units in 1998. (1994 production: 76,000 units)
• Also, molds, jigs, mid- and small-sized stamped parts, engine parts, and materials will be procured locally.
• Increase of exports Exports of TMUK-produced cars, which are presently only exported to other European countries, to regions outside of Europe will start. Exports of engines and engine parts to Japan and other regions will also be increased. Last year, TMUK exported 2,500 engines to Turkey, and over 35,000 units worth of engine block and crankshaft units to Japan.
• Construction of a commercial vehicle plant in Taiwan (Scheduled production capacity to be 110,000 units/year combined with the existing passenger vehicle production. 1994 production was 65,000 units.)
• Philippines plant to be expanded (Increase in capacity to around 60,000 units/year in 1998. 1994 production was 30,000 units.)
• Thailand plant to be expanded (Increase in capacity to around 200,000 units/year in 1998. 1994 production was 110,000 units.)
• Expansion of the Indonesia plant (Increase in capacity to around 150,000 units/year in 1998. 1994 production was 80,000 units.)
• Continued investigation of possibilities of passenger car production in China. Furthermore, the Toyota Technical Center, China, opened this spring, will support localization of auto parts, motor vehicle production, and product development.
• Addition of models produced Toyota will begin development and local production of a passenger car specifically for Thailand, Indonesia, and the Philippines.
• Start of power steering production (target production capacity in 1996: 130,000 units/year) and production of lower ball joints (target production capacity in 1997: 100,000 units/year) in Malaysia
• Increase engine production capacity in 1996 to 100,000 units/year in Indonesia (1994 production: 70,000 units)
• Start production of constant velocity universal joints in the Philippines (target production capacity in 1997:110,000 units)
• Increase engine block production capacity in Thailand to 350,000 units in 1998 (1994 production: 53,000 units)
• Increase of exports Toyota will seek to expand exports of auto parts in the ASEAN complementary auto parts scheme to countries in other regions. Exports from Australia will expand from current destinations in Asia and Oceania to include Middle Eastern countries from 1996.

Increase of imports

• Toyota will strengthen its sales structure in order to sell 28,000 VW/AUDI cars in 1996 (1994 sales: 19,000 cars).
• Toyota will utilize the 1,084 "Toyota" dealerships nationwide and work towards selling 20,000 Toyota Cavaliers in 1996.
• Increase imports of Toyotas produced in the U.S. In addition to increasing sales of the Scepter line already introduced in Japan, the Avalon was introduced this May. Target sales in 1996 for these cars are set at 25,000 units.
• Overseas Supplier Guidebook An "Overseas Supplier Guidebook" will be published, outlining Toyota's purchasing policy, its procurement system, evaluation criteria, and ways to access the company.
• Search program for new suppliers and technology Toyota will further promote the following; organizing exhibitions for new products of overseas suppliers at local Toyota entities, searching for competitive parts which are currently being used in other makers' vehicles, organizing design competitions for parts among qualified suppliers, and making the full use of business meetings.
• Support programs for current suppliers A program in which the supplier and Toyota discuss and agree on mid- to long-term improvement targets, and work continuously toward achieving them, thereby enhancing competitiveness and expanding business opportunities.
• Global Cost-Comparison System As a backup system to 1) and 2), Toyota will keep a database which will enable all Toyota entities around the world to make a comparative analysis of the cost competitiveness of parts around the world.
• Study the establishment of a new company for procuring and marketing foreign and domestic general replacement parts and accessories during 1996.
• Strengthen support for the parts wholesalers to increase sales of imported parts.
• Send out a letter to the dealers, stating once again that the handling of foreign makers' vehicles are not subject to prior consultation with Toyota, and that they are free to handle them.
• Send out a letter to the parts wholesalers, stating that they are free to handle foreign makers' parts and accessories.
• In response to the concerns among foreign makers that they will face problems in gaining access to Toyota dealers, Toyota will consider establishing an internal "grievance body" to handle questions and concerns on handling foreign makers' cars.

The numerical figures raised in this business plan may change depending on economic circumstances such as the exchange rate and market conditions. Toyota will do its utmost to accomplish the plan.

Toyota sold $2 bln worth of cross-held listed shares in FY2023/24, filing shows

• Medium Text

Sign up here.

Reporting by Daniel Leussink; Editing by Muralikumar Anantharaman

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Business Chevron

Exclusive: Vista Equity in talks to hand over Pluralsight to creditors, sources say

Private equity firm Vista Equity is in talks to cede control of its company Pluralsight to lenders, according to three people familiar with the matter and fund documents reviewed by Reuters.