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Chapter 1-

Introduction and

company history


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Toyota Motor CorporationToyota Jidsha, is a Japanesemultinationalautomaker

headquartered inToyota, Aichi, Japan. In 2010, Toyota employed 325,905 people

worldwide,and was the third-largestautomobile manufacturerin 2011 by production

behindGeneral MotorsandVolkswagen Group. Toyota is theeleventh-largest

company in the world by revenue. In July 2012, the company reported it had

manufactured its 200 -millionth vehicle.

The company was founded byKiichiro Toyodain 1937 as a spinoff fromhis

father'scompanyToyota Industriesto create automobiles. Three years earlier, in

1934, while still a department ofToyota Industries, it created its first product,

theType A engine, and, in 1936, its first passenger car, theToyota AA. Toyota Motor

Corporation group companies are Toyota (including

theScionbrand),Lexus,Daihatsu, andHino Motors,along with several

"nonautomotive" companies. TMC is part of theToyota Group, one of the largest

conglomerates in the world.
http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Toyota,_Aichihttp://en.wikipedia.org/wiki/Toyota,_Aichihttp://en.wikipedia.org/wiki/Toyota,_Aichihttp://en.wikipedia.org/wiki/Automobile_manufacturerhttp://en.wikipedia.org/wiki/Automobile_manufacturerhttp://en.wikipedia.org/wiki/Automobile_manufacturerhttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Volkswagen_Grouphttp://en.wikipedia.org/wiki/Volkswagen_Grouphttp://en.wikipedia.org/wiki/Volkswagen_Grouphttp://en.wikipedia.org/wiki/List_of_companies_by_revenuehttp://en.wikipedia.org/wiki/List_of_companies_by_revenuehttp://en.wikipedia.org/wiki/List_of_companies_by_revenuehttp://en.wikipedia.org/wiki/List_of_companies_by_revenuehttp://en.wikipedia.org/wiki/Kiichiro_Toyodahttp://en.wikipedia.org/wiki/Kiichiro_Toyodahttp://en.wikipedia.org/wiki/Kiichiro_Toyodahttp://en.wikipedia.org/wiki/Sakichi_Toyodahttp://en.wikipedia.org/wiki/Sakichi_Toyodahttp://en.wikipedia.org/wiki/Sakichi_Toyodahttp://en.wikipedia.org/wiki/Sakichi_Toyodahttp://en.wikipedia.org/wiki/Toyota_Industrieshttp://en.wikipedia.org/wiki/Toyota_Industrieshttp://en.wikipedia.org/wiki/Toyota_Industrieshttp://en.wikipedia.org/wiki/Toyota_Industrieshttp://en.wikipedia.org/wiki/Toyota_Industrieshttp://en.wikipedia.org/wiki/Toyota_Industrieshttp://en.wikipedia.org/wiki/Toyota_Type_A_enginehttp://en.wikipedia.org/wiki/Toyota_Type_A_enginehttp://en.wikipedia.org/wiki/Toyota_Type_A_enginehttp://en.wikipedia.org/wiki/Toyota_AAhttp://en.wikipedia.org/wiki/Toyota_AAhttp://en.wikipedia.org/wiki/Toyota_AAhttp://en.wikipedia.org/wiki/Scion_(automobile)http://en.wikipedia.org/wiki/Scion_(automobile)http://en.wikipedia.org/wiki/Scion_(automobile)http://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Hino_Motorshttp://en.wikipedia.org/wiki/Hino_Motorshttp://en.wikipedia.org/wiki/Hino_Motorshttp://en.wikipedia.org/wiki/Toyota_Grouphttp://en.wikipedia.org/wiki/Toyota_Grouphttp://en.wikipedia.org/wiki/Toyota_Grouphttp://en.wikipedia.org/wiki/Toyota_Grouphttp://en.wikipedia.org/wiki/Hino_Motorshttp://en.wikipedia.org/wiki/Daihatsuhttp://en.wikipedia.org/wiki/Lexushttp://en.wikipedia.org/wiki/Scion_(automobile)http://en.wikipedia.org/wiki/Toyota_AAhttp://en.wikipedia.org/wiki/Toyota_Type_A_enginehttp://en.wikipedia.org/wiki/Toyota_Industrieshttp://en.wikipedia.org/wiki/Toyota_Industrieshttp://en.wikipedia.org/wiki/Sakichi_Toyodahttp://en.wikipedia.org/wiki/Sakichi_Toyodahttp://en.wikipedia.org/wiki/Kiichiro_Toyodahttp://en.wikipedia.org/wiki/List_of_companies_by_revenuehttp://en.wikipedia.org/wiki/List_of_companies_by_revenuehttp://en.wikipedia.org/wiki/Volkswagen_Grouphttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Automobile_manufacturerhttp://en.wikipedia.org/wiki/Toyota,_Aichihttp://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Multinational_corporation


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Vision

Toyota aims to achieve long-term, stable growth in harmony with the environment,

the global economy, the local communities it serve, and its stakeholders.

Toyota will lead the way to the future of mobility, enriching lives around the world

with the safest and most responsible ways of moving people.

Through their commitment to quality, constant innovation and respect for the planet,

they aim to exceed expectations and will make the generations smile.

They also aims at meeting their challenging goals by engaging the talent and passion

of that man force, which do believes that there is always a better way.


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HISTORY /MILESTONES


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Toyota Motor Sales, U.S.A., Inc., was formed Oct. 31, 1957, establishing its

headquarters in a former Rambler dealership in Hollywood, Calif. Sales began in

1958 and totalled a modest 288 vehicles287 Toyopet Crown sedans and one Land

Cruiser.

Enthusiasm turned to gloom when it was found that the Toyopet, a sturdy vehicle with

quality features and room to spare, was woefully underpowered and overpriced for the

American market. Toyopet sales stalled and were discontinued in 1961. The

legendary Land Cruiser, which quickly gained a reputation as a durable, all-terrain

vehicle, carried the Toyota flag in the United Sates until 1965 when the Toyota

Corona arrived.

Corona, the first popular Toyota in America, was designed specifically for American

drivers. With a powerful engine, factory-installed air conditioning and an automatic

transmission, Corona helped increase U.S. sales of Toyota vehicles threefold in 1966to more than 20,000 units.

As more Americans discovered the quality and reliability of Toyota products, sales

continued to soar. By July 1967, Toyota had become the third-best-selling import

brand in the United States.

The thrifty Corolla was introduced in 1968 and, like the Corona, was a huge success

with American drivers. Corolla has since become the worlds all-time best-selling

passenger car, with over 30 million sold in more than 140 countries.

In 1972 Toyota sold its one-millionth

vehicle. By the end of 1975, Toyota

surpassed Volkswagen to become the

No. 1 import brand in the United

States. Three years later, in 1978,

Toyota won the "Import Triple

Crown" by leading all import brands

in sales of cars, trucks and total

vehicles.

During the 1970s, Toyota launched

some of its most memorable

marketing campaigns, using tag lines that included "You Asked For It/You Got It!"

and the hit "Oh What A Feeling!" campaign that included the popular "Toyota Jump."

As Toyota celebrated its 25th anniversary in America during 1982, it opened a new

national sales headquarters complex that it occupies today in Torrance, Calif. Toyota's

success continued, and in 1986, it became the first import automaker to sell more than

one million vehicles in America in a single year, racking up sales of 1,025,305 cars

and trucks. That year also marked the company's debut as a manufacturer in theUnited States, with the rollout of the first Toyota car built on American soil. The


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vehicle, a white Corolla FX16, was produced on Oct. 7, 1986, at the New United

Motor Manufacturing, Inc. plant, a joint venture with General Motors.

Since then, Toyota has established many other vehicle and parts plants in North

America. By the end of 2011, Toyota will operate 14 plants across North America,

including facilities in the states of California, Kentucky, Indiana, West Virginia,

Alabama, Tennessee, Texas, Missouri and Mississippi.

As Toyota's presence in America grew, the company sought a larger role in

communities across the nation. So, to commemorate the company's 30th anniversary

in America in 1987, Toyota established the Toyota USA Foundation with a $10

million endowment and a mission to make Toyota a leading corporate citizen.

In 1989, Toyota branched out by

establishing a luxury line of vehicleswith the debut of the Lexus LS 400

and the ES 250. Highly acclaimed

cars, plus exceptional customer

service, quickly became the hallmark

of Lexus.

In 1991, Lexus earned the title of No.

1 luxury import in the United States,

surpassing both Mercedes Benz and

BMW. That year, the brand alsodominated three independent J.D.

Power and Associates quality surveys, being named top nameplate in Customer

Satisfaction, Sales Satisfaction and Initial Quality.

Toyota continued its strong growth through the 1990s. A highpoint came in December

1997 when the Toyota Camry first earned the title of No.1-selling passenger car in

America. Toyota also launched its first full-sized pickup, the Tundra, in 1998.

Toyota marked the start of the new millennium with the launch of the Prius, the

world's first mass-produced gas/electric hybrid car. Prius, which in Latin means "to gobefore," was revolutionary, featuring an EPA-estimated fuel economy rating of 45

city/51 highway and ultra-clean tailpipe emissions that were 90 percent less in smog-

forming gases than conventional cars at the time.

By the end of 2000, following its tag line, "The Relentless Pursuit of Perfection,"

Lexus edged out Mercedes Benz by 423 units to become the top-selling luxury brand

in the United States, a position it has held for ten years running.

May 2001 marked the incorporation of Toyota Motor Sales de Mexico, Toyota's new

sales and marketing subsidiary in Mexico. By the end of the year, Toyota had grown


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to become the third-best-selling automotive brand in the United States, surpassing

Dodge with best-ever sales of 1,741,254 vehicles.

In December of 2002, Toyota delivered its first two zero-emission, market-ready

hydrogen fuel cell vehicles to customers in California for real-world testing. The next

year, Toyota's new, breakthrough hybrid technology, "Hybrid Synergy Drive,"

debuted in the all-new 2004 Prius.

Toyota's growth in America continued in 2003 when Toyota launched Scion as its

third line of vehicles. The Scion line featured three modestly priced but feature-rich

vehicles brought to market by most Toyota dealers under an innovative, youth-

oriented marketing program. Scion was a success, and in 2004, Toyota's U.S. sales

topped two million vehicles per year for the first time.

In 2005, Toyota continued expanding its environmentally advanced lineup with theintroduction of the worlds first luxury hybrid, the Lexus RX 400h, and a hybrid

option for the Toyota Highlander.

Toyota added a hybrid option to its popular Camry sedan in 2006 and began building

it in the United States at its massive Kentucky plant. The company also opened up its

10th U.S. plant in San Antonio, Texas, to build pickups. In addition, the company

launched the FJ Cruiser with a design that harkens to the early years of the rugged

Land Cruiser, the only vehicle Toyota has continuously sold throughout its entire 50-

year history in America. As a result, sales surged to more than 2.5 million for the first

time and Toyota established itself as the third best-selling automotive company in theUnited States.

During 2007, its 50th year in America, Toyota introduced its largest pickup truck

ever, the rugged 2008 Toyota Tundra, as well as the second-generation of its iconic

Scion xB urban utility vehicle and the worlds first V8 hybrid, the Lexus LS 600h.

As a result of an economic recession, Toyotas sales were down in 2008, but the

Toyota brand outsold Chevrolet to become the No. 1-selling automotive brand in

America, and Camry retained its crown as the No 1-selling car in the nation for the

11th time in 12 years. Toyota also passed General Motors in global sales to becomethe worlds largest automaker for the first time in history.

In 2009, Toyota launched two all-new

gas/electric hybrids, the third-

generation Prius with an estimated

EPA fuel-economy rating of 50 miles

per gallon in combined driving, and

the first dedicated hybrid from Lexus,

the HS 250h. Lexus also introduced

the all-new, second-generation GX460 luxury utility vehicle and the next


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generation of its trend-setting RX luxury utility vehicles, the V6-powered RX 350 and

the hybrid RX 450h. By the end of the year, total combined sales of Toyota and Lexus

hybrids in the United States topped the one million mark. In addition, Toyota Motor

Sales, U.S.A., Inc. received an environmental achievement award from the EPAs

Pacific Southwest Region Office. Toyota announced a safety recall in November to

address concerns that unsecured or multiple floor mats could entrap the accelerator

pedal on certain Toyota vehicles.

During 2010, Toyota began production of the third-generation Sienna at its Indiana

plant, however, in late January, Toyota briefly suspended sales of eight models while

it developed a fix for a rare potential safety issuesticking accelerator pedals. A fix

was rolled out in early February but heavy news coverage of the situation and

additional recalls led to Congressional hearings and the company paying three federal

penalties. Toyota took major steps during the year to improve communications and

the quality and safety of its vehicles. However, the intense media coverage combinedwith the lingering effects of the recession weakened results with the company

reporting a slight 0.3 percent drop in sales for the year. Despite the setbacks, Camry

retained its title as the best-selling passenger car in the United States, Toyota was still

the No. 1 retail brand, Lexus remained the No. 1 luxury brand, and Toyotas brand

conquest rates returned to historically high levels.

On March 11, 2011, a 9.0 magnitude earthquake struck the Tohoku region of Japan. It

was the most powerful earthquake to ever hit that country followed by a tsunami that

claimed the lives of nearly 16,000 people. Entire cities were destroyed and many

businesses were shut down, including four Toyota plants. As production startedreturning to former levels, floods in Thailand halted production in two more plants.

But, despite these natural disasters, production returned to near-normal levels by the

end ofthe year, a testimony to Toyotas resiliency and efficiency.

Toyota, along with its Lexus and Scion brands, continued to move forward in 2011

with new and redesigned vehicles. Toyota unveiled a bigger and more diverse Prius

family of vehicles, including the third-generation Prius liftback, the Prius Plug-in

Hybrid, the larger Prius v and the smaller Prius c concept vehicle. Additional Toyota

vehicles revealed in 2011 included the next generation 2012 Yaris liftback and the

completely redesigned 2012 Camry. Lexus introduced the CT 200h, a premiumcompact hybrid that earned a Top Safety Pick award from the Insurance Institute for

Highway Safety. Later in the year, Lexus took the wraps off the all-new 2013 GS 350,

GS 450h and GS 350 F SPORT with the bold new face of Lexus. Meanwhile, Scion

introduced the 2012 iQ, which along with the Toyota Camry and Scion tC, won five

star crash test ratings from the National Highway Traffic Safety Administration.

Other 2011 milestones included the sale of the one-millionth Toyota Prius in the

United States, and Toyota Motor Manufacturing Kentucky celebrated 25 years of

production in Georgetown, Kentucky. Toyota also expanded its vehicle

manufacturing in the United States and created 2,000 American jobs by beginningproduction of the Corolla at the newly opened Toyota Motor Manufacturing,


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Mississippi plant.

Through the strong efforts of its associates in Japan and around the globe, Toyota

recovered rapidly from the supply disruptions caused by the natural disasters, and in

2012 began regaining its sales momentum as dealer inventories were fully restocked.

By mid-year, U.S. sales of Toyota, Lexus and Scion vehicles had sped past the one-

million-sales mark, something that had not happened until mid-August the prior year

because of short supply. In fact, starting in March, Toyota was once again the No. 1

retail brand in the United States. The companys resurgent U.S. sales were driven in

large measure by the launch of a record number of 19 new and redesigned products.

Also contributing to the companys recovery, five Toyota and Lexus vehicles

captured segment awards and five Toyota manufacturing facilities won plant awards

in the annual J.D. Power and Associates Initial Quality Survey. In addition, Toyota

models earned five out of the 10 top spots in the Consumer Reports 2012 Top Picks,

the first time in nearly a decade that a single brand had captured half the categories.And a total of 17 Toyota, Lexus and Scion 2012 models earned Insurance Institute for

Highway Safety Top Safety Pick Awards.


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ROADBLOCKS

AND FEASIBLE

SOLUTION


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Since its establishment and right up to the present day, Toyota has always overcome

the numerous challenges it has encountered. Toyota compiled what it learned through

these actual experiences, both in good times and difficult times


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FUTURE

PROJECTIONS


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Promising continued gains in fuel economy, Toyota Motor Corporation (TMC)

Managing Officer Satoshi Ogiso outlined the launch of a new era in hybrid

technology with the arrival of the next-generation Prius, while Toyota Motor Sales

(TMS) Senior Vice President of Sales Bob Carter issued a challenge for the industry

to significantly step up its commitment to hybrids as a core technology.

As a backdrop to these announcements, Toyota gathered in one place for the first time

ever the entire Toyota and Lexus global hybrid line up. The company has sold more

than 5 million Toyota and Lexus hybrids worldwide. The environmental effect has

been an estimated 34 million ton reduction in C02the equivalents of taking 4.8

million vehicles off the road for an entire year.

I would like to see us -- as an industry -- accomplish the same thing in the U.S., said

Carter. That is5 million hybrids, cumulatively, in the U.S. by close of business

2016. That results in 3 billion gallons of gasoline saved, which is more than enough

gas for the entire population of the United States to drive from San Francisco to Los

Angeles in a Prius. Its do-able. And I think we will do it.

Stressing Toyotas furthercommitment to industry hybrid leadership, Ogiso

announced that when the next generation Prius arrives, it will begin a new era for a

broad range of Toyota and Lexus vehicles and will be the first to introduce a

substantially improved family of hybridpowertrains.

Between now and the end of 2015, Toyota plans to introduce 15 new or redesignedhybrid vehicles globally. These new hybrid powertrains will deliver significantly

improved fuel economy in a more compact package that is lighter in weight and lower

in cost. Ogiso said the performance of this new generation of powertrains will reflect

significant advances in battery, electric motor and gas engine technologies that are

part of Toyotas larger strategy towards the electrification of the automobile through

hybrid, battery electric and fuel cell technologies.

Ogiso used the next-generation Prius as an example.

The current Prius has held Americas fuel economy crown for many years, said

Ogiso. In its three generations, Prius MPG has improved on average by about 10

percent, each generation. The challenge to continue to improve at this rate -- to beat

your own record -- becomes very difficult, but makes it all the more motivating. We

are very motivated to beat our record.

The next Prius will feature improved batteries with higher energy densitythe

relationship between the batterys output and dimensions. Toyota, already a leader in

advanced drive battery technology, has stepped up its research, development and

production capacity of both nickel-metal hydride and lithium-ion and will use thesetechnologies where appropriate in its expanding focus on electrification of the


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automobile. Toyota has also ramped up development on new battery technologies like

solid state and lithium air, as well as devoting resources focused on chemistries

beyond lithium, such as magnesium and other low-valence materials.

The next Prius will also feature electric motors that will be smaller in size. He notedthat the current Prius motors have four times the power density of the first model and

that the next will be even higher.

In addition, the thermal efficiency of the gasoline engine in the current Prius is 38.5

percent. The next-generation will boost that level to more than 40 percenta world

best.

The next Prius will also utilize Toyota New Global Architecture (TNGA), featuring a

lower center of gravity and increased structural rigidity, which will contribute to

greatly improved driving dynamics.

Improved aerodynamics will contribute to an all-new exterior design. Ogiso promised

a roomier interior and significant refinement in design, layout and ease of operation.

Ogiso also said the next-generation Prius Plug-in (PHV) is being developed in parallel

with the standard Prius model.

We have been listening very carefully to Prius PHV owners and are considering their

requests for additional all-electric range. We have also heard from owners that theywould like a more convenient charging operation, Ogiso said. In response, we are

developing a new wireless/inductive charging system that produces resonance

between an on-floor coil and an onboard coil to transmit power to the battery,

providing charging without the fuss of a cable. He said verification work on the

system will be conducted in Japan, the U.S. and Europe in 2014.

Work is also progressing on Toyotas first commercially available hydrogen fuel cell

vehicle, a new mid-size four-door sedan whose concept will be unveiled at the Tokyo

Motor Show in November. That vehicle will make its North American debut in

January at the 2014 Consumer Electronics Show in Las Vegas, where Bob Carter will

discuss the role of Toyotas U.S.-based engineering team in its development, as well

as preliminary plans for introduction into the U.S. market.

Carter said that the hydrogen fuel cell will utilize core hybrid technology and will be a

primary element of Toyotas future mobility strategy.

Toyota currently accounts for more than 60 percent of U.S. hybrid sales and 70

percent of the nearly 3 million hybrids on U.S. roads today, said Carter.

Over the past 5 years, the percentage of hybrid sales at Toyota has grown from 10 to


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16 percent of our total sales mix. Honda is less than 2% and Ford is less than 3%.

And while hybrid as a percentage of the total market is just under 4 percent, we

believe that it canand must grow.


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CONCLUSIONS OF THE STUDY


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1) PERCENTAGE OF TOYOTA OWNERS

INFERENCE:

24% of the respondents were owners of TOYOTA.

76% of the respondents were owners of Else.


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2) CUSTOMER SATISFACTION RATING

INFERENCE:

83% of the respondents were satisfied with their cars and the services ofTOYOTA.

However, 17% of the respondents were dissatisfied at the same time.


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3) PREFERENCES OF BUYING A NEW CAR

INFERENCE:

18% of the respondents would prefer to buy a Toyota car against itscompetitors.

37% of respondents preferred for Maruti.

21% and 24% respectively preferred for Hyundai and Honda.


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4) FUEL EFFICIENCY

INFERENCE:

78% of the respondents felt that TOYOTA has the most fuel efficiency.

While 22% felt it is not the most fuel efficient.


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5) FEATURES OF TOYOTA AS COMPARED TO OTHER CARS

INFERENCE:

70% of the respondents felt that the features of the Toyota are good.

While 8% of respondents thought it was not so good, 10% thought it was verygood and 12% felt satisfactory about the features.

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