Toyota's Global Vision: More Exciting Cars, More Profits
Today, Akio Toyoda presented Toyota’s „Global Vision“ to the press in Tokyo. Sure, there are the usual affirmations to “continue to furnish world-class safety,” and to “continue to contribute to environmental quality and to human happiness.” But what are they really up to?
- More excitement. I am hearing “more exciting cars” at an increasing pace out of Toyota. Today, Toyoda stressed again that Toyota will “offer genuinely exciting models.” Apparently, the niggling about blandmobiles had its effect.
- Hybrids and some side bets. Toyota will “expand the line of hybrid models, launching about 10 more by 2015.” But they will also “continue to develop a full range of plug-in hybrid vehicles, pure electric vehicles and fuel cell vehicles.”
- Don’t forget the ICE. Toyota will “continue to pursue further gains in fuel economy in conventional gasoline engines.”
- Focus on emerging markets. Currently, Toyota has 60 percent of its sales in industrialized nations, 40 percent in emerging markets. By 2015, the ration is expected to be 50:50.
The “industrialized nations” will need to make do with what they’ve got. Toyota’s strategy for the future sees Japan to “make the most of Toyota’s existing production capacity.” North America and Europe must “maximize productivity at existing plants and otherwise make the most of existing resources.” As predicted several times in the past, emerging markets will see an expansion of production capacity and much more localized product.
Also as previously mentioned, Toyota will cut the number of board members to 11 from 27 in June.
And what’s the bottom line? Toyoda is aiming for an operating profit of 1 trillion yen ($12 billion) and a profit margin of 5 percent. That would be double the 550 billion yen and 2.9 percent profit margin Toyota is expected to announce for the current fiscal, which ends on March 31. Toyoda would not say for when he expects these results.
At the sidelines of the press conference, The Nikkei [sub] picked up the hot tip that Toyota snatched Mark Hogan, former GM group vice president for advanced vehicle development, for their advisory committee. Hogan had left GM in 2004 to become president of Magna, but stepped down by the end of 2007.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Who cares about more exciting!? I just want Toyota to keep building dependable, long-lasting, high-quality vehicles that offer value for the money, instead of going down the same path that Chrysler, GM and Ford have preceded them on. Since Toyota started building their cars in the US the quality has tumbled to the same level as that of GM and Chrysler, and until just recently, Ford. But when Detroit started making their cars and trucks in Mexico, WOW!, the quality shot up. Why is that!? As has been suggested by others, maybe Toyota should pack up their sh it and move to Mexico. It's obvious it is working for their competition.
I have to say that I like the look of the FJ Cruiser and the 4X4 V6 Tacoma, but as far as "interesting" models that are fuel efficient, Toyota doesn't have a whole lot to offer... I always thought that's what they had Scion for.