Toyota's Objectives in Global Automotive Industry

Topics: Automotive industry, General Motors, Renault Pages: 5 (1197 words) Published: May 26, 2004
TOYOTA'S OBJECTIVES IN GLOBAL AUTOMOTIVE INDUSTRY

ECONOMIC CONTRIBUTIONS

The automobile industry is America's largest manufacturing industry with total auto industry and related employment numbering 13.3 million, a new Center for Automotive Research study shows. The majority of those jobs are in supplier and related industries. About 6.6 million jobs are connected to automotive manufacturing and new vehicle sales. This generates more than $240 billion in annual private sector compensation. (Automakers Drive U.S. Economy on Many Different Levels, New Study Show, 2003)

The following is the findings of the study "Contribution of The Automotive Industry to the U.S. Economy":

*The auto industry is responsible for more than 100,000 jobs in each of several industries, including dealerships, fabricated metals, auto parts, auto repair and maintenance, road construction, tire dealerships, fueling stations, and car washes.

*The auto industry is responsible for more than 50,000 jobs in each of several other related industries, including plastics and rubber, trucking, computers and electronics, petroleum and machinery and equipment.

*The auto industry is responsible for more than 25,000 jobs in each of several more related industries, including advertising, textiles, aluminum and recycling.

*The auto industry also provides thousands more jobs each in the rail industry, the steel industry, the painting and coating industry, the glass industry, the copper and brass industry and the iron industry.

*The automobile industry provides among the highest levels of wages and benefits in the private sector, averaging $69,500 in 2001.

*The auto industry boasts a value added of $292,000 per worker, 143 percent higher than the overall value-added ratio for U.S. manufacturing ($120,000).

*The automobile industry invests more in research and development than any other industry -- $18.4 billion in 2000.

*The automobile industry directly employs 1.3 million Americans in all 50 states.

*2.2 million U.S. workers are employed indirectly by auto industry suppliers and other industry-related companies.

*Expenditures of auto industry employees create an additional 3.5 million jobs nationwide.

Toyota aims to be a major economic contributor and first-tier automobile manufacturers. As an example of the series of economic contributions, Toyota has invested over $10 billion in the U.S., and its dealers have spent nearly $9 billion more. Nationwide, Toyota directly employs 28,000 Americans and another 95,000 more work for Toyota dealerships. That's a total of 123,000 American jobs, and it is more than Microsoft, Oracle and Coca-Cola in combined.

Following Toyota's principal of "thinking globally but acting locally," the company has eight U.S. manufacturing facilities and a ninth under construction. About two-thirds of the cars and trucks Toyota sells in the U.S. are now built in America. With 1.6 million in sales last year and a 10 percent market share so far this year, Toyota is the third best-selling automobile brand in the U.S., behind Ford and Chevrolet.

While there are some positive signs boosting a fragile economy, the automobile sector has not been immune. Toyota will continue to see shakeups and reorganizations within the automobile industry as costs are brought in line with the deflationary economic environment.

ACCELERATING GLOBALIZATION

*Plan for Globalization

To ensure the timely delivery of vehicles that cater to customer needs in diverse regions around the world, Toyota is simultaneously advancing the globalization and localization of its operations. In the current competitive market, Toyota is taking the initiative by devoting itself to developing a highly appealing product lineup.

Toyota is leveraging its full lineup to advance the penetration of its vehicles in markets worldwide and to establish a solid operating platform that is regionally balanced. To create a stable operational base,...
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