Create a new account

It's simple, and free.

Toyota Motor Corp.

Toyota Motor Corporation is Japan's largest auto maker and ranks third in the worldwide market (Ozaroff, March 18, 1994, p. 112). It manufactures the Camry, Corolla, Celica, Tercel, Previa and Supra under the Toyota brand, and additional vehicles under the Lexus brand, which are sold at different dealers than Toyotas. The company builds its vehicles in Japan, the United States and 21 other countries.

Toyota's profits are under great pressure and sales in Japan are down because of a drop in unit shipments and a switch by customers to lower-priced models. The recent increases in the value of the yen have depressed export profits, as well. Prospects for Sales growth in Japan appear small, and the company is losing market share in the United States overall: unit car sales were off 5.8 percent in the first two months of 1994, although light truck sales increased 2.5 percent during the same time. Toyota's primary Japanese rivals posted increases from 17 to 34 percent during the same period, despite the strength of the yen. Japanese manufacturers have agreed not to increase their penetration of the depressed auto market in Europe until the end of the century, further hampering growth potential for the company (Ozaroff, March 18, 1994, p. 112).

Toyota also faces increased competition from American car manufacturers in the American car market. American car manufacturers do not face the problems of currency exchange that Japanese auto makers are currently contending with, and have the additional marketing advantage of a "Buy American" sentiment which is prevalent in the domestic market. In addition, American cars and light trucks are regaining a reputation for quality that was lost during the 1980s, and have benefited from the additional value that they have received by keeping their prices low while Japanese manufacturers have raised theirs (Kerwin, April 26, 1993, p. 29).

Toyota's primary strength comes from its position as t...

Page 1 of 11 Next >

More on Toyota Motor Corp....

Loading...
APA     MLA     Chicago
Toyota Motor Corp.. (1969, December 31). In LotsofEssays.com. Retrieved 07:06, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1689861.html