Toyota Motor Company is rapidly becoming a significant force in the worldwide automotive market. With sales throughout the world, including Africa, the company is an international presence to be reckoned with. The company has had considerable success in the highly competitive North American market, where it has invested in several plants and facilities designed to reduce its costs and increase its market presence. This research examines the business and financial condition of the company and considers its future performance.
Historically, the company has one of the broadest product lines among Japanese automakers, rivaling that of General Motors in the United States. The company gives consumers several model choices in each category of automobile that it produces, and provides several trim selections for each model. Differences in national markets are taken into account with some models selling under different names (and with different features) in different countries. This breadth of offering means that the company is able to compete with a wide variety of companies without relying on only a few models to do so.
The North American market is particularly strong for Toyota, and sales reached their highest level in Toyota's history in fiscal year 1997. Market share for the company is estimated at 7.6 percent, an increase from 7.3 percent over fiscal year 1996. Where the company once incurred transportation and additional logistical costs because all vehicles sold in North America were imported from Japan, the company now is able to produce nearly two thirds of the vehicles sold in North America at North American plants and facilities. In addition, a significant number of the products produced in North America are exported to other countries, including Japan.
North American sales are particularly vulnerable to effects of foreign exchange, and a stronger yen means that Japanese products are more expensive when compared t...