Toyota to Establish Virtual Venture Company

Tokyo―TOYOTA MOTOR CORPORATION (TMC) announced today that it will create on August 1 a new internal organization called the Virtual Venture Company (VVC). As the twenty-first century approaches, the business environment is transforming rapidly in unprecedented ways. TMC is adapting to these changes by re-engineering and restructuring itself during what it has termed its "Second Foundation Era."

To ensure harmonious growth into the next century, it is essential to earn the favor of the current young generation who will be the leaders and trend setters of the future. Therefore, the VVC's activities will be planned and carried out by younger TMC employees, targeting this "new generation" of mostly twenty-somethings. To facilitate rapid progress on projects, the VVC will function as if it is located outside of the existing corporate structure, as if it is an independent corporation.

The VVC will consist of a company president and several management staff, as well as innovative designers, concept engineers, and other staff brought in from outside of TMC-creating a broad network of enthusiastic, creative young people. Moreover, in order to respond quickly to changes in the market and customer needs, the VVC will examine speedier decision-making procedures that break free from conventional organizational constraints.

The VVC will focus on planning and commercializing activities designed to provide new products and services for the new generation. In doing so, various information related to its activities will be collected and disseminated. It will also provide a forum for exchanging views with those outside of the VVC, both from Japan and overseas, on wide-ranging issues such as product planning.

In the midst of TMC's 60th anniversary, the establishment of the VVC will serve to speed up implementation of drastic structural reforms, which proved so difficult under the existing organization, and will accumulate vital knowledge from within Toyota and without. Through such innovative projects as the VVC, TMC hopes to maintain its position as a vigorous corporation into the next century.