Didier Leroy Executive Vice President, Member of the Board of Directors
Didier Leroy
Executive Vice President, Member of the Board of Directors

Facing a once-in-a-century industry turning point, Toyota is accelerating initiatives to transform into a mobility company. Reinforcing competitiveness, we are pursuing development initiatives globally.

Initiatives under way include mobility services that look beyond the bounds of our conventional car sales business. Such services let more customers use Toyota vehicles while facilitating the efforts of diverse stakeholders to foster a hydrogen-powered society.

In addition, we continue to reinforce our brand to attract customers. These efforts comprise three pillars. The first is the "Start Your Impossible" global corporate campaign, launched in 2017. This campaign reflects Toyota's aim of becoming a mobility company providing mobility for all and aligns with Toyota's spirit as a worldwide partner of the Olympic and the Paralympic Games.

The second pillar is eco-cars, an area in which we are leveraging our strengths. Focusing on eco-cars and the Plant Zero CO2 Emission Challenge, we are transforming the way we make cars while working to protect our home planet―the Earth. The third pillar is motor sports through GAZOO Racing. Involvement in motor sports facilitates the further enhancement of ever-better cars and helps foster a love of cars among more people.

Customer tastes and technologies are evolving faster than ever. It is imperative that Toyota muster its entrepreneurial spirit to enhance its competitiveness worldwide. The foundation of such efforts will be the Toyota Way as applied to sales, namely, the "best in town" approach and Genchi Genbutsu (onsite, hands-on experience).

Being the "best in town" means starting from the assumption that markets are different in each country and region and then listening, learning, and taking appropriate action on the ground. Genchi Genbutsu entails visiting target markets to gain a true understanding and taking action.

By promoting Toyota Way sales worldwide and advancing sales activities designed to secure constant improvement, I am confident that we can become the top mobility company in the hearts of customers.

Transformation Begins in JapanConfronting Global Challenges Head On

As Toyota works to transform into a mobility company, it is rolling out new initiatives first in Japan.

Business Transformation in Japan

Based on the J-ReBORN Plan, launched in 2016, Toyota and its domestic sales companies aim to revitalize Japan as a whole as well as on a regional basis. To this end, Toyota is shifting its focus from sales channels to sales regions. We are looking to revise our structure and work styles accordingly. By doing so, we aim to meet the needs of customers in each region and reinforce cooperation with the government and with other companies. Ultimately we will transform our business model by providing new mobility services.

These efforts kicked off in Tokyo, where changes in mobility services are already the most advanced. In April 2019, we merged four directly managed dealers in the region to establish Toyota Mobility Tokyo.

Under the new company, the Tokyo region has taken the lead in commencing sales of all models at all sales outlets. Originally, we were aiming for a gradual transition to the new approach at all of our 6,000 nationwide sales outlets over the 2022―2025 period, but we now expect to complete the shift by May 2020.

In terms of new mobility services, we have successfully trialed KINTO, a monthly set-price subscription service for individual customers, in Tokyo and are now rolling it out across Japan.

Our business is based on the personal relationships of trust with customers built by our nationwide network of 6,000 sales outlets and 110,000 employees. We will work on reinforcing existing businesses. At the same time we will expand lifestyle service businesses. These businesses help our customers and regions solve day-to-day issues.

Supplying power
Supplying power

For example, fuel cell vehicles, plug in hybrid electric vehicles, and hybrid vehicles could be used to augment the power supply in areas without power due to typhoons, flooding, or other natural disasters. We are also working on raising awareness so that customers are able to put such vehicles to use in times of emergency.

In the existing automotive business, we have already streamlined logistics by integrating genuine Toyota parts distributors with auto supply companies. To strengthen our customers' car sales business, we have implemented comprehensive sales initiatives encompassing the entire value chain, including sales, maintenance, and the handling of used vehicles. Going forward, focusing on vehicle usage, we will advance the development of services for corporate customers, the KINTO beloved car subscription service, and car sharing for individuals to build a platform that will meet customer needs. Evolving quickly and reinforcing our earnings structure, we will invest in lifestyle service businesses and advance activities aimed at being the "best in town."

Our business expansion plans begin with developing mobility-related services. By taking on the mobility issues faced by customers in regions across Japan, we believe we can develop lifestyle service businesses. These include store-based services that continue to serve customers long after they give up their driver's licenses due to age.

By providing personal, heartfelt services that address issues faced by its long-time customers, Toyota aims to be their lifelong close and trusted partner.

December 2019
Didier Leroy
Executive Vice President, Member of the Board of Directors