Jan. 01, 2004
New Year’s Greetings from Toyota President Fujio Cho
Toyota President
Fujio Cho
In the first half of last year, the outbreak of the Iraq war and the SARS epidemic were two of the factors behind the stagnation in the world economy. But in the second half of 2003, thanks to the increased pace of economic recovery in the United States and improved corporate profits and increased exports for Japan, there seemed to be more signs pointing toward economic improvement.
Looking ahead, I certainly have hopes for further recovery in Japan, the United States and the world economy as a whole, but as there are also sources of concern, such as the turbulent international situation and the appreciation of the yen, I think that we still need to proceed with caution.
Given this situation, we have continued an energetic program of product releases in Japan and overseas, implemented Lexus production in Canada, expanded local production in all regions, and taken group-wide action to reduce costs, as part of our steady efforts across the entire range of our business activities. Last year we also launched initiatives that I believe will help us to address medium-term issues, including the announcement of the reorganization of TMC’s Japanese-market Toyota-brand sales channels and the reform of our management structure.
As a result, last year for the first time, worldwide sales surpassed 6.5 million units for the Toyota Group as a whole and 6.0 million units for Toyota Motor Corporation alone. Financial results also set all-time records. It was thus a year in which I think we can say that steady progress was made.
At the same time, however, there is sure to be increased competition on a global scale in the automotive industry in the future. We are therefore aware of the need to make redoubled efforts that have a firm basis and draw on the combined strength of the Toyota Group.
On the basis of this sort of awareness, this year we will continue our vigorous program of new product releases, and as part of our reorganization of sales channels, the new Netz dealers will begin operations on May 1. This will help us to aim for further sales growth. Regarding the Lexus brand meanwhile, preparations are on track for an August 2005 launch.
Regarding overseas sales, we met our initial targets for annual sales of 2 million units in North America and 800,000 units in Europe. Additionally, the overseas sales total topped the milestone figure of 4 million units for the first time. We plan for 2004 to be another year of steady progress in every region, with the IMV project beginning its phased introduction in Asia, Africa and Latin America, the Corolla going into production in China, and local production getting under way in Mexico.
The environment is an area that we have long regarded as a priority management issue and is one in which we have engaged in vigorous activities. In the fall of last year, Japan and the United States became the first countries to see the launch of the new Prius, which will also be sold in Europe. We are glad to say that the new model has been acclaimed in various regions around the world, resulting in the large-scale expansion of the 2004 combined sales target for Japan and overseas, from an initial figure of 76,000 units to a new total of 130,000 units, or 70,000 units in Japan and 60,000 overseas.
Toyota has sold a total of over 180,000 hybrid vehicles in Japan and overseas, including the Prius, the Estima and the Alphard, and a truck jointly developed with Hino. It is our intention to draw on the combined resources of the Toyota Group to continue launching attractive hybrid vehicles across a wide range of vehicle segments, including SUVs, a model of which is already scheduled to become commercially available.
Toyota believes that there is no future for the automobile industry if automakers do not address environmental issues, and consequently we are committed to further broadening and deepening our environmental activities.
For many years now, we have focused on our wish to develop as an enterprise that is capable of winning out against global competition and continuing to grow in the 21st century. At the same time, bearing in mind the serious nature of the social responsibility we bear as a corporate citizen, every member of the Toyota team is committed to working for growth as a global enterprise that is trusted around the world and that can contribute to making society prosperous.
I look forward to your continued guidance and support in the coming year once again.
Thank you very much.
