Toyota Crisis

Toyota Company was established in the year 1937. Its main activities are the production of vehicles and sales. With its headquarters based in Japan, Toyota has employed over three hundred thousand employees. Toyota Company belongs to the motor vehicle industry where competition is tight even though Toyota is leading on the number of vehicles being sold on a daily basis. Toyota operates in 51 countries worldwide.

Cole, R. E. (2011). What really happened to Toyota? MIT Sloan Management Review, 52(4), 29-35. Retrieved from http://search.proquest.com.library.capella.edu/docview/875531966?accountid=27965

As if this weren’t enough, quality problems mounted week after week. Only months later in February 2010, the NHTSA revealed that it had received claims citing another life threatening defect in the break system for the Toyota Prius. More than 400 thousand Prius recalls resulted. In April of 2010, customers reported handling issues in the Lexus brand which resulted in another recall of 9,400 Lexus cars and a “Don’t Buy: Safety Risk” rating from Consumer Reports. Also in April, the company voluntarily recalled Siennas to address a problem with corrosion on a spare tire cable. Later that month, Toyota voluntarily recalled 2003 Sequoia SUVs to improve the stability controls. 2010 Tacomas were also recalled for defective front drive shafts. Once the quality icon, Toyota had hit a really low point; so low that credit

The closures of Holden, Toyota and Ford will result in the loss of up to 27,500 jobs nationally by 2017, of which approximately 5,000 (18 per cent) are in South Australia and approximately 18,000 (66 per cent) are in Victoria. Holden and Toyota have indicated that they will maintain production operations until 2017.

General capitol for the recall can be raised by providing ownership of the company through equity financing. The advantage of this is essentially, the financing is forever, unless of course Toyota chose to buy back the stock. The greatest flexible advantage to Toyota with equity financing is of course the payback period is endless. Some disadvantages to equity funding for Toyota is the higher cost versus debt financing and the clear fact they cannot determine the return. The capitol appreciation of the stock and dividends, if paid, cannot be guaranteed, thus higher risk is a factor worthy of careful consideration.

Toyota Motor Corporation (TOYOTA) is one of biggest automaker in the world. Main products are a passenger car, truck, bus, RV etc. The company headquartered in Toyota, Aichi, Japan which employed 300,734 people worldwide and was the third largest automobile manufacture in 2011 by production behind General Motors and Volkswagen Group. Toyota is the eighth largest company in the world by revenue (around 200 billion USD) in 2011. The company reported it had manufactured its 200million cars in 2012.

In 1994 Toyota was the world’s third largest seller of vehicles (at 4,580,000 units), following GM (at 8,420,000 units) and Ford (at 6,800,000 units) respectively. TMC’s Total Market Share and Total Retail Sales in 1994 are as follow:

Toyota said its quarterly net income fell 18.5% and decline to provide full-year forecast due to flooding in Thailand. Toyota reached its net profit to 13.5 percent to 80.9 billion yen in the last three months of 2011, which occurred in massive disaster of

Toyota is one of the leading manufacturers of vehicles in the United States and across the globe. Toyota is ranked #55 in Forbes, World’s Biggest Public Companies, and capturing sales of 202.8 billion and a market cap of 137.8 billion as of March 2011

In 2008, Toyota's sales surpassed General Motors, making Toyota number one in the world. In 2010, Toyota employed 350,005 people worldwide, and was ranked the third-largest automobile manufacturer in 2011 in terms of production, behind General Motors and Volkswagen Group. Toyota is also ranked as the eleventh-largest company in the world by revenue. In July 2012, the company

In 2009 Toyota Motors (TM) posted a net loss of $4.6 billion ("Market watch," 2014). From 2009 to 2011 Toyota encountered a number of factors contributing to their economic downturn. It began with recalling millions of vehicles, for quality related problems, followed by natural disasters hitting northeastern Japan. These disasters wiped out Toyota’s production capabilities (Tabuchi & Vlasic, 2014). While these events were occurring, the cloud of the 2008 global financial crisis was still being felt. This crisis weakened demand in the automotive industry. This weakened demand increased the competitive landscape for all automotive manufactures. This drove down automotive prices and effectively contribution margins (i.e. sold less

Currently recession is prevailing in the market so the global car sale of Toyota is showing a downward trend. Also changes in interest rates, inflation and currency rates can act both as a threat and an opportunity. Inflation rates differ from country to country for instance in Japan the inflation rate is relatively low as compared to USA. The lower the interest rate, the better its for Toyota since the

• Toyota crisis responded passive, two months after the fatal crash that happened in California, Toyota forced to recall products.

Toyota is a key player in global automotive market. Its structure constitutes if various production plants in different locations and a very strong branding which helps it capture a major market share. Like other enterprises, Toyota has several strengths and weakness which makes it what it is now. Toyota heavily invests in Research and development which helps it come up reputable product line which is spread out throughout the world because of its strengthening global distribution network however its recent product recalling, loose grip in key geographic areas and wrong allocation of resources shows that even a strong brand like Toyota has its weaknesses.

For the fiscal year ended March 2004 the Toyota Motor Corporation achieved revenues that totalled Y17, 294.7 billion ($159.4 billion), an increase of 11.6% against the previous years revenues that were Y15, 501.6 billion. The company experienced significant increases of 11.6% and 1.6% in its Automotive and Financial Services division respectively.