Toyota's Recommendation Response At The World's Largest Automobile Manufacturer

1. What is the relationship between Toyota’s organizational strategy and Toyota Production System? TPS is viewed as the benchmark, the

Toyota is the world’s largest car manufacturer beating out Volkswagen, BMW and Daimler. They had double digit gains in April of 2014 delivering an impressive 13.3 percent more automobiles than April of the previous year. Despite the recall debacle that happened, they have been able to hold the No. 1 spot this year (Le, 2014). Toyota has numerous comparative benefits over their competition. They have a solid working model that produces high margins, a strong international brand that is known for quality and a business model that permits them to produce multiple car models for a very low amount of money while doing it at a fast pace and producing the best quality.

BMW’s main competitors on the UK market are Daimler Ag well-known with Mercedes and Maybach, Vauxhall Motors offering Opel, Ford, Audi and Volkswagen Group UK. Ford has been first on the market share for the last two years (See AppendixB), attracting the customers with a combination of price, power and efficiency. Ford’s engine technology plays a key role, reducing both running costs and emissions while delivering rewarding levels of power and performance (Ford, 2015). This model may serve as an example to BMW in terms of considering emissions causes and the public sensitivity of this matter. After the recent emission scandal Volkswagen has lost positions among the leaders in the industry and people lost their trust and respect of the company. According to estimates, the cost of the entire dieselgate scandal for Volkswagen, including government fines and settlements, private settlements, recall expense, and future loss of sales, could be up to $34.5 billion (Trefis, 2015). According to the previous source, BMW’s diesel emission was also questioned, in particular, the model X3 was reported to be eleven times above the European norms which led to a 10% decline in BMW’s stocks. Further investigations will follow in BMW’s case but nonetheless it is a serious issue and a sign that the company must be very careful with its offered products, otherwise, BMW may follow Volkswagen’s collapse. Mercedes is arguably the toughest and the most challenging competitor to BMW as both

Today, we live in a world that’s vastly interconnected. Something that happens across seas can affect a whole nation, several nations, or even all of them. Recently Volkswagen was put in the hot seat when they were caught imputing software into their diesel vehicles, that makes it show a different emissions output than was accepted by the EPA. They called this device the, “defeat device.” Thusly all of their vehicles that were diesel were marketed as low emissions which turned out to be a lie. The article on bbc.com states, “The engines emitted nitrogen oxide pollutants up to 40 times above what is allowed in the US.” This is a huge blow to the company as far as public opinion goes. They lost the trust of millions of people around the world. They have been producing allegedly clean diesel emissions for a long time now and even included that in their advertisements. Because of this scandal they were forced to recall millions of diesel vehicles with this device causing them to lose over $2.5 billion. Their first quarterly loss in the past 15 years. This sounds like a lot of money but the EPA is still considering fining Volkswagen for each car they produced and lied about. The amount they are considering charging them is roughly $37,500 for each car which leads to a maximum fine of $18 billion. That’s more than the value of most of the cars, which really shows how seriously they are taking this. Even for a giant like VW that is a massive blow financially. From now on every

Volkswagen (VW), the world 's best-selling automotive OEM, has been caught in a vehicle emissions scandal of unprecedented proportions. At least 11 million diesel-powered VW cars worldwide use a specially-coded piece of software to purposefully cheat during emissions testing. The result is that VW 's diesel cars appear sufficiently clean to government regulators – enough to be eligible for sale – but when consumers drive their cars in the real world, the vehicles ' software switches the engines ' behavior: In consumer hands, these VW diesel engines switch into a mode where they perform better (more power and more fuel efficient) but pollute up to 35 times more than during official testing.

With domestic markets becoming saturated with competition, organizations with the financial reach look to international market segments to obtain growth potential. Though not all companies hold the capabilities to obtain such a feat, Toyota has and is competitive.

Volkswagen’s (VW) 2015 scandal – involving their diesel engines tricking tests and findings of potentially massive carbon dioxide emissions – led to a recall of 11 million cars worldwide. Initial concerns about the emission levels were raised by U.S. regulators in 2014, but were largely brushed off by VW as smaller issues. Investigations were opened and, by 2015, discoveries revealed VW’s discrepancies between their statements and the truth of their practices. The fiscal cost of the scandal will amount to over twenty billion dollars total, but VW’s biggest future setback is the hit to the brand’s reputation.

As an international company in the automotive line, Toyota’s corporate social responsibility activity deals with various stakeholders with unlike interests and demands. Although, the following are the most significant groups of Toyota’s stakeholders, according to significance in affecting the firm:

Another reason Toyota gained a significant advantage was also meeting another point of Deming’s 14 points which was 5. Improve constantly and forever the systems of production and services this was evident in Toyotas production system with adopting new production procedures through in-house development with developing the ‘lean manufacturing system’ which focused on more efficient working with focusing on the best quality, lowest cost and shortest lead time (institute, 2000b) this was achieved through eliminating waste. Toyota was able achieve this new line of production management with two concepts just in time management which focused on delivery inputs to Toyotas operation facilities just in time to be used which meant Toyota was successfully able to cut costs with storage or raw materials being waiting to be used (institute, 2000b) which allowed Toyota to meet one of the Lean manufacturing criteria of lowest cost, and jidoka was concept created on automatic looms which stopped the machine when the thread broke which maintained quality within the product this was implemented

The Concern: Although initial fraud was discovered in the U.S., the larger extent of Volkswagen’s emissions deception affects approximately 11 million cars world wide, producing significantly more air pollution than previously estimated. The concern also arises that throughout the auto industry; potential other companies could be involved in similar scandals.

Volkswagen is facing diesel emissions scandal and giving GM the opportunities to regain its market share in China

“Toyota Industries Corporation was founded in 1926 by Sakichi Toyoda. It is the world’s largest vehicle manufacturer. It conducts its business worldwide. Toyota’s vehicles are sold in more than 170 countries and regions. It employs approximately 320,808 people worldwide. It leads the automobile industry in environmental technologies with the success of the hybrid technology in the Prius and Hybrid Camry” (Toyota, 2012);

Background: Toyota Motor Corporation is a vehicle manufacturing company founded in 1937 in Japan. They have since expanded to become a multinational corporation, and were the world’s largest automaker in 2016 (Schmitt, 2016).

In 2011, once small Japanese company established more than fifty years ago, is the world’s number one car manufacturer. In 2010, Toyota sold 7.308 million cars. Toyota’s

1. Discuss the strategies implemented by Toyota and Honda to achieve greater efficiency in car production.