Toyota overhauls its company structure to be more product-based – aims to produce ever-better cars

Toyota C-HR Geneva live 1

Toyota is looking to make ever-better cars in the future. To do so, the automaker has decided to promote the continued development of its workforce, as well as making substantial changes to its structure in order to streamline work processes on a company-wide basis. The changes will take effect in April 2016.

This overhaul is meant to create a company built around product-based organisations, rather than function-based organisations. Toyota president Akio Toyoda said, “I would like to make this an opportunity to strengthen our workforce and further promote making ever-better cars. Whether or not this structural change turns out to be the right solution or not is in our hands.”

Other objectives of this move include linking work processes ranging from R&D to manufacturing, enable individual business units to make decisions more quickly and independently, and strengthening the functions responsible for formulating mid-to-long term objectives and corporate strategies.

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The move will result in the creation of seven product-based in-house companies – Innovative R&D and Engineering Company; Toyota Compact Car Company; Mid-size Vehicle Company; CV Company; Lexus International Co.; Power Train Company; and Connected Company. Full responsibility and authority will be given to the president of each in-house company, who will be responsible for short- to mid-term product strategy and development.

Furthermore, a new Frontier Research Center will be set up, tasked to develop new technologies and business models from a long-term, society-based perspective, actively seeking input from external research organisations and Toyota Group members.

To date, Toyota has already put in place several structural changes in its efforts to make ever-better cars, enhancing the strength and autonomy of regional operations, and emphasising the importance of genchi-genbutsu (on-site learning and problem-solving) in training personnel.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • mr yun on Mar 02, 2016 at 6:27 pm

    Toyota produce outdated car for asian market…

    Like or Dislike: Thumb up 34 Thumb down 7
    • StupidFans on Mar 02, 2016 at 9:03 pm

      Toyota finally admits they are currently producing junks to maximize profit

      Like or Dislike: Thumb up 26 Thumb down 4
    • Jimmy on Mar 02, 2016 at 10:55 pm

      That’s why I said before: a Toyota is a Toyota.
      If you own brandnew luxurious German vehicles and brandnew Toyota Alphard 3.5 V6, you will know.

      Like or Dislike: Thumb up 12 Thumb down 1
  • I would say Asean market is the place for toyota to push out their outdated products lol

    Like or Dislike: Thumb up 27 Thumb down 7
    • alldisc on Mar 03, 2016 at 8:32 am

      in countries like Vietnam, Indonesia, Philiphine and India you cannot expect car companies to sell sophisticated models without supporting technical. this has happened in Malaysia to companies like VW and Ford. high tech yes, but whats the point when you get stranded by the road side in Temerloh and the car has to be towed back to KL? malaysia is not ready yet for that.

      Like or Dislike: Thumb up 4 Thumb down 2
      • Yes. If ultimate reliability, why bother with car. Horse & cart is most reliable

        Like or Dislike: Thumb up 3 Thumb down 0
  • skatax on Mar 02, 2016 at 7:52 pm

    I believe what Toyota try to explain is that they are focusing on project-based development; each department will have some key members participate into building a product, but still reporting and reference on their resources from respective specialist departments. And I assume each successive product will have its own Product Manager wholly responsible to ensure the new model will be as good as ever (technological and styling wise).

    I think it is a bold move considering Toyota always stick to the motto ‘if-it ain’t broke, don’t fix it’. I can only hope they put more effort to do the same in their product range in this region. So far Malaysia is the worse with limited and lifeless models. And I hope enough with the ‘TRD sportivo’ body kits but instead more substantial product varieties that makes enthusiasts appreciate the brand more.

    Like or Dislike: Thumb up 16 Thumb down 8
  • Notafanoftoyota on Mar 02, 2016 at 9:39 pm

    World’s number one car maker takes the initiative to change while it is on top. Few top companies have the resolve to do so even when they have to. Most ended up like Nokia. Very commendable move by Toyota.

    Like or Dislike: Thumb up 14 Thumb down 2
    • Jimmy on Mar 02, 2016 at 11:04 pm

      Say this to Mercedes Benz, BMW group and VW group.

      Number one car maker for mass market in term of volume.

      Is Mazda better?

      Why chosed Subaru for co-development of 86?

      Why do collaboration with BMW?

      If I have the technologies and capital/money, I will develop myself. It may sound too simple/simplistic, but you think again, honestly.

      Like or Dislike: Thumb up 8 Thumb down 4
      • camtakpro on Mar 03, 2016 at 10:24 am

        Subaru (Fuji Heavy Industry) 20%+ owned by Toyota for very long time already. Why not?

        For BMW, they want hybrid tech from Toyota.

        Don’t compare Toyota to German Facts Engineering company – VW.

        Like or Dislike: Thumb up 2 Thumb down 2
    • karam singh on Mar 03, 2016 at 8:33 am

      after reading this article, I am now becoming big supporter of Toyota. yes, the time has finally come.

      Like or Dislike: Thumb up 3 Thumb down 6
      • I no need read the article bcos I already banned Toyota long long time ago.
        Yes, the time has finally come that Toyota moving to coffin

        Like or Dislike: Thumb up 2 Thumb down 1
  • Sewel on Mar 03, 2016 at 12:39 pm

    Desain ok2la klu msuk malaysia ni kompom spec mest low pny

    Like or Dislike: Thumb up 3 Thumb down 0
  • Jobless on Mar 03, 2016 at 4:51 pm

    And at Prodon the SAME management the same marketing team and the same designers remain year after year despite continuos loses..

    Like or Dislike: Thumb up 0 Thumb down 0
 

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