Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

The Toyota Motor Corporation also known as TMC has been around for decades and in 2010 was the world’s largest automobile manufacturer by production.  The Toyota Motor Corporation group companies are Toyota, Lexus, Daihatsu and Hino Motors along with several non-automotive companies. The TMC is part of the Toyota Group, one of the largest conglomerates in the world.

The Toyota Group took a knock due to the economic crises in 2009, however, in 2010 Toyota was determined to increase its production line and in essence, gains momentum again despite forecasting a significant loss for operating results. Unfortunately, under these conditions, consolidated vehicle sales globally, decreased by 330,000 units, or 4.4%, to 7.2 million units in the financial year 2010 compared with the financial year 2009.  However, due to the active introduction of new products and the efforts of dealers nationwide, vehicle sales in Japan increased by 218,000 units, or 11.2%, to 2.2 million units in FY2010 compared to FY2009.  Meanwhile, overseas vehicle sales decreased by 548,000 units, or 9.7%, to 5.1 million units in FY2010 compared to FY2009, because of the sales decline in Europe and other regions, despite the sales expansion in Asia.  In addition a series of recall matters on approximately eight million cars, has affected the brands performance and image.

Nonetheless, in 2011, the Toyota Group’s brand value increased from $26 billion to $29 billion meaning the group’s ranking in the updated global standings has risen to 8^th from 14^th. Primarily this was due to an improvement in the company’s forecast revenues.

The Toyota Group’s values and beliefs system has been developing for several years. It is known collectively as the ‘Toyota Way’ which underlines the Toyota Motor Corporations managerial approach and production system. This management philosophy is an expression of values and guidelines that all Toyota employees are encouraged to embrace. It consists of principles in two key areas: continuous improvements and respect for people. Essentially, it is a system that was designed to provide the tools for people to continually improve their work. Its philosophy is reflected in terms of ‘Lean Manufacturing’ and ‘Just In Time Production’.   

Positive Aspects

Ford Motor Company and Toyota Motor Corporation—the world's two leading manufacturers of hybrid vehicles—today announced they will equally collaborate on the development of an advanced new hybrid system for light truck and SUV customers. 

The two companies will collaborate as equal partners on a new hybrid system for light trucks and SUVs.  This agreement will aim to accelerate consumer availability of a new hybrid system with the collaboration of two global leaders in hybrid vehicles and hybrid technology. Both companies aim is to increase great fuel efficiency without compromising the capability they require in their vehicles.  The two companies will be working on a feasibility study for the next year, with the expectation that the new hybrid trucks and SUVs will debut later this decade.

Negative Aspects

Toyota Motor Corporation has recalled a large number of its vehicles since November 2009.

Toyota were scrutinised with the shocking news that thousands of its cars were being recalled due to reports that several vehicles experience unintended acceleration and pedal entrapment. The recalls were initiated by the Toyota Motor Corporation and as a result sales of multiple recalled models were suspended for several weeks. 

The recall was announced by the Toyota Motor Corporation and the brand suffered immense speculation from media around the world reporting that the recalls were a consequence of too much emphasis on profits had which resulted in manufacturing defects.   However in February 2011, with the involvement of NASA to test the faults, they released findings into the investigation which concluded Toyota’s problems were mechanical not electrical.

 

Toyota left reeling from the aftermath of the Japan earthquake and tsunami.

It was announced the Japanese automobile, Toyota has been left defeated after an earthquake and tsunami devastated most of the Japan in April 2011.  It has been reported a 77% drop in net profit for the January-March quarter of 2011.  The drop has severely hindered the full-year report that was looking initially looking promising. Toyota also suffered further when it cited commodities prices and the high value of the yen were negatively affecting its business. The strength of the yen makes Japanese car makers less competitive internationally, which may see Toyota’s margins constrict for now until economic conditions are less volatile.

 

 

Last changed September 2, 2011

League tables

Toyota appears in the following brand league tables:

Rank 15 in the Global 500 2012.
Rank 14 in the Global 500 2011.
Rank 14 in the Global 500 2011.
Rank 10 in the Global 500 2010.
Rank 10 in the Global 500 2009.
Rank 13 in the Global 500 2008.
Rank 16 in the Global 250 2007.