Toyota: Technology and Moral Action

Toyota CEO, Katsuaki Watanabe says he isn't concerned with being the No.1 car producer in the world. But he is concerned with giving customers what they want. A concern that has become increasingly apparent in recent years, as demands for Toyota vehicles continue to rise. Toyota's Prius, the world's best selling hybrid car, can be given credit for much of Toyota's global popularity. Ironic since a decade ago Toyota started the race in hybrid technology (documented by the Toyota Earth Charter in 1992) while the rest of the industry stood by to watch. Today car giants such as GM and Ford are struggling to keep up, working hard (and fast) to announce their hybrid vehicles. The Prius is in such high demand that Toyota is expecting to sell through their 60,000th car, the limit for customer tax breaks, by the first half of the year. This discouraging news means no more write offs (of up to $3400) for new Prius owners, but we honestly don't think it will make a difference.

A large part of Toyota's success has no doubt come from their conscious-minded business decisions. They've taken the industry by storm, showing that people want to buy from a company that makes them feel good. "A car that embraces my value system? I've got to have it." While people like Toyota cars for a variety of reasons, a big one lies in the fact that Toyota has stood up and said, "we care." And in the midst of today's ongoing corporate scandals and cut backs, that means a lot. Toyota has given green an edge; they've made it accessible and highly desired by infusing it with technology and moral attraction. Their focus on sustainable transportation recently won them the What Car? Magazine's 2006 Green Award, a recognition they no doubt deserve. In addition to making green cool, they've also made it convenient, an essential part of capturing any new market. The Prius has a self-charging capability, and doesn't need to be taken off-road for the battery to be restored. And the fact that they're using both gas and electricity allows the Prius to drive just like a regular car. No super slow driving or extra cautious handling here, as the Prius performs at the same level you'd expect from any other Toyota.

In addition to their environmentally aware design choices, Toyota is welcoming yet another new market, running the first ever bilingual Super Bowl ad. Toyota's Camry Hybrid was featured in a commercial that showed a Hispanic father comparing hybrid technology to speaking Spanish and English with his young son. The parallel between being bilingual and using hybrid technology is well suited to their audience, seeing as how the Camry is the third most popular car among Hispanics in the United States. This embrace of different cultures and languages comes at a time when the Hispanic population is growing rapidly, and when other companies still aren't paying this audience the attention that perhaps they should be. Toyota's message is loud and clear, they want to make their products accessible to everyone. They know what it's like to be a minority and they are working against alienating others; yet another reason for Toyota's quickly growing global embrace.

The proof of Toyota's worldwide acceptance can be found in their sales numbers, if the barrage of Corollas, Camry's, and Prius' that can be seen on streets everywhere isn't enough. Watanabe announced a 10 percent jump in production for 2006, resulting in an output of more than 9 million vehicles. And not to worry, while Toyota is excited about all this growth, they're staying committed to the high-quality manufacturing they're so well known for. In order to accommodate heightened production, Toyota has announced several new plants in addition to creating extra capacity in existing ones. Toyota's production spans more than a half-dozen plants from the Czech Republic to Texas, and is ready to add more sites if necessary. Part of their expanding production can be attributed to the new or revamped models (six or more) scheduled to be launched within the next year including a hybrid Lexus GS and the Tundra pickup truck. If we still haven't convinced you of Toyota's skyrocketing success, R.L. Polk & Co. might be able to. Their annual survey announced that Toyota beat Ford, the leading company for almost a decade, in customer loyalty. It was reported that 55 percent of Toyota owners who bought a new car during 2005 bought another Toyota, ousting Ford by 1.6 percent. The reason for the win? Toyota is regarded highly in areas of quality and reliability, two things that every driver can respect.

Toyota has proven that disruptive innovation works, they have illustrated that people want to find a higher truth in today's products. Their strategy is one to be admired because they've taken something that people either love, hate, need, or reject, and made it friendly to everyone. They've tamed the shady car company lion to make way for a petting zoo. People want to approach Toyota and they don't need a pushy sale or glitzy add-ons because they feel like they're making the right decision intuitively. The sense of accomplishment one has knowing that one is doing their part to save the world lasts long after the excitement that buying a new gas guzzling, exhaust emitting car can offer.
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