Background and Marketing of Toyota Company

Table of Content

Company Background INTRODUCTION Toyota is one of the world’s best-known and most successful businesses, building cars and trucks in 27 countries for sale in more than 170 markets around the globe. Worldwide production was 9. 5 million (8. 5 million for Toyota and Lexus brand vehicles) in 2007, placing Toyota Motor Corporation (TMC) firmly among the world’s leading vehicle manufacturers. This result keeps it on course to achieve its ambition of becoming the world number one by the end of the decade, with a 15 per cent market share. Toyota global production in 2006 was more than nine million vehicles.

That’s the equivalent of one car coming off the production line every 3. 5 seconds, every minute, every hour, every day. A key element in Toyota’s success is its commitment to designing, engineering and building cars in the world regions where they will be sold. In Europe, this local manufacturing policy was launched in 1989 with the founding of Toyota Motor Manufacturing UK, just ahead of the opening of Toyota’s first European production centres: a car plant at Burnaston, near Derby, and an engine factory at Deeside, in North Wales.

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UK production has risen steadily and Toyota has become a key player in the nation’s manufacturing industry. With more than 75 per cent of its UK output destined for export, Toyota also makes a valuable contribution to the national balance of payments. Burnaston is responsible for worldwide production of the Toyota Avensis and has the distinction of being the first Toyota factory to export cars to the company’s “home” market in Japan. In 2004 Toyota invested a further ? 50 million to increase production at Burnaston to 285,000 vehicles a year and in 2005 TMUK’s achievements were recognised with the Queen’s Award for International Trade.

More investment followed in 2008, with the announcement of ? 88 million for the launch of production of a new petrol engine at Deeside from 2009. Britain remains an important and vibrant market for new car sales. Toyota (GB) PLC is the company responsible for sales, marketing, after sales and customer relations, employing more than 400 people at a landmark headquarters building in Surrey. In 2007 it reported its 15th year in a row of record sales, consolidating the UK’s position as one of Toyota’s strongest European markets. Toyota (GB) PLC headquarters in Epsom, Surrey.

Toyota Motor Corporation includes the Toyota, Lexus and Daihatsu brands, Hino trucks and the youth-focused North American marque Scion. TOYOTA HISTORY The Toyota success story is built on innovation, both in terms of its products and the processes by which they are made. In 1918, Sakichi Toyoda revolutionised the weaving industry with his invention of an automatic loom. The proceeds from the sale of his patent to a British firm – Platt Brothers of Oldham – provided his son Kichiro with the finances to make a start in the developing car industry.

The pioneering work practices that Sakichi had developed for his loom business were easily adapted to the new automotive operation and in 1936 the first prototype car, the Toyoda AA, was completed. Sakichi Toyoda prepared his car manufacturing business by visiting the USA and observing Ford’s production lines. Back home he adapted that system to suit the smaller number of cars to be built in his own factory. The following year the Toyota Motor Corporation was formed with an investment of about ? 300,000.

It had a tough time establishing itself, as the Japanese car market was dominated by American imports from Ford and General Motors. World War II also threatened to destroy the enterprise, but Toyota survived and in 1947 celebrated building its 100,000th vehicle. In the 1950s Toyota laid the foundations for a new system of manufacturing vehicles. This was developed into the Toyota Production System, an exceptionally efficient set of principles that have been widely used and adapted within the motor industry and beyond.

At the same time as it was honing its manufacturing processes, Toyota was also looking closely at how to design and engineer more desirable and competitive products for international markets. Sales companies were set up in Taiwan and Saudi Arabia before overseas production began, albeit on a small scale, in Brazil in 1959. It was in the early 1960s that Toyota began importing cars to Europe, first to Denmark. In 1965 it entered the UK market, launching the Corona saloon at the Earls Court Motor Show.

The following year the original Corolla was launched, the first appearance of what was destined to become the world’s most successful model range with sales of more than 30 million worldwide. In 1965, the price tag on the Corona, Toyota’s first UK model, was ? 1,000. That’s the equivalent of about ? 12,000 in today’s money. The Corolla made its debut in the UK in 1966 Toyota’s interests have not been confined to the automotive sector. Beyond its original textile weaving business, the company has expanded into prefabricated housing, telecommunications and boat-building.

Its global activities continue to grow and in 2005 production of the Aygo city car began at a new factory in the Czech Republic, a joint venture between Toyota and Peugeot Citroen PSA, and a new engine plant in Poland came on stream, building a new generation of diesel engines. In December 2007 Toyota opened its first factory in Russia, to build Camry models. TOYOTA (GB) PLC Toyota (GB) PLC is the national marketing and sales company for Toyota and Lexus vehicles in the UK. That makes it responsible for all sales, marketing, after sales and customer relations issues nationwide.

The company’s headquarters are at Great Burgh, a purpose-built, landmark building near Epsom, Surrey, where all principle operations are co-ordinated by a staff of more than 400 people. Vehicle imports are through a facility at Portbury, near Bristol, and sales are handled by a national network of around 200 Toyota and 50 Lexus centres. In early 2003 a dedicated network of Toyota Business Centres was established within the sales network to cater specifically for commercial customers for both cars and light commercial vehicles. In 2007 Toyota sold 133,545 new Toyota and Lexus cars and 9,891 light commercial vehicles in the UK.

Toyota UK Sales YEAR 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 TOYOTA 70,411 79,298 77,799 83,621 98,154 104,498 117,531 121,081 122,534 117,811 118,432 TOYOTA LCV 6,550 7,924 6,540 6,316 5,774 7,277 6,638 6,968 5,454 6,532 9,891 LEXUS 2,054 3,269 6,904 8,934 11,335 9,452 9,527 10,047 10,548 14,491 15,113 TOTAL SALES 79,015 82,567 84,703 98,871 115,263 121,227 133,696 138,096 138,536 139,034 143,436 National Training Centres Toyota pays close attention to providing focused, high quality training, recognising that quality of service and efficiency depend on the development of individual skills.

In 2002 a ? 3 million complex was opened at Nottingham Trent University, housing the Toyota and Lexus Academies. These skills centres are equipped with classrooms, showrooms, a training workshop and a body/paint shop that can handle up to 10,000 delegates a year. In partnership with the university, both formal qualifications and professional development programmes are offered. Toyota’s training opportunities extend to a successful apprentice scheme for inmates at the Aylesbury Young Offenders Institution. Several young men have gone on to worthwhile careers in the motor industry after their release.

In addition to the academies, Toyota operates a national dealer training centre at Salfords, near Gatwick. European – Global Production Training Centre In spring 2005, Toyota announced a new European production training centre would be built in the UK. The ? 11. 2 million facility was constructed in the grounds of the Burnaston plant and opened in Spring 2006. Known as E-GPC (European – Global Production Training Centre), it provides skills training in production and maintenance for up to 1,000 employees a year from Toyota manufacturing operations across Europe.

E-GPC is an extension of Toyota’s Global Production Centre, which opened in Toyota City, Japan, in 2003. UK PRODUCT RANGE With nine passenger models and three light commercial vehicles, Toyota has one of the largest product ranges on the UK market. In addition, there are five Lexus luxury and sport models. Outline details of the range are given below. Toyota Aygo • • • • City car, launched in summer 2005 Toyota’s smallest model for the European market Available with the world’s lightest and most fuel efficient 1. 0-litre petrol engine Built in the Czech Republic

Toyota Yaris • • • • • Second-generation model launched January 2006 Three and five-door hatchbacks 1. 0,1. 3 and 1. 8-litre petrol and 1. 4-litre diesel engines Built in France Toyota’s best-selling model in Europe Toyota Auris • • • • • Three and five-door hatchbacks All-new model launched in February 2007 Designed from the “inside out” to maximise usable cabin space 1. 4 and 1. 6-litre petrol and 1. 4, 2. 0 and 2. 2-litre diesel engines Built in the UK and Turkey Toyota Verso • • • • Seven-seat compact MPV Toyota Easy Flat system for folding all rear seats into vehicle floor 1. and 1. 8-litre VVT-i petrol and 2. 0 and 2. 2-litre D-4D diesel engines Built in Turkey Toyota Avensis • • • • Upper-medium saloon, hatchback and Tourer estate Flagship of Toyota’s European model range, designed in Europe and built exclusively in the UK 1. 8 and 2. 0-litre VVT-i petrol and 2. 0 and 2. 2-litre D-4D diesel engines. Awarded top five-star rating for occupant crash protection in Euro NCAP testing Toyota Prius • • • • • World’s cleanest family car Five-door, five-seat saloon Powered by Toyota Hybrid Synergy Drive, a combination of 1. -litre petrol engine and 500-Volt electric motor European Car of the Year 2005 Built in Japan Toyota RAV4 • • • • • Third-generation RAV4 launched February 2006 Five-door sports-utility vehicle Europe’s best-selling SUV 2. 0 VVT-i petrol and 2. 2-litre D-4D diesel engines Built in Japan Toyota Land Cruiser • • • • World’s best-selling SUV, with heritage of more than 50 years 3. 0-litre D-4D and 4. 0-litre V6 petrol engines Three and five-door body styles with seating for up to eight Built in Japan Toyota Land Cruiser V8 • • • • • Toyota’s most advanced 4×4 New 4. -litre V8 diesel engine World’s first four-wheel Active Height Control and Adaptive Variable Suspension UK launch mid-February 2008, replacing Land Cruiser Amazon Built in Japan Toyota Hiace • • • • Short and long wheelbase vans 94 and 115bhp 2. 5-litre D-4D diesel engines Gross vehicle weights from 2. 8 to 3. 0 tonnes Built in Japan Toyota Hilux • • • • • Robust pick-up More than 12 million sold worldwide 118bhp 2. 5-litre and 169bhp 3. 0-litre D-4D diesel engines First car to be driven to the Magnetic North Pole (2007) Built in South Africa Toyota Dyna • • • • Dropside and chassis cab light commercial vehicles 109bhp 3. -litre D-4D diesel engine Payload capacity up to 1. 5 tonnes Built in Portugal Lexus IS 250/220d/IS F • • • • • Second generation IS launched December 2005 Prestige compact sports saloon New 2. 5-litre V6 VVT-i petrol engine and Lexus’s first diesel – a 2. 2-litre 175bhp unit – in the IS 220d Number one-ranked vehicle in 2006 and 2007 J. D. Power and Associates UK customer satisfaction survey High performance IS F due for launch in April 2008 Lexus GS 300/460/450h • • • • • New-generation executive sports saloon, launched spring 2005 3. 0 V6 and 4. -litre V8 VVT-i petrol engines Hybrid power GS 450h combines 3. 5-litre V6 petrol engine with high-output electric motor Vehicle Dynamics Integrated Management (VDIM) GS 460 equipped with new 342bhp 4. 6-litre V8, launched January 2008 Lexus LS 460/600h • • • • • • Fourth generation of the Lexus flagship saloon, launched in January 2007 4. 6-litre V8 Dual-VVT-i petrol engine World’s first eight-speed automatic transmission World-leading preventive safety systems Hybrid power LS 600h limousine, flagship of the Lexus range, launched October 2007 LS 600h L, the first long-wheelbase Lexus

Lexus SC 430 • • • • Luxury sports coupe convertible 4. 3-litre V8 VVT-i petrol engine Fully retracting aluminium hard top Luxury specification includes bespoke Mark Levinson hi-fi system Lexus RX 350/400h • • Second generation of the original premium SUV RX 350 equipped with 3. 5-litre V6 VVT-i petrol engine • • • Permanent four-wheel drive RX 400h powered by Hybrid Synergy Drive, combining 3. 3-litre V6 petrol engine and front and rear electric motors for low emissions and improved efficiency Electric motors provide RX 400h with E-Four electric four-wheel drive on demand

TOYOTA (GB) PLC TIME LINE Toyota began importing vehicles into the UK in 1965 through an agreement with a small family firm, Pride and Clark. In 1967 the company changed its name to Toyota (GB) Ltd and in 1978 became part of the Inchcape group, a public company with international interests in a wide range of automotive businesses. In 1998, Toyota’s agreement with Inchcape came to an end and Toyota Motor Corporation took a 51 per cent majority shareholding in Toyota (GB) Ltd. In 1999, the company became a Public Limited Company and in 2000 TMC took complete ownership of Toyota (GB) PLC.

TOYOTA MOTOR MANUFACTURING UK LTD The UK has the distinction of having been chosen by Toyota for the location of its first European manufacturing centres. Toyota’s decision to build factories here was influenced by a broad range of issues, including: • • • • • • A strong tradition of car manufacturing Availability of a skilled labour force A strong domestic car market Easy access to parts and components suppliers Good communications links with the rest of Europe Encouragement and help from local and national government

Both the car plant at Burnaston, near Derby, and the engine factory at Deeside, in North Wales, came on stream in 1992. Toyota has continued to invest in its UK operations, spending more than ? 1. 83 billion to date. The first model to be built at Burnaston – and the first Toyota car to be built in Europe – was the Carina E. This was followed in 1997 by the first generation Avensis and, from 1998, hatchback versions of the Corolla. In 2007 Corolla production made way for five-door versions of Toyota’s new Auris hatchback.

Burnaston remains the exclusive global production centre for Avensis. Burnaston’s key role in Toyota’s manufacturing strategy was confirmed when it was named as the world production centre for the current generation Avensis: saloon, hatchback and Tourer estate car models are all built at the plant for both UK and overseas markets. Burnaston has the distinction of being the only Toyota factory to export Toyota models back to Japan, the Avensis being launched on the domestic market in 2004. In May 2004, Toyota announced investment of ? 0 million in the Burnaston factory to boost annual production capacity to 285,000 vehicles in order to meet the rapid growth in customer demand in Europe. Around 70 per cent of production is exported to Europe, with a further 15 per cent to 70 countries worldwide. The factory is Toyota’s largest European production base, in terms of both production capacity and volume, and it ranks as the European motor industry’s second most productive car plant overall. Its standards have been recognised with the Sir George Earle Trophy for health and safety performance, awarded in 2001.

Deeside has also enjoyed increased investment and development. Production capacity has been increased and in 2002 a new aluminium casting process was installed, enabling machined parts to be made for worldwide export to other Toyota engine factories. Subsequently investment was agreed to introduce machining and casting operations for Toyota’s ZR 1. 6-litre petrol engine for Auris. On the day that engine went into production, in March 2008, Toyota announced plans for an additional ? 88 million investment in the plant to build a new 1. 3-litre petrol engine for Auris from late 2009. This takes total investment in Deeside to ? 88 million. In February 2007 the factory celebrated building its three millionth engine. Currently it employs more than 650 people, producing engines for the UK-built Auris and Avensis models and engine sets for assembly in France and Turkey. TMUK’s achievements were further honoured in 2005 with a Queen’s Award for International Trade. Between 2002 and 2006, TMUK doubled its overseas export values to around ? 2 billion; the company’s net contribution to the UK’s balance of payments is typically more than ? 500 million a year. In addition Toyota’s European operations spend around €2 billion (approximately ? 1. billion) a year with UK suppliers. Production in 2007 TMUK at Burnaston produced 277,787 vehicles (145,626 Avensis and 120,322 Auris and 11,839 Corolla). Output at Deeside comprised 188,057 assembled engines and 159,302 machined engine sets for export to Toyota plants around the world. THE EUROPEAN PROFILE Toyota’s growing presence in Europe, as a designer, manufacturer and retailer of vehicles, is reflected in a strategically organised network of operations. Toyota’s European head office is in Brussels, home to key activities for Toyota and Lexus across the Continent, covering the European Union and beyond.

These include overseeing all manufacturing and engineering operations, marketing, sales, network development and brand management, public relations, strategic and product planning, logistics, customer services, aftersales and human resources/business administration issues. The Yaris is Toyota’s best-selling model in Europe, accounting for one in four of all vehicle sales. The second generation Yaris, built at Toyota’s production centre in Valenciennes, France, was launched in January 2006. Toyota’s investment in Europe since 1990 stands at more than €6 billion (approximately ? . 2 billion). Europe-wide it employs approximately 80,000 people, directly and through its sales and distribution network. Toyota’s holding company for the region (which extends beyond the boundaries of the European Union) is Toyota Motor Europe (TME), created in 2002. On 1 October 2005, TME merged with its two subsidiary companies, Toyota Motor Marketing Europe (TMME), which oversees marketing and sales activities, and Toyota Motor Engineering and Manufacturing Europe (TMEM), which supports Toyota’s manufacturing operations and research and development activities.

Although the businesses were incorporated into TME, TMME and TMEM maintained their individual functions and operating structures. European manufacturing Toyota began selling vehicles in Europe in 1963. It has established itself as one of the strongest brands in the European market and also developed a new role as a manufacturer, with production centres in six countries. The first Toyota vehicles to be built in Europe were manufactured under licence in Portugal from 1971.

Toyota launched its own European production in the UK in 1992 and has expanded its operations with factories in France (2001), for Yaris, and Turkey (2002), where Corolla, Auris and Verso models are built, and a transmissions plant in Poland, in 2002. In 2005 an engine plant in Jelcz-Laskowice in Poland came on stream, building a new generation of Toyota D-4D common rail diesel engines. At the same time, production started at Toyota Peugeot Citroen Automobile (TPCA) in the Czech Republic, a joint venture between Toyota and PSA Peugeot Citroen. This plant builds the Aygo, as well as city car models for the French partner manufacturers.

In December 2007, production of Camry models started at Toyota’s first factory in Russia, in St Petersburg. The expansion of Toyota’s European manufacturing base is in line with the company’s philosophy of building cars local to the markets where they will be sold, ensuring that the product meets regional tastes, driving styles and environmental considerations, such as road quality and traffic levels. Toyota European vehicle production YEAR 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 PRODUCTION TOTAL (1 = 1,000 vehicles) 108. 8 175. 7 181. 5 173. 3 216. 9 344. 6 466. 1 582. 638. 0 808. 5 806. 9 European sales Toyota has enjoyed strong and sustained growth in its European sales volumes and market share, achieving record levels for the past 10 years. In 2007, the company sold 1,238,638 vehicles (1,184,828 Toyota and 53,810 Lexus) in Europe, an increase of 0. 2 per cent on 2006 and a 5. 6 per cent share of the total car market. Toyota European vehicle sales and market share YEAR 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 European design centre Toyota established its European Design and Development Centre – ED2 – in the South of France in 2000.

It plays a crucial role in helping the company create cars that will suit the European market in terms of style and performance. ED2 enjoyed early success with the Toyota Yaris, the first Toyota to be designed in Europe, being named both European and Japanese Car of the Year. Since then, the new Auris and current generation Avensis have emerged from the studio, models central to Toyota’s European market growth. SALES TOTAL (1 = 1,000 vehicles) 471 541 592 656 666 756 835 916 964 1,124 1,185 MARKET SHARE (per cent) 2. 79 2. 98 3. 08 3. 6 3. 58 4. 40 4. 80 5. 00 5. 10 5. 84 5. 60 In 2003, Toyota announced further investment of €75 million (approximately ? 52. 5 million) to extend its research and development centre in Brussels, further emphasising Toyota’s commitment to designing and engineering cars specifically for the European market. The centre was officially opened in January 2006. A HISTORY OF INNOVATION Much of Toyota’s worldwide success has been achieved through its forward-looking approach and its determination to explore new concepts and technologies.

Innovation has been sought not just for the sake of science, but in order to deliver increased safety and performance and environmental benefits in Toyota’s mainstream product range. Toyota invests more than ? 2 billion a year in technology and development of new products, more than any other manufacturer. Furthermore, around a quarter of the research and development budget is dedicated to alternative fuel sources. The Toyota Prius: the world’s cleanest family car When the original Toyota Prius was launched in 1997, it had the distinction of being the world’s first hybrid power car to be offered for general public sale.

Prius pioneered a hybrid power system that combines a standard petrol engine with an electric motor, allowing the car to run on different power sources – or a combination of both – according to traffic conditions. That means a substantial reduction in harmful exhaust emissions and improvement in fuel economy. In Latin, the word Prius can be translated to mean “ahead of its time”, a phrase that perfectly expresses the car’s achievement. Prius: European Car of the Year 2005 In 2003, the second generation Prius took these qualities to even higher levels with the more advanced Toyota Hybrid Synergy (THS II) system.

Such is the quality of this powertrain in combining environmentally friendly performance with kind of power and flexibility demanded by drivers, it was named the 2004 International Engine of the Year. Moreover, it claimed this title with highest points score in the history of the awards. Prius is not just about engineering excellence, however, and its all-round qualities earned it the European Car of the Year 2005 title. A panel of international motoring journalists voted Prius the winner by a clear margin over its conventionally-powered rivals on the competition shortlist.

The second generation Prius has the ability to run for short periods exclusively on electric power, which means emissions can be cut to zero in city centre traffic. In recognition of its low pollution qualities, Prius was declared exempt from the inner London congestion charge. The official fuel consumption figure for combined cycle driving is 65. 7mpg. The advanced technologies used in Prius do not make it any more difficult to drive than a regular automatic car. Space isn’t compromised either: the powerful electric motor and battery are compact and the car is a regular-sized five-seat family hatchback.

Prius is just one in a series of hybrid power Toyota and Lexus models that have been launched around the world. In the UK, the technology was further advanced in summer 2005 with the launch of the Lexus RX 400h. This supremely efficient version of the luxury SUV combines a standard 3. 3-litre petrol V6 engine with twin electric motors. Once again, emissions and fuel economy are improved, while performance levels match those of a regular V8 petrol model. In May 2006 the GS 450h was introduced, the world’s first rear wheel drive full hybrid power sports saloon, equipped with a 3. -litre V6 petrol engine and a high-output electric motor. Hybrid power extended further into the Lexus range in October 2007, with the worldwide launch of the LS 600h, a new flagship limousine powered by the latest development of the Lexus Hybrid System, featuring a 5. 0-litre petrol V8 engine. Future hybrid power At the 2007 Geneva Motor Show, Toyota restated its commitment to developing cleaner and more efficient vehicles in its progress towards designing and manufacturing the ultimate eco-car, producing zero emissions.

It believes that developing new powertrains can help reduce the impact on the environment in three ways: by improving fuel efficiency, making exhaust emissions cleaner and supporting energy diversification. Toyota’s world-leading hybrid power is at the heart of this strategy, combining different power sources in ways that maximise the strength of each of them. Toyota plans to double the number of hybrid power models in its range and achieve one million sales of these vehicles by the early years of the next decade.

To provide an illustration of the possibilities hybrid power provides, it presented two new concept cars at the Geneva motor show, the Hybrid X and the FT-HS. Hybrid X presents a new design language for hybrid cars, offering families more space and comfort in a stylish open-space design. FT-HS (Future Toyota Hybrid Sports) demonstrates the sports performance potential of hybrid power in a front-engine, rear-wheel drive car developing around 400bhp and capable of nought to 62mph acceleration in about four seconds. FT-HS Concept Vehicle

Fuel cell technology Toyota has developed its hybrid power systems as a bridge between traditional petrol/diesel combustion engines and a new form of power that will produce no harmful emissions whatsoever. The use of hydrogen fuel cells is recognised by Toyota and many other vehicle manufacturers as a power source of the future. Although the technology to harness power from hydrogen is well advanced today, it cannot be brought to the wider market until a production and supply infrastructure has been established.

Toyota has nonetheless made important progress in refining the performance and availability of fuel cell systems, establishing the world’s first commercial leasing system for its FCHV (Fuel Cell Hybrid Vehicle) in 2003. A further advance was made in 2005 when Toyota became the world’s first manufacturer to achieve vehicle type certification for a vehicle using hydrogen fuel cell technology. The FCHV emits no damaging gases or particulates from its tailpipe, the only by-product of its power source being water.

Cleaner diesel power The fact that Toyota is engaged in advancing future power systems does not preclude its refinement and development of the engines it builds today. In recent years, the introduction of features such as “lean burn” technology, intelligent variable valve timing (VVT-i) and direct injection petrol and diesel systems have all helped improve performance while reducing fuel consumption and emissions. The development of Toyota D-CAT (Diesel Clean Advanced Technology) has brought record low levels of nitrogen oxides (NOx) and particulate matter (PM) emissions, far below the levels demanded by European standards.

Central to its operation is the world’s first maintenance-free four-way DPNR catalyst system. A new generation of cleaner, more efficient common rail diesel engines has been developed by Toyota. A high power version of this new 2. 2-litre D-4D unit, the D-4D 180 features D-CAT to achieve excellent emissions without compromising performance or fuel economy. The new D-4D engines are manufactured in Europe by Toyota Motor Industries Poland (TMIP) and have been introduced in the Auris, Verso, RAV4 and Avensis model ranges.

Advances in safety Safety is another key area in which Toyota continues to deliver market-leading new technology and systems. Both active and passive safety measures are addressed: active safety concerns the means by which the driver and vehicle can avoid hazards through technological features such as anti-lock braking, stability control and traction control; passive safety covers the way in which driver and passengers are protected should an accident occur, such as airbags, seatbelts and elements in the car’s basic structure that absorb and channel impact forces away from the cabin.

Toyota’s work in designing integrated transport systems has helped develop features such as Pre-Crash Safety, in which a radar system and electronic control unit can determine when a collision is inevitable and trigger seatbelt pretensioners and emergency braking at the optimum moment before impact. Toyota recognises the importance of preventive safety systems which detect the risk of an accident and assist the driver in avoiding it, or, should the worst happen, mitigating the consequences. This technology has successfully moved from the test laboratory to become available on the latest-generation Lexus GS and LS models.

The Lexus LS 460 and 600h are equipped with the world’s most sophisticated safety package, including an infra-red camera and radar system that can detect obstacles on the road ahead, day and night and the world’s first rear pre-crash safety system, which predicts a rear-end impact and automatically adjusts the front head restraints to protect occupants from whiplash injury. Toyota was the first manufacturer to introduce knee airbags on European models and also front and rear monitors, which use miniature cameras to give drivers a better view at blind junctions and when reversing.

The real benefits of Toyota’s “total safety” approach in designing its new vehicles can be witnessed in the five-star ratings for passenger crash protection awarded by Euro NCAP to the Toyota Yaris, Prius, Auris, Avensis and Verso and Lexus IS and GS models. New models developed by Toyota now undergo more stringent in-house safety testing, with impacts at higher speeds to ensure the highest levels of accident protection. Information Technology Making journeys quicker and more efficient is another target of Toyota’s innovative approach.

Advances in IT have allowed for increasingly sophisticated information, communications and navigation systems to be installed in today’s production models. The UK was one of the first markets in Europe to benefit from an automatic traffic monitoring system that works in conjunction with the vehicle’s satellite navigation unit. This system, known as ETA (Electronic Traffic Avoidance), constantly monitors a range of traffic information sources and, if it detects congestion ahead on a pre-programmed route, will automatically offer the driver an alternative course, avoiding potential hold-ups.

ETA not only has the potential to save the driver time, it can also increase efficiency in vehicle use. TOYOTA AND THE ENVIRONMENT TMC strives to reduce the environmental impact of all its activities and seeks growth that is in harmony with the world around us. Toyota’s approach to environmental issues is enshrined in the Toyota Earth Charter of 1992 (revised in 2000). The charter not only provides a framework and guidelines for the way Toyota operates its manufacturing, distribution and retail activities worldwide, it also promotes cooperation with other businesses and organisations to achieve greater environmental protection.

The principle elements of the Toyota Earth Charter: 1. Contribution toward a prosperous 21st century society: in order to contribute toward a prosperous 21st century society, aim for growth that is in harmony with the environment and challenge achievement of zero emissions throughout all areas of business activities. 2. Pursuit of environmental technologies: pursue all possible environmental technologies, developing and establishing new technologies to enable the environment and economy to co-exist harmoniously. 3.

Voluntary actions: develop a voluntary improvement plan that is not only based on thorough preventive measures and compliance to laws, but that also addresses environmental issues on global, national and regional scales. 4. Working in cooperation with society: build close and cooperative relationships with a wide spectrum of individuals and organisations involved in environmental preservation, including governments and local municipalities as well as related companies and industries. The strength of Toyota’s commitment to environmental issues was recognised in 1999 when it received the United Nations Environment Programme Global 500 Award.

Toyota is the only car manufacturer to have been honoured in this way. THE EUROPEAN ROAD SAFETY PROGRAMME Toyota’s all-embracing commitment to road safety goes beyond the design and production of safer vehicles. Toyota Motor Europe is a sponsor of the European Road Assessment Programme (EuroRAP), a body which brings together national motoring organisations from across the Continent to monitor the safety of principle routes outside urban areas. Roads are rated according to the level of risk of accidents causing death or serious injury. This alerts road users to the dangers of particular roads and serves to highlight those areas where mprovements need to be made in road design and crash protection measures, in order to improve driver, passenger and pedestrian safety. EuroRAP is a sister programme to the European New Car Assessment Programme (Euro NCAP), which undertakes detailed crash testing to determine the protection offered to both vehicle passengers and pedestrians. TOYOTA IN FORMULA 1 Toyota has taken on the greatest challenge in world motor sport, Formula 1. The Panasonic Toyota Racing team is based in state-of-the-art premises in Cologne, Germany, and entered its first grand prix season in 2002.

Toyota announced its decision to enter Formula 1 in 1999. Hiroshi Okuda, then President of the Board, said: “Toyota has an ambitious long-term vision to challenge for the FIA Formula 1 Constructor and Driver titles. Nothing less! It’s an exciting vision that demands an enormous commitment of resources and time, requiring us to deploy all of our world-leading skills, systems and technology. ” As both engine and chassis builder, Toyota has made a huge commitment to Formula 1 and the team has access to the company’s full resources to help achieve the best results.

Toyota Motorsport GmbH (TMG), Cologne, was the natural choice for the team’s base. A large, specialised motor sport facility with skilled staff and a long and successful track record in the World Rally Championship was already established there, under the leadership of the then TMG president Ove Andersson. An intensive testing programme was launched in 2000 for the development and proving of key racing components, such as hydraulic systems and brakes, using the Le Mans GT-One sports car, piloted by Allan McNish. Testing of the first Formula 1 car began in March the following year.

McNish and Finnish driver Mika Salo competed for Toyota in its debut season. They were replaced by Frenchman Olivier Panis and Cristiano da Matta, from Brazil, for the 2003 and 2004 campaigns. In 2008, Italian Jarno Trulli is competing in his fourth season for the team, joined by new recruit, German driver Timo Glock, the reigning GP2 champion. Test driver for the season is another newcomer to the team, Japanese driver Kamui Kobayashi. The 2008 Panasonic Toyota Racing Formula 1 Car driven by Jarno Trulli Formula 1 may be associated with wealth and opulence, but the activities at TMG adhere to Toyota’s environmental ambitions.

The planning of the operation included an on-site recycling unit. Virtually all used materials are recycled, rather than being thrown away. TOYOTA MILESTONES 1918 1929 Sakichi Toyoda invents the world’s first automatic loom. The Toyota Spinning and Weaving company is founded. Sakichi Toyoda sells the patent for his loom to Platt Brothers of Oldham for ? 100,000. He hands over the proceeds to his son, Kichiro, to develop automotive technology. Establishing an automobile department within the loom works. Production of the first prototype car, the Toyota AA, begins.

The Toyota Motor Corporation is founded with an initial investment of 12 million Yen (approx. ?300,000). Toyota builds its 100,000th vehicle Toyota begins vehicle exports from Japan, initially to South East Asia and Latin America. Toyota launches its first completely Japanese designed and built passenger car, the Crown. European exports begin, with Toyotas shipped to Denmark. Total production reaches the one million mark. Toyota enters the UK market with the Corona. Introduced at the Earls Court Motor Show, it costs ? 1,000. The exclusive import rights are held by a family firm, Pride and Clark. Toyota introduces the Corolla.

It becomes the world’s best selling model range, with nine successive Corolla generations achieving more than 29 million sales around the globe. Pride and Clark changes its name to Toyota (GB) Ltd. Toyota builds its 10 millionth vehicle Ove Andersson takes Toyota into world rally competition. Toyota establishes an overseas design centre, CALTY, at Newport Beach, California. Toyota achieves its first World Rally Championship victory. Andersson Motorsport is renamed Toyota Team Europe (TTE). Toyota enters an arrangement with General Motors to build cars in the USA. NUMMI (New United Motor Manufacturing Inc. ) is founded.

Toyota’s domestic vehicle production passes 50 million. Toyota announces its first European engine and vehicle production centres, at Deeside and Burnaston in the UK. Toyota Motor Marketing and Engineering Europe (TMME) is established. Carlos Sainz wins the World Rally Championship, driving a Toyota Celica. The Toyota Earth Charter is published, expressing the company’s commitment to environmental issues. TTE is bought by Toyota Motor Corporation and renamed Toyota Motorsport GmbH. Toyota becomes the dominant manufacturer in the World Rally Championship with Celica achieving a clean sweep in both seasons.

TMC announces it will open a factory in Valenciennes, northern France, to build the new Yaris model. Toyota launches the world’s first hybrid power production car, the Prius. Toyota ends its World Rally Championship campaign, having achieved three manufacturers’ championships, four drivers’ championships and 43 individual rally victories. The company now focuses its efforts on Formula 1. 1936 1937 1947 1950 onwards 1957 1962 1965 1966 1967 1972 1972 1973 1975 1984 1986 1989 1990 1992 1993 1993-94 1997 1999 2000 2001 2002 2003 2004 2005 2006 Yaris becomes the first Toyota model to be honoured as European Car of the Year.

Domestic production passes 100 million. TMC takes full ownership of Toyota (GB) PLC. Toyota opens its ED2 design centre in the South of France. Toyota (GB) PLC (TGB) moves from Redhill to new, purpose-built headquarters near Epsom, Surrey. Toyota annual UK sales pass 100,000 for the first time. Burnaston is awarded the the Sir George Earle Trophy for health and safety performance. Panasonic Toyota Racing makes its debut in Formula 1. The Toyota FCHV becomes the world’s first pollution-free fuel cell vehicle to be available through commercial leasing. Toyota and Nissan agree to co-operate on hybrid power technology.

Burnaston begins production of the new Toyota Avensis. Toyota launches the second generation Prius, featuring a more advanced Hybrid Synergy Drive powertrain. It is the world’s cleanest family car. TGB and 11 other Toyota national sales and marketing companies in Europe become subsidiaries or affiliated companies of TMC. TMC announces ? 50 million investment in Burnaston to increase production to 285,000 units a year. The second generation Toyota Prius is named the 2005 European Car of the Year. Its Hybrid Synergy Drive powertrain is awarded the 2004 International Engine of the Year title.

In October, Toyota manufactures its 2. 5 millionth vehicle in Europe The UK is announced as the site for Toyota’s European Global Production Training Centre. TMUK receives the Queen’s Award for International Trade. Record production levels are achieved at Burnaston; the UK plant also builds its two millionth vehicle. Production of the Aygo city car starts, the smallest model to be launched by Toyota in Europe. Aygo is built in a joint project with PSA Peugeot Citroen at a new production centre in Kolin, in the Czech Republic. New-generation 2. -litre D-4D diesel engines are launched, built at Toyota’s new facility in Poland. Avensis and Verso are the first models to adopt them. New Toyota Hilux is launched in October, the sixth generation of Toyota’s legendary go-anywhere pick-up. December brings an all-new Yaris, the second generation of Toyota’s top-selling European model. It achieves a top five-star Euro NCAP rating for occupant crash protection. The RAV4, Europe’s most popular SUV, enters a new era with an all-new model. More flexible interior accommodation and advanced drive technology raise the benchmark in the compact SUV segment.

New 148 and 175bhp 2. 2-litre diesel engines are introduced in the Avensis range, the latter equipped with Toyota’s D-CAT catalyst system to achieve substantial reductions in exhaust emissions. The Hilux pick-up benefits from a revised 2. 5-litre D-4D engine, increasing power and torque. A 169bhp 3. 0-litre D-4D unit is announced for the range, available from early 2007. Cleaner and more powerful (94 and 118bhp) 2. 5-litre D-4D engines are also introduced in the Hiace range of vans. Toyota unveils the Auris, an all new family hatchback model to be built in the UK and Turkey. 2007 2008

Production of Auris begins at TMUK’s Burnaston factory, with investment in the Deeside engine plant to build new ZR 1. 6-litre petrol engines for the model. UK sales started on 1 February. Deeside celebrates building its three millionth engine since production began in 1992. On 2 May a Toyota Hilux becomes the first car to reach the Magnetic North Pole, driven by Jeremy Clarkson and James May of the BBC’s Top Gear programme. A new 3. 0-litre D-4D diesel engine is introduced into the Dyna, completing Toyota’s upgrading of its complete LCV powertrain range to meet Euro IV emissions standards.

The Yaris range is extended to include a new flagship SR 1. 8 model, powered exclusively by a new 1. 8-litre Dual VVT-i petrol engine. The Land Cruiser V8 is scheduled for UK launch in February, replacing the Land Cruiser Amazon at the top of Toyota’s 4×4 range. Toyota unveils a production-ready version of the iQ at the Geneva motor show, a new compact urban car due to go on sale early in 2009. Also revealed is the Urban Cruiser, a new compact SUV, due for European launch in 2009. Toyota announces ? 88 million new investment in TMUK’s Deeside plant to produce a new 1. -litre petrol engine for Auris from late 2009. Front cover images (Front emblem image) Toyota Motor Manufacturing UK: Much of Toyota’s recent success has been achieved by designing, engineering and building cars in the world regions where they will be sold. In 1989 Toyota Motor Manufacturing UK was formed, ahead of the opening of Toyota’s first European production centres – a car plant at Burnaston, near Derby, and an engine factory at Deeside, in North Wales. (Hilux Polar Challenge image) Polar Challenge: A Toyota Hilux made history by becoming the first car to reach the Magnetic North Pole, on 2 May 2007.

Adapted by Arctic Trucks, the vehicle was piloted by BBC Top Gear presenters Jeremy Clarkson and James May. (iQ image) Toyota iQ: iQ represents a new generation of urban vehicles, shorter than Aygo but with space on board for three adults, plus additional room for luggage or a child passenger. Following its debut at the Geneva Motor Show, it is due to go into production in late 2008. (Formula 1 image) Formula 1: Toyota fields one of Formula 1’s foremost teams, its sporting ambition being to claim both the manufacturer and driver titles. 080314N USEFUL TOYOTA ADDRESSES

Head Office – Japan Toyota Motor Corporation 1 Toyota-cho-Toyota City Aichi 471 Japan Tel: 00 815 6528 2121 Head Office – UK Toyota (GB) PLC Great Burgh Burgh Heath Epsom Surrey KT18 5UX Tel: 01737 363633 Manufacturing Plants – UK Toyota Motor Manufacturing (UK) Ltd Burnaston Derbyshire DE1 9TA Tel: 01332 282121 European Head Office – Belgium Toyota Motor Europe Avenue du Bourget 60 1140 Brussels Belgium Tel: 00 32 27452099 Toyota Motorsport Toyota Motorsport GmbH Toyota-Allee 7 50858 Koln Germany Tel: 00 49 22341823444 European Design Development Centre ED?

Sophia Antipolis International Science Park 2650 Route des Colles BP 253 06905 Sophia-Antipolis Cedex France Tel: 00 33 497 232500

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