The Impact of Global Trends on the Automobile Industry
Some of the global trends in the sector include the push towards semi-autonomous vehicles as well as calls for increased fuel efficiency to reduce the carbon footprint. Toyota is well placed to produce semi-autonomous vehicles that can outdo the company's competition. It has hinted its semi-autonomous vehicles will be commercially available as soon as 2020.
Toyota's vehicles have consistently outperformed its competitors in the production of fuel-efficient cars, especially with its trademark Prius model. In 2010 Corporate Average Fuel Economy (CAFE) published by the U.S Environmental Protection Agency (EPA), Toyota ranked 4th in the domestic market category while it ranked 1st in the imported passenger vehicle category (Mays, 2016
Diversity
Diversity in the workplace is an important attribute in increasing productivity. Toyota has been pro-active in encouraging diversity in its workplace and was voted among the top forty companies to work in for minorities (Diversitybestpractices.com, 2012). In its 21st-century diversity strategy, the company has a multi-billion ten-year strategy aimed at supporting women and minorities in all the areas of its operations including its employees, suppliers, and retailers (Toyota, 2013).
Environmental/Social Initiatives
Toyota acknowledges that environmental issues are the greatest factors that will influence the production and design of vehicles in the new millennium. To this end, it has formulated Environmental Action Plans that emphasize in increased research, development and production of hybrid vehicles. It has also set-up an automobile recycling technical center to reduce its carbon footprint.
Government Regulations
Toyota is subject to the local laws in the individual countries that it operates. As such, different directives in the various countries have the effect of raising its production costs, as it has to tailor similar car models to suit the various regulatory regimes (Chester, 2004). However, there has been a movement towards common regulatory standards in particular between the U.S and the E.U countries. In the long run, such convergence of regulations will help Toyota lower its bottom line costs associated with the different regulatory regimes.
Bureaucratic government procedures also have the effect of delaying production of new models especially in the yet to be exploited semi-autonomous vehicle segments. Carmakers have complained that the National Highways Traffic Safety Administration (NHTSA) and other agencies take extended periods to approve new car models and as such Toyota has to find better ways of engaging with the government agencies.
Current News
The Volkswagen emissions test cheating scandal has shined a spotlight in the automobile industry. On the positive side, the scandal enabled Toyota to claw back market share from Volkswagen reinstating its top position as an automobile manufacturer in 2015. Internally, the scandal helped highlight Toyota's production process under the Andon cord policy. It enables any employee irrespective of rank to stop the production process in case they notice any abnormally. Such a policy increases transparency and has helped the company avoid such scandals as have faced Volkswagen.
Toyota Company Situation
Problem Statement
The latest problems that occur with the automobile company associated with the problem statement:
2009- replaced floor mat foot pedal
2010-recall accelerator pedal and antilock brakes
2015- faulty airbag inflators containing ammonium nitrate
While the company continues to perform strongly even in the face of these challenges, it is evident that in the short-term they hurt the company's image to its customers. The company will maintain a policy of openness and admit its mistakes by recalling and rectifying the problems at no cost to the client. To address the issue in the long run, the company aims to strengthen its production process as envisaged in the Kaizen philosophy that emphasizes on continuous improvement.
References
Chester, D. (2004).Lexus: The Relentless Pursuit. Singapore, John Wiley &.
Diversitybestpractices.com (2012, Jul. 24). In Diversity Case in Point: Toyota Taps the Power of Women to Adapt to Today’s Business Climate. Retrieved Feb. 25, 2016, from http://www.diversitybestpractices.com/news-articles/diversity-case-point-toyota-taps- power-women-adapt-todays-business-climate
Mays, K. (2016, Feb. 2). In Corporate Average Fuel Economy: How Automakers Rank. Retrieved Feb. 25, 2016, from http://www.cars.com/go/advice/Story.jsp?section=fuel&story=cafe&subject=fuelList
Toyota staff. (2013). In Diversity & Inclusion. Retrieved Feb. 25, 2016, from http://www.toyota.com/usa/diversity/
