Toyota aims for 'once-in-a-century transformational period'
Toyota announced it has reached agreements with Denso Corp. and Toyota Tsusho Corp. aimed at strengthening the competitiveness of the Toyota Group. Toyota and Denso have agreed to begin considerations toward consolidating the core electronic component operations of both Toyota and Denso within Denso. The agreement with Toyota Tsusho states that Toyota and Toyota Tsusho will consider the transfer of all Toyota sales and marketing operations in the African market to Toyota Tsusho.
Under the agreement between Toyota and Denso, the focus will be on consolidating mass-production development and production within Denso. By consolidating mass-production development and production of electronic components of both Toyota and Denso within Denso, Toyota and Denso aim to establish a fast and competitive development and production structure. Doing so also aims to maximize resource use.
Discussions will be held toward the transfer of production of electronic components from Toyota’s Hirose Plant to Denso, prospectively, at the end of 2019. From 2022, mass-production functions for electronic components are to be consolidated within Denso.
Regarding Toyota’s agreement with Toyota Tsusho Corp., a transfer of all Toyota sales and marketing operations for Africa to TTC, from January 2019, would concentrate the power of the Toyota Group for contributing to regional development through business. Toyota Tsusho, with an Africa Division that specializes in and is dedicated only to Africa, has operations in 53 out of 54 African countries and regions.
Excluded from the scope of this development are local operations of Toyota South Africa Motors (Pty) Ltd. (in the Republic of South Africa).
Toyota president, Akio Toyoda, commented on the agreements, “We are currently surrounded by changes of unprecedented speed and scale, and the situation is truly one of now or never, in which not even a moment can be spared. To survive this era, those of us who manage a business must always be initiating change. I strongly believe that this is precisely why I, myself, must stand at the front, in alignment with the sensitivities of our employees and each and every person at the genba (workplace) who must face such changes, and make Toyota into a company whose people can experience a solid sense of the growth of the Toyota Group and of the growth of the individual."