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The Toyota motor company was first established as spin-off Toyoda automatic loom
works a leading manufacturer of loom machines.
Headed by Saki chi Toyoda, who sold the patent rights to one of his loom machines in
1973.
In 1957, Toyota made the first move into American, with introduction of the Toyopet
Crown. But it failed.
Objectives of company
Satisfy the needs of the customer and meet the stringent environmental legislation of the
future.
Provide an opportunity to the manufacturer reinvent and revitalize the auto with
disruptive technology win market share and revenues
New technology:
Fuel-cell technology
Pure electric vehicle
Hybrid electric vehicle
1. Fuel cell technology: had long to go it challenges with reliability and durability, power
output, cost efficiency and the ability for the manufacturer to mass produce.
An electrochemical energy conversion device that converts H2 and O2 into H2O,
producing electricity and heat.
Works like battery can be recharged while drawing power from it.
Engine is water eliminating all pollutants from process
.
2. Pure electric vehicle:
Cars that run on a battery and as a result have zero tail pipe emission.
Though many manufacturer have sold and leased EVs but many of them have
discontinued.
Limitation EVs are lack of power, long time charger, cold weather issue, and
challenges with the existing infrastructure.
3. Hybrid electric vehicle
Hybrid: An electric motor gas or diesel powered engine = increased fuel efficiency and lower
emission.
What best:
1. Better gas mileage.
2. No obstacles with extreme weather condition.
3. Not require any infrastructure changes.
Study found that hybrid technology is better for environment. Use less fuel and emit less CO2
than fuel cell model.
.
It allowed Toyota to be flexible and fast in making changes to production system of
vehicles.
Toyotas planning
Challenges- to service the vehicles.
Planning
Fulfilled hybrid electric service needs
Preparing and training its service technicians at all dealership in servicing the Toyota HEV
models.
Promised that every Toyota car, truck and SUV was covered by limited warranty coverage.
The competition
HONDA is the strongest competitive threat to Toyota because it produces two HEV and had the
ability to adopt the technology into its manufacturing plans.
But dont have any plan to add more gasoline electric EVs to its products line because the
company did not want to sacrifice short term profit.
As a result Hondas product plan did not include aggressive pursuit of disruptive HEVs
technology, rather it planned to maintain its leadership in the segment to meet short-term profit
goals.
FORD introduces the first SUV HEV, the Ford escape in 2005.
GENERAL MOTORS introduce a Saturn SUV and Chevrolet full-size, pickup truck in 2004.