Since 1937, when it was first established, Toyota Motor Corporation has contributed to the development of automobile industry and society by providing people with cars. Toyota produces cars in 25 countries and regions around the world. Their cars are sold in more than 160 countries and regions under Toyota, Lexus, Daihatsu, Hino and brand name. March 31, 2002 fiscal year end of the Toyota Motor Corporation and its subsidiaries had sold 5,540,000 cars, trucks, and buses worldwide(Toyota Production System, 2002). As for the cars sold, Toyota # 3 car manufacturer worldwide. This essay provides a deep insight into global standing of Toyota and global issues it faces.
Contributions to the Economy
The automotive industry is the largest in the U.S. manufacturing industry with the overall automotive industry and related employment numbering 13.3 million, the new Center for Automotive Research study shows. Most of these works are in supplier and related industries. Nearly 6.6 million jobs are related to automotive production and sales of new cars. This leads to more than $ 240 billion in annual private sector compensation. (Automakers Drive U.S. Economy on different levels, New studies show, 2003)
Below the results of the study "The contribution of the automotive industry for the U.S. economy: Automotive industry is responsible for more than 100.000 jobs in each of several industries, including dealers, metal, auto parts, auto repairs and maintenance, road construction, tire dealers, gas stations and car washes(Fackler, 2009). Further, automotive industry is responsible for more than 50.000 jobs in each of several other related industries, including plastics and rubber, trucking, computers and electronics, petroleum and machinery and equipment. In addition, automotive industry responsible for more than 25.000 jobs in each of several other related industries, including advertising, textiles, aluminum and recycling. Besides, automotive industry and provides thousands of new jobs each in the rail industry, metallurgy, painting and coating industry, glass industry, copper and brass industry and ferrous metallurgy(Toyota Production System, 2002).
Automotive industry provides one of the highest wages and benefits in the private sector, averaging $ 69,500 in 2001. Additionally, automotive industry can boast of the value added of $ 292,000 per worker, 143 percent higher than in the whole value-added ratio for U.S. manufacturing ($ 120,000). Automotive industry invests in research and development than any other industry - 18,4 billion U.S. dollars in 2000. However, Automotive industry directly employs 1.3 million Americans in all 50 states. 2.2 million Workers employed indirect suppliers to the automotive industry and other industrial companies. Cost Auto Workers creates additional 3.5 million jobs across the country(Harvard Business Online Bowen, 1999 ).
In 1961, total quality control was introduced to enhance the production of cars with international quality standards. The success of Toyota's quality control was recognized in 1965 when she was awarded the Deming Prize for achievements in quality control. In 1970, Toyota Production System has been developed and introduced Tauchi Ono. This system is a process of continuous improvement, or otherwise known as "Kaizen" in ...