Best in France: Toyota Motor Corporation

Best in France: Toyota Motor Corporation

KOMATSU, NaotoRAWKINS, Nicholas

REYES, AndresWHEATON, Andrea

KOMATSU, NaotoRAWKINS, Nicholas

REYES, AndresWHEATON, Andrea

AgendaAgendaToyota production in FranceYaris in FranceConstraintsBringing the Yaris to FranceBenefits to Entering FranceOvercoming ConstraintsWhy Toyota Should Stay in FranceEssential Recommendations

Toyota production in FranceYaris in FranceConstraintsBringing the Yaris to FranceBenefits to Entering FranceOvercoming ConstraintsWhy Toyota Should Stay in FranceEssential Recommendations

Toyota production in FranceToyota production in France

Valencienne’s capacity 270,000 units per year.

Yaris is exported to over 25 countries

Total investment: €903 million Current employees: approx. 3,950

Producing €504 million in sales

Valencienne’s capacity 270,000 units per year.

Yaris is exported to over 25 countries

Total investment: €903 million Current employees: approx. 3,950

Producing €504 million in sales

Yaris in FranceYaris in France

Research and Development France is leader nation in demand

for small cars.Yaris: Toyota’s most sold vehicle in

Europe (25%)Diversity and VolumeThe ‘French’ Yaris: the result of

years of experience

Research and Development France is leader nation in demand

for small cars.Yaris: Toyota’s most sold vehicle in

Europe (25%)Diversity and VolumeThe ‘French’ Yaris: the result of

years of experience

Achieving the French DreamAchieving the French Dream

Market Tendencies Satisfy market needs French automobile industrySense of patriotism Acceptance

Market Tendencies Satisfy market needs French automobile industrySense of patriotism Acceptance

Constraints in FranceConstraints in France

Gaining Government Cooperation

French Consumer Acceptance

Integrating Japanese philosophy and French employees

Gaining Government Cooperation

French Consumer Acceptance

Integrating Japanese philosophy and French employees

Gaining Government Cooperation

Gaining Government Cooperation

Government favor to French firms

Restrictive commercial laws

Heavy burden of taxation to the company

As an existence of opinion leader

Government favor to French firms

Restrictive commercial laws

Heavy burden of taxation to the company

As an existence of opinion leader

French Consumer AcceptanceFrench Consumer Acceptance

Need to be trustworthy, reputable, innovative, and highly known.

Contribution to the regional /national development

Need to exactly address customer

needs

Need to be trustworthy, reputable, innovative, and highly known.

Contribution to the regional /national development

Need to exactly address customer

needs

Integrating Toyota Philosophy and French employees Integrating Toyota Philosophy and French employees

Choosing the best suppliers and hiring the excellent internal employees /ers

Educating Toyota logistic

Instilling Toyota philosophy

Choosing the best suppliers and hiring the excellent internal employees /ers

Educating Toyota logistic

Instilling Toyota philosophy

Constraints in FranceConstraints in France

Gaining Government Cooperation

French Consumer Acceptance

Integrating Japanese philosophy and French employees

Gaining Government Cooperation

French Consumer Acceptance

Integrating Japanese philosophy and French employees

Bringing the Yaris to FranceBringing the Yaris to FranceTraining

French managers trained in JapanJapanese expats working in FranceProduction floor translators

Design centreRelocated to better understand local

needsRecruiting Grande Ecole students

TrainingFrench managers trained in JapanJapanese expats working in FranceProduction floor translators

Design centreRelocated to better understand local

needsRecruiting Grande Ecole students

Benefits to Entering FranceBenefits to Entering FranceLogistic advantage

Logistics hubs, research center, Champs Elysée showroom

Arriving lateMarket analysis – limits risksInsight into Supplier Selection

Logistic advantageLogistics hubs, research center,

Champs Elysée showroomArriving late

Market analysis – limits risksInsight into Supplier Selection

Overcoming ConstraintsOvercoming Constraints•Public

showings

•Lobbying for Tax Incentives

•Representation by French Ambassador

Government Cooperation

•Nobel Prize Winners as Endorsers

•Relocation of Research Center to Nice

French Consumer

Acceptance

•Philanthropic Involvement

•Strong Japanese direction integrated in local employee structure

French Employee

Acceptance

Why Toyota Should Stay in France

Why Toyota Should Stay in France

Large, stable economy that accepts and understands Toyota

Toyota has already built favour with French administration, and is better positioned than other foreign competitors

Large, stable economy that accepts and understands Toyota

Toyota has already built favour with French administration, and is better positioned than other foreign competitors

Why Toyota Should Stay in France (2)

Why Toyota Should Stay in France (2)

Logistics, infrastructure, labour environment all satisfy Just-In-Time production needs

Excellent new graduates to fill its offices both in France and Brussels

France’s lead: human capital, general resources, R&D potentialYaris

Logistics, infrastructure, labour environment all satisfy Just-In-Time production needs

Excellent new graduates to fill its offices both in France and Brussels

France’s lead: human capital, general resources, R&D potentialYaris

Essential Recommendations

Essential Recommendations

Leverage research centers to understand what French consumers really wantLogistics synergies

Intercultural management: ”Two-way" training for employeesManagers sent to Japan to learn Toyota

philosophyJapanese expatriates in France only for

initial stages - run locally

Leverage research centers to understand what French consumers really wantLogistics synergies

Intercultural management: ”Two-way" training for employeesManagers sent to Japan to learn Toyota

philosophyJapanese expatriates in France only for

initial stages - run locally

Essential Recommendations (2)

Essential Recommendations (2)

Involve French administration and opinion leaders in Toyota France strategy and marketingAlignment on political policies

Gain favour and expertise while sharing risk/cost through joint-ventures with Big 3

Involve French administration and opinion leaders in Toyota France strategy and marketingAlignment on political policies

Gain favour and expertise while sharing risk/cost through joint-ventures with Big 3

Essential Recommendations (3)

Essential Recommendations (3)

Continue analyzing own position relative to both domestics (Big 3) and other foreign companies

Continue recruiting the best local graduates

Continue analyzing own position relative to both domestics (Big 3) and other foreign companies

Continue recruiting the best local graduates