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TOYOTA'S OVERSEAS OPERATIONS

20 November, 2015 - 17:25

Since the establishment of an assembly plant in Brazil in 1958, Toyota's overseas manufacturing network has grown to include twenty-seven production or assembly facilities in twenty countries. Toyota's California joint venture with General Motors was established in 1985 as an example of new industrial cooperation between Japan and the United States. The corporation is also establishing wholly or jointly owned manufacturing operations in the United States, Canada, and Taiwan. In the Federal Republic of Germany, the joint production of pickup trucks with Volkswagen started in 1989. In addition, Toyota cooperated in the establishment of a full-scale driving school in the People's Republic of China.

Toyota's international operations form a web of manufacturing plants, dealers, and sales outlets. In addition to manufacturing plants, the overseas network includes 155 importers and distributors and 6761 dealerships spread throughout Europe, the Middle East, Mrica, Southeast Asia and Oceania, Latin America, and North America. Auto sales in Japan are handled through the Toyota, Toyopet, Corolla, Auto, and Vista facilities. These five channels consist of 318 dealers and 4333 sales outlets. In addition there are three divisions: the Industrial Vehicle division (consisting of thirty-one dealerships), the Parts Distribution division (consisting of thirty-one facilities), and the Toyota Rent-aCar Company (consisting of sixty-one facilities).

Toyota entered the United States for the first time in 1957. Total world exports for 1957 were 6554 units, of which thirteen (eleven cars and two trucks) went to the United States. Toyota's first years in the U.S. market were far from easy. In 1957 two of the thirteen cars exported to the United States went to Los Angeles. But the company found that driving conditions on U.S. highways were too demanding for Japanese cars of that day. In fact, the first Crowns were so heavy and underpowered that they could not make the steep climb to the Toyota dealership in Hollywood! Since 1957 Toyota's designs have obviously improved, and exports to the United States have increased steadily, to 609,908 in 1988. Toyota has used its facilities with staggering efficiency, surpassing Chrysler and closing the gap with Ford and GM in total sales.