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Best in France: Toyota Motor Corporation

Best in France: Toyota Motor Corporation. KOMATSU, Naoto RAWKINS, Nicholas REYES, Andres WHEATON, Andrea. Agenda. Toyota production in France Yaris in France Constraints Bringing the Yaris to France Benefits to Entering France Overcoming Constraints Why Toyota Should Stay in France

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Best in France: Toyota Motor Corporation

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  1. Best in France: Toyota Motor Corporation KOMATSU, Naoto RAWKINS, Nicholas REYES, Andres WHEATON, Andrea

  2. Agenda • Toyota production in France • Yaris in France • Constraints • Bringing the Yaris to France • Benefits to Entering France • Overcoming Constraints • Why Toyota Should Stay in France • Essential Recommendations

  3. Toyota 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

  4. Yaris 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 Volume • The ‘French’ Yaris: the result of years of experience

  5. Achieving the French Dream Market Tendencies Satisfy market needs French automobile industry Sense of patriotism Acceptance

  6. Constraints in France Gaining Government Cooperation French Consumer Acceptance Integrating Japanese philosophy and French employees

  7. Gaining Government Cooperation Government favor to French firms Restrictive commercial laws Heavy burden of taxation to the company As an existence of opinion leader

  8. French Consumer Acceptance Need to be trustworthy, reputable, innovative, and highly known. Contribution to the regional /national development Need to exactly address customer needs

  9. Integrating Toyota Philosophy and French employees Choosing the best suppliers and hiring the excellent internal employees /ers Educating Toyota logistic Instilling Toyota philosophy

  10. Constraints in France Gaining Government Cooperation French Consumer Acceptance Integrating Japanese philosophy and French employees

  11. Bringing the Yaris to France • Training • French managers trained in Japan • Japanese expats working in France • Production floor translators • Design centre • Relocated to better understand local needs • Recruiting Grande Ecole students

  12. Benefits to Entering France • Logistic advantage • Logistics hubs, research center, Champs Elysée showroom • Arriving late • Market analysis – limits risks • Insight into Supplier Selection

  13. Overcoming Constraints

  14. 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

  15. 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 potential • Yaris

  16. Essential Recommendations • Leverage research centers to understand what French consumers really want • Logistics synergies • Intercultural management: ”Two-way" training for employees • Managers sent to Japan to learn Toyota philosophy • Japanese expatriates in France only for initial stages - run locally

  17. Essential Recommendations (2) • Involve French administration and opinion leaders in Toyota France strategy and marketing • Alignment on political policies • Gain favour and expertise while sharing risk/cost through joint-ventures with Big 3

  18. Essential Recommendations (3) • Continue analyzing own position relative to both domestics (Big 3) and other foreign companies • Continue recruiting the best local graduates

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