At the 2024 General Shareholders’ Meeting, Toyota Motor Corporation showcased its dedication to developing vehicles that captivate car enthusiasts and uphold the company’s tradition of excellence. Operating Officer Kazuaki Shingo and Hydrogen Factory President Mitsumasa Yamagata provided insights into Toyota’s carmaking philosophy and ongoing commitment to innovation.
Embracing Change and Innovation
Responding to shareholder concerns about maintaining excitement in car development amidst certification issues, Shingo, Chief Production Officer and a key figure in the development of the Prius, shared his perspective on Toyota’s evolving approach.
“In the last 15 years, our carmaking philosophy has changed drastically,” Shingo said. “Chairman Akio Toyoda’s call to ‘make ever-better cars’ and to excel in each region was a major turning point.”
Transition to Product-Centered Management
Shingo recalled the shift from a function-oriented structure, where production plants and accounting departments focused on ease of building and profitability, to a product-centered approach. This new focus encouraged all teams to think from the customer’s perspective and strive for continuous improvement.
“The in-house company system allowed us to concentrate on specific product categories, whether commercial vehicles, Lexus, or compact cars,” Shingo explained. “This shift has enabled us to create vehicles that truly delight our customers in each region.”
Development of the Prius and Crown
Shingo shared an anecdote from the development of the current Prius, highlighting the collaborative spirit within Toyota. Despite Chairman Toyoda’s initial suggestion to position the Prius as a taxi, the development team saw an opportunity to elevate hybrid technology.
“It was more of a discussion than a dispute,” Shingo said. “When the Chairman saw the car, he agreed to proceed with our vision. This dialogue led to the creation of the new Crown series, unveiled in 2022.”
Chairman Toyoda’s willingness to engage in open conversations with the development team resulted in innovative models like the Prius and Crown. Vice President Hiroki Nakajima reflected on this process, noting the energy and creativity that flourished within the team.
Continued Pursuit of Excellence
Chairman Toyoda cited the Prius and Crown as examples of Toyota’s commitment to “making ever-better cars.” He emphasized the importance of maintaining a product-centered approach and fostering an environment where leaders and frontline members collaborate closely.
“When I said we’re going to make ever-better cars, I was often asked, ‘What is a good car to you, Morizo?’ My only response was, ‘You’ll have to figure that out for yourself,’” Toyoda recalled. “Even though it took us 14 years, I feel we’ve become a company that produces many of what I consider to be ever-better cars.”
Looking Ahead
Concluding his remarks at the shareholders’ meeting, Operating Officer Shingo affirmed Toyota’s ongoing commitment to innovation and excellence.
“I see ever-better carmaking as a never-ending pursuit,” Shingo said. “We will continue working as one to create cars that bring even greater happiness and make our customers feel they were worth the wait.”
Toyota’s dedication to producing exceptional vehicles remains steadfast, with a focus on continuous improvement and collaborative innovation at the heart of its carmaking philosophy.
