Toyota’s Leadership Reflects on the Future of Car Development
At Toyota’s 2024 General Shareholders’ Meeting, the spotlight was on the company’s commitment to developing exciting products for car enthusiasts. This discussion was led by Operating Officer Kazuaki Shingo, Chief Production Officer, and Hydrogen Factory President Mitsumasa Yamagata.
A Shift in Mindset
Shingo, drawing on his extensive experience, including leading the development of the Prius, emphasized how Toyota’s carmaking approach has drastically evolved over the past 15 years. He credited Chairman Akio Toyoda’s vision of “making ever-better cars” and becoming the best in each region as a significant turning point.
Previously, Toyota was organized by functions, with production plants focusing on ease of manufacturing and the accounting department prioritizing profitability. This function-oriented mindset shifted towards a product-focused approach under Chairman Toyoda’s guidance. Teams began to concentrate on creating vehicles that delighted customers, leading to the development of models tailored to specific markets, from commercial vehicles to luxury Lexus cars.
The Prius Development Story
An illustrative episode from the Prius development was shared by Shingo. When hybrids became widespread, Chairman Toyoda suggested, “Why don’t we make the next Prius a taxi?” However, the development team saw this as an opportunity to push the boundaries of ever-better carmaking unique to the Prius. This led to a discussion rather than a dispute, resulting in a model that reflected the team’s vision and gained Chairman Toyoda’s approval.
Collaboration and Innovation
This collaborative spirit between leaders and frontline members is evident in the development of the new Crown series, unveiled in 2022. Initially starting with just a Crossover, the team expanded to include a Sedan, Sport, and Estate variations after a test drive and further discussions. Vice President Hiroki Nakajima recalled that this “eruption of energy from the development team” exemplified the company’s culture of making ever-better cars through honest dialogue.
A Legacy of Ever-Better Carmaking
Chairman Toyoda, reflecting on this process, highlighted the importance of maintaining a product-centered approach and commitment to the genba (workplace). He noted that while it took 14 years, Toyota has become a company capable of producing many ever-better cars, a testament to the company’s enduring pursuit of excellence.
A Never-Ending Commitment
Operating Officer Shingo concluded his remarks at the shareholder meeting by reinforcing this commitment: “I see ever-better carmaking as a never-ending pursuit. We will continue working as one to create cars that bring even greater happiness and make our customers feel they were worth the wait.”
This unwavering dedication to innovation and customer satisfaction underscores Toyota’s vision for the future, ensuring that the company remains at the forefront of the automotive industry.
