Final Presentation

Toyota Motor Corporation Report

By Aaresh Bogati
UCLA Extension Tokyo Center
Business English Communication Program
Essentials

Presentation Introduction

Good afternoon everyone. Today I would like to talk about Toyota Motor Corporation and the Japanese Automobile Industry.

First, let me ask you a question. What’s your favorite Car?


The purpose of this presentation is to persuade you that Toyota Motor Corporation can be more successful in the future, even though it is facing a great problem in its production at present.

First, I’ll tell you about the Japanese Automobile industry. Then, I’ll tell you about Toyota's business and its financial results. Finally, I’ll predict the future of Toyota’s business. We will have a Q&A time at the end, so please hold your questions until then.

Industry Overview

First, let me tell you about the Automotive Industry and Toyota Motor Corporation in Japan.

According to Wikipedia of Automotive industry in Japan,
Hatsudoki Seizo Co., Ltd. was established in 1907 in Japan.
Japanese automakers launched a bevy of new cars in 1960s in Japan.

Toyota Motor Corporation, which is simply known as Toyota is the world's largest automaker.
This is a multinational corporation. Its headquarters are in Japan.
Toyota has 320,000 employees worldwide.

Next, here are some recent facts.

According to JAMA (Japan Automobile Manufacturers Association, Inc.) nearly 8% of Japan's working population is involved in auto industry related work.
Auto production account for 17% of the total value of Japan's manufacturing shipments.

We know that Japan was the world's largest vehicle manufacturer in 2008 but it has ceded this position to China in 2009.

Japanese manufacturers produced very affordable, reliable, and popular cars throughout the 1990s, and as a result, Japan became the largest car producing nation in the world in 2000. However, its market share has decreased slightly in recent years, particularly due to old and new competition from South Korea, China and India. Nevertheless, Japan's car industry continues to flourish, its market share has risen again, and in the first quarter of 2008 Toyota surpassed General Motors to become the world's largest car manufacturer.


Many Americans are employed by Japanese automakers and dealers in the US and the total number of employees were 392,635 in 2008.

In 1986, JAMA members exported about 3.4 million vehicles from Japan to the U.S.
In 2008, they exported about 2 million vehicles here, a reduction of about 1.4 million vehicles.
In 1986, JAMA members produced 617,000 vehicles in the U.S. In 2008, they produced nearly
3 million vehicles there an increase of nearly 2.4 million vehicles.
Japanese automakers now supply 62% of their total U.S. sales from their North American plants, compared with less than 12% in 1986.

Next, I’d like to tell you about Toyota Corporation in more details.

Toyota Automatic Loom Works, Ltd. was established in November 1926 to manufacture and market automatic looms invented by Sakichi Toyoda. The company name was changed to Toyota Industries Corporation in August 2001.

Toyota Corporation manufactures and sells textile machinery, automobiles, and materials handling equipment. It also has a logistics business.

Toyota sales were as follows in FY 2009.
Textile machinery was 1.9%, Logistics 7.2%, Materials Handling Equipment 40.4%, Automobile 47.7% and others 2.8%.

Financial Highlights
Toyota Motor Corporation FY ending March 31 (millions of yen)

Year	2008	2009	%change 2009 vs. 2008
Net sales	2,000,536	1,584,252	(20.8) %
Operating income (loss)	96,853	(6,621)	-
Ordinary income	126,488	14,343	(88.7)
Net income (loss)	80,460	(32,767)	-
Research and development expenses	36,750	33,646	(8.4)
Cash dividends per share (yen)	60.00	40.00	(33.3)
At Year-End
Total assets	2,965,585	2,327,432	(21.5) %
Total net assets	1,453,996	977,670	(32.8)
Number of employees	39,528	39,916	1.0

Toyota’s Net sales were 2 trillion yen in 2008 and 1.5 trillion yen in 2009 which was 20.8% less than 2008.
Operating income was -6.6 billion yen, Net income was -32.8 billion yen and ordinary income was 14.3 billion yen, but employees increased in 2009 to 31,916 in Japan, as of March 31, 2009.

Summary: OK, so, I hope that helps you understand Toyota’ history and main manufacturing products.


Now, let me finish by predicting the future of Toyota Motor Corporation.

As you can see here, Toyota’s stock price has been rising recently. However, its stock price has fallen in 2009 because of the economic recession.

I researched and compared its stock price to its competitors and I can say that Toyota’s stock price is starting to rise again. So I believe Toyota’s business can be successful in the future.

I have two reasons for this view.

First of all, Toyota can be successful because it has many excellent products that are able to support its business. In my opinion, Toyota’s products are very affordable, reliable, and popular. We know that Corolla, Prius, Camry, and Yaris were top ten products in 2009.
People are buying the products of Toyota from all around the world. Its products are in high demand in America, Europe and the rest of the world.

Secondly, Toyota can be successful because it is going to create new models cars every year. Toyota knows the demand of the consumer very well.
Toyota is going to launch new models cars in 2011 which are the Toyota Camry, the Toyota Camry Hybrid, and the Toyota Sienna. Based on my research they all are affordable and excellent products.

OK, in conclusion, I hope I have persuaded you that Toyota has very popular products and can be successful in the future because it is improving its marketing.

Thank You.