Toyota 2005 Annual Report Download - page 13

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PRESIDENT’S MESSAGE >11
’01 ’02 ’03 ’04 ’06
(planned)
CY
Planned Vehicle Sales
8.5 million units
Note: Different from fiscal year figures
[KEY MANAGEMENT ISSUES ]
“We will take an even bolder approach to the simultaneous
pursuit of growth and efficiency. ”
➤Toyota’s top management priority is to enhance growth and efficiency at the same
time. I have no intention of sacrificing efficiency for growth or vice versa. Amid a
fierce global struggle for survival among automakers, I feel it is critical to steer
Toyota through a range of in-house and external issues guided by a constant
awareness of the need for growth and efficiency.
I am convinced that to earn recognition of Toyota’s value among customers
worldwide, we must devote ourselves to manufacturing that is driven by their
expectations while honing technological capabilities and improving cost competi-
tiveness. In other words, we have to achieve nothing less than becoming the
number one automaker in the world in quality, speed to market, pricing, and
service. Such statements are easy to make; following through on them is another
matter. We are backing our assertions with concrete results that are based on the
implementation of innovations that are integrating our manufacturing efforts with
those of partner suppliers. By taking on even more sweeping reform of management
and manufacturing, we intend to unlock further corporate value going forward.
[TARGETS AND MOTIVATION ]
“Our employees will work as a team toward the realization
of Toyota’s vision. ”
➤In the near term, I am eager to realize our target of 8.5 million vehicle sales in
calendar 2006 by pushing up sales in regions worldwide. In the longer term, we
would like to stake out 15% of the global automotive market in the early 2010s.
That figure represents the next major ambition for Toyota, which already holds a
10% share of the world market and is pursuing further growth.
However, I do not want to be misunderstood on this point. I will not adopt a
management style at Toyota that only focuses on winning market share. We will
steadily build toward a 15% share of the market through consistent effort. Another
reason for raising 15% as a banner is to give Toyota employees worldwide a
challenging shared goal that will fire them to win out in the face of intense market
competition. In our view, stagnation is synonymous with retreat; the outlook is
bleak for any company that cannot sustain growth. Make no mistake, Toyota is
bursting with energy and its appetite for growth is truly insatiable.
[GROWTH STRATEGIES ]
“We will maintain growth by bolstering capabilities in three areas
key to competitiveness—development, supply, and marketing. ”
➤To sustain growth, Toyota must reinforce its capabilities in development, supply, and
marketing. Therefore, we will continue farsighted investment in those areas to build a
platform for new growth.