Toyota 2005 Annual Report Download - page 15

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PRESIDENT’S MESSAGE >13
4,000
2,000
8,000
6,000
0
’01 ’02 ’03 ’04 ’05 ’06
(planned)
FY
(Thousands of units)
Consolidated Vehicle Sales
7,850*
* Revised upward to 7.97 million
units in August 2005.
[SOCIAL RESPONSIBILITY ]
“We strive to manage Toyota in a way that benefits all of our stakeholders. ”
➤Needless to say, in order to sustain growth, Toyota must develop operations in
harmony with international society and the Earth’s environment and maintain
sound relationships with stakeholders. Additionally, we have to establish corporate
governance systems while holding ourselves to the highest ethical standards through
adherence to the letter and the spirit of laws in Japan and overseas.
Mindful of those imperatives, Toyota regards reflecting the interests of all stake-
holders, including shareholders, customers, employees, business partners, and local
communities, as an important management function that will enable continued
growth as one of international society’s trusted corporate citizens. Accordingly, in
January 2005 Toyota issued the “Contribution towards Sustainable Development”
statement in Japan and overseas, detailing the Company’s social contribution initiatives.
(see the Contribution towards Sustainable Development section on page 21 for further details)
[OUTLOOK ]
“To further the automobile industry’s development, Toyota will work
to realize long-term growth. ”
➤Without a doubt, the global automotive market is going to grow over the medium-
to-long term. Currently generating sales of more than 60 million units, the market
is expected to reach 75 million vehicles over the coming decade. In addition to the
advanced automotive market of the United States, emerging markets in China, Russia,
India, and other countries will fuel that expansion. In the short-term, although
economies worldwide will likely see modest growth, the operating environment is
unpredictable due to numerous potential sources of instability, such as the U.S.
economic outlook, China’s austerity measures, climbing crude oil and steel prices, and
currency exchange rate trends. Moreover, competition in the global automobile
industry is becoming even more fierce as automakers deploy large numbers of new
models and strive to develop next-generation technologies that address energy and
global-warming issues.
My response to those conditions will be to continue leveraging our solid financial
base to bolster market competitiveness while steadily laying foundations for long-
term growth. In the current fiscal year, ending March 2006, we project an increase of
about 6.0% in consolidated vehicle sales, to 7.85* million units. In closing, I look
forward to developing an enduring and fruitful partnership with all of our
stakeholders in the years to come.
July 2005
Katsuaki Watanabe, President