Toyota Remains Committed to Its Core Values Amidst Industry Revolution
Toyota's Transformation Journey: A Look into the Mobility Company's Plans and Partnerships
In a significant move announced at the Consumer Electronics Show (CES) in January 2018, Toyota President Akio Toyoda declared the company's ambition to transform into a mobility company. This transition, according to Toyoda, was not a sudden decision but a pact made a decade ago, as he mentioned in an interview, referring to an event held in front of Kiichiro's family altar.
The exact nature of the challenges facing Toyota and the crisis level are not specified, but Toyota's top management seems to be addressing these issues with determination. Akio Toyoda formed the "Seven Samurai" in January 2018, expressing concerns about maintaining the status quo and the need for change.
One of the key collaborations in Toyota's transformation journey is with SoftBank, under the leadership of Masayoshi Son. The partnership between the two giants began in 2018, with Toyota deciding to team up with SoftBank. The relationship, however, is sometimes compared to mixing water and oil, and Akio Toyoda's feelings about working together are not explicitly stated.
The importance of Toyota Production System (TPS) has been emphasized in the context of this transformation. In an interview, Executive Vice President Shigeki Tomoyama stated that TPS is crucial to Toyota's transformation. He further explained that the last car standing will be a car that's 'fun to drive'.
The collaboration between Toyota and SoftBank has been fruitful, with Toyota teaming up with SoftBank by October 2018, following Akio Toyoda's announcement to become a mobility company in January 2018. This partnership was first discussed in the Japanese edition of Toyota Times in May 2019.
There were rumours of a significant gap in the perception of the current crisis level between top management and others during the annual spring round of wage negotiations at Toyota. However, Toyota values uniformity, as stated in the context of passing the torch to successors in the next generation.
In August 2021, Akio Toyoda visited SoftBank's corporate headquarters, and Masayoshi Son visited Toyota's headquarters. The nature of their discussions is unknown, but the act of making a pact together, as in the case of the "Seven Samurai", suggests a great deal of determination.
It is unclear if there is enough time to address the challenges facing Toyota, but Akio Toyoda's decision to team up with SoftBank and his references to Masayoshi Son, SoftBank's President, indicate a commitment to this transformation journey. The roles of top management in this journey, much like the roles of the Seven Samurai, remain to be seen.
