Updated Results Show Toyota's Third-Quarter Financial Improvement from Executing Prescribed Actions

Toyota's Resilience and Adaptability Shine During the Pandemic

In the face of unprecedented challenges posed by the COVID-19 pandemic, Toyota Motor Corporation has demonstrated remarkable resilience and adaptability. According to Toyota's Chief Financial Officer, Kenta Kon, and Chief Communication Officer, Jun Nagata, the key to Toyota's success lies in effective communication.

The pandemic has drastically altered the landscape of communication, bringing employees and stakeholders worldwide together in a manner never seen before. Nagata provided an example of this transformation, highlighting how Toyota's efforts have resulted in a more collaborative and less distant relationship with suppliers, particularly Tier 2 suppliers.

Toyota's relationships with suppliers have evolved, with a focus on open dialogue and mutual understanding. This shift is evident in Toyota's initiative to send engineers to supplier worksites to discuss quality standards, fostering a shared commitment to excellence.

In addition to strengthening supplier relationships, Toyota has been proactive in addressing health concerns during the pandemic. The automaker has accelerated the development and implementation of new technologies, such as smartphone-based digital keys and advanced air quality systems in their vehicles. Toyota has also enhanced hybrid technology to increase efficiency and reduce emissions.

Regarding communication, Toyota has emphasized transparent, innovative messaging about new features and safety improvements in their vehicles. This approach has been instrumental in maintaining customer trust and enabling the company to respond effectively to pandemic challenges.

Beyond the automotive industry, Toyota has been actively involved in improving the overall process of vaccinations in the United States and the United Kingdom, using Toyota Production System (TPS) know-how to reduce lead time and long lines at vaccination venues. Toyota is also helping companies improve productivity in the production of medical protective gowns and is now trying to help with vaccine freezing storage processes and vaccinations.

Despite the semiconductor shortage, Toyota is aiming for a 300,000-unit increase in its full-year global sales volume. This ambitious goal is a testament to Toyota's determination to overcome obstacles and continue its growth trajectory.

In the third quarter (October to December 2020), Toyota's operating income was 987.9 billion yen, marking an increase of 347.8 billion yen compared to the same period the previous year. Toyota's Toyota World Convention was recorded and distributed, allowing 50,000 people to view it, including general employees.

Toyota's President, Toyoda, has also adapted his communication style, utilizing online tools to connect with employees and stakeholders. The change in communication has been a significant factor that helped employees remain focused on their work during the pandemic.

Toyota has secured one to four months of inventory for semiconductors and has introduced 10 new models last year and nine this year as planned, despite the challenges posed by the COVID-19 pandemic. Toyota's plants and suppliers in Japan have made efforts in kaizen activities to promote cost reduction during the pandemic.

In a recent announcement, Toyota revised its forecast for full-year operating income upward to 2 trillion yen, reflecting the company's strong performance and adaptability in the face of adversity. Toyota's efforts, according to Kon and Nagata, are focused on doing what they should do – delivering quality products, fostering strong relationships, and adapting to changing circumstances to meet the needs of their customers and stakeholders.

Updated Results Show Toyota's Third-Quarter Financial Improvement from Executing Prescribed Actions