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Supplying Toyota2013 edition supplierbusiness.com

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2013 edition 2 © 2013 IHS

IHS Automotive SupplierBusiness | Supplying Toyota

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ContentsOverview .......................................................................................................................................................................... 6

Global market overview .............................................................................................................................................. 6Financial data ............................................................................................................................................................... 6Toyota financial overview ........................................................................................................................................... 7

Product and platform strategy ...................................................................................................................................... 8Strategy review ............................................................................................................................................................ 8Major model programmes .......................................................................................................................................... 8

Corolla ......................................................................................................................................................................... 8Camry .........................................................................................................................................................................11Prius ........................................................................................................................................................................... 13Yaris/Vitz .................................................................................................................................................................... 14RAV4 .......................................................................................................................................................................... 14Etios ........................................................................................................................................................................... 15Innova ........................................................................................................................................................................ 16Tacoma & Tundra ....................................................................................................................................................... 16Land Cruiser ...............................................................................................................................................................17Hiace.......................................................................................................................................................................... 18

Platform strategy ....................................................................................................................................................... 19Major platforms ......................................................................................................................................................... 20

1. MC-M (inc. Toyota Camry, RAV4, Prius, Highlander, Avalon, Avensis, Lexus RX) .................................................... 202. MC-C (inc. Toyota Corolla, Auris, Verso, Lexus CT, Scion tC, xB) ........................................................................... 213. IMV (Toyota Hilux, Fortuna, Innova) ......................................................................................................................... 214. NBC2 (inc. Toyota Vitz/Yaris, Belta, Aqua) .............................................................................................................. 225. D91B (Daihatsu Mira, Tanto, Toyota Pixis) ............................................................................................................... 236. F2 (inc. Toyota Hilux, Land Cruiser Prado) .............................................................................................................. 237. J (inc. Daihatsu Terios and Toyota Avanza) .............................................................................................................. 238. EFC (Toyota Etios) .................................................................................................................................................. 249. F1 (inc. Toyota Land Cruiser (200), Tundra, Lexus LX) ............................................................................................ 2410. N (inc. Toyota Crown Royal, Crown Majesta, Lexus GS, LS) ................................................................................. 24

Component-sharing .................................................................................................................................................. 25Volume planning ........................................................................................................................................................ 25

Production strategy ...................................................................................................................................................... 27Production strategy overview .................................................................................................................................. 27Manufacturing network............................................................................................................................................. 27

JAPAN ....................................................................................................................................................................... 29NORTH AMERICA ...................................................................................................................................................... 31CHINA ........................................................................................................................................................................ 33EUROPE .................................................................................................................................................................... 35INDIA & SOUTH-EAST ASIA....................................................................................................................................... 36LATIN & SOUTH AMERICA ........................................................................................................................................ 38SOUTH AFRICA AND AUSTRALIA ............................................................................................................................. 39

Internal supply network ............................................................................................................................................ 39Modularisation strategy ............................................................................................................................................ 41

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IHS Automotive SupplierBusiness | Supplying Toyota

Supplier parks ............................................................................................................................................................ 41Cluster of reference .................................................................................................................................................. 42

Tokai .......................................................................................................................................................................... 42Kanto ......................................................................................................................................................................... 44Kansai ........................................................................................................................................................................ 45

Strategies for manufacturing efficiency ................................................................................................................ 46Purchasing strategy ..................................................................................................................................................... 48

Purchasing strategy overview .................................................................................................................................. 48Levels of vertical integration and outsourcing ...................................................................................................... 48Purchasing organisation ........................................................................................................................................... 50Purchasing offices ..................................................................................................................................................... 50Key purchasing personnel ........................................................................................................................................ 51Purchasing budget .................................................................................................................................................... 51

Supplier selection ......................................................................................................................................................... 52Supply base development ........................................................................................................................................ 52Major and strategic suppliers .................................................................................................................................. 52Supplier selection criteria ........................................................................................................................................ 53Working with Toyota .................................................................................................................................................. 54

Global sourcing ............................................................................................................................................................. 55Policy and plans ......................................................................................................................................................... 55

JAPAN ....................................................................................................................................................................... 55NORTH AMERICA ...................................................................................................................................................... 56CHINA ........................................................................................................................................................................ 57EUROPE .................................................................................................................................................................... 57

Pricing policy ................................................................................................................................................................. 58Cost reduction programmes and strategies .......................................................................................................... 58Payment process and terms .................................................................................................................................... 59Raw material price management ............................................................................................................................. 60

Quality management .................................................................................................................................................... 61Quality level ............................................................................................................................................................... 61Quality management systems .................................................................................................................................. 61Integration into product development .................................................................................................................... 62Management of (suppliers and) sub-suppliers ...................................................................................................... 62Supplier awards ......................................................................................................................................................... 63Technological positioning ......................................................................................................................................... 65Areas of focus ............................................................................................................................................................ 65R&D spending............................................................................................................................................................. 66R&D organisation ....................................................................................................................................................... 67Access to supplier technology ................................................................................................................................. 68

Approach to alternative fuels, electrification and fuel cells .......................................................................................... 68Special vehicle development ...................................................................................................................................... 69

Interview ........................................................................................................................................................................ 71OEM-Supplier survey results ...................................................................................................................................... 77

Introduction to the SuRe Index ................................................................................................................................ 77Methodology .............................................................................................................................................................. 77Executive summary ................................................................................................................................................... 77Profit potential ........................................................................................................................................................... 79

OEM LEVEL ............................................................................................................................................................... 79Organization ............................................................................................................................................................... 80

OEM LEVEL ............................................................................................................................................................... 80Trust ............................................................................................................................................................................. 81

OEM LEVEL ............................................................................................................................................................... 81Pursuit of excellence ................................................................................................................................................. 82

OEM LEVEL ............................................................................................................................................................... 82

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IHS Automotive SupplierBusiness | Supplying Toyota

Outlook ........................................................................................................................................................................ 83OEM LEVEL ............................................................................................................................................................... 83

Global footprint ............................................................................................................................................................ 86Forward Model Program .............................................................................................................................................. 88Major suppliers ........................................................................................................................................................... 100

Toyota Highlander 2013 ........................................................................................................................................... 100Toyota Tundra 2013 .................................................................................................................................................. 102Toyota RAV4 2013 ..................................................................................................................................................... 103Toyota Lexus ES 2012 .............................................................................................................................................. 104Toyota Corolla 2013 ................................................................................................................................................. 105

FiguresFigure 1: Global light vehicle sales, 2006-2012 ........................................................................................................... 6Figure 2: The Auris replaced the Corolla in Europe (hybrid version is pictured) .................................................. 10Figure 3: The 11th generation of the Corolla was introduced in 2012 .................................................................... 11Figure 4: The Toyota Camry remains the best-selling car in the United States.................................................... 12Figure 5: Estimated Sales of Zero-Emissions Vehicles under the 2012 Amended Mandate in California 2018-2025 ............................................................................................................................................................................... 15Figure 6: Land Cruiser is Toyota’s longest-running vehicle nameplate ................................................................ 18Figure 7: The Toyota Proace panel van is produced at PSA’s Sevelnord plant in France .................................... 35Figure 8: Aisin Seiki Group Companies by Geographic Region .............................................................................. 49Figure 9: Timeline of cost-reduction programmes at Toyota through 2011 .......................................................... 59Figure 10: Integration of Quality in the product development plan of Toyota ...................................................... 62Figure 11: Orientation of Active Safety ....................................................................................................................... 65Figure 12: Toyota R&D Expenses ................................................................................................................................ 67Figure 13: The Toyota FCV-R Fuel Cell Concept ....................................................................................................... 69Figure 14: Emin Atac, Toyota Motor Europe .............................................................................................................. 71Figure 15: SuRe Index 2012 - Top of the Ranking ..................................................................................................... 78Figure 16: SuRe Index 2012 - Middle of the Ranking ................................................................................................ 78Figure 17: 2012-2013 Profit potential results on scale .............................................................................................. 80Figure 18: 2012-2013 Organisatiojn results on scale ................................................................................................ 81Figure 19: 2012-2013 Trust results on scale ............................................................................................................... 82Figure 20: 2012-2013 Pursuit of excellence results on scale ................................................................................... 83Figure 21: 2012-2013 Outlook results on scale .......................................................................................................... 84Figure 22: Toyota - Global assembly plant locations ............................................................................................... 86Figure 23: Toyota - Japan assembly plant locations ................................................................................................ 86Figure 24: Toyota - Forward Model Program 2012-2020 .......................................................................................... 89

TablesTable 1: Key Toyota financial performance values ..................................................................................................... 6Table 2: Global annual sales for Toyota vehicle ranges covered in Major Model Programmes (2010 - 2018) .. 19Table 3: Forecast Top 10 most used platforms across global Toyota production, 2013 and 2018 (by model volume) ........................................................................................................................................................................... 20Table 4: Global and Japanese Toyota production volumes (2007 - 2018) .............................................................. 26Table 5: Toyota and OEM affiliates - global production plants with forecast volumes (2013 - 2018) ................. 27Table 6: Annual Toyota production (by plant) – Japan (2009 - 2018)....................................................................... 31Table 7: Annual Toyota production (by plant) – North America (2009 - 2018) ........................................................ 33Table 8: Annual Toyota production (by plant) – China (2009 - 2018) ....................................................................... 34Table 9: Annual Toyota production (by plant) – Europe (2009 - 2018) ..................................................................... 36Table 10: Annual Toyota production (by plant) – India & South-East Asia (2009 - 2018) ...................................... 37

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IHS Automotive SupplierBusiness | Supplying Toyota

Table 11: Annual Toyota production (by plant) – Latin & South America (2009 - 2018) ........................................ 39Table 12: Annual Toyota production (by plant) – South Africa & Australia (2009 - 2018)...................................... 39Table 13: Toyota Group Companies ............................................................................................................................ 40Table 14: Supplier manufacturing plants in Tokai ..................................................................................................... 42Table 15: Supplier manufacturing plants in Kanto .................................................................................................... 44Table 16: Supplier manufacturing plants in Kansei .................................................................................................. 45Table 17: Denso revenues by region 2008– 2012 ........................................................................................................ 52Table 18: TEMA 2012 Supplier Awards ....................................................................................................................... 63Table 19: Toyota Domestic and Overseas R&D Bases ............................................................................................. 67Table 20: SWOT analysis - Toyota ............................................................................................................................... 85Table 21: Toyota plant locations with production forecast for 2013 ....................................................................... 87Table 22: Toyota Highlander 2013 Supplier Data .................................................................................................... 100Table 23: Toyota Tundra 2013 Supplier Data ........................................................................................................... 102Table 24: Toyota RAV4 2012 Supplier Data .............................................................................................................. 103Table 25: Toyota Lexus ES 2012 Supplier Data ........................................................................................................ 104Table 26: Toyota Corolla 2013 Supplier Data ........................................................................................................... 105