Toyota, which lost 450 billion, closed the production line, and threatened to deal with China, now r

Mondo Finance Updated on 2024-01-29

Sakichi Toyoda, a master of the first generation, was born with a high talent for mechanics, and his skillful hands were able to transform wood and iron sheets into various shapes, which became the cornerstone of his future success in the field of automatic looms. In 1926, at a time when the Japanese textile industry was in dire need of technological innovation, the 40-year-old Sakichi founded his own company to focus on the development of automatic looms.

Sakichi regards automatic looms as his life's work and devotes all his heart and soul to it. In that workshop, which worked day and night, he took the lead and sweated like rain with the workers. Finally, they amazed the four with the G-type loom and became the industry leader in one fell swoop. At this time, Sakichi's son, Kiichiro, had been involved in the company's operations for many years. Despite his talents, the young man was never interested and turned his attention to the automotive industry, which was still in its infancy at the time. In 1930, although Sakichi on the sickbed did not agree with his son's choice, he decided to sponsor him to start a new journey. Foreseeing the infinite prospects of the automotive industry, Kiichiro was inspired to break new ground in the automotive field. In 1937, Kiichiro got his wish, and Toyota *** Co., Ltd. was officially born. But the good times did not last long, and the nascent enterprises faced a difficult dilemma. However, the Korean War in 1950 brought a turning point for it.

Toyota's ability to take orders from the army has given him valuable experience. Suffering, the birth of the dragon. The transformation of the Toyota family from a loom to a car is precisely such ups and downs and hardships that have led to success. The year 1957 was undoubtedly an important turning point in Toyota's corporate development. In that year, Toyota launched the Crown sedan, which successfully opened the door to the North American market, allowing the Japanese brand to take root in the United States for the first time. In the following decade, Toyota's production grew steadily, and it successively overtook the old European car companies and ranked among the top three in the world. 1968 was a bumper year for Toyota. They beat West German Volkswagen to claim the position of the world's second-largest car manufacturer. Twelve years later, Toyota fought to a new peak and became the largest producer by beating Ford-GM of the United States with an absolute advantage.

Such an honor is the glory of Japan's leading people, and it is also the crystallization of the unremitting struggle of Toyota people. The data behind it is impressive: in the 80s of the 20th century, Toyota already accounted for about 20% of the global market. Since the 90s, Toyota's global market share has grown steadily, reaching a staggering 25%. How did you achieve such a brilliant achievement?The secret is strong technical strength. Toyota has successively launched environmentally friendly models such as gasoline-electric hybrid and hydrogen fuel cells, becoming a technology leader in the industry. Toyota has long stood as the leader in the Chinese market, and many sedan series have been selling well. However, the aura of the "pride of the sky" faded quickly. Toyota's operational mistakes in many aspects have caused dissatisfaction among Chinese consumers, and its brand image has plummeted.

The uneven quality is arguably the most criticized problem for Toyota in China. In the Chinese market, the same model has repeatedly suffered from the lack of rear bumper and the reduction of engine fenders, while the overseas version has not been damaged at all. In addition, the use of low-quality spare parts for individual models, such as cheap tires with long braking distances, has also raised doubts. This undoubtedly makes consumers suspect that Toyota has a double standard, which significantly weakens the value of its products. Even more infamous for Toyota was a television commercial that aired in 2003. The advertisement compares the Toyota sedan with the Lugou Bridge, a historic site in China, and describes it as "domineering", which is extremely lacking in cultural sensitivity and triggers condemnation. Since then, there has been negative publicity about Toyota towing Chinese trucks, which has undoubtedly pushed the brand image to the bottom.

The root cause of all these problems is that Toyota does not focus on the Chinese market, but rather as a sales terminal. This has led to obvious loopholes in Toyota's market operations in China and unacceptable mistakes. In order to reverse the decline and regain the trust and support of consumers, Toyota must deeply reflect and adjust its strategy to live up to the expectations of Chinese users. In 2020, the new crown epidemic swept the world, causing a devastating blow to the world economy. The auto industry is naturally doomed, and Toyota has suffered a double blow from the epidemic and chips, and has fallen into an unprecedented predicament and crisis. During the epidemic, countries locked down their countries and locked down cities, and the production and sales market of automobiles faced a shutdown. According to the data, in the first half of 2021, Toyota's hybrid models were **1. 50,000 units, down nearly 50% y/y.

At the same time, new energy vehicle companies seized the opportunity, and Toyota's market share also declined. For a time, Toyota's sales in China were becoming more and more weak. At this time, there is a monster with a shortage of chips gnawing at this lion. As a key component of automobiles, the shortage of chips** has caused Toyota's production capacity to decline sharply. According to statistics, Toyota is expected to reduce production by 500,000 vehicles in 2022. In the Chinese market, they were also forced to close several production lines in order to survive the storm. The stock price has evaporated a staggering 450 billion yuan in just three months, which can be said to be even worse. Faced with the double whammy of the epidemic and chips, Toyota fell into the most difficult moment in history. Does this lion still have the power to fight back?Let's wait and see.

After nearly a century, Toyota Motor started as a small workshop and eventually grew into an industry giant, and its development history can be described as twists and turns. Especially in the Chinese market, Toyota has gone from being a proud child to a pole of word-of-mouth, and has fallen into an unprecedented crisis of trust. Looking back on the past, reflecting on failures, and starting anew is a serious issue facing Toyota. Toyota's failure in China is a loss of trust that is bringing the century-old brand to the brink of disappearing in the Chinese market. So, where should Toyota go from here to reverse the decline and rebuild consumer confidence?Solving quality issues is a top priority. Toyota must ensure that the models sold in China are consistent with the same models overseas, eliminate double standards, and enable Chinese users to truly enjoy high-quality services.

In addition, Toyota should also adjust its market strategy, accelerate the deployment of electric vehicles, and introduce more new energy options. Last but not least, cultural integration is the need for Toyota to learn to embrace differences, spread positive energy, and live in harmony with Chinese society. The cycle of history, suffering tempers heroes. I believe that after deep reflection and adjustment, Toyota will be able to start again.

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