Car Project
...and Engineering (TMME) entered the new millennium, the mood in the company was upbeat and realistic. In 1998 Toyota had achieved record sales in 10 European countries, and TMME had topped Nissan’s sales in Europe for the first time ever. Further growth was expected; import restrictions that had hindcred the progress of all Japanese brands were due to be lifted entirely on December 31, 1999. At last, Toyota could really make progress in Europe.
The appointment of Mr. Fujio Cho as President of Toyota Motor Company in early 1999 provided additional impetus. Mr. Cho took over from Mr. Hiroshi Okuda. Mr. Okuda led Toyota’s globalization efforts and later became Chairman of the Board. Mr. Okuda had made a firm commitment to European operations by setting up a new factory in France and putting Toyota Europe on a growth strategy. In addition, he installed a new President at TMME and hired a senior marketing executive from the Volkswagen Group. Mr. Cho fully endorsed the objective of increasing Toyota’s European market share crom 3% 105% by 2005. For TMME’s Corporate Identity & Brand Management Team, this was a challenge to relish:
We will develop Toyota into an important European player This will neither he easg nor will it happen overnight. If we reach world standards with regards to customer satisfbction and product experience, then we can be successful.
Research Associates George Rildler and Madoka Hokamura prepared this casc under the direction of Professors Sean Meehan and Dominique Turpin as a batis for class discussion rather than to illustrate either effective or ineffective handling of a business situation, Selected data in the case have been disguiscd and are not intended for research purposes. Copyright © 2000 by tMD—tnternatiooal Institute for Management Development, Lausanne, Switzerland. Atl rights reserved. Not to be used or reproduced without written...
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