Toyota Pestel Analysis

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Political
Toyota had a lot of help from japan government, including tax breaks. on the flip side, Toyota is expected to 'sell' Indiana and its assets to the world. U.S. Sen. Dick Lugar commented on Toyota producing Camrys in Indiana:

I applaud Governor Daniels and the Indiana legislature and all who are working together. First of all, to provide support for the governor and public officials to go to Japan and to other countries to tell about Indiana.

Economic

The opening of this unit will bring substantial economic benefits, including a possible wage raise. In recent articles it has been stated: If Toyota decides to build up to 100,000 Camrys or Highlanders each year at the plant, it will mean 1,000 jobs, according to Gary Henriott, chairman of the Lafayette-West Lafayette Economic Development Corp. "It would be an incredible boost to our local economy," Henriott said of jobs that would pay more than $20 an hour. "It would improve every facet of our economy."

"Paradoxically, Lafayette had very little automotive employment at that time. So adding SIA to our employment mix was actually a diversification of our local employment base. Over 200 Japanese companies are now located in Indiana, many of whom are suppliers to Subaru and Toyota, so the positive economic impact of foreign investment all across Indiana is easy to document." A report compiled by the Northwest-Midwest Institute, a Washington, D.C.-based research organization, shows manufacturing represented 27.9 percent of Indiana's gross state product, which totaled $227.5 billion in 2004. "The SIA-Toyota decision is a vote of confidence in the Lafayette area economy," McNamara said. "SIA-Toyota is investing in the Lafayette economy because it is a good business decision for SIA-Toyota. Indiana, the state with the largest share of gross state product for manufacturing, is a competitive location for manufacturing investment.

Social and Cultural

Toyota's move would lead to community...
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