Toyota Vietnam

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TOYOTA MOTOR CORPORATION

In today automobiles industry, Toyota is well-known not only in Asia but also all over the world. Established seven decades ago, we could say that Toyota brand has been appeared most of countries all over the world, and they have a big influence on automobiles industry. Beside the success of Toyota through decades, Toyota has faced with many obstacle that affect strongly on its reputation in a few years back.

Overview
Toyota was found by Sakichi Toyoda. It traces the company's development through 1937, when Toyota Motor Co., Ltd was established with the mission is to make maximum long-term profits for its stockholders and be a good corporate citizen. In 1950, a Toyota motor sale Co., Ltd was built because the company faces a financial crisis. After thirty years, Toyota Motor Co., Ltd and Toyota motor sale Co., Ltd are merged into Toyota Motor Corporation, 1982. The director of Toyota Corporation is Mr. Fujio Cho. Today, Toyota is the world's second or third largest automobiles manufacturer in both unit sales and in net sales, and the No.1 seller of retail vehicles in the US. It produces over 5.5 million vehicles per year. Toyota Motor Vietnam (TMV) was established in 1995 and official opening in October 1996. President is Mr. Akito Tachibana. Vietnam Toyota’s product includes Hiace, Camry, Corolla Altis, Innova, Vios and Fortuner (Locally-produced models)and Land Cruiser, Hilux (Imported models), with a production capacity of 20,000 vehicles/year. TMV is possessed by three associates: Toyota Motor Corporation (70%), Vietnam Engine and Agricultural Machinery Corporation – VEAM (20%), KUO Singapore Pte. Ltd (10%).

Fact issues
The first root problem which Toyota Vietnam encounters is business ethics. TMV is irresponsible in securing the customers’ safety. Although, during production process, the company detected three seriously technical flaws which are involved in safety standard contents, they still passed the decision to launch faulty cars to the market. At the time 2006- 2011, Innova and Fortuner cars were attracting lots of demands by convenient designs, suitable price. It led TMV’s sale productivity last year up to 31,000 cars for Innova series that occupied 1/3 market share in Vietnam, according to bbc.co.uk/Vietnamese- article in 8th April 12, 2011. That means TMV get lots of profit from those attracted products; but users’ lives are threatening when driving. Moreover, the problem is just exposed to public by an employee who discontented with the irresponsibility of company. It leads the authorities entering into the investigations. The company brand was broken down; and TMV started losing the customers’ loyalty. However, in a press conference, Mr. Tadashi Yoshida- production director of TMV affirmed that “if there are any accidents which are defined relating to those technical faults by authorities, TMV will take the responsibility.” That means the rights of customers aren’t respected; the safety of thousands of consumers are not concentrated on. The second root problem which Toyota Vietnam is facing is human. In an organization, the human factor is the core in whole processes from production to management. Their power and contribution are invaluable to the growth of company. However, TMV is losing themselves far away their working philosophy “To employees, we always record and respect each individual’s efforts and contribution in our success.” In the case thousands faulty cars recently, Le Van Tach-an engineer of TMV find out serious faults which will affect to users’ safety, and send suggestion to stop manufacturing and recall the faulty cars to fix immediately. But, the managers don’t heed feedbacks, ideas, or opinions to solve problems effectively. They tend to ignore Mr. Tach many times, and have arbitrary decisions. That means employees...
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