Toyota: The Once-in-a-Century Challenge

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Case Details:

Case Code : BSTR362
Case Length : 16 Pages
Period : 2006-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Toyota Motor Corporation
Industry : Automotive
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Toyota faces tremendous challenges. As an organization it has not had to deal with a down cycle before, and this is not just a cycle in one country but in virtually all of its markets."1

- Michael Smitka, Japanese auto industry expert.

"We're facing a once-in-a-century crisis... I'll try to make changes without being tied down by the past. I will consider measures quickly." 2

- Akio Toyoda, President, Toyota Motors Corporation.


On June 23, 2009, Akio Toyoda (Akio) took over as President of Japanese automaker Toyota Motor Corporation (Toyota). Akio's appointment came in the wake of the company reporting its first losses since 1963, the year it began reporting business data.

Analysts felt that the global financial crisis had had its impact on the world's largest automaker and that the company was also trying to cope with a shift in the global automobile industry. The challenge before Akio, grandson of the founder of Toyota, was to bring the automaker back to profits.

Toyota: The Once-in-a-Century Challenge - Next Page>>

1] Todd Crowell, "Toyoda Takes Toyota Wheel,", May 8, 2009.
2] John Lippert, Alan Ohnsman and Kae Inoue, "Toyoda Asks How Many Times Toyota Errs Emulating GM Failures,", June 22, 2009.

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