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Turning Challenges into Opportunities Sumio Ohtsuji Senior Vice President & Coordinating Officer Toyota Motor North America March 12th, 2012 1 1
Impact of the Great East Japan Earthquake 760K Units of Production Impacted Globally
450 Dealers Affected
660 Suppliers Affected 1,800 New Vehicles Damaged
1 2
Supply Chain Disruption Our Assumption
Manufacturer
Manufacturer Tier 1 Tier 2
Tier 1 Tier 2
Pyramid
Actual Situation
Tier 1
Manufacturer
Tier 1
Tier 2
Tier 1
Tier 1
Tier 2
Diamond
Semiconductor
Rubber Parts
1 3
Supply Chain Disruption Strengthening our Business Continuity Management Strategy
1.8M
1 4
Supply Chain Disruption Supply Chain Assessment
1 5
Supply Chain Disruption Countermeasure 1
1
Increase Local Sourcing
1 6
Supply Chain Disruption Countermeasures 2 & 3
Make More Parts Standard Across Toyota Models
2
C
A
A
B
A Plant A
Plant B A
Make More Parts Standard Across Automakers
3 Toyota
B
C
Toyota
C
A
C
E
E
B
D
E
E
D
B
D
1 7
Supply Chain Disruption Countermeasures 4 & 5 Diversify Production Sites 4
Supplier A Toyota Plant A
Plant B
Diversify Suppliers 5 Supplier A Toyota Supplier B 1 8
Supply Chain Disruption Making the U.S. an Export Base Russia South Korea
Latin America
Middle East
Australia 1 9
Japan Production Strategy Maintain 3 Million Vehicle Production in Japan
Domestic Models
3.0M
Environmental and Next Generation Technology
Global Strategic Models 1 10
“Tohoku” Revitalization Initiative
Philanthropy
Auto Business
New Business
1 11
Auto Business Strengthening the Tohoku Region “Chubu” (HQ Region) - Center of Japanese Production - Responsible for Advanced Technology and Innovation
“Kyushu”
“Tohoku” Compact Toyota models
- Launch new company “Toyota Motor East Japan”
Mid-Size Toyota models & select Lexus models
1 12
New Business Reconstruction New Biz “F-grid Concept” Image of “F-grid Concept”
In-house power generation (CGS,PV)
Power company
F-grid Center
Region Emergency power supply
Plant A
Plant B
Plant C
Plant D 1 13
Hope for Japan
1 14
Impact of the Great East Japan Earthquake 760K Units of Production Impacted Globally
450 Dealers Affected
660 Suppliers Affected 1,800 New Vehicles Damaged
1 2
Supply Chain Disruption Our Assumption
Manufacturer
Manufacturer Tier 1 Tier 2
Tier 1 Tier 2
Pyramid
Actual Situation
Tier 1
Manufacturer
Tier 1
Tier 2
Tier 1
Tier 1
Tier 2
Diamond
Semiconductor
Rubber Parts
1 3
Supply Chain Disruption Strengthening our Business Continuity Management Strategy
1.8M
1 4
Supply Chain Disruption Supply Chain Assessment
1 5
Supply Chain Disruption Countermeasure 1
1
Increase Local Sourcing
1 6
Supply Chain Disruption Countermeasures 2 & 3
Make More Parts Standard Across Toyota Models
2
C
A
A
B
A Plant A
Plant B A
Make More Parts Standard Across Automakers
3 Toyota
B
C
Toyota
C
A
C
E
E
B
D
E
E
D
B
D
1 7
Supply Chain Disruption Countermeasures 4 & 5 Diversify Production Sites 4
Supplier A Toyota Plant A
Plant B
Diversify Suppliers 5 Supplier A Toyota Supplier B 1 8
Supply Chain Disruption Making the U.S. an Export Base Russia South Korea
Latin America
Middle East
Australia 1 9
Japan Production Strategy Maintain 3 Million Vehicle Production in Japan
Domestic Models
3.0M
Environmental and Next Generation Technology
Global Strategic Models 1 10
“Tohoku” Revitalization Initiative
Philanthropy
Auto Business
New Business
1 11
Auto Business Strengthening the Tohoku Region “Chubu” (HQ Region) - Center of Japanese Production - Responsible for Advanced Technology and Innovation
“Kyushu”
“Tohoku” Compact Toyota models
- Launch new company “Toyota Motor East Japan”
Mid-Size Toyota models & select Lexus models
1 12
New Business Reconstruction New Biz “F-grid Concept” Image of “F-grid Concept”
In-house power generation (CGS,PV)
Power company
F-grid Center
Region Emergency power supply
Plant A
Plant B
Plant C
Plant D 1 13
Hope for Japan
1 14
