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Toyota sells automobiles and provides after-sales
service to customers in Japan through a network of 308 car dealers* and
approximately 5,800 vehicle sales outlets.
Since the establishment of a Toyota dealer in 1935 through the use of local
capital, Toyota has developed a sales structure for Toyota vehicles based
on the principles of independence and responsibility, that emphasizes local
capital, and has made every effort to fulfill its responsibilities in a system
of mutual trust.
Today, of 308 dealers, approximately 290 dealers are being managed with entirely
local capital. In its relationship with dealers, Toyota has since its foundation
respected the standpoint of its dealers, as exemplified by the following
statement of Honorary Advisor Eiji Toyoda and Honorary Chairman Shoichiro
Toyoda made at the time of the merger of Toyota Motor Co., Ltd. and Toyota
Motor Sales Co., Ltd.: "Manufacture products with an awareness of the
difficulty in selling them, and make every possible effort to sell those
products." Thus, Toyota and its dealers are in a relationship of reciprocal
hard work. |
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| Dealer Policies |
In 1935, the
late Shotaro Kamiya of Toyota described Toyota's sales philosophy in
the following way: "Customer first, dealer second, manufacturer
third." In other words, "The order of persons benefiting
from the sales of Toyota vehicles is first the customer, second the
dealer, and last the manufacturer. This stance is the best means of
securing the confidence of both customers and Toyota dealers, and the
results will ultimately benefit Toyota." To this day, Toyota promotes
sales activities based on this concept.
Toyota believes that it is important to achieve the greatest overall
effect by respecting the independence of its dealers and enabling them
to realize their individual strengths. Also, in order to build relationships
between Toyota as a manufacturer and dealers based on mutual benefit,
Toyota engages in extensive communications and builds trusting relationships.
The prosperity of its dealers leads directly to Toyota's prosperity,
and Toyota believes that mutual benefit is the ideal stance for its relationship
with its dealers. As a result, since its foundation Toyota has striven
to create relationships based on mutual benefit. |
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Toyota car dealer |
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| Basic Contract with Dealers |
| Toyota concludes a Toyota Dealer Agreement
with each of its dealers which specifies the mutual rights, obligations
and responsibilities of both Toyota and the dealer. The basic contract
is renewed once every three years following adequate consultation between
Toyota and the dealers, taking into account changes in the business climate.
For example, in its 2001 revision, provisions concerning consideration
for the global environment were incorporated in the items for mutual responsibility.
In the future, Toyota plans to make other appropriate changes to reflect
other changes in the business environment. |
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| *Overseas, vehicle sales and after-sales service
are conducted by distributors. The relationship between Toyota and overseas
distributors is based on the same principles as the relationship between
Toyota and Japanese dealers. |
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| Partnership with Toyota Motor Corporation |
The first Toyota
dealers selected Toyota as a business partner even prior to the Second
World War because they could relate to Toyota's sales principle of "Customer
first, dealer second, manufacturer third." The choice they made
certainly was the right one.
Toyota and its dealers have long taken on the challenges of innovative
sales policies, including the introduction of installment sales, emphasizing
after-sales services, and promoting the shift from sales through personal
visits to in-shop sales. Today, Toyota dealers lead domestic auto sales
and maintain a market share of 40%, excluding minivehicles.
This has been possible because Toyota and its dealers engage in on-going
communication and build relationships of mutual understanding and trust.
Toyota and its dealers are now undertaking the challenge of reviewing
the channel system for spring 2004. Toyota and its dealers are prepared
to undergo a certain degree of pain in conjunction with this reform,
but without doubt the relationship between them is strong enough to withstand
and overcome such pain.
July 2003
*Toyota National Dealers' Advisory Council:An
organization of 467 Toyota dealers that facilitates smooth communication
between dealers and Toyota. |
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Nanao
Oguri
President, Nagoya Toyopet Corporation
Chairman, Toyota National Dealers' Advisory Council*
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