'How Do We Make Better Cars?' The Evolution of Toyota's Monozukuri

Allow me to share some of my thoughts on car development.

Having spent a long time developing cars at Toyota, I think that in the last 15 years or so (the company's carmaking) has changed drastically.

I strongly feel that Chairman Akio Toyoda's calls to "make ever-better cars" and become the best in each region were a major turning point.

Until then, the company was organized by function, with production plants wanting to make cars that were easy to build and the accounting department pushing for cars that made more money. We were divided by functions.

Yet when we received the challenge to "make ever-better cars," we all got to thinking: how do we make our cars better?

What is needed to create ever-better cars from the customers' perspective?

While we were figuring this out, Toyota started its in-house company system, and we shifted from that function-oriented mindset to everyone thinking about products-some people concentrating on commercial vehicles, others exclusively Lexus, while still others thought only about compact cars. I believe this product-focused approach gradually established the ever-better carmaking we have today, creating vehicles that delight customers in each region.

I would like to share an episodefrom the development of the current Prius. Since hybrids have become a widespread commodity, the Chairman suggested, "Why don't we make the next Prius a taxi?"

By contrast, as developers, we thought that hybrids reaching maturity gave us the chance to take on the challenge of ever-better carmaking that could only be done with the Prius.

It was more of a discussion than a dispute, and when the Chairman saw the car that came out of it, he responded, "If that's what you all want to make, then let's make it."

I think that through the pursuit of ever-better carmaking, we became a company where leaders and frontline members can have such conversations.