CH-1 - INTRODUCTION

Toyota Motor Sales, U.S.A., Inc., was formed Oct. 31, 1957, establishing its
headquarters in a former Rambler dealership in Hollywood, Calif. Sales began in
1958 and totaled a modest 288 vehicles 287 Toyopet Crown sedans and one Land
Cruiser.
Enthusiasm turned to gloom when it was found that the Toyopet, a sturdy vehicle with
quality features and room to spare, was woefully underpowered and overpriced for the
American market. Toyopet sales stalled and were discontinued in 1961. The legendary
Land Cruiser, which quickly gained a reputation as a durable, all-terrain vehicle,
carried the Toyota flag in the United Sates until 1965 when the Toyota Corona
arrived.
Corona, the first popular Toyota in America, was designed specifically for American
drivers. With a powerful engine, factory-installed air conditioning and an automatic
transmission, Corona helped increase U.S. sales of Toyota vehicles threefold in 1966
to more than 20,000 units.
As more Americans discovered the quality and reliability of Toyota products, sales
continued to soar. By July 1967, Toyota had become the third-best-selling import
brand in the United States.
The thrifty Corolla was introduced in 1968 and, like the Corona, was a huge success
with American drivers. Corolla has since become the worlds all-time best-selling
passenger car, with over 30 million sold in more than 140 countries.
In 1972 Toyota sold its one-millionth vehicle. By the end of 1975, Toyota surpassed
Volkswagen to become the No. 1 import brand in the United States. Three years later,
in 1978, Toyota won the "Import Triple Crown" by leading all import brands in sales
of cars, trucks and
total vehicles.
During the 1970s,
Toyota launched some
of its most memorable
marketing campaigns,
using tag lines that
included "You Asked
For It/You Got It!"
and the hit "Oh What
A Feeling!" campaign
that included the
popular "Toyota
Jump."
As Toyota celebrated
its 25th anniversary in
America during 1982,

it opened a new national sales headquarters complex that it occupies today in

Torrance, Calif. Toyota's success continued, and in 1986, it became the first import
automaker to sell more than one million vehicles in America in a single year, racking
up sales of 1,025,305 cars and trucks. That year also marked the company's debut as a
manufacturer in the United States, with the rollout of the first Toyota car built on
American soil. The vehicle, a white Corolla FX16, was produced on Oct. 7, 1986, at
the New United Motor Manufacturing, Inc. plant, a joint venture with General
Motors.
Since then, Toyota has established many other vehicle and parts plants in North
America. By the end of 2011, Toyota will operate 14 plants across North America,
including facilities in the states of California, Kentucky, Indiana, West Virginia,
Alabama, Tennessee, Texas, Missouri and Mississippi.
As Toyota's presence in America grew, the company sought a larger role in
communities across the nation. So, to commemorate the company's 30th anniversary
in America in 1987, Toyota established the Toyota USA Foundation with a $10
million endowment and a mission to make Toyota a leading corporate citizen.
In 1989, Toyota branched out by establishing a luxury line of vehicles with the debut
of the Lexus LS 400 and the ES 250. Highly acclaimed cars, plus exceptional
customer service,
quickly became the
hallmark of Lexus.
In 1991, Lexus earned
the title of No. 1
luxury import in the
United States,
surpassing both
Mercedes Benz and
BMW. That year, the
brand also dominated
three independent J.D.
Power and Associates
quality surveys, being
named top nameplate
in Customer
Satisfaction, Sales
Satisfaction and Initial
Quality.
Toyota continued its strong growth through the 1990s. A highpoint came in December
1997 when the Toyota Camry first earned the title of No.1-selling passenger car in
America. Toyota also launched its first full-sized pickup, the Tundra, in 1998.
Toyota marked the start of the new millennium with the launch of the Prius, the
world's first mass-produced gas/electric hybrid car. Prius, which in Latin means "to go
before," was revolutionary, featuring an EPA-estimated fuel economy rating of 45
city/51 highway and ultra-clean tailpipe emissions that were 90 percent less in smog-

forming gases than conventional cars at the time.

By the end of 2000, following its tag line, "The Relentless Pursuit of Perfection,"
Lexus edged out Mercedes Benz by 423 units to become the top-selling luxury brand
in the United States, a position it has held for ten years running.
May 2001 marked the incorporation of Toyota Motor Sales de Mexico, Toyota's new
sales and marketing subsidiary in Mexico. By the end of the year, Toyota had grown
to become the third-best-selling automotive brand in the United States, surpassing
Dodge with best-ever sales of 1,741,254 vehicles.
In December of 2002, Toyota delivered its first two zero-emission, market-ready
hydrogen fuel cell vehicles to customers in California for real-world testing. The next
year, Toyota's new, breakthrough hybrid technology, "Hybrid Synergy Drive," debuted
in the all-new 2004 Prius.
Toyota's growth in America continued in 2003 when Toyota launched Scion as its
third line of vehicles. The Scion line featured three modestly priced but feature-rich
vehicles brought to market by most Toyota dealers under an innovative, youthoriented marketing program. Scion was a success, and in 2004, Toyota's U.S. sales
topped two million vehicles per year for the first time.
In 2005, Toyota continued expanding its environmentally advanced lineup with the
introduction of the worlds first luxury hybrid, the Lexus RX 400h, and a hybrid
option for the Toyota Highlander.
Toyota added a hybrid option to its popular Camry sedan in 2006 and began building
it in the United States at its massive Kentucky plant. The company also opened up its
10th U.S. plant in San Antonio, Texas, to build pickups. In addition, the company
launched the FJ Cruiser with a design that harkens to the early years of the rugged
Land Cruiser, the only vehicle Toyota has continuously sold throughout its entire 50year history in America. As a result, sales surged to more than 2.5 million for the first
time and Toyota established itself as the third best-selling automotive company in the
United States.
During 2007, its 50th year in America, Toyota introduced its largest pickup truck ever,
the rugged 2008 Toyota Tundra, as well as the second-generation of its iconic Scion
xB urban utility vehicle and the worlds first V8 hybrid, the Lexus LS 600h.
As a result of an economic recession, Toyotas sales were down in 2008, but the
Toyota brand outsold Chevrolet to become the No. 1-selling automotive brand in
America, and Camry retained its crown as the No 1-selling car in the nation for the
11th time in 12 years. Toyota also passed General Motors in global sales to become
the worlds largest automaker for the first time in history.
In 2009, Toyota launched two all-new gas/electric hybrids, the third-generation Prius
with an estimated EPA fuel-economy rating of 50 miles per gallon in combined
driving, and the first dedicated hybrid from Lexus, the HS 250h. Lexus also
introduced the all-new, second-generation GX 460 luxury utility vehicle and the next
generation of its trend-setting RX luxury utility vehicles, the V6-powered RX 350 and

the hybrid RX 450h. By the end of the year, total combined sales of Toyota and Lexus
hybrids in the United States topped the one million mark. In addition, Toyota Motor
Sales, U.S.A., Inc. received an environmental achievement award from the EPAs
Pacific Southwest Region Office. Toyota announced a safety recall in November to
address concerns that
unsecured or multiple
floor mats could
entrap the accelerator
pedal on certain
Toyota vehicles.
During 2010, Toyota
began production of
the third-generation
Sienna at its Indiana
plant, however, in late
January, Toyota
briefly suspended
sales of eight models
while it developed a
fix for a rare potential safety issue sticking accelerator pedals. A fix was rolled out
in early February but heavy news coverage of the situation and additional recalls led
to Congressional hearings and the company paying three federal penalties. Toyota
took major steps during the year to improve communications and the quality and
safety of its vehicles. However, the intense media coverage combined with the
lingering effects of the recession weakened results with the company reporting a
slight 0.3 percent drop in sales for the year. Despite the setbacks, Camry retained its
title as the best-selling passenger car in the United States, Toyota was still the No. 1
retail brand, Lexus remained the No. 1 luxury brand, and Toyotas brand conquest
rates returned to historically high levels.
On March 11, 2011, a 9.0 magnitude earthquake struck the Tohoku region of Japan. It
was the most powerful earthquake to ever hit that country followed by a tsunami that
claimed the lives of nearly 16,000 people. Entire cities were destroyed and many
businesses were shut down, including four Toyota plants. As production started
returning to former levels, floods in Thailand halted production in two more plants.
But, despite these natural disasters, production returned to near-normal levels by the
end of the year, a testimony to Toyotas resiliency and efficiency.
Toyota, along with its Lexus and Scion brands, continued to move forward in 2011
with new and redesigned vehicles. Toyota unveiled a bigger and more diverse Prius
family of vehicles, including the third-generation Prius liftback, the Prius Plug-in
Hybrid, the larger Prius v and the smaller Prius cconcept vehicle. Additional Toyota
vehicles revealed in 2011 included the next generation 2012 Yaris liftback and the
completely redesigned 2012 Camry. Lexus introduced the CT 200h, a premium
compact hybrid that earned a Top Safety Pick award from the Insurance Institute for
Highway Safety. Later in the year, Lexus took the wraps off the all-new 2013 GS 350,
GS 450h and GS 350 F SPORT with the bold new face of Lexus. Meanwhile, Scion
introduced the 2012 iQ, which along with the Toyota Camry and Scion tC, won five
star crash test ratings from the National Highway Traffic Safety Administration.

Other 2011 milestones included the sale of the one-millionth Toyota Prius in the
United States, and Toyota Motor Manufacturing Kentucky celebrated 25 years of
production in Georgetown, Kentucky. Toyota also expanded its vehicle manufacturing
in the United States and created 2,000 American jobs by beginning production of the
Corolla at the newly opened Toyota Motor Manufacturing, Mississippi plant.
Through the strong efforts of its associates in Japan and around the globe, Toyota
recovered rapidly from the supply disruptions caused by the natural disasters, and in
2012 began regaining its sales momentum as dealer inventories were fully restocked.
By mid-year, U.S. sales of Toyota, Lexus and Scion vehicles had sped past the onemillion-sales mark, something that had not happened until mid-August the prior year
because of short supply. In fact, starting in March, Toyota was once again the No. 1
retail brand in the United States. The companys resurgent U.S. sales were driven in
large measure by the launch of a record number of 19 new and redesigned products.
Also contributing to the companys recovery, five Toyota and Lexus vehicles captured
segment awards and five Toyota manufacturing facilities won plant awards in the
annual J.D. Power and Associates Initial Quality Survey. In addition, Toyota models
earned five out of the 10 top spots in the Consumer Reports 2012 Top Picks, the first
time in nearly a decade that a single brand had captured half the categories. And a
total of 17 Toyota, Lexus and Scion 2012 models earned Insurance Institute for
Highway Safety Top Safety Pick Awards.

CH-2 -" TOYOTA IGNORED SAFETY CONCERNS TO

SAVE MONEY"
The most important aspect of any factory based company is abiding by all procedures
and standards set by the government in order to keep employees and consumers safe.

When these issues are avoided safety concerns arise and the news of a large company
not properly following procedure will explode over social media and become the
headlines of major news reports. This is the situation Toyota found themselves in after
they chose to ignore fatal recall investigations in order for this multimillion dollar company to save a few dollars.
Toyota was "confronted with safety concerns regarding faulty breaks and sticking
pedals in 2009" and refused to take immediate recall action, enabling a potential
unstoppable force to unconsciously make its way around overflowing city streets.
Toyota also announced that substituting side airbags for properly installed breaks save
them "US$124 million and 50,000 man hours," the cost of what it would have taken
to recall and fix vehicles. They soon added that they began "delaying a rule for
tougher door locks saved them US$11 million." Proving that the globally recognized
million dollar company chose to save a little more money by removing standard
safety features. The financial greed lead to the death of many Toyota customers whose
families were shocked in terror upon hearing about a once trusted care company.
Two years later the trial appeared before Congress where Toyota manufacturers
could try another fraud attempt at providing an explanation to a fatal decision.
However, the unethical handling of the situation did not seem to phase any Toyota
employees upon stating "We did not see it as such a big deal." When asked how they
were planning to accommodate families and come up with a valid solution to the
problem their senior Toyota executive and global managing director were more sorry
for getting caught than they were for the choices they made in the first place.
The problem was not announced until Toyota was "accused of hiding evidence in
hundreds of roll-over and death cases." Personally at this point, the report is too late
for some unfortunate families and injured victims of careless manufacturers.
At this point, Toyota learned what they were capable of getting away with and still
maybe continuing to do so. Their unethical practice lead to hundreds of dollars in
damage and caused even more roll-overs even leading to deaths. Toyota's lack of
attention to detail proved how easy it was for them to scam their way around
important safety features and still proceed to go unnoticed. The company was finally
forced to make recalls on all vehicles that were wrongly equipped with faulty breaks
and poor quality door locks. Without the authority of the government car owners
would have been lucky to have heard about the problem let alone be provided with a
legally qualified vehicle and an apology letter.
The problem exploded on top of the fact that the practice was unethical the
way Toyota resolved and tried to explain their reasoning could arguably be
worse. There were hundreds of ethical ways Toyota could have easily handled the
problem and yet they chose the most ill-fitting solution. Ignorance of employees
and managerial staff set the bar even higher and furthermore proves to customers
what companies have the capability of hiding with a little employee intensive. A
vehicle can easily become an unstoppable force with the capability of crushing
any opponent who wishes to face it, or has the unlucky chance of doing so. You would
figure in the 21st century it would be common sense to protect each other, this
including the construction of any m
otorized vehicle.

CH-3 - CONCLUSION