Toyota: Driving the Mainstream Market to Purchase Hybrid Electric Vehicles
In 1957 Toyota introduced its first vehicle to the American market, the Toyopet Crown. The small, fuel efficient vehicle had seen much success in Japan, but did not fare as well in the U.S. market. With relatively inexpensive gas available in the United States, the American consumer saw no need for a reliable, fuel efficient vehicle manufactured by a foreign auto company. In its first venture into the U.S. market Toyota learned some valuable lessons; auto manufacturers must align their vehicles with customer needs and a high quality product does not always succeed in the market.
Toyota found an opportunity to re-enter the U.S. marketplace during the fuel shortage of the 1970's. For the first time, American consumers were looking for fuel efficient vehicles and Toyota had the answer. In 1965 foreign auto groups held just 5% of the U.S. auto market. This share has steadily been increasing with foreign auto manufacturers currently holding 40% of the market. With its foot in the door of the U.S. market, Toyota developed a reputation for designing simple, fuel efficient, reliable, affordable vehicles.
In April 2003, with a solid reputation, low cost flexible production, and more than $134 billion in cash and assets, Toyota set its sights on becoming the largest auto manufacturer in the world. The auto industry and the environment in the U.S. had changed dramatically since Toyota hit the U.S. scene almost 50 years ago. In the 1950's there were 50 million vehicles on the roadways, this number had increased to just under 500 million (a 90% increase!) befo ...