Tomikawa
Hello Toyota Times listeners, I’m Yuta Tomikawa, and this is episode six of Voice-Only Toyota Times News.
Chairman Akio Toyoda once again joins me. Welcome Akio.
Toyoda
Hello everyone.
Tomikawa
Thank you for coming in.
Today, I want to talk about the recent U.S. national dealer meeting. Let me start by asking when it began and what its purpose was.
Toyoda
It goes back a very long time. Once a year, we hold a meeting to outline how Toyota can support those who sell and service our cars for customers. Since our products change every year, we do things like brief the dealers on new products and sales assistance programs.
That said, the meetings changed a lot when I became president. Before that, people from Toyota in Japan attended as guests.
Tomikawa
Not to deliver a message?
Toyoda
As guests.
Tomikawa
Guests?
Toyoda
They’d give an address as the guests of honor.
Tomikawa
And sit on designated seats in the front row?
Toyoda
It was a case of “the head of Toyota Motor has come all the way from Japan—would you please give us a few words?”
Tomikawa
That sounds like the usual way these things go.
Toyoda
But even before I became president, I wondered why we were there as special guests.
At that point, Toyota USA consisted of two organizations: one of local staff and another of Japanese coordinators.
Tomikawa
Oh really?
Toyoda
Soon after becoming president, I attended the public hearings. American staff complained that, across the board, decision-making was slow because instructions for each function came from head office, which was far removed from the genba. We decided to scrap the coordinator organization and bring everything together, putting the right people in the right roles regardless of whether they were Japanese or American or their gender.
That’s why, when I appeared on stage, it was in a rather different manner than those who had come before.
Tomikawa
I see. So, you completely upended the systematic relationship between the company making the cars and the people who sell them?
Toyoda
At a normal dealer meeting, you’d say, “Here are this year’s products; please sell these many.”
To begin, the American staff asked me if I would participate as part of the team.
Toyoda
When I asked them why, they explained: “American dealers are multi-franchisers. They don’t just sell Toyota; they handle all the other brands as well. We want them to put more effort behind Toyota, and that’s why we do this in Las Vegas. But the big three Detroit carmakers also bring their dealers together on the same day, which means they can choose which meeting to attend. We need you to join forces with us.”
Tomikawa
So that’s how it started.
Toyoda
That’s why I took on the role we have now. At the time, around 10% of American dealers changed each year. I don’t know whether it’s distribution rights, but some kind of trading like that went on.
The first time I attended, a dealer told me they had sold their Toyota distribution rights but decided to buy them back. I was thrilled.
Towards the end of my 14 years as president, people thanked me, saying, “Toyota’s value has gone up. While I don’t have anyone to pass it onto, it remains an asset” and “I was able to pass on the distribution rights to my children. They’ve gone up greatly in value.” That was thanks to the dealer meetings.
In my speeches, I never comment on sales volumes. I always say, “I take care of the products. You take care of the customers.”
This allows each side to share their opinions in a timely way. With the support of such partners, I find myself saying “thank you” a lot at the dealer meetings.
Tomikawa
Right, so both sides express their appreciation for each other.
Toyoda
Yes. Even in the case of carbon neutrality, people say that I was preaching a multi-pathway approach when, in reality, I am simply listening to input from our dealerships.
It’s the dealers who tell us that narrowing down to a single option would make things tough for them and their customers and that regulations do not create markets; customers do.
Tomikawa
You were able to hear from the people on the ground, town to town.
Toyoda
Exactly. The staff made sure their voices reached me. That’s what the dealer meetings are about.
Attending this time after two years away, I was reminded how much it meant to me and felt a real deep gratitude for everyone working with us.
Tomikawa
Given all that background, it makes sense. I finally understood it when you appeared on stage, and the crowd went wild, cheering…
Toyoda
Like a rock star, right?
Tomikawa
Not just any rock star. You instantly got a standing ovation. Just by being there, you set the place abuzz.
Toyoda
Some people say it’s just the title, but that’s not it.
Tomikawa
No, definitely not.
Toyoda
No one gives you a standing ovation just for having a flashy title.
I was the first Japanese leader in Toyota’s history to get a standing ovation.
Tomikawa
That’s true. Others would get applause.
Toyoda
Though not quite on the same level.
Toyoda
It sounds like I’m boasting when I say it.
Tomikawa
I was the one who brought it up. It was a level of excitement that would put many rock stars and idols to shame.