China's Ministry Takes Off Japan and Enters Beijing

Toyota Motor Corporation President Toyoda Toyoda

The most intimate aspect of Toyota China - Dong Changzheng: "Pro, cheer for Toyota."

A major change is taking place within Toyota.

According to an insider of Toyota Motor Corp., the China Department of Toyota Japan, which has been established for many years, has officially relocated to China. After all functional departments have moved to Beijing, the Chinese Ministry of Japan will cancel. This means that all future Toyota decision-making in China will be completed in China, Toyota China headquarters will grasp the highest authority.

The head of Toyota's public relations department in China, Nguyen Nguyen, confirmed the news to reporters. He said that Toyota's China department includes several departments such as business offices and business offices. These functional departments will be gradually moved to Beijing. All the functions of Japan that are responsible for Chinese business will be brought to China.

In a multinational car company, only one company is set up in the headquarters of a Chinese country alone. Toyota only. At the Toyota Japan headquarters, several departments are set up for markets in different regions, such as the European Department, the North America Department, and the China Department. Each department is responsible for the specific business of the market. There will be no precedent within Toyota to move the department targeting one market to the local market.

Niu said that Toyota’s previous practice was that there was a local policy decision on the Chinese side and that there was another judgment on the part of Japan. After the coordination was completed on both sides, it was finally decided by the Chinese Minister of the Ministry; now all the functions are taken. In China, all decisions have been made in China. This is Toyota's new policy for local decision-making and local implementation.

This localization reform began as early as last year. There were two core events during the year: First, Toyoda President Toyoda took the post of Minister of China’s Shintaru Kitazawa as his standing, dispatched him to Beijing to serve as General Manager of Toyota China, and concurrently served as the Minister of China’s Ministry of Reproduction. And became the first Chinese minister to work in China. The second is to hire Dong Changzheng, former executive vice president of Beijing Benz, as the executive deputy general manager of Toyota China, and Dong Changzheng also became the first Chinese domestic manager to serve in senior positions in Toyota China.

The most important change is that Mr. Toyoda has completely decentralized China's affairs. China’s Minister of National Affairs, Sasaki Sasaki, has ceased to serve as a director after Toyota reduced its seat on the board of directors, but has gained many powers including personnel rights. Mr. Toyoda promised that all Chinese affairs will be decided by the head of China’s headquarters, including the introduction of local talent.

At the Toyota China Media Association held before the Spring Festival, Dong Changzheng made an opening remark with the classic “Taobao Language” for “Pro-Fighting Toyota”, and made some remarks about the changes in Toyota’s strategy in China. Humorousness also implies a deep understanding of Toyota's localization strategy. As the first local professional manager to enter Toyota China, the joining of Dong Changzheng is by no means an accident. With the increase in the power of China’s headquarters, the mechanism responsible for Toyota’s China strategy by local talent will become the mainstream.

According to the reporter, Jiang Jizhe, who had served as deputy general manager of GAC Toyota for 6 years, was transferred back to the head office of the Japanese company at the beginning of 2011 to serve as the head of the China Business Office. At present, several major positions in the Toyota China Ministry have been filled by people who have worked in China and have rich experience in the Chinese market. After the family moved to Beijing in Toyota China, these old faces will return, and Toyota’s decision in China will be checked by these senior “China Pass”.

“In the past, Toyota’s affairs in China had to go through at least four or five levels to get to Mr. Toyoda. Now, Toyoda Masuo, President Sasaki, and I have formed a decision-making committee that can directly make decisions and manage the Chinese market.” Kita Machi said.

All along, Toyota's impression of the industry is difficult to escape the word "conservative." After experiencing the largest car recall in the history of the company, the shortcomings of Toyota's slow decision-making stand out. Due to lack of independent rights, the markets in various regions could not cope with the crisis in time. This made Toyoda's determination to reform the system.

In March of last year, Toyota announced the “Global Development Vision” and “2015 Mid-term Development Plan”, and the emerging markets led by China will become the focus of future development. Toyota's goal for the Chinese market is to have sales of about 1.5 million vehicles in 2015, accounting for 15% of its global sales. However, in 2011, Toyota sold only 883,000 vehicles in the Chinese mainland market, an increase of only 4% year-on-year. Its speed of development in China lags far behind that of GM and Volkswagen. Thanks to its outstanding performance in China, the 2011 global championship was sold by GM and Volkswagen. Toyota only finished third.

The success or failure of the Chinese market determines Toyota's global ranking. Akio Toyoda knows its importance. On October 22 last year, the Toyota China R&D Center held a groundbreaking ceremony in Changshu, Jiangsu Province. Mr. Toyoda said that China’s R&D center will be the largest R&D center in Toyota’s global R&D system. Hybrid power and plug-in hybrid power will be the top priority for R&D centers. This future R&D center, which is jointly owned by FAW and GAC, two Toyota joint venture partners in China, is expected to bear fruit in 2015.

Shinji Kitada said: “To establish a Toyota R&D center in China, we must do something for China. First, relevant R&D results will be used in the Chinese field and will not go to other countries. Second, we must correctly understand the intention of China’s policy. The fastest and most practical way to spread new energy technologies in China."

Previously, Toyota had made a number of product attempts for Chinese consumer demand. The new Corolla EX listed in 2010 was led by FAW Toyota, and GAC Toyota New Yaris was the first Toyota global model to change funds for specific markets. The establishment of the R&D center will inevitably bring about more radical changes to Toyota’s model development and product layout in China.

Toyota’s insider in China stated that Toyota’s impact has been significant since the recall of the incident and the earthquake in Japan. Since there have been other things that have interfered in the past two years, things that should have been started in the past few years have always been delayed because of accidents. In fact, whether it is the establishment of a Chinese R&D center or the development of models for the Chinese market, these ideas are early. There will be. With the advancing of this year's localization strategy for Toyota China, many of the previous ideas that would benefit China’s business will be realized at a rapid pace.

“China is the most important!” said Akio Toyoda at the opening ceremony of the Toyota China R&D Center. Whether or not the Chinese business can advance rapidly is based on fully integrating itself into the Chinese domestic market, fully relying on local talents, and realizing local decision-making. This is a profound transformation of the bone marrow that Toyota, which has relied on centralized authority for many years.