BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

MOST, Inc.4 Business Development in the AmericasIntegrated Business Development in the AmericasUnder the Clinton administration, companies in the U.S. aggressivelyrestructured and innovated technologically in the 1990s, which led to a rapidrecovery in the U.S. economy and an increase in the country’s internationalcompetitiveness. The U.S. became particularly competitive in the IT field, and wasriding a wave of increased employment, high stock prices, and strong consumerconfidence.TMC and related auto parts manufacturers opened production bases in the U.S.and Central and South America, and Toyota Tsusho’s business in the Americasexpanded accordingly. Business areas included steel sheet slitting (in the U.S.);parts manufacturing (wheels in the U.S., genuine leather steering wheels inMexico); regular items for production (in the U.S., Venezuela, Argentina, andBrazil); Milk-run logistics (in the U.S., Argentina, and Brazil); Toyota vehiclesales (in Brazil, Argentina, and Trinidad and Tobago); and Toyota forklift sales (inMexico).Toyota Tsusho also started delivering parts to TMC’s overseas plants.As part of business expansion, marketing functions were transferred to ToyotaTsusho from TMC to sell Toyota vehicles in the Caribbean. Operating from itsbase in Oakland, Florida, Toyota Tsusho was able to service the U.S., Centraland South America, and the Caribbean as a single region, leading to businessexpansion.30th anniversary of TTAI (October 1990)Expanding Toyota Tsusho America Inc.In the 1990s, Toyota Tsusho America Inc. (TTAI), Toyota Tsusho’s USsubsidiary, consistently expanded its business. Eight new offices were established,as were seven logistic centers with logistics functions, including customsclearance and steel centers. In addition, when TMC established a Kentucky plantand started a new automobile-related and environment-related business, ToyotaTsusho participated as a joint venture partner and established a subsidiary there.Toyota Tsusho expanded its Miami office in July 1998 based on the proposedFree Trade Area of the Americas (FTAA), which sought to unite the Americasregion; however, disagreements between participating countries caused thenegotiations to stall.In January 1999, TTAI moved all but its finance-related business from New Yorkto Florence, Kentucky.Brazil, Comercio de BaycrossToyota Tsusho (CVTT) showroom openingceremony (September 1993)Expansion of Directly Managed Dealers in BrazilIn June 1990, in response to the expanding Brazilian automobile market,Toyota Tsusho established an automobile sales company as a joint venture withS. C. Toyota Tsusho do Brasil Ltda. (TTB), and local capital dealer and retailer,Toyobra. Later, circumstances forced Toyobra to withdraw from the joint venture,and in March 1992 Toyota Tsusho established Comercio de Veiculos ToyotaTsusho (CVTT) as a wholly owned subsidiary. The main business objective wassales of TMC products, parts, accessories, and imported cars from Japan, and theirafter-sales services. The opening of the showroom and employees who focused oncustomer service gained it a reputation as a service-oriented dealer that was unlikeany Brazilian dealer at the time.112