Toyota reaffirms commitment in Indonesia with MPV project

Toyota reaffirms commitment in Indonesia with MPV project

Japanese carmaker Toyota Motor Company (TMC) launched on
Wednesday the fifth generation of the popular Kijang multipurpose
van (MPV), the Kijang Innova. The new generation of the Kijang
has been developed under Toyota's International Innovative
Multipurpose Vehicle (IMV), a global effort worth some US$360
million. The Jakarta Post, Kompas and Bisnis Indonesia talk to
TMC senior managing director Akio Toyoda about the company's
future plans.

Question: Which countries do you think are the potential markets
for Kijang Innova?

Answer:Kijang Innova will of course be sold for the domestic
Indonesian market but other than that we have plans to export it
to ASEAN and Middle Eastern countries. But I am sorry I cannot
give the specific country data right now.

Do you think the Indonesian market will accept the new Kijang
generation given that you are also selling Toyota Avanza?

Kijang has been admired for a long time by the local people,
but considering the environment and safety features, we thought
that there was a limit to what we could do to continue the
current Kijang lineage.

At the same time, we were ready to develop a revolutionary car
by building a new platform of engine and transmission at an
affordable price.

Regarding Toyota Avanza and Daihatsu Xenia, the Kijang
customers' profile has been widely diversified, so by producing
and providing both under-IMVs (Avanza and Xenia) and Kijang
Innova we will be able to satisfy a wide range of customers'
needs.

What's your future investment plan for Indonesia after the
launching of Toyota Avanza and Kijang Innova?

Actually, we want to focus first on Kijang Innova production
at our Karawang plant for the time being. Regarding Toyota Avanza
and Daihatsu Xenia, these vehicles are very popular and people
are lining up to buy them.

We want to ensure the successful production of both Avanza and
Innova while maintaining our high level of quality. Only then, we
can think of introducing new models.

How do you maintain quality while meeting such a high demand
for the vehicles?

To maintain or even improve the quality, we believe the key is
human resources. The philosophy of our company is that
manufacturing rests on human resources development.

We have been operating in this country for more than 30 years.
We have been able not only to increase the quality and skill
level of our workers but also able to increase the capability of
the suppliers.

The key is how to motivate the people to have and develop a
kaizen (continuous improvement) mentality.

The Japanese business community in Indonesia has been
complaining for several years about the condition of
infrastructure here. What's your comment about it?

We plan to export some 10,000 Kijang Innova out of our planned
annual production of 80,000 units. The presence of a dedicated
seaport is important not only for Toyota but for the Indonesian
automotive industry to grow further.

Such a facility is a must and therefore we will continue
working closely with the Indonesian government to realize it.

What is your comment on the allegation that as far as the car
industry is concerned, Indonesia has been left behind other
countries in ASEAN especially Thailand, Malaysia and the
Philippines?

Indonesia is not much behind those countries. I don't think
so. I say this because in 2003, total (Toyota) vehicle sales in
Indonesia were among the world's top 10.

We sell our products in so many countries and Indonesia has a
very solid local market.

That is why chose Indonesia as the production base for MPV as
well as the gasoline-fueled engine.

What kind of partnership do you prefer with component
suppliers? Because there are many local suppliers feel that it is
difficult to cooperate with Toyota.

We at Toyota apply an open-door policy in selecting suppliers.
Of course, we have the responsibility for the quality of a
finished vehicle.

We assess the capability of suppliers as well as the cost.

I would like to remind our local suppliers to have a long-term
vision as Kijang Innova is designed to have a model life of eight
years.