This calamitous year not enough to dethrone Toyota

Michinobu Sugata could only smile with satisfaction after his speech was met with hearty applause during Toyota Motor Philippines’ December 21 meeting with the press at the CAV Wine Shop Cafe at Bonifacio High Street. It rained hard that day. Several statuesque women models keeping a white Alphard company were stranded in the tent.

TOYOTA Motor Philippines executives at the local launch of the 2011 Hi-Lux

But a little rain couldn’t have mattered less for the TMP president, whose home country had been battered by a devastating earthquake, tsunami, and nuclear reactor meltdown (in that order) just this March.

In fact, the company itself was even in a giving mood this day. Moved by the tragedy that befell hundreds of thousands in Cagayan de Oro and Iligan City during typhoon Sendong, Sugata announced TMP and Metrobank would be donating P5 million for the victims.

Sugata’s concern for the latest natural calamity to hit a calamity-prone country is understandable. It isn’t just that Japan and the Philippines do share some storms during the course of any given year. It isn’t just that Japan and the Philippines share a ring—a Ring of Fire that threatens to shake each nation to its very foundations without warning or mercy. It isn’t just because of the 14 principles of the Toyota Way, a practice that says the company is more than just the tools and the techniques but more about the people who bring the system to life: Working, communicating, resolving issues, and growing together.

It isn’t even because the Toyota dealership in Cagayan de Oro was affected. It wasn’t even damaged.

Sugata was genuinely concerned for the missing relatives of some of the CDO dealership’s team members.

THE Lexus Fuji Apex, a rear wheel drive supercar, was launched in October

The CDO dealership, Sugata explained, holds a special place in his heart. When it was inaugurated in 1997 Sugata was there as comptroller in his previous assignment.

“They kept the photos when I was very young,” he smiled. “I have visited three or four times this year. I really love that city. It was very sad for me to learn they were affected. That’s also a motivation for us to do something. I really hope they would really recover as soon as possible.”

Sugata’s thoughts then went back to his homeland, as he admitted that the March triple disaster hit his country hard in so many levels.

But Japan, like Toyota, knows how to take punishment and turn adversity into opportunity. You can count on the country, and its premiere automotive superstar, to bounce back stronger after every disaster. The country isn’t a member of the elite G7 for nothing. Toyota earned its Triple Crown status, and has successfully worn it for a decade now.

Sugata, however, remained modest by saying that in terms of TMP’s “quantitative targets it was a very tough year.” The year dished out more than the usual share of natural disasters—throw in the Thai floods—that the realization of potential growth in the automotive sector was somewhat stymied.

“At the beginning of 2011 we tried to aim for 60,000 units (sold), but unfortunately we ended up with 54,000 units sold.

“TMP did its best. I really hope we would be able to get the triple crown this year and try to achieve the 10th consecutive triple crown. That’s my hope.”

THE Lexus CT200h, the first and only full hybrid in the premium compact segment

In terms of “quality”, though. Sugata remarked it was “a very meaningful year for us.”

Sugata noted that TMP received several recognition, including the 2011 Kapatiran sa Industriya (Kapatid) Awards for productivity and quality by the Employers Confederation of the Philippines, and the Employer of the Year by the Personnel Management Association of the Philippines.

Overall, the automotive market shrunk slightly this year, the total new car market estimated at 165,000 units compared to 170,000 in 2010.

In 2010, TMP sold almost 57,000 units.

Despite the literally harsh environment for cars this year, Sugata reiterated the company’s commitment to push for the use of environment-friendly vehicles in the Philippines. That commitment is evident with the hybrid sedan Prius being continuously made available in the Philippines since 2009, making Toyota the only automotive company in the country so far (aside from Lexus, its premium-end sister which offers its own line of luxury hybrid sedans and SUVs) to offer hybrids despite the lack of tax breaks There’s a pending bill in the Congress for environment-friendly vehicles).

Come January, TMP will be introducing the smaller Prius C. And with that, a pending bill in Congress would finally give hybrids a (tax) break.

Sugata says he is optimistic with the bill. “Many people are trying to support it. We really hope that Congress will give some privileges to fuel-efficient vehicles, hybrids, electric and CNG (compressed natural gas) vehicles. If Congress comes up with a nice bill, we are thinking of introducing CNG and electric vehicles,” he quipped.

Sugata reiterates his stand that it not all about profit when it comes to advocacy for the environment. “We try to come up in our manufacturing plant the most eco-friendly environment as much as possible. We keep on introducing more economical and environmental friendly vehicles as well. We will try to disseminate our commitment to the environment in terms of product introduction and operation-wise as well. We’ll keep our commitment.”

Here are more “revealing” highlights of TMP in 2011, in no particular order:

1. Toyota’s 14-hectare eco-forest “unearthed”. In July, members of the media were given a tour inside the Toyota Sta. Rosa plant and its 14-hectare Eco Forest. Toyota Sta. Rosa seamlessly puts together a world-class automobile assembly plant and a completely sustainable ecological system, revealing TMP is dead serious when it comes to literally cleaning up the industry’s act.

2. Late this year at the Tokyo Motor Show, it was revealed that Toyota converted its fuel-powered iQ super compact car into an electric vehicle. Despite its size, the iQ can carry three passengers and travel 105 kilometers on a single charge. Toyota says it is the ideal car for short-distance rides and daily commutes. “If the driving speed is kept to around 50 kph, the car will meet 85 percent of the driver’s expectations,” said a Toyota representative. Toyota will market the iQ in 2012.

3. New sports car. In November, Toyota unveiled the fun-to-drive “Hachi-roku”. Reuters at Oyama-cho, Japan reported a story that Toyota Motor Corp unveiled a highly anticipated sports car that is hoped would trigger the rebirth of the company as a maker of “fun” cars. Japan’s top automaker took the wraps off the compact, rear-wheel-drive model at the Fuji Speedway circuit at the foot of Mount Fuji, in front of thousands of racing fans—a departure from traditional banquet-room launches.

4. In the same month, TMP announced it would be deploying 26 Filipino technicians to Saudi Arabia. Affirming the Filipino’s innate skills in automotive works and technologies, and Toyota’s global efforts in developing local manpower know-how, the 26 Filipinos are set to work for one of the world’s largest Toyota distributors.

5. In July, Toyota’s other adopted forest in Penablanca, Cagayan Province, was presented to the motoring media. This $3-million undertaking involving the reforestation of 2,500 hectares on the outskirts of Tuguegarao at the foot of the Sierra Madre mountain range, encompasses part of the headwaters of the Cagayan River.

6. In September, Toyota’s All-in Cash Out All-out promo was launched, introducing TMP’s most enticing promotional campaign. Toyota offered buyers a chance to save more with its increased discount levels.

7. In November, the Chamber of Automotive Manufacturers of the Philippines (Campi) report showed Toyota remained the top automotive seller after 10 months, with a 38-percent share of the market.

8. In September, Toyota unveiled the 2011 Fortuner, revitalized with 10 performance, styling, accessory and technology upgrades as well as the Hi-Lux.

9. The Lexus Fuji Apex, a rear wheel drive supercar, was launched October in Philippine soil. Haruhiko Tanahashi, LFA chief engineer from the Lexus Group at Toyota Motor Corp, who began developing the supercar in 2000, was  guest of honor. In Asia, only the Philippines, Singapore and Brunei were allocated the LFA, according to Lexus Manila Inc. This left other, supposedly bigger car markets such as Malaysia, Indonesia and Thailand with zero LFA units. The LFA unit at the Lexus Manila showroom at the Bonifacio Global City, one of only 500 ever to be built, is not for sale.

10. In February, Inquirer Motoring came out with an exclusive sneak peek of the 2011 Lexus CT200h, the first and only full hybrid in the premium compact segment, and as such carries the core technology of Toyota/Lexus, its hybrid drive.

11. Another Inquirer exclusive, the 2011 Lexus RX450h was test driven and reviewed. The Lexus RX450h is the only full hybrid luxury SUV commercially available in the country.