Hello, this is Akio Toyoda. Thank you for taking the time to come here today. I just shared the new Toyota Group Vision and attitudes that show the direction in which the Toyota Group should proceed with the chairman, presidents, and frontline leaders of the 17 group companies at the Toyota Commemorative Museum of Industry and Technology, which will be the starting point of our group companies. I'd like to talk by, and start talking a little bit about the history of the Toyota Group. Please take a look at the screen. This diagram is the lineage of the Toyota Group, starting with the establishment of Toyoda Shoten in 1895. Sakichi Toyoda wanted to help his mother, who struggled with weaving. With this single-minded determination, he invented the Toyoda wooden hand loom in 1890. Thinking of others, learning, honing skills, making things, and bringing smiles to people's faces.
I believe that this passion and attitude toward invention is truly the starting point of the Toyota Group. Following this was the establishment of Toyota Boshoku and Toyota Automatic Loom Works. As you can see, our lineage diagram extends vertically. Kiichiro Toyoda started to get actively involved in the business in the 1930s. At that time, the technological standards of Japanese industry were lagging far behind the West. It is not just about making automobiles. With Japanese ideas and skills, we must create an automobile industry for Japan. With this strong resolve, Kiichiro set out to completely revolutionize Japanese industry. Many companies in the parts, steel, rubber, and electronics industries started following in Toyota's footsteps. The Toyota Group's lineage diagram also extends horizontally, as we have formed alliances with companies that have their own unique aspects and strengths.
Our vertical lineage will continue to evolve with our unwavering purpose to pave the way for the future, and our horizontal lineage will continue to evolve together with our like-minded partners. You could say we have been living in an automobile industry that has been woven by the threads of warp and weft spun by our predecessors. However, as the automobile industry developed and Toyota Group companies started to experience success, they lost sight of the values and priorities that should have been upheld. I am ashamed to admit that such situations have arisen. The first company to face such a situation was Toyota Motor Corporation itself. We pursued expansion of scale, prioritizing volume and profitability over the making of ever-better cars, and ultimately fell into the red for the first time in company history during the 2008 financial crisis.
As a result, we caused inconvenience to many people who support the automobile industry. Furthermore, we lost the trust of our customers, which is of the utmost importance to us, due to global recalls. I consider Toyota to have once collapsed during that time. With every ounce of myself and the help of our partners, we have finally rebuilt the company to the point where it can be called a car maker again. However, it was not only Toyota that lost sight of its founding principles. I believe that the same thing that happened to Toyota back then is currently happening to other group companies. During the recalls in 2009, I made a decision to take full responsibility for the past, present, and future as a person fully responsible for whole Toyota.
Fourteen years have passed since then, and I still believe that I am responsible for the entire Toyota Group. What I must do right now is to show the direction that group should proceed in, and create a place for the next generation to return to if they falter. In other words, what I must do is set forth a vision for the group. The starting point of the Toyota Group is to make ever-better things that make many people happy. In other words, to invent. Inventing our path forward together. Under this vision, we all should embrace the spirit of invention within us, think of others, hone our skills, and continue to make the right things for them.
In doing so, we will build a culture in which we can express gratitude to each other and become needed in the future. Today, at the Toyota Commemorative Museum of Industry and Technology, which can be considered our starting point, we made a pledge to each other. As the person responsible for the Toyota Group, I will lead the transformation, and I hope that I can count on your continued support. In closing, I would like to express my deepest apologies to our customers and stakeholders for the inconvenience and concern caused by the successive irregularities at Hino Motors, Daihatsu, and Toyota Industries. Initially, the group vision was to be shared on February 14th, the birthday of Sakichi Toyoda. However, considering the recent situation of our group companies, we have decided to do this in advance of the date and to make an announcement to the media as well.
Today, I would like to answer your questions about our group vision. Thank you very much for your cooperation. Please allow me to sit down.
From here, we would like to move on to the question and answer session. I am Tomikawa, Yuta Tomikawa, which will be the facilitator. We don't only have the physical venue, but also many participants online participating as well. We do want to receive as many questions as possible, so may we ask you to keep your questions to two questions per person. Also, we'd like to divide the time that we'll ask questions from the physical venue, and then we'll ensure enough time to ask questions from the website participant, from the online participants. We'll first start from the physical venue.
If you can raise your hand, and there will be the microphone brought to you from our staff. Please wait for the microphone, and we'll start from the person in the front, please.
TBS TV, Umeda is my name. I have two questions. My first question, as you have explained, ahead of this press conference, we have heard that you've provided an explanation of the group vision to the top management of the group companies. Your group is seeing the continuous incidents occurring, and how have the group companies taken this situation? What kind of communication did you have during the session in the morning, or any impressions that you may have after that? That's my first question.
Well, rather than vision, actually, there is no company that will be managing the group companies, so as a main purpose. So for governance, my understanding was about controlling and to manage the organization. But a governance in corporations is the, to create the management structure so that a healthy operation can be continued. And for what I have been doing inside of this company, Toyota, is to bring back the sovereignty or the power back to the Gemba, so that even whatever position you're standing in, you will be able to participate in the management of the company's activities. This was the governance in my style. So if I try to sound cool, it may be saying that having this tagline or slogan, "Let's make ever-better cars," having that very simple vision, creating a workplace environment that everyone can take part in and contribute.
So it will be a vision-driven management, a Gemba-based management, and also a product-based management. I think that would be describing the style of management the governance that I had. If you look up governance, it is... There is also a word to lead and to pick up the anchor of a ship. So rather than governing, controlling, or managing, as an official terminology of the governance in a dictionary, I think it's what I've been doing is much closer to what we really are looking for. In Toyota, we have the philosophy, the skills, and the conduct or behavior at the Gemba. That was the Gemba of Toyota. Also, as I said earlier, we had a very simple vision.
That was, "Let's make ever-better cars." And more than anything else, I think myself, currently, for the present, past, and future, I was clearly saying that I am the person to take the final responsibility and full responsibility. And what I try to do is to bring back the sovereignty and power back to the Gemba, and that is why we were able to improve, we try to work on our governance. And we talk about the deterioration of companies in five stages. That's a theme that is usually talked about. In that sense, for the Toyota Group, I wanted to be the person, the final person that will take the full responsibility at the end. And by making that declaration myself, I think, as I said before, the Gemba will be able to think by themselves and take actions.
That kind of workplace environment is what I wanted to create by placing myself as the person to take full responsibility. So for the group company, top management, and also the group leaders of each respective company, were gathered in this very place, and we talked together. So it wasn't just talking from my side, one-on-one, a one-sided communication. I received various questions from various people, including the Gemba leaders of each companies, and based on their questions and comments, I try to exchange my thoughts and have a mutual communication. Initially, from myself, to start off, I used some strong words. I thought that I would be dealt with strong words, and probably many, many people thought that when they gathered here, I would be speaking in strong words, to them.
It went out of their expectation, and what I wanted to talk about is, if we create this kind of environment that I tried to create in the morning, everyone will be able to speak up. I think the top leaders of the group companies that gathered in the morning were able to feel that and understand that today.
Thank you. My second question, it is about the misconduct that has been continuing in sequence. As you have explained earlier, every better car makings, let's make every better cars and happiness for all. These are the words from yourself, Chairman, when you have became the president of this company, so it's more like a flag and banner that you held. Now, we are seeing these continuous occurrence of the misconduct, and you have explained that the group's person responsible is you. So frankly, I'd like to ask the question, for these misconducts that we have been seeing, how do you accept this? How do you understand these? And another thing I'd like to ask is, this time, we are seeing the misconducts by the Toyota Group companies, but why is it that in the Toyota Group companies, there are so many incidents, misconducts happening and surfacing?
What do you think as the cause of these series of incidents?
Thank you for your second and third question. Well, I don't know how I will be answering to that, but starting with the second question. So misconducts, it is about doing something that we should have never have done. And for what we should not have done, what is it? What is that?
For Daihatsu, Hino, and also TICO, what is common among these companies is that it is about the certification system. It was a misconduct against the certification process. For myself, on the... I tried to read everything that was written on the third-party committee report. I wasn't able to because of a limited time, but I have received a report from someone who have read every single page on that report, and the content was that Daihatsu, Hino, and TICO, it, all of it, the common factor is that there was a misconduct on the tests of the certification process. For the country of Japan, a certification test is about for the safety and quality and performance.
It is a confirmation to, it is a confirmation to see if the level is cleared, and if the level is not, does not pass the test, then you will not be able to sell, produce and sell that vehicle. So unless we pass the certification test, we won't be able to mass produce the car. But if I... With the mass production was done, going through misconducts on the certification process, so that has, that is what has happened. And Hino, TICO and Daihatsu, originally, they are companies that should not produce and sell because they have conducted misconduct for the certification process. So they have been delivering the products to customers, which should they, they should have not done, which they, they were not allowed to. So that was the fact.
I will say, once again, this should not have been done. Because we have the certification process and tests, the customers can have a peace of mind and feel safe in riding the vehicle that they buy. But this is the very certification process that these companies has conducted the misconduct. Having a misconduct is to betray the trust, and also it will be a very heavy thing that we will be undermining the whole validity of the system. So we'd like to express our apology for this, but it will take time to recover the trust back from our customers. So now, I, as a person who will be the person taking full and final responsibility, I want to take the lead in explaining.
But when I was the President of TMC, I was the leader on the execution side, too. So I was able to make a decision myself and then to take the actions. That was the position before when I was President, but now I am the person responsible for the top, the whole group. But I'm not the top leader or the executive man, top Chief Executive Officer for the companies. So now, I will be taking upon the experiences that I have built, and also, TMC is the company that have lost its trust the most. So using my past experience, I'd like to think about how use my experience on bringing back Toyota as a car maker and the-...
experience that I have built through the years, I think I will be able to take on consultation or questions, and I'll be able to provide some advice to the Toyota Group companies that are faced with similar situations now. It might will be probably taking the same or more time than what took TMC, or it might be shorter. But for what has happened for the three companies, we tend to talk and focus more about the prevention measures for reoccurrence, and also. But it's important to look at the cause of this. But if the cause was just one cause, then it will be easier to come up with solutions. But for these cases, this is a phenomenon that we have occurred from the overlaps of many, many causes, and that is has been surfacing. I have been.
It's one year after I stepped down as president, and now, in this kind of change point, where we see the top leader transitioning, I thought on one side it might be a good thing, because we're seeing these bad things surfacing in this transition period. And now I am the chairman, and therefore, to the executive officers of TMC and to the other leaders of the group companies, I have been a little hesitant, not wanting to really intervene too much, to be polite and respectful. But after this kind of an attitude for a year, I am now have the resolve to once again fully expose myself as the full person responsible for the Toyota Group companies, and be more visible.
And so I am not going to be behind the scenes and be controlling behind the scenes. And of course, I'm not willing to be visible, always be in the front line, always be in the front, and be doing everything myself. But what I want to do is to take advantage of the power and the sovereignty that we return to the Gemba, and also at the group companies to do... make sure that can be the power for improvements, and also to achieve our group vision, the first step to achieve our group vision. Thank you.
Okay, may we take a next question, please? Okay, this person with this strap from the back.
Yes, so this is about the Toyota Group. So it should not be at the headquarters or corporate of any one particular company. And we said that we thought that we should choose a place that is equal distance of all of the companies and has a commonalities, and we came up with this place, Toyota Commemorative Museum of Industry and Technology. And I didn't think much more than that. That's why we chose it here. And in the past, in this place, we used to have a gathering, a session of the top management of Toyota Group members. I had such memories. Therefore, in order for us to restart, I thought that this would be suitable place to restart ourselves instead of a headquarters of Toyota.
But I thought that this place, Toyota Commemorative Museum, would be a suitable place, and that was the reason. Thank you.
Another question is that from olden times, you've always had five main principles of Toyota, and you have Toyota guiding principles, and also Toyota Way 2020, et cetera. So with your history and tradition, you've been having these series of principles, and this new vision, Let's Invent The Way Forward, which is new for you. In light of various principles from the past, are there any common points or any changes or evolutions that you've made? If there is any emphasizing point, we would like to hear.
Well, regarding this vision, Let's invent the way forward... Well, in this word, it includes current and past and future. So way forward is the future, and then the way is now. And also, invention is the starting point for us, because we started with invention. So, we try to include three of them, and then in modern way. And then as for the vision for everybody, we wanted to work together on this future path. Actually, English one is easier to understand, in inventing a path forward together. It says, "Path," something path, together. So anyone... We have this English vision, and it's not a direct translation.... but I think it was inventing some path.
Inventing our path forward.
It's inventing our path forward together.
Path together.
I thought this would be more meaningful than Japanese, because we are inventing the next path. You know, that is included in what's included in English and missing in Japanese is the word together, and the road in Japanese is expressed as path in English. These kind of terminologies, when I became the president of Toyota, we say, "Let's make ever- better car." And that was our vision, and the media often asked me: "What are you talking about? Because we don't understand. You can't even announce a numerical target?" That was a very common question, and in this time as well.
Also from our employees, they often ask me: "So what kind of cars are ever- better cars?" And I said: "Isn't it something that you all should think about?" So I never mentioned what is the car that's ever- better cars, and that is why Toyota has come up with a variety of vehicles. If I mentioned a typical car that I think is a better car, then it would be only a sports car. But we need working vehicles, commodity vehicles, and family-type vehicles, too. And then cars that did not do a model change for a long time. And together with the DNGA company system and with the vision-based management, so many different types of cars came out.
So with this vision, the word, next or the platform is understandable by everyone, but for this whole vision, it can be interpreted in many things. And then the fact that we are using the word invention, you know, we wanted to use this at the core of our vision, and then... let's inventing these things and products. We thought that this would be a good motif or a good emblem for us. In your first question, I think you also asked about the reason and the timing that you chose for this announcement. For timing, I understand that you made it earlier than this February 14th , which was originally planned. Yes, yes. So we planned it on the February 14th, because of this series of incidents, and honestly, I waited for this press conference of TICO yesterday.
Then I did not have any other day than today, if I wanted to do this immediately.
Understood. Thank you very much.
Next person, can you raise your hand? Person in the front, please.
Maybe I should have said the color of your tie, maybe that would have been easier. I'm Yao from Nikkei Papers, Nikkei Shimbun. So in the vision, it's the inventing our path forward together, and I think you showed, it's about working on the future activities. So and you also said you're going to look at Toyota companies, group companies once again, as the person that will take the final responsibility. So can you be a little more specific about what you are planning to do for the activities going forward? This is my first question.
This, so even if you ask me about specific or concrete activities in mind, actually, there's none yet. But what I have in mind is, I am going to take action. Today, I had the top management of the group companies and with the Gemba group leaders, what I asked everyone in this room was: "Let's invent the future path, path forward together." And I said that the sovereignty of this company or the power of this company has been returned to the Gemba, returned to the product. This is what I've done in TMC, and I want the respective companies to think of what it means for their companies, too. That's what I said to the audience in the morning.
And what I said next is that once every company, well, they are all independent companies and separate companies, so once they start thinking about these topics, then in June, there's going to be the general shareholders meeting for all 17 companies.
And I said to them, "I'm going to join and participate in your general shareholders meeting from the position of a shareholder. And I will be observing your company and learn from your company as I participate in the general shareholders meeting in the shareholder seat." So the first thing that is planned is that I will attend the general shareholders meeting in June. Up to now, from the shareholders, the group companies have the shareholders meeting on the same day, and we are not able to attend all of the meetings. That is the kind of comment, opinion that I have received when I was chairing the general shareholders meeting from TMC. But because I want to... Because of these opinions, we have tried to change the dates of all the group companies.
So if I want to, I think I can go to all of these meetings. So what I'm planning to do in June is to attend from the shareholder seat, and to see and observe what kind of company the group company is from the shareholder's perspective. So there will be several months until June, so I want to see what they have thought and what they have done for their companies, and I want to do a opinion exchange at that June general shareholders meeting. Understood.
Thank you. My second question is about the misconduct, the incidents that is occurring at the group companies. And looking at the investigation reports, it talks about pursuing emissions and efficiency, and the people wanted to pass the test certification test at in one time.
So pursuing too much efficiency, the quality and safety was not secured. That is the kind of report that we are reading. So TPS is important for Toyota, and I think the source of competitiveness for Toyota is TPS and the efficiency, high efficiency. So efficiency and quality, in order to balance these two, what do you think is important? Can you share your thoughts?...Well, for Toyota Production System, TPS, it, the objective is not to pursue efficiency, no. The Toyota Production System's objective is to create a work environment so that the improvements, the Kaizen, can be pursued. So first of all, whatever kind of company it is, I think that there will be certain issues occurring in that company.
This, whatever we do now for preventive measures, there will be a time that another issue will occur sometimes in the future, and then how we will be dealing with those issues? I think that's part of your question. So in the way of thinking in TPS, there is this way of thinking of abnormal normality management. It will be very difficult to manage everything to be in the normal state. Then what we should do is to understand and determine what is the abnormality state, what is it that we should not allow? So to understand what is not normal, then we can do that abnormality management, and to fix first what goes beyond the normal. And then, that is, how we use TPS, and, then to continue to turn the cycle of this, of non-normal management.
That will be, then at the result, continue to improve efficiency. But when we take on a different challenge, if we have changes, I'm sure that there will be other issues or problems occurring. But when those issues occur, we shouldn't leave it as it is until it develops, like the serious issues that we're seeing today. We need to fix and deal with the issues when they occur and when they are still small. We have to recover that kind of a character or capability as an organization. And because of this, because of this understanding, I thought that it is very important to have a vision for the whole group as a starting point for us.
So based on this vision, I want to take action, like go to the shareholders meeting, also to listen to people's thoughts, and to try to explore how people understand what is normal and what is not normal. For myself, even if I want to do all of this, I have only two eyes, two ears, and I only have 24 hours a day, 365 days a year. So if I have only the same conditions as you all have, therefore, I, there will be a limit in what I can do alone. But more than a decade ago, when I became president, compared to that time, now I have people who are very frank with me.
Many of my fellows, my, co-partners, there are more of these people, who I can rely on, and, and this has been built, in the 14 years as I was president. So I want to be able to utilize this network that now I have in working on what I have said. Therefore, I hope that you will continue to watch us with your strict eyes, but also, with a long-term perspective. Thank you very much.
I do see many more hands up, but, now more than 60 people are joining us, online, so we now would like to take questions from online participants. If you have any question online, please, push button on the screen, and we will call on you. And then if you are, called, then please turn on your camera and microphone. Okay, Terasaki-san, please go ahead. We are going to switch the screen, and once your face is on the screen, start your question, please.
This is Terasaki from Best Car. Hello. I have two questions. The first one being that, the question, the first question is about the misconduct. Hino, Daihatsu, and Denso, it happened successively, and that means that, within the group, many people are doubtful that, there might be misconduct in more countries, companies within the group.
So, Chairman, if there is any employee who knows about the misconduct within the group, then are you in a position, or is the company in a position that they are free to speak up and let their superiors know? The reason I'm asking you is because if you look at any report about this misconduct, there is a statement that they were hesitant in reporting to their superiors. So it would be nice if you can publicly announce that if there is any more misconduct within the group, please speak up. And the second question is that now that you are showing this vision, and because you are responsible for the group, what is the goal you have in your mind?
You became the global number one four years consecutively, and in 2022, you had the highest production in the world. So there was a significant growth since 2009, and the fact that you are now responsible for the whole group. What is the goal for you?
Yes. Are there any misconduct or not? As far as I know, there is none. And-
...Today, I set this day to be the day for this announcement, because it was yesterday that the TICO had a press conference, and I knew that beforehand, and that is why I chose today as the day for this session. And whether or not I'm responsible for the group, and what kind of difference would that make to this announcement, is that the timing might be delayed for the announcement. For example, at Hino, after I found out, it was now announced to the general public after one year, and then Daihatsu took six months, and also TICO took more than ten months to six months. And then if I understood about this phenomenon from the very beginning, I would have announced it much earlier, because I am the person responsible. I could do that because I am the person responsible.
When I attended the congressional hearing 14 years ago, I was the president of Toyota. And at that time, it took about three months for me to find out many facts, even though I was the president. Things that happened at Gemba, even though I walked around at Gemba and then tried to collect the information, with my capability, there was some limitation, so it took about three months for me to find out many facts, and that was the gap. However, since then, at Toyota, the top down means top going down to the Gemba and then collecting information himself or herself. And there were people who observed me, who observed my conduct and behavior.
So at least now that I am volunteering myself as a person responsible for the group, people are thinking, "Wow, I can speak up." And then because I'm responsible, then they are allowed to have a long-term commitment, and they have a peace of mind, I believe. Also, this morning, when I saw top management, the Gemba leaders in the Q&A sessions made very honest questions. People were very diversified, and many types of members asked questions at the Q&A. And an atmosphere for people to enable people to speak up were created in the past 14 years, I believe. Of course, I should not depend upon that only, but at least that's something I have in my mind, or at least that's in the minds of employees, too.
It's not that I can solve everything myself, but at least whenever they have concern, is this something that I can do or I cannot do? They have counterparts, good face, visible face, for them to speak to. And I think we need to make progress step by step from there. And so what is the goal? There is no goal. It is true for TPS, too, but before and after improvements, we have to continue to do certain things. In other words, if I dare to say as a goal, those people who have the same or similar senses, I have to create top management members who have a similar senses as me. And I would like to give advice or talk with them, and then also encourage them so that they can gain those senses.
As a result, I hope that the Toyota Group has a lot of human assets, and I envy you, and I would say that will be my goal.
Thank you.
Thank you for your question. At the first question, if you are want the people to talk, ex, to report to you about their anxieties or concerns. Actually, I was here in the morning session, and when the young Gemba leaders asked a question, he responded like: "If you have something, a question in mind, come to me with your facts and consult with come to me to speak with me." Well, thank you very much, Terasaki-san.
We'll go on to the next question from Reuters, Thomson Reuters, Ms. Shiraki, please. We'll be switching the screen. When you see yourself on the screen, please start with your question.
Ms. Shiraki, I think you are muted. Please unmute your mic. Can you hear me?
I'm Shiraki from Thomson Reuters. Can you hear me?
Yes, we hear you.
... I'd also like to ask two questions. For my first question, earlier, Chairman Toyoda, you said that you have no goals. But as the person responsible for the whole Toyota Group, what is the term that you are thinking of? What, for us, as a person responsible, what do you think will be an achievement that your achievement... Well, for Kaizen, there is no goal, but maybe you have an idea in mind, like maybe within two years or three years, you want to see a certain state achieved with the efforts from now. So that's my first question, if you have a certain idea of what you want to achieve.
And my second question, you were saying that you were creating a working environment, so that governance, in your words, was that people will be able to join the management of the company from every whatever position. And, can I understand that when you are going to be looking at the governance of the group companies, you're going to have a more stronger grip on the companies? Of course, in the past, there were many employees or more executives being dispatched to the group companies in the past. And, when you become the person responsible, are you going to be reviewing the capital relationships? Will that be included in order to strengthen the uniting the Toyota Group companies? Is that an option for you to think about?
Well, thank you for your question. So I said that I have no goals, but and if you ask me, is there a certain achievement, I'm looking at a certain time frame? Actually, I don't know. I have the experience of being president of TMC, and after 14 years, I've passed on the baton to President Sato. So that's the kind of probably feeling that I'll have working on this activity as well, from this position as well. So myself being the president and then to myself or to the current TMC, there are I thought that no one would come to me and say that: "Okay, you've been president for enough. Now you have to step down." I thought that I have to make a judgment and decision on myself when I'm going to pass the baton.
That is how I came to the conclusion and decision that I am going to pass the baton to the next president. The thought that I had is that Toyota, in order to transform into a mobility company, I've been able to establish the foundation of Toyota as a car maker, and also I was able to build up the strength and capacity of Toyota. So going forward, in order to lead this company to transform into the mobility company, I thought that a younger generation will be more fit. If the leader is more the younger, from the younger generation, then the people who will support the transformation can be more diversified. So in that sense, I made that decision to pass the baton to the next young leader. I'm thinking of that experience of passing the baton for president.
For this Toyota Group company, even though I'm the person to take responsibility, I'm not going to be like the chair for the whole group companies or the president of the group companies. So in that sense, what I am thinking of is that the sovereignty or the power will be, should be returned to the Gemba and the product. That belief has not changed. So the grip that you talked about, the grip and how you have expressed is not what I'm thinking of. It's more to have a focus on the Gemba, focus on the product. So in that, maybe there will be a stronger grip on those aspects if I try to use the word grip. So now I'm the chairman of Toyota, but I also continue to hold the role of the Master Driver in Toyota.
On my name card, it still says so, and as a Master Driver, I'm still brushing up my sensors so that we can make decisions to make ever- better cars. So that is still remaining in the roles that I hold in this company. So from that perspective as well, for Daihatsu, Hino and Toyota Industries, if I'm going to be a Master Driver for these companies, the answer is no. It's too late to do that. It's too late to learn how to drive the forklifts or the large commercial vehicle license. It's just hard, tough for me to do now, and it'll be too late for me to make decisions, to learn and make decisions on the various Daihatsu model projects. It would be impossible for me to do that.
So what I asked the top leaders in the morning is that you should think about making the Master Driver in your company, to have appoint someone as the Master Driver of your company. And then what kind of person you have selected as the Master Driver is what I will be watching. And probably, as I watch the Master Drivers being selected, is where it will be starting, probably.
Thank you very much. Now, next person, please. Mr. Shinya Yamamoto, please go ahead. I will switch the screen, so if you see your face on the screen, start your question, please.
Hi, this is Shinya Yamamoto, and I'm a freelance. Can you hear me?
We can hear you.
Hello, this is Shinya Yamamoto. What I want to ask is about the Master Driver that you just mentioned.
...The job of Master Driver is of course deciding the riding comfort or the riding property. But also, this time that the Daihatsu and Hino, the Master Drivers as the last filter, Master Driver should function as the last filter. So can you also make a comment on that?
Yes, I think you're absolutely right. This role that's given to me at Toyota is the chairmanship and also Master Drivership. So when I become responsible for the whole group, the role that I mostly use is not the chairmanship, but also... But instead, the role of Master Driver, which I would emphasize, to see the product and also the Gemba power. That's where I would exert my gripping force.
In that sense, not just the creating the taste of each brand, but I would also think about what kind of car do we wanna make, and what is it that we want to gain out of the car? So beyond the product concept, the role a particular car should serve and the mission of those cars, whether or not I can talk about it. Whether or not that person can talk about it, is the reason for them to choose the Master Driver. And I would like to ride a car together with the Master Drivers of each company, to see what kind of sensor they have, and what are the conversation they can have. I want to start by empathizing with them.
If I say too much here, then, group companies might choose Master Drivers in that kind of a specification, but then that would not make sense. I would not be able to have a good conversation with them. So I want to respect the choice that each company makes. And just today, to change the subject a little bit, we invited group leaders from each company. And at Toyota Motor, we invited head coach from a sports team or the recreation research team leader. These members attended the morning session today. Unfortunately, Toyota Group companies chose leaders based upon titles. So choosing someone based upon titles and, and roles, that is the difference that we saw. So instead of titles, I want to focus on the role of Master Driver to increase the gripping force.
That is my approach, and that might be different from the other companies, but that's something that we want you to observe. And on the extension of that, product-based and human-based culture or corporate culture will be created without any doubt. Please, understand that.
Thank you.
Thank you, Yamamoto-san. And from here, we'll come back to the physical venue. We have about 10 minutes remaining, so can we ask each person to stick to one question each? Thank you for your cooperation. Person in the front row, the non-Japanese person.
Kiarashi from News Picks. I have one question, one quick question. In the press conference at the beginning, and also at, the, on the door of this venue, you had the lineage, diagram of Toyota Group. This vertical and horizontal lineage was explained from you, and it, it gave me a strong impression. Now, looking back, I think, Chairman Toyoda, you are the very person who understands this past history of the Toyota Group companies the most. For your 14 years, you started dealing with the quality issues, and then natural disasters, and then Covid, too.
You have gone through many of these issues, and that is why I want to ask this question. Now, from last year, we have seen the sequence of misconduct surfacing. So from the history perspective, what kind of significance that is—does it, does this have, this series of misconduct has to the history of the Toyota Group companies?
Well, this is a very, very significant incident that has occurred, and what has that strong or large significance is about us losing sight of our origination or the starting point. When I explained about the group vision today, what I tried to express, or what I've been rethinking myself, is, where did Toyota Group start? Where, what is the origination point? It's not just about the founding date or year of a certain company, but I try to go back to the very starting point of the whole group company's history. So going back to the weave, loom days, and then starting from there, I felt was important. Then, as we were organizing and organizing our lineage diagram, we've seen times that we will move, expand vertically, and then expand horizontally. So-
... now we're talking about transforming ourselves into the mobility company, and we're seeing different dynamics here as well. So thinking from that perspective, thinking from the understanding of that kind of history, I think each of the companies has now become large companies, and they are now having different sense of value, set of values. But we are all have our roots in the same place. And we have our roots in the same place, but since we have grown each into large companies, operation-wise, the people who have contact between the companies is usually between the functions, function groups. And when we get in contact with functions, this makes it difficult to evaluate the company itself, or difficult to understand about the operation or the management of that company, to look at the company as a whole. And when...
There are many cases where TMC will place orders to these other group companies, then the person who receives orders or contracts from the TMC, they will have difficulty in speaking in a equal manner to TMC. But so we have this kind of a distorted relationship. But when we think about it, we started from the same root. We are comrades. We have grown together, and we have succeeded the set of values of these... the same set of values. So that is why I wanted to clearly set this group vision. And I'm saying that Toyota shouldn't look down onto the group companies, but the group companies also shouldn't look up to Toyota. We want... and I'm afraid that w- we will return...
So I have become a just a normal old guy who loved cars when I stepped down as President. But now as a normal Master Driver, I think it's important that I speak with many people about cars. And when you have titles in the TMC organization, sometimes it will get in the way of having a equal and fair communication. So I want to work on that part a little bit, and with the friends and colleagues that now I have a good network of and built up in the past 14 years, we're going to start together to create this kind of a more good communication on company. And I think, but the largest issue that we have now is losing sight of where we started from.
Today, we came together and reminded ourselves of where we started from. Just because we did that, everything will not be solved. First, we have to understand that, share that understanding, and then take action. Probably, the actions will be starting from now. So, I will be watching what actions will be taken, but I will also like to ask you to watch with a strict eye and give us your feedback.
Thank you.
I'm sorry, because of time, I would like to appoint at this person with the jacket, that hand. I was gonna say two more persons. I'm not going to stop here. I'm sorry for confusing you. Yes, we want to limit to two questions. Yeah, he has his hand up. He has been had a raising hand for all along.
This is Reed from Bloomberg News. Thank you very much for this opportunity. In your presentation, you did do not mention about the carbon neutrality. This vision that you mentioned today and your initiatives for carbon neutrality, how will... how are you going to pursue them both? Because this Multi-Pathway strategy is because they are taking root, and then because, they have become more common. And because of that, now you are in a phase of, you are more focused on the direction of rebuilding a company, and that's the impression I had. What do you think on that?
We are focused on both. We must understand ourself and the fact that Toyota is a global and full-line company. That's how we see ourselves, full-line and global. And then we are selling more than 10 million units, and there are three such companies around the world. And then Toyota's characteristic is that in many different regions of the world, we have relations with many regions, and maximum is about 20%. And then we are the company who provide mobility to those regions. In other words, we have to provide the freedom of mobility to anyone. And in terms of carbon neutrality, we have to consider energy status, and then, depending upon the energy status, there are different approaches. But because Toyota is a full-line and global companies, we cannot leave anyone behind.
That is the determination we have. In that sense, we have this approach called Multi-Pathway, and we have to take that approach. In order to, for us to be fully committed to any type of a car, we have what's called company system. For example, BEV, hydrogen, and then the working vehicles or CVs and commodities. We have company presidents for respective line, and even though we are full line, we have the system in place where they can make the best effort. And plus, the current executive managements are managing them, and then I'm in a position of Master Driver, and I ask them or give a request to come up with a certain type of car when I say, "Oh, that's not enough," et cetera. I want to speak up my opinion in that way?
So this group vision that we announced today is sort of an ideal for us to become. It is like a guiding principle. For carbon neutrality - it is a method to realize that. I think that would be an easier way to understand.
Thank you very much. So Akio-san, you said that that person has their hand up all the time. Well, the people here, please go ahead. The person in white, so the woman there in white clothes.
Thank you. I'm Nagai from TV Tokyo. So in the growth history of the Toyota Group, the seventeen companies that probably have made their efforts, and that is why Toyota was able to grow and develop. When you have created this Toyota Group vision, do you think that you're going to change the strategy for the growth of Toyota Group, Group?
When we announced the global vision of Toyota, I think there was the difficulty of the exchange rate, and with a strong yen, and you transferred the strategy. But with this, group vision, maybe the priorities might change. So what is the strategy going forward? Well, I think that's a question for President Sato. He's the Chief Executive Officer. One thing that I can respond is, why is it that I have passed the baton to President Sato? And why is it that I have decided to rely on the new management team? It is because in the past, Toyota has changed, done a model change of the whole company from the automatic loom business to the car business.
So this is the experience that we have in our history, and now we're seeing the CASE technologies emerging, and the automobile industry is going through a huge transformation. So we can't just be a pure carmaker, like the conventional... in the conventional definition. We won't probably be able to create the future in the conventional way. But, when we talk about mobility, including myself, we're not sure of what that means, what mobility means. But we want it to be a company that can provide the mobility, in, as from the company. But... And when we started from here, we're going to think about the details from here. So a car company, a carmaker now transforming into a mobility company, I think we're starting to shift our mindset, the way of thinking now. So it's now starting.
And the strategies that you've been talking about, those things, is going to be thought out by the President Sato and the top management of Toyota, and the CEOs of each of the companies, in-house companies of Toyota. For myself, I, what I did is, to call out to others to say that, "Let's challenge on becoming a mobility company," a carmaker making a mobility company. What is the kind of mobility company that a car company can make, carmaker can make? This is a proposal and suggestions that we made, but we're trying to think and figure out the answer to this, so please wait for a while. Well, in the explanation in the morning to the group companies, to the group companies, have you talked about transforming into the mobility company transformation?
We didn't talk about that, any of that at all.
Thank you.
Thank you. I will go to the final question. Okay, so this will be the last question. So I need to appoint those people whose hand have been up all the time. Yes, this person with glasses on.
Mizuno from Yomiuri Newspaper. Thank you for this opportunity. I have a question for Chairman Toyoda. So today, you have a determination to pursue with the transportation within the group. And then for many people in Japan, the auto industry is leading the Japanese economy, so they have a high expectation for your industry. And as you proceed with this transformation, this misconduct of Hino and Daihatsu, the top management's responsibility, what is your take on their responsibility? And also, in order not to reoccur this to happen, as a Toyota Motor for those companies who had misconduct, do you have any thinking to review or change the way that you're placing orders?
Well, I believe that Toyota Motor also went down or collapsed once, 14 years ago. But it took 14 years in making transformation in variety of way. And this time, with these three companies who made misconduct, they did something that they should not have done. And they need a determination to rebuild the company. The meaning of rebuilding the company means that they need to leverage their strengths, and then those works that they've done up to this date should not be wasted. Because they risked their lives in doing those works, and they need to change the company in a way that the people are proud of working for those companies. …So as a person responsible for this group, I need to do that kind of a transformation in the building companies.
As for the approach of each company, I'm sure that they will choose their own timing to make announcements. We hope that you will observe them in doing so. And until then, because I made it clear that I am responsible for the group, I will talk to them and have consultation. And then that means that those people who've been working for those companies, they need to go through this transformation so that the employees can be proud of working for them. And then also they need to sow seeds for the futures, and they need to allocate resources in such a ways. These two points, I believe, is my role. Thank you so much, Mizuno-san.
And then we take care of the people who had their hands up all the time. I think someone there. Can you do a jan ken? Paper, scissors, and stone, and the winner gets to ask the question. I think it's the first time that I've seen a jan ken take place at a press conference. I'm Inagaki from Asahi Shimbun. In your explanation, you said that you're the person responsible for the group companies, but not the top management or top leader for the each single company. But for Daihatsu, they are a 100% subsidiary, and this was decided to make them a 100% subsidiary when you were president. And also, there were many executives that were sent to Daihatsu from TMC.
So for this misconduct of Daihatsu, do you feel the responsibility that you were not able to detect this issue occurring? And what do you think the responsibility of TMC is? Thank you for your question. First of all, for myself, why I was not able to catch this issue? For that part, part of your question, I have been the President for 14 years, and during that time, and even now, I can't... This is continuing, but I was—I never had a time that was in peace. First of all, the performance of Toyota was in the red. We were making losses, and then we had the Lehman shock, and then the quality issues, then we had the East Japan great earthquake, and then the flood in Thailand. So we were having these crises next by next.
So, we didn't, I didn't have the extra room to be able to to capture those areas. That's my honest feeling. And I was using all my strength at keeping Toyota standing up, keeping TMC upright. That was the... Using all my capacity, that was all I, I could do. So it wasn't that I was not looking, but probably the more appropriate or, or accurate way to explain is that I was not able to. I didn't have that extra strength. And another thing is that for me, becoming chairman will be a change point for this company. And rather than a president, I think being in the position of chairman, I will have a little more time. That is what I thought before becoming chairman. In, in reality, I... It's not that I'm enjoying more relaxed time.
But anyway, I think that was one of the big change points for the company, for me to become chairman from president. And I want to use this chair change point time. And during the 14 years, I was always thinking about what makes us Toyota? I started from there. And now I started from giving a vision for TMC, but now I want to start by proposing a group vision for the Toyota Group. And from this position and perspective, I want to play my role as the person responsible for the Toyota Group companies. And another thing I can say is that whatever we say, we are different companies. Just because if we have that capital relationship, it is difficult to understand everything and solve everything. There is the history between the companies.
There is the way that we have been in relation from the past. And just because of that, it will not be an excuse, of course, but just because we have this, logic, we can't just use the logic of capital to solve every issue. We have to think about the employees, our suppliers, the, customers, all of the stakeholders for the company. We need their approval that this is a company that is worth supporting to develop further. We need to bring the company to that state, and, I want to lead the company to be able to restore itself, restore that trust and expectation, from the stakeholders. So I hope that you will continue to have a long-term, supporting perspective for Toyota.
Thank you very much. I think we can end the Q&A session here. Finally, once again, can we receive a word from Chairman Toyoda before you leave?
Well, I think it was on quick notice that we asked you to gather here, so thank you very much for joining us today. The briefing of the Toyota Group vision was the meaning of having this press conference. But with everyone here, and for the misconducts that occurred in Toyota Group companies, we didn't go into the details of what has happened, but I have tried to explain my perspective, my thoughts. I hope that you have been able to understand a little better of what my what is on my mind.
But of course, the group companies that have done something that they should have not do, and as the person responsible, once again, I would like to apologize for causing all of the problems and the anxiety. But once again, from here, as the person responsible for the group companies, I will be taking actions. So I hope that you will continue to support with a strict eye and for us. Thank you very much for this opportunity today.
Thank you very much, and we will have Chairman Toyoda step down from the stage.