Consumers Command Industry, Toyota Sales Chief Says

TRAVERSE CITY, MI – All the management planning, philosophy and strategy that goes into selling cars aside, retail consumers are the true drivers of the automotive business, Toyota’s U.S. sales chief contends.

Look no further than the seismic shift in the automotive market since 2012 as buyers drove a change in the industry’s fundamental direction away from cars to CUVs, says Bob Carter, executive vice president-sales, Toyota Motor North America.

By filling the chasm between feature-laden passenger cars and utilitarian trucks and SUVs, the industry met consumer demand for a no-compromises vehicle with CUVs.

“They may not be listed on any of our company’s organizational charts, but I passionately believe the true CEO of this industry is the consumer,” Carter says. “Consumers are the driving force behind everything we do, and it’s our responsibility to know consumers – and at times know them better than perhaps they know themselves – and create products which will appeal to them and improve their lives.”

At Toyota, Carter says, that focus on the retail buyer is supported by a corporation that values and respects employees, some 72% of whom are pulling up stakes and following the automaker as it relocates its U.S. sales and marketing headquarters from Southern California to Plano, TX.

“The DNA of any company is not necessarily the products,” Carter says, “The true DNA of any company is the people who create the products.”

Toyota’s relocation hardly is the only disrupting factor, Carter notes, as everything from tax policy to the new players in the automotive sector affect the business today. Again, consumer preference is driving the business.

“I’m sure some of you remember a time when the idea of buying a car through a computer while sitting on the couch at home was ludicrous, but that is our new reality,” he says, as new players such as Uber, Apple, Google and Amazon jump into the market and alter the mobility landscape.

“While Amazon is not selling cars in the U.S. – yet – they are preparing to actually begin retailing cars in Europe,” Carter warns. “Today, that’s our new reality. Not only are OEMs forced to compete as peers, but as the competitive landscape evolves so does our competition.”

Although the economy is running strong, continuing eight years of positive growth, Carter says federal corporate tax reform is necessary to keep the momentum going. He applauds the scrapping of a 20% border tax on imports.

Looking ahead, Carter expects the passenger-car market to stabilize while the industry settles into an annual sales level of about 16 million vehicles. He cites Toyota’s $1.3 billion investment in the new Camry platform at the Georgetown, KY, plant as an example of the automaker’s commitment to the midsize-car segment.

The automaker also sees a future in autonomous vehicles as evidenced by its $5 million investment announced this week in the American Center for Mobility connected and autonomous vehicle proving grounds under construction in Southeast Michigan.

“By accepting and adapting change, we can ultimately create better products for our consumers and form a more cohesive industry,” Carter says.

[email protected] @bobgritzinger