Abstract
Based on previous studies on knowledge transfer, we examined how Toyota has been advancing localization of supply chain in ASEAN, especially in Thailand. In particular, we revealed that Toyota has been providing technical support to its suppliers by establishing a new specialized department in charge of technical support called the “Local Parts Development Division”. Developing the suppliers is necessary in developing countries such as ASEAN countries where industrial competitiveness is not yet well developed. However, most of the previous studies did not shed light on how Japanese companies have been building their supply chain in developing countries. This study is significant in that, and it examined how the Japanese automobile company “Toyota” recognized the industrial competitiveness in developing countries and built its supply chain.
Work by Yoshitaka Shimono and Atsumi Kato.
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Notes
- 1.
The industrial competitiveness refers to technical abilities and knowledge for automobile development and manufacturing in this study.
- 2.
Main 6 countries in ASEAN refer to Thailand, Indonesia, Malaysia, Philippines, Vietnam and Singapore.
- 3.
Toyota Motor Annual Report 2012.
- 4.
The original project name was BUV, but was changed to TUV (Toyota Utility Vehicle) in 1986 (Tanaka and Hoshino 2015).
- 5.
Toyota Motor Annual Report 2012.
- 6.
U-IMV (Under IMV) was a project to develop smaller vehicles than IMV and was carried out jointly by Toyota and Daihatsu (Source: Toyota’s website: 75 years History of Toyota).
- 7.
Vios is sold exclusively in Asia and succeeds to Soluna (Kawabe 2011).
- 8.
Toyota and its wholly-owned subsidiary Daihatsu officially established their internal company responsible for compact vehicles for emerging markets on January 1, 2017. TMAP-EM was renamed Toyota Daihatsu Engineering and Manufacturing Co. Ltd. (TDEM) and became an entity under the new internal company.
- 9.
From Nihon Keizai Shimbun December 20, 2011. BR means Business Reform and is a task force-like organization to respond to management issues quickly.
- 10.
BR vehicle and parts localization department was abolished in March 2013.
- 11.
The Nihon Keizai Shimbun March 12, 2006 issue.
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Itoh, M., Kato, A., Shimono, Y., Haraguchi, Y., Taehoon, P. (2018). Localization Process of Japanese Automobile Companies in ASEAN—The Role of Local Parts Development Division at Toyota. In: Automobile Industry Supply Chain in Thailand. SpringerBriefs in Economics(). Springer, Singapore. https://doi.org/10.1007/978-981-13-2360-7_4
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DOI: https://doi.org/10.1007/978-981-13-2360-7_4
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