"Nobody ever bought a Corolla because they thought they looked good driving them," Bob Carter said. "That will change."
NEW YORK – Toyota's U.S. management now has more autonomy to design cars and trucks specifically for American consumers under a new management structure announced earlier this month, Bob Carter, senior vice president of Toyota Motor Sales, said today.
Toyota, whose public image was badly hurt by recalls for unintended acceleration in 2009 and 2010, was slow to react and manage the crisis – in part because of a management structure that prevented quick decisions. The company also has been criticized for the bland and safe styling of its vehicles in recent years.
Now, a series of promotions and the appointment of outside board members announced is designed to address those issues, Carter said today in New York at the Automotive Forum.
"These were not just routine management shuffles," Carter said. "The changes we announced on March 6, signify a huge turning point for our company."
His comments today on the eve of the New York International Auto Show are among the first from a Toyota executive in the U.S. since the changes were announced.
Carter pointed out that Toyota promoted non-Japanese executives to lead three out of its four global regions. It also appointed three outside members to its board of directors, including longtime former General Motors executive Mark Hogan.Hogan, an independent consultant and former GM group vice president, has been Toyota President Akio Toyoda's friend since they worked together more than a decade ago at NUMMI, a California auto plant jointly run by Toyota and GM. Hogan has also previously advised Toyota.
"In the past, we've had critics who have complained that our global efforts were hampered by resisting bringing in outsiders and non-Japanese into the inner circle of our decision making," Carter said. "Well, not anymore."
Carter said the management changes are part of a broader strategic plan announced by Toyoda two years ago, shortly after the he took charge of the automaker founded by his grandfather.
"It has always been Akio's plan to build better cars, improve profitability and give each of the key regions around the world more autonomy," Carter said.
Carter argues that the results of that strategy are already evident in the design of the 2013 Toyota Avalon full-size sedan and the Toyota Furia, a concept car shown in January at the Detroit auto show.
The Avalon was completely designed in the U.S. in collaboration between Toyota's Calty design studio in California and its engineering center in Ann Arbor . It is built in Kentucky.
It is the first time, Carter said, that a new Toyota is 100% engineered, designed and built in the U.S. The result is a full-size sedan that has been praised for its more aggressive styling and design compared with the outgoing Avalon.
Meanwhile, the design of the Furia, which is the precursor to the next generation Corolla, also illustrates how Toyota is changing. The Corolla is Toyota's second-best vehicle behind the Camry, but is under pressure from new, more exciting looking cars such as the Ford Focus and Hyundai Elantra.
"Nobody ever bought a Corolla because they thought they looked good driving them," Carter said. "That will change."
Carter also said the next-generation Corolla will not be shown at the New York International Auto Show, but will be revealed before the LA Auto Show this fall.
Carter also said the next-generation Corolla will not be shown at the New York International Auto Show, but will be revealed before the LA Auto Show this fall.
"Watch your inboxes," Carter told a group of reporters after he spoke today.
