Toyota overhauls its company structure to streamline operations image

The world’s biggest automaker by sales announced some changes to its corporate structure in order to improve work processes, as production keeps rising.

Toyota Motor is pushing hard on production, as its sales keep going up. And taking into account the fact that Volkswagen is still recovering as the result of the famous cheating scandal, Toyota is likely to hold its position as the world’s biggest automaker at the end of the year. Nevertheless, the Japanese company has to keep its operations working flawlessly, thus the announcement of an overhaul of its corporate structure. Toyota already implemented some changes in this direction over recent years, in its effort to make more and better cars, enhancing the strength and autonomy of regional activity. As an example, in 2013 the company split a significant portion of its automotive operations into four business units.

As part of the new shake up strategy, effective in April, there will be seven product-based in-house companies responsible for short- to mid-term product strategy and development, with the aim of creating a company “built around product-based rather than function-based organizations,” as Toyota said in a statement. The company will maintain its premium Lexus division, along with its two region-based divisions overseeing geographical markets (Toyota No. 1 for North America, Europe and Japan; Toyota No. 2 for China, Asia & Middle East, East Asia & Oceania; Africa, Latin America & Caribbean), while also having a dedicated power trains division.

This changes come as Toyota begins building cars using its new standardized platform, for future models to share more common parts according to their size and thus cutting production costs by as much as a fifth.