Toyota Financial Services Corporation

THE SCOOP

Toyota takes over

Toyota has been climbing the ranks of the world’s automobile manufacturers since it first began selling cars 70 years ago.  In 2007, this Japanese giant finally reached the apex of its success, surpassing General Motors as the number one largest carmaker in the world.  With Ford and GM struggling for over a decade, the great era of the American car manufacturer seems to have finally come to a screeching halt.  And that’s good news for Toyota Financial Services (TFS), a financial and insurance umbrella for the popular Japanese automaker.  Like its parent company, TFS’ offerings have been growing for over two decades.  In that time, TFS has evolved from a small, eight-person operation to over 3,000 employees and $65 billion in managed assets.  It is the third-largest captive loan operation in the United States after GMAC and Ford Motor Credit and the eighth-largest specialty-financing company in the country.  TFS is the brand name used to market the products and services offered by two divisions: Toyota Motor Credit Corporation (TMCC) and Toyota Motor Insurance Services (TMIS).

Prius power

In 2007, green became the new blackâ€"or at least it became the buzzword that would shoot Toyota into the black, largely due to the success of the hybrid car Prius.  Though Toyota resisted government regulation of gas-mileage mandates, supposedly in support of its guzzling Sequoia and Tundra models, it stepped up its innovation and created a new, dynamic model of an energy efficient car.  But while Detroit struggles to maximize the efficiency of traditional fuels, Toyota is trailblazing into the future, becoming the first car manufacturer to offer a hybrid car which is cost-effective and practical.  As of the end of April 2008, the firm had sold more than 1 million Priuses which likely has the skyrocketing price of U.S. oil and the ensuing demand for green cars to thank for the upsurge.  This, of course, is good news for Toyota Financial Services since more cars sold means more auto financing needed.

Not recommended

Though Toyota overall had a stellar year in 2007, the car manufacturer did suffer several hiccups along the way.  One of its most significant road bumps was the unexpected departure of Toyota North America President and COO James Press who had been with the company for over 36 years.  Press was the first non-Japanese individual to hold such powerful positions within the company.  But in September, shortly after the company reached its goal of becoming the world’s biggest automobile manufacturer, Press jumped overboard to join Chrysler.  Although it was a sign of the company’s dominance of the market, it was also an indicator that top-level executives at the new No. 1 were now vulnerable to poaching.

Another disappointment for Toyota in 2007 was the downgrading of its Consumer Reports ratings.  Previously, Toyota had enjoyed the luxury of automatically receiving a “recommended†rating for any new or restyled car.  However, due to problems on its Camry, Tundra and Lexus models, Consumer Reports will now require Toyota to provide a year’s worth of data before issuing its decision on whether or not to recommend the models.

Giving back

In June 2008, Toyota Financial Services and Toyota Motor Sales donated $200,000 and several vehicles to the American Red Cross to assist workers who were helping those affected by the Cedar Rapids floods.  TFS has had a call center presence in Cedar Rapids since 1991, and 600 of its employees work and live in the surrounding areas.  In 2009, however, TFS entered a deluge of endeavors with its partnership with Avanade, a business technology service provider in Australia, to improve its IT and its joining the funding panel of a leasing company in the United Kingdom.  For its fiscal year 2009, Toyota Motor Credit Corporation booked revenue of $8.8 billion, up from $8.2 billion in 2008.

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Toyota Financial Services Corporation


19001 South Western Avenue
Torrance, CA 90509
Phone: (310) 468-1310
Fax: (310) 468-7829
www.toyotafinancial.com

STATS


  • Employer Type: Public
  • President & CEO: George E. Borst
  • 2009 Employees: 3,300

Key Financials

  • 2009 Revenue: $8,800 million

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