Toyota Tops Fortune’s “World’s Most Admired” List

Posted Friday, Mar 17, 2017 by North Hollywood Toyota

Toyota doesn’t just build great cars, it also builds livelihoods, communities, and a shared culture of excellence. Over the past 80 years, Toyota has earned a sterling reputation for being what all companies should aspire to be. Fortune recently named Toyota as one of the “World’s Most Admired Companies” and as the No. 1 motor vehicle company for the third year in a row.

Getting named to the list has been a point of pride for Toyota and its dealers. Los Angeles Toyota dealers and dealers around the U.S. are incorporating the award in their marketing efforts as a signal to customers concerning the quality of Toyota products and its commitment to excellent customer service.

Trophy and Confetti

Fortune’s “World’s Most Admired Companies” list is well-regarded in the business community and is considered a leading measure of corporate reputation. Fortune creates the list by soliciting ratings from senior executives, industry experts, and other authorities.

The survey asks respondents questions related to nine attributes Fortune considers integral to success, including quality of leadership, quality of goods and services, innovation, global competitiveness, corporate responsibility, value as an investment, soundness of financial position, talent management, and wise use of corporate assets.

The most admired companies are selected from 1,500 corporations with revenues of $10 billion or greater. Fortune then selects the 15 largest for each worldwide industry and the 10 largest for each American industry. All told, evaluators survey 680 companies in 28 nations. About 3,800 people are surveyed for the list.

Couple Purchasing a New Car

You can often judge a corporation by the company it keeps. Toyota has some pretty great neighbors on the Fortune list, including:

• Apple
• Amazon
• Starbucks
• Berkshire Hathaway
• Disney
• Alphabet (Google)
• General Electric
• Southwest Airlines
• Facebook
• Microsoft
• FedEx
• Nike
• Johnson & Johnson
• Netflix
• Costco
• Coca-Cola
• American Express
• Nordstrom
• Procter & Gamble
• com
• BMW
• JPMorgan Chase
• 3M
• IBM
• Marriott International
• USAA
• Goldman Sachs
• Whole Foods Market
• BlackRock
• Boeing
• Delta Air Lines
• Home Depot
• Singapore Airlines
• UPS
• Nestle
• AT&T
• Unilever
• PepsiCo
• Exxon Mobil
• Accenture
• Walmart
• Jude Medical
• Target
• CVS Health
• Intel
• Caterpillar
• McDonald’s
• Visa
• Deere

These companies represent the best-known and most respected names in their respective industries. Toyota’s inclusion on this list speaks volumes about the company’s reputation.

Toyota History

Toyota has produced more than 30 million vehicles in the U.S., alone, in the past 60 years and employs more than 34,000 U.S. workers in manufacturing plants. The company’s vehicles have an excellent reputation for quality—nearly 85 percent of all Toyotas manufactured in the past 15 years are still on the road.

The company was founded in 1937 by Kiichiro Toyoda. The new company was a spinoff from Toyota Industries and founded specifically to manufacture automobiles. Its first passenger vehicle, the Toyota AA, hit the market in 1936.

A big part of Toyota’s corporate ethos comes from Toyota Industries, which began as a loom company. Toyota looms in the 20s were made to stop themselves when a problem occurred. This function led to the development of a principle known as jidoka, which became engrained in the Toyota Production System, Toyota’s management philosophy, and practices. Toyota’s philosophy has greatly helped in the company’s pursuit of excellence over the years, fostering a culture of continuous improvement and innovation.

Toyota got off to a good start in the 30s but suffered during World War II and the years immediately after the war. The company persevered, and, in the 50s, the first Toyotas hit the American market.

Toyota truly began its rise to global prominence in the 1960s, as it expanded into Australia, which, for a time, was Toyota’s leading export market. Toyota established its first overseas plant there, and the company also built a research and development facility in Japan. During the 60s, Toyota expanded into Europe and continued making inroads into the U.S.

Toyota had banner years in the 70s and 80s, as the oil crisis of the 70s fostered an appetite for smaller, more fuel-efficient vehicles among Americans. At that time, U.S. auto manufacturers considered small cars to be entry-level products, so U.S.-made small cars were of poor quality. Toyota’s commitment to quality and its line of fuel-efficient vehicles rapidly gained favor among Americans who wanted fuel-efficient, reliable vehicles.

Polished Cars Inside Showroom

By the 90s, Toyota had begun to branch out from small vehicles by adding more upscale automobiles, including SUVs, to its lineup. The company also began production of the Prius, the first truly commercially viable hybrid vehicle, in 1997.

In the 2000s and 2010s, the momentum Toyota had built over the decades drove the automaker to greater heights and, in the 2010s, the automaker began regularly besting U.S. automakers as the best-selling brand.

The Toyota Production System greatly emphasizes quality, and workers may halt production if they discover a flaw in a product. In Toyota plants, it’s not uncommon to see the production line halted several times a day to address issues. While this can cause a temporary inconvenience, it ensures that Toyota products are of excellent quality, whether they’re sold at Los Angeles Toyota dealers or at dealerships in Europe.

Exposed New Engine

Toyota & the Environment

Part of Toyota’s appeal is its reputation as a green company. Toyota made hybrid vehicles practical and fun, with its Prius line of cars, and the Japanese automaker has made a number of reforms and commitments at the corporate level to reduce its environmental impact.

The company has challenged itself, by the year 2050, to reduce by 90 percent the 2010 levels of CO2 emissions from its vehicles. Toyota is also working to curb emissions created by its plants. The Japanese automaker is also working to boost recycling of its vehicles and components and to sharply curb water usage in its plants.

Toyota’s Challenge

While Fortune has named Toyota as the No. 1 motor vehicle company for the past three years, there’s no guarantee that Toyota will win the designation again in 2018. Volkswagen eclipsed Toyota as the world’s top seller of automobiles in 2016. Volkswagen sold 10.3 million vehicles last year, while Toyota sold 10.2 million.

3D Rendering of a Car

Volkswagen may have edged out Toyota in sales, but the company still has a huge cloud hanging over its head that may derail its chances of taking Fortune’s top honor. In 2015, Volkswagen became embroiled in an emissions rigging scandal. Investigators discovered that Volkswagen had intentionally programmed its engines to give false performance results during emissions testing.

The programming caused the vehicles to meet emissions standards during testing, but to emit 40 times more NOx emissions on the road. Volkswagen had used this programming in 11 million cars, worldwide, and 500,000 in the U.S. between 2009 and 2015. The company is spending $18 billion to correct the error.

Volkswagen’s reputation has been severely tarnished by this scandal, while Toyota maintains a great public image from years of striving to build a responsible corporate culture. It’s a reputation that consumers and critics alike appreciate and respect, regardless of fluctuations in sales figures.

Salesman showing off a new car

Consumers in the Los Angeles area who want to purchase a great automobile from a great company should visit Los Angeles Toyota dealer North Hollywood Toyota. A well-established group of car dealers in Los Angeles with a long track record of helping L.A. residents find great values on new and pre-owned vehicles, North Hollywood Toyota is committed to helping you find the Toyota that best suits your individual needs.

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