Toyota’s new strategy in Eastern Japan

Abstract:

At the end of last year, Toyota announced to integrate its three manufacturing subsidiaries in eastern Japan area into one subsidiary, Toyota Motor East Japan. The three manufacturing subsidiaries are Central Motor Co., Ltd., Kanto Auto Works, Ltd. and Toyota Motor Tohoku Corporation. Most of their operation is located in Northeastern Japan area (Tohoku region, including six prefectures: Aomori, Akita, Iwate, Yamagata, Miyagi and Fukushima). Central Motor Co., Ltd. relocated its assembly plant from Tokyo urban area to Tohoku region in early 2011, just before the Great East Japan Earthquake on March 11th, 2011. As a resident researcher of Tohoku region, I would like to examine about merits and demerits of this strategic move for Toyota as well as regional economy of Tohoku region. Then, I will discuss about supply chain disruption caused by the Great East Japan Earthquake.