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Software Bugs Threaten Toyota Hybrids



By Mel Duvall

  Table of Contents:
  1. Software Bugs Threaten Toyota Hybrids
  2. ' A Costly Problem'
  3. ' Computer on Wheels'
  4. ' Base Case'

Strong sales of Toyota's Prius hybrid vehicles could be threatened by software malfunctions that leave drivers stuck in traffic.

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Software Bugs Threaten Toyota Hybrids - ' Base Case'


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: Toyota Motor Sales USA at a Glance">
Headquarters: 19001 S. Western Ave., Torrance, CA 90509

Phone: (310) 468-4000

Business: The U.S. sales unit for Toyota Motor, the second-largest seller of automobiles in the world (behind General Motors).

Toyota Motor North America Chief Executive: Hideaki "Harry" Otaka

Toyota USA Executive Vice President and Chief Operating Officer: James Press

Financials in 2004: $164 billion in sales worldwide; $54 billion in U.S. Profit of $11 billion.

Challenge: Increase production of hybrid vehicles while eliminating software problems, which are causing some vehicles to stall.

BASELINE GOALS:
  • Eliminate back orders for the Toyota Prius in the U.S. by increasing production by 50% to 180,000 vehicles per year.

  • Increase U.S. market share by boosting sales to 2.5 million vehicles by 2008.

  • Dominate the hybrid market by introducing fourth hybrid vehicle this year—the Lexus GS 450—and achieving worldwide hybrid sales of 300,000 by 2006.



 
 
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