Joint Press Conference of Toyota Motor Corporation and Mazda Motor Corporation

Today, thank you very much for coming to this place on such short notice, out of business schedule at the late hour. From now, we'd like to start the joint press conference of Toyota Motor Corporation and Mazda Motor Corporation. First of all, I'd like to introduce the attendees of this meeting: the President of Toyota Motor Corporation and the President of Mazda Motor Corporation.

Speech... before the speech.

Thank you. So after the press conference is over, we're also going to have a photo session, photo ops. So please go back to your seats for now. Now I ask the presidents of those companies.

Good evening. My name is Akio Toyoda. I'd like to thank all of you for joining us despite the late hour and the rather sudden notice. Today, Toyota Motor Corporation and Mazda Motor Corporation are entering an agreement to forge a long-lasting partnership. Through this partnership, we'll leverage the resources of both companies to complement and enhance each other's management, products, and technologies.

Since becoming president, one thing I've said to the employees over and over again is: let's make better cars. Our entire company is now working on developing and implementing the Toyota New Global Architecture, or TNGA for short. The main purpose of this initiative is to enhance the appeal of our cars so that someone can walk into a showroom and say, 'I really want this car.' It's common for people to say that they love their car. In fact, cars are among the few industrial products that people can say they love. What I really want is for Toyota to continue making cars that people will always say they love, no matter how society changes in the future. To do that, we need a team that approaches cars with ambition, always acting with a hands-on approach. There's nothing more important than nurturing these kinds of people.

I couldn't agree more. Through their efforts to focus on the basics and on making great cars, Mazda has given the world the Skyactiv technologies, the Kodo soul-of-motion design philosophy, and other wonderful ideas and technologies. Mazda is a company that constantly challenges itself to stay ahead of the times with its cars and technologies. These are some of the mantras that Mazda lives by and that I wholeheartedly agree with: 'Be a driver.' 'It's always more fun when you choose the road you take.' 'We'll never make a car that's boring to drive.' It's clear to me that our aim of making ever-better cars is shared with Mazda. Furthermore, this partnership gives Toyota a great opportunity to expand our knowledge in a meaningful, wide-ranging way. I'm very grateful to Mazda for that opportunity.

Thank you very much, Mr. K. We are so excited to be working with Mazda. As we've explained, this partnership between Toyota and Mazda is based on a shared vision and mutual respect. We're going to push each other to enhance the appeal of our cars. This idea was the motivation behind this alliance. We'll respect each other's people, technologies, and cultures. We'll share ideas and help lead each other towards a better future. Through this approach, we will work together in a medium to long-term partnership.

Next, we'd like to take questions from you. We are planning to have 30 minutes of time for the Q&A. If you have questions, I will bring you a microphone, so please raise your hand. But before you ask questions, please state your name and affiliation, and also which gentleman you would like to ask a question to as well. Please raise your hand if you have any questions. Over there, the person in the front row.

From TV Tokyo. I have a question to President Toyoda. Why now? Have you decided or do you think it's necessary to have this alliance? You talked about TNGA. As far as TMC is concerned, you have gasoline engine vehicles, diesel engine vehicles. You enhanced quality to offer ever-better cars, cars that are even greater fun. But why have you decided to join hands with Mazda now? Do you want to shorten the time for development? Or fundamentally, unless you learn some lessons from Mazda, is there something so seriously lacking on the part of TMC now? Why now?

Let me answer that aspect of the question first. Both companies are strongly desiring to continue taking up and rising to challenges. For many years, as I recall, back in 1990, our Miyata plant and Mazda's Hofu plants both were awarded a Deming Prize. And we can go back to the 1990s. Our employees visited the Hofu plant to have a tour, and with what sort of feelings Mazda people accepted our Toyota employees—this is something that I can only share with you now. I earlier heard from Mr. K that Mazda willingly showed the production line that was producing a vehicle that was going through remodeling. And that clearly indicates that employees of Toyota, visiting them for the first time, were allowed to enter such production lines, indicating and demonstrating a strong sense of trust Mazda showed to Toyota. And that was a starting point. And in various individual projects, we worked together. The most recent example includes the licensing of hybrid technology and also the production of compact vehicles at Mazda's plant to supply those compact cars to Toyota. So through those individual projects, what was initiated back in the 1990s—the sense of value shared by both companies and also the trusting relationship between the people of both companies—led to the willingness on both sides to pursue and explore medium and long-term potential for collaboration, so that both of us can earn smiles from customers. And the time has come for us now. What is your feeling, Mr. K?

Please ask the same question to Mr. K.

Are you going to create the new technologies, the concepts, or are you going to just utilize whatever things the partner currently has?

Next question, please. The third person from the front row.

From newspaper, my name is Han. Now you're talking about the similarities between each other, but why Mazda and why Toyota? Why did you choose this partner? What do you feel from each other's products, and what areas or points do you think are attractive? And also, the first fruit that we bear through this collaboration—what do you think about the first achievement you'll be having after this collaboration?

Let me first respond to that question. The first deliverable from this partnership could be described as follows: already there's the existing project, and also the project that triggered our decision to enter this partnership—that is to say, the production of compact cars in the Mexico plant, and also how hybrid technology can further be enhanced is the first sort of deliverable. And any deliverables or results that we can deliver even beyond that point is something that we would like to explore the potential of over medium and long term, and that's why we have decided to have this partnership. You have something to look forward to in terms of those deliverables. Earlier I mentioned that it's a partnership for us to keep challenging ourselves, keep rising up to new challenges. As Mr. K mentioned earlier, the engine for sustainable growth relates to products and also people. I firmly believe in that. And as far as products and nurturing people are concerned, a very important influence I expect to come from Mazda, so that we can learn from Mazda in that area. And there is one episode that I can share with you that really motivated me. That is to say, in July last year I visited Mazda. And when we visit other companies, usually we're ushered into the president's office and exchange niceties. But surprisingly, I was invited to the test course of Mazda, the driving proving ground, and all those mass of people who welcomed me were wearing racing suits. And they said, 'Pick any car you like. You can just drive any of the cars, Mr. Morizo.' And that's how they welcomed me. And so from the very first visit, my expectations were exceeded, and I was allowed to drive their cars. And that really motivated me that we really must pursue ever-better cars. We talked about the potential for ever-better cars. They asked, 'What is the sort of ever-better cars Morizo thinks about?' And we talked about the similarity or the integration or oneness between people and horse, for example. And also, Car of the Year—this is an award that Toyota doesn't have a very close relationship with, but in the case of Miata, already it received a Car of the Year award twice, even since I became president of Toyota. And when I saw that, the people at Mazda and the statements coming from people of Mazda—'From Volkswagen, we were told that Japan should come up with strong compact cars,' and 'From a Range Rover, evolve, build a vehicle with culture'—those are the sort of statements or messages that really motivate and rally the spirit of Japanese car makers. And those are the statements or comments made by Mazda people, and that still lingers very vividly in my mind. Engineers with such aspirations as Mazda, and our own Toyota engineers—if they can work together, they can create some great chemical reaction. A great product can be produced by that collaboration, and I feel so excited about that. So from my perspective, I want both of our engineers to pursue ever-better cars they really want to see, by creating an environment where our engineers will feel, 'This is the sort of car I really want to develop,' and that can come up with deliverables exceeding your expectations.

Any other person? The most front row here, I'll bring your microphone.

From newspaper, my name is Y. I have a question to Mr. K first. Earlier it was said that recently companies have been taking this approach of limiting the area of cooperation and having partnerships with other companies, but this time it's different. In case of partnership with Toyota, what is the reason for choosing this new approach this time? And I have a question to both of you: you're aiming for long and medium-long-term partnership, and when you talk about such things, we often normally think about the capital tie. But what is your thought on that?

Is that okay? This agreement we have just reached relates to our desire to come up with a car that customers really, really want to have. To come up with such an ever-better car is the greatest objective. Never drifting from that, we would like to work together. And when people talk about Toyota, they tend to think about money. But actually, not money—Toyota as a company is really seriously pursuing creating ever-better cars. We want to achieve rebirth of the company and be reborn as a company that really always pursues ever-better cars. And in terms of alliance, if there is a company with whom we can come up with ever-better cars, we are actively open to alliance. So from that perspective, I want Mazda to consider Toyota as a partner that can come up with cars, not just a big purse. So we intend to work diligently together toward creating and developing ever-better cars.

How about the next question, please? Anybody? The first row from the front, the middle, over there.

From Magazine X, my name is Shino. Looking at Toyoda-san and K-san, it looks like you're making a press conference like a marriage announcement rather than a joint business alliance. It looks like you two from the two companies are just working together without looking back, just keep working together. And I'm sure Mazda's capabilities are necessary to work together—like 'be a driver'—and also Toyota's capability is necessary as well to make it work for a long term. And what is the source of that? I mean, how are you living this marriage life as you get married now? You maybe have some resolution about building or developing vehicles, so what is it?

This is an engagement announcement rather than a wedding announcement. Engagement is the most fun and most happy time. Both have looked at each other only in the positive way—only positive things are visible to both sides. But not just positive areas—by looking at the reality of each other, continue to work together in the pursuit of ever-better cars. I think that would be the best way to earn smiles from customers, and that will be the best way for us to have this association as long as possible. Did I answer your question?

Yes. How about the other people? The second row from the top, over there.

Recently you have cooperation with BMW and Subaru, and you have a capital tie with Fuji Heavy Industries. And this time, there's this keyword that this transcends your conventional tie. Is this going to be really different in terms of depth and width? What is it—I'd like to know. And also, together with BMW, you have this next-generation battery technology development for fuel cell vehicles. That's what Toyota is working on. I'm sure Mazda definitely wants to have fuel cell vehicles as well. Now, Mazda is not involved in this area. Is Mazda going to be really involved in the current partnership you have?

As I mentioned earlier, as far as alliance is concerned, if a company is the sort of company that we can work together and come up with ever-better cars, we intend to be actively open to any company. And in that general context, what I expect especially of Mazda relates to its own experience of having gone through some difficulties, always focusing on the basics of car making, and Mazda is the company that continues to challenge itself. Since I became president, I personally have overcome numerous adversities and difficulties. And when I did that, sometimes as far as manufacturing is concerned in Japan, or as a Japanese car maker taking up new challenges overseas, I really felt that I keep on taking up new challenges. And one other thing—the automotive industry in many respects is somehow compelled to deploy its business globally. And as we deploy our business globally, both companies do cherish the home local community. And because we cherish so much the home community, that results in some special ingredients that might make our cars special from others. It's rather difficult to describe more specifically or concretely than that, but that's something I can expect of Mazda. Not just limited to fuel cell or limiting to other things. In the past, we discussed in terms of individual projects, but this time with this agreement, we are going to explore many possibilities, including energy-saving measures or measures vis-à-vis CO2. That is to say, the automotive companies are called on to take those medium and long-term perspectives, even if there may be certain difficulties in thinking. But for the creation of mobility society in the future, I think we can inspire each other. As I said, our focus on local community is similar, and both companies went through difficult periods—those are common elements, and that brought us together, in a sense, closer.

I think we are approaching the end of this session, so the next question will be the very final question. Person in the center of this room on this side, the lady there.

Thank you for this opportunity. Reference has been made to an engagement announcement, and so taking advantage of that reference, it may be difficult to come up with the babies in a very well-planned manner. But my question is to each of the presidents. Earlier a question was raised about deliverables or outcomes, but if possible, what would be the first deliverable? Putting Skyactiv on TNGA, or is it going to be fuel cell vehicles? If you could refer to concrete areas in which you're expecting a baby as the firstborn of this marriage. Could you be a little more specific? I mean, you can just share with us your aspiration, because I know you're going to discuss that further.

Well, things just don't go according to plan, and that's what makes it exciting and exhilarating. I mean, I really want this car. I want the baby that we are going to have to be that car. And the plant in which such a baby is going to be born and nurtured, I want that plant to be the one that really demonstrates the shared vision and shared aspiration. And because those plans and characteristics are shared, we can really push each other further. So I expect both parents to get stronger. And if we can give birth to a baby with strong love, we want to nurture that baby so that the baby—the car—can be really loved by people as well. And I intend to be a responsible parent.

Now I'd like to conclude the joint press conference. After this, we're going to have a photo session, so if you have a camera, please come forward. After the photo session, there's a room on this same floor called Tagon Room. We're going to have free-for-all interviews over there. So if you have time, please join. Thank you very much again for coming to this joint press conference out of your busy schedule.