Essay About Toyota Environmental Analysis And Main Political Factor

Toyota Environmental Analysis
GENERAL ENVIRONMENT ANALYSIS
Political & legal- The main political factor that affects Toyota is trade regulations. The
automotive industry was stimulated by the government during the economic crisis. In 2008 the
U.S. government gave $17.4 billion short-term loans to General Motors and Chrysler, two of
Toyota’s competitors, to help them. Where in March 2009, Toyota asked the Japanese
Government for a $2 billion loan. The government got involved to try and keep the automotive
industry afloat. Also, the Quantitative Easing Policy was created by the U.S. Federal Reserve
Board; this policy controls inflation to protect U.S. trade. Some legal factors that affect Toyota
include pricing regulations, labor laws, taxation, mandatory employee benefits, and industrial
safety regulations. Toyota has many legal obstacles that it must overcome in order to develop its
products. Recently, Toyota recalled 6.39 million vehicles in the United States, Japan, and
Europe. This recall involved many models including the Corolla, RAV4, Matrix, Highlander,
and the Tacoma. This recall was for problems with the airbags, seat rails, and steering wheel
bracket. As laws change, Toyota must be careful to keep up with the rules and regulations that
affect their company and their employees (Healey, USA Today).
Economical- Some important economic factors that affect Toyota are the economic system of
the country, skill level of workforce, labor costs, inflation rate, and interest rates. The automotive
industry has been in recovery since the economic crisis. For example in the United States, the
passenger vehicle sales rose to 12.3 million in 2010, up from the 11.3 million in sales in 2009.
Toyota specifically had a rise in 2007, and again in 2010, bouncing back from the economic
crisis (Naughton,