Saturday, June 29, 2013

Toyota Engineering & Manufacturing Chief, Osama "Simon" Nagata to Locate in Michigan (Toyota Technical Center in Saline)

June 28, 2013 at 6:59 am

New Toyota boss picks Michigan

North America unit chief will pass over California HQ office



Toyota Motor Corp.’s new North American engineering and manufacturing chief has decided to put his office in Michigan instead of at the company’s regional headquarters in California.
Osamu “Simon” Nagata, who was named president and CEO of Toyota Motor Engineering and Manufacturing North America Inc. in March, has purchased a home in Novi and will work out of the Toyota Technical Center in Saline.

His predecessors have all been based at Toyota’s North American headquarters in Torrance, Calif., near Los Angeles.

Nagata’s decision underscores the growing importance of Michigan to the world’s largest automaker, as well as the state’s continuing role as the center of automotive research and engineering.

“It doesn’t surprise me. Michigan is still the center of gravity for the entire world when it comes to the automobile industry,” said David Cole, chairman emeritus of the Center for Automotive Research, who met with Nagata last week.

Cole noted that six major automakers have research-and-development facilities in southeast Michigan: Toyota, Nissan Motor Co. and Hyundai Motor Co., as well as General Motors Co., Ford Motor Co. and Chrysler Group LLC. Many of the most important suppliers are also based in the state, which is also home to some of the leading engineering schools in the country.
“Toyota sees that it would really be good to be part of that,” Cole said.

He said Toyota also is doubling down on its North American business, meaning the company’s research and development center near Ann Arbor is becoming more important to its global product strategy.

“The Japanese market is soft and it’s probably going to get softer,” Cole said, adding that the world’s largest car market — China — presents a special challenge for Toyota and other Japanese automakers. “They have a lot of history with China, and it’s not good. So North America remains a key market for them.”

During the past two years, Toyota has pledged investments of more than $2 billion to expand production in North America. Last week, Nagata announced that Toyota would invest $200 million in its Alabama Engine Plant and Bodine Aluminum casting facilities in Missouri and Tennessee to boost production of V-6 engines.

That investment “demonstrates Toyota’s commitment to North America and our localization efforts,” Nagata said in a statement. “Our commitment to our local communities where we produce engines, engine parts and vehicles has never been stronger thanks to our team members and their continued focus on safety, quality and continuous improvement.”

Toyota is increasingly shifting responsibility for vehicle design and engineering to local markets such as the United States as part of Toyota President and CEO Akio Toyoda’s push to create a more global culture inside the company.

Nagata is a close associate of Toyoda’s and was tapped to spearhead a global communications task force that he set up to improve the dialog between Japan and Toyota’s regional offices in the wake of the embarrassing unintended acceleration debacle in 2010. 

Nagata also is a senior managing officer of the company and chairman of the International Committee of the Japan Automobile Manufacturers Association.

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