Section 2. Toyota Motor Co., Ltd., Toyota Motor Sales Co., Ltd. to Form Toyota Motor Corporation

Item 5. Increasing Efficiency in Logistics

Restructuring related organizations

As reflected in the establishment of a new Control and Logistics Group at the time of the merger in accordance with a proposal by Chairman Eiji Toyoda, the area in which the greatest benefit in terms of rationalization and improved efficiency was expected following the merger was logistics. This was because, before the merger, after vehicles, spare parts, and other products were transferred from Toyota Motor Co., Ltd. to Toyota Motor Sales Co., Ltd., there were few examples of operations being duplicated due to separate handling by the two companies.

On the organizational front, the Vehicle Administration Division, Export Vehicle Administration Department, and other divisions transferred from Toyota Motor Sales Co., Ltd. at the time of the merger were reorganized into three logistics divisions: the Domestic Operation Division, Export Operation Division, and Parts Logistics Division. At the same time, a Logistics Administration Department to carry out personnel functions was established in the Production Control Division. The three logistics divisions drew up a three-year plan to extend this feature from production divisions to sales divisions and then to all Toyota-related entities. As the implementing organization, the Logistics Conference was instituted in February 1983 (renamed Logistics Committee in 1984).1

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