Austria

For European companies, sound knowledge of Japanese work practices is vital to establishing long-lasting business relationships with their counterparts in Japan. The understanding and trust built from such knowledge has been key to the success of the Vienna-based Austrian company, Toyota Frey.

Friedrich Frey, managing director of Toyota Frey, looks back to the beginnings of the partnership: "When we began working with Toyota in 1971 it was initially quite difficult. The name Toyota was not yet very well known in Austria. However, our company - Frey - already had a strong reputation in the market. So Austrian customers began trusting the name Toyota early on. In that first year, we sold 4,000 units, double the amount we expected at the time. In the second year we sold 9,000 units."

Over three decades later, Toyota Frey has seen the business flourish throughout the country with 97 percent of the company's dealers having exclusive Toyota dealerships. "Now we have 106 dealers, 47 sub-dealers and cover the whole of Austria," Frey says with evident pride. "We have four dealerships in Vienna and plan to establish two more next year. We want the best dealers so we permanently train our sales and service people, and also provide product training when we receive a new model."
Shoichiro Toyoda, honorary chairman of Toyota Motor Corporation (right) joined by Akio Ijuin, the japanese ambassador to Austria (left) and KR Friedrich Frey (Center), managing director of the Austrian company Toyota Frey, along with their wives at the inauguration of Vienna's Lexus showroom earlier this year.

Toyota has taken huge steps over the years to give European customers cars they can identify with. "In the beginning, the car models that we offered were very conservative," he recalls. "Our big advantage now is that Toyota has become European in terms of auto design, and taken into account European taste and trends. Certain models are now actually designed and produced in Europe specifically for the European car market."

The Lexus, Toyota's separate luxury-class car range, has finally achieved highly desirable status on the European market, after early success in the US. With the recent opening of Toyota Frey's Lexus showroom, called "Lexus Hall Vienna", the company's ties with the Japanese have been further strengthened.

Lexus Hall Vienna is now the largest exclusive Lexus sales center in Europe, an investment that cost Toyota Frey more than $4.64 million. Inside, the complete Lexus model range is presented in a circular 1,000 square meter showroom under a glass dome, bringing in the maximum amount of natural light. Beside its function as Lexus sales center, Lexus Hall Vienna will also be used for cultural events by the company.

Shoicchiro Toyoda, honorary chairman of Toyota Motor Corporation (left), KR Friedrich Frey (center), managing director of Toyota Frey, and former Vienna mayor and proud Lexus owner Helmut Zilk (right)

"We invested in the Lexus range because we really believe in its future," Frey comments. "In the US the brand is already very successful, and in Europe we now building it up step by step. Quality-wise, Lexus cars are among the best cars ever built."

He gives an example of his company's special relationship with Toyota headquarters: "When we opened our showroom, we were honored with a very special guest from Japan, the Honorary Chairman of Toyota Motor Corporation, Dr Shoichiro Toyoda, and his wife. They flew over for the grand opening, and it was a very proud moment for us here in Austria. It was a gesture which we very much appreciated."

Frey continues: "In economic terms, Austria is a strongly German-oriented country and people here are used to buying German cars. Also, 70 percent of the passenger cars sold in Austria run on diesel fuel. With regard to the Lexus, Austrians are gradually accepting the car and we are satisfied with the progress we are making. We're running a strong advertising campaign for it. The main problem is that we need a model with a diesel engine to meet the demands of the market." He anticipates that it will only be a matter of time before this is available.

"I think the Japanese realize we work very hard - something they can relate to," he concludes, looking ahead with pride and optimism. "I have a great deal of trust in the Toyota brand and in its top management and I believe we can continue to work together and enjoy further success. Toyota cars are really among the world's best, and if we offer the right models at the right prices then we can be confident in our ability to meet our high targets."

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