Introduction Green cars are automobiles with reduced harmful effects on the environment. They are more efficient compared to engines that run on gasoline, diesel, and other alternative types of fuels (Kieser 42). The reason is that they are powered by highly advanced technologies. Examples of such cars include the hybrid electric automobile. Others include those operating on fuel-cell, compressed-air, natural gas, and clean diesel. The engines have significant economic impacts on countries as they reduce oil imports. In addition, green cars reduce air pollution through emission of low levels of greenhouse gases. Currently, Toyota Motor Corporation is the leading manufacturer of green cars in the world (Marksberry 58; Wild and Wild 229). The company does its best to ensure it develops high-quality products that enhance economic and other forms of development in contemporary society. Generally, the company’s automobiles are invented to create harmony between man, environment, and the machine. The corporation operates on a set of its own management values and policies, which are passed from one generation to the next. In this paper, the author will analyze a case study of Toyota Motor Corporation’s venture into the Australian green car market. To this end, the author will review some of the major factors behind the company’s decision to engage in foreign direct investment (FDI) in Australia as opposed to the manufacture of its hybrids in Japan. In addition, the author will highlight some of the reasons why the corporation decided to adapt to the existing plan in Melbourne. The pros and cons of Toyota’s management of the FDI will also be looked into. Finally, a critical analysis of some of the impacts of the FDI on Toyota’s reputation will be provided. A Review of Toyota’s Decision to Adopt the Existing Plant in Melbourne Up until 2006, Toyota Motor Corporation had factories situated in both Port Melbourne and Altona, Victoria. However, all manufacturing processes today take place in Altona (Wild and Wild 229). The company decided to take over the operating plant in Melbourne rather than build a new one. The reason for this is because the factory was operating as expected. It was meeting the company’s production and quality expectations. For example, in this branch alone, Toyota produced over 100,000 vehicles annually (Chambers 45). In 2008, the automobile company exported approximately 101,668 cars. The value of this batch stood at $1,900 million (Wimmer and Muni 60). The management realized that building a new plant would not have added changed the financial standing of the company significantly. In addition, Toyota had already fully established itself in the country. It had become one of the largest automotive manufacturers in Australia (Wild and Wild, 229). It attained the top spot position in spite of stiff competition from other companies, such as Ford and Holden. According to Wimmer and Muni, Toyota succeeded so much to the extent that the Australian market turned out to be too small for all its products (69). As a result, it shifted its attention to the Middle Eastern markets. All of these developments took place while the company operated the Melbourne plant. As such, there was no economic sense in opening another factory. Another reason that prompted Toyota Corporation to adapt to the existing plant was the need to avoid incurring huge losses in case the company suffered