If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. |
|
|
Thread Tools | Display Modes |
#1
|
|||
|
|||
Toyota's new boss warns of 2 more tough years
Toyota's new boss warns of 2 more tough years
Profit push aims to make factories profitable at 70% capacity Automotive News June 25, 2009 - 2:31 am ET UPDATED: 6/25/09 11:48 a.m. ET TOKYO (Reuters) -- Toyota Motor Corp.'s new president, the grandson of the group's founder, warned today the auto industry faces another two tough years as he outlined his strategy to return the world's biggest automaker to profit. Toyota aims to build more autonomous operations in North America and shift its focus to marketing a region-specific vehicle lineup, rather than offering a full lineup in every region, Akio Toyoda said in his first press conference since taking the job two days ago. Most of Toyota's factories around the world are underused as the global recession hammers car sales, sending two of America's three big car makers into bankruptcy. Facing a second year of record losses, Toyota aims to cut costs from its already lean operations so it can be profitable using just 70 percent of its factory capacity. "We want to do everything possible to avoid a third consecutive year of losses," Toyoda told reporters. Toyoda said European efforts would focus on hybrid models. Its remodeled Prius hybrid, launched last month, has been a rare bright spot, winning more than 180,000 orders in Japan. Production has been limited to two plants so far, creating a bottleneck for delivery, while analysts say the fuel-sipping model could eat into sales of Toyota's other more profitable cars. Back to basics, again Toyoda has said he aims to steer the company "back to basics" -- a promise also made by his predecessor, Katsuaki Watanabe, when he took over in 2005 as Toyota's factories scrambled to meet soaring demand. The push for profits would not involve plant closures, Executive Vice President Atsushi Niimi told the news conference. "Right now, the market is very tough. But in two years, or at most three years, it will recover so we want to make sure we have the means to meet demand then," said Niimi, who heads manufacturing operations in Toyoda's new-look executive team. At the annual meeting this week, Toyota promised shareholders to do better to recover from a 461 billion yen ($4.8 billion) operating loss. For the year ending March 2010, it has forecast an even bigger loss, of 850 billion yen, although consensus forecasts are for a much smaller loss of 495 billion yen. Unlike bankrupt U.S. rivals Chrysler and General Motors, Toyota has said it plans to ride out the downturn without slashing full-time jobs. Where's the bottom? Many industry executives have said recent sales trends in major markets such as the United States and Japan indicate that demand has bottomed, but opinion is divided over when it will recover convincingly. "The company will have to learn to adjust to this new paradigm of lower sales growth and higher technology spending. But they are definitely in a better position than U.S. companies to do so," said Yoji Takeda, a Hong Kong-based vice-president with RBC Investment Management (Asia) Ltd. "Under the new management it will have to make continuous and rapid moves to cut costs. There could be some restructuring to cut down excess capacity. Toyoda's position as a member of the founder family may help push through changes faster. In two years it will be a much stronger company." In the United States, Toyota's biggest and until recently most profitable market, its sales have dropped 38 percent year to date. Data issued today showed Toyota's global production, including units Daihatsu Motor Co. and Hino Motors Ltd., fell 38 percent last month, to 501,685 vehicles. Market share in Japan fell 1.3 percentage points despite a mid-month launch of the redesigned Prius hybrid. |
Ads |
#2
|
|||
|
|||
Toyota's new boss warns of 2 more tough years
On Jun 26, 4:59*am, "C. E. White" >
wrote: > Toyota's new boss warns of 2 more tough years > > Profit push aims to make factories profitable at 70% capacity > > Automotive News > June 25, 2009 - 2:31 am ET > UPDATED: 6/25/09 11:48 a.m. ET > > TOKYO (Reuters) -- Toyota Motor Corp.'s new president, the grandson of > the group's founder, warned today the auto industry faces another two > tough years as he outlined his strategy to return the world's biggest > automaker to profit. > > Toyota aims to build more autonomous operations in North America and > shift its focus to marketing a region-specific vehicle lineup, rather > than offering a full lineup in every region, Akio Toyoda said in his > first press conference since taking the job two days ago. > > Most of Toyota's factories around the world are underused as the > global recession hammers car sales, sending two of America's three big > car makers into bankruptcy. > > Facing a second year of record losses, Toyota aims to cut costs from > its already lean operations so it can be profitable using just 70 > percent of its factory capacity. > > "We want to do everything possible to avoid a third consecutive year > of losses," Toyoda told reporters. > > Toyoda said European efforts would focus on hybrid models. > > Its remodeled Prius hybrid, launched last month, has been a rare > bright spot, winning more than 180,000 orders in Japan. > > Production has been limited to two plants so far, creating a > bottleneck for delivery, while analysts say the fuel-sipping model > could eat into sales of Toyota's other more profitable cars. > > Back to basics, again > > Toyoda has said he aims to steer the company "back to basics" -- a > promise also made by his predecessor, Katsuaki Watanabe, when he took > over in 2005 as Toyota's factories scrambled to meet soaring demand. > > The push for profits would not involve plant closures, Executive Vice > President Atsushi Niimi told the news conference. > > "Right now, the market is very tough. But in two years, or at most > three years, it will recover so we want to make sure we have the means > to meet demand then," said Niimi, who heads manufacturing operations > in Toyoda's new-look executive team. > > At the annual meeting this week, Toyota promised shareholders to do > better to recover from a 461 billion yen ($4.8 billion) operating > loss. > > For the year ending March 2010, it has forecast an even bigger loss, > of 850 billion yen, although consensus forecasts are for a much > smaller loss of 495 billion yen. > > Unlike bankrupt U.S. rivals Chrysler and General Motors, Toyota has > said it plans to ride out the downturn without slashing full-time > jobs. > > Where's the bottom? > > Many industry executives have said recent sales trends in major > markets such as the United States and Japan indicate that demand has > bottomed, but opinion is divided over when it will recover > convincingly. > > "The company will have to learn to adjust to this new paradigm of > lower sales growth and higher technology spending. But they are > definitely in a better position than U.S. companies to do so," said > Yoji Takeda, a Hong Kong-based vice-president with RBC Investment > Management (Asia) Ltd. > > "Under the new management it will have to make continuous and rapid > moves to cut costs. There could be some restructuring to cut down > excess capacity. Toyoda's position as a member of the founder family > may help push through changes faster. In two years it will be a much > stronger company." > > In the United States, Toyota's biggest and until recently most > profitable market, its sales have dropped 38 percent year to date. > > Data issued today showed Toyota's global production, including units > Daihatsu Motor Co. and Hino Motors Ltd., fell 38 percent last month, > to 501,685 vehicles. > Market share in Japan fell 1.3 percentage points despite a mid-month > launch of the redesigned Prius hybrid. I hope they don't pull out of Formula 1. |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
carbed 87 Dodge Aries "K" car been sitting five years want to fix itup. is it tough to......... | stevegp | Technology | 14 | March 29th 09 09:56 PM |
Guy Wins $10M in Lottery - 4 years later drives drunk and kills 3 - 17 years prison | Speeders & Drunk Drivers are MURDERERS[_1_] | Driving | 18 | August 23rd 08 05:38 AM |
Repost by request of Scatterling: 1967 Boss Jaguar Customized Ford Boss 429 Engine BW.jpg 91975 bytes | HEMI-Powered@[email protected] | Auto Photos | 0 | April 13th 08 05:18 AM |
A Reader in Texas Warns To Get Out Of The Way Of Mexican Drivers | necromancer[_2_] | Driving | 17 | December 9th 07 10:03 PM |
Expert Warns of Economic 9/11 for U.S. | dave | Corvette | 3 | June 24th 06 03:00 PM |