Toyota to cut North America costs by 10 percent: exec
Toyota Motor plans to slash North America expenditures by as much as 10 percent as part of a global cost-cutting plan, one of the Japanese automaker's top US executives said Wednesday.
By Agencies |
CHICAGO: Toyota Motor plans to slash North America expenditures by as much as 10 percent as part of a global cost-cutting plan, one of the Japanese automaker's top US executives said Wednesday.
The cuts come in the wake of a recent announcement that Toyota expects to post a four billion dollar loss for the fiscal year ending in March.
The world's largest automaker said last week that it had no plans to close plants and it hoped to avoid further job cuts as it cut its fixed costs by 10 percent in the wake of a global collapse in vehicle sales.
"Toyota's culture of continuous improvement always focused on cutting costs but now it's more so," said Bob Carter, vice president in charge of the Toyota brand in the United States.
"The 10 percent is a global goal."
Toyota has already trimmed its North American event-oriented marketing, which tends to be very effective but also can be expensive, Carter told AFP on the sidelines of the Chicago auto show.
Manufacturing operations have also been given new cost targets.
"In some casts we will take an axe to costs and in others we'll take a scalpel," Carter said.
Carter stressed that Toyota does not plan to cut back on the support for the introduction of the third generation of its popular hybrid, the Prius.
Carter also said Toyota was keeping an eye on the market and estimates that between 900,000 and 1.1 million Americans have postponed plans for buying new vehicles as a result of the economic downturn.
The cuts come in the wake of a recent announcement that Toyota expects to post a four billion dollar loss for the fiscal year ending in March.
The world's largest automaker said last week that it had no plans to close plants and it hoped to avoid further job cuts as it cut its fixed costs by 10 percent in the wake of a global collapse in vehicle sales.
"Toyota's culture of continuous improvement always focused on cutting costs but now it's more so," said Bob Carter, vice president in charge of the Toyota brand in the United States.
"The 10 percent is a global goal."
Toyota has already trimmed its North American event-oriented marketing, which tends to be very effective but also can be expensive, Carter told AFP on the sidelines of the Chicago auto show.
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Manufacturing operations have also been given new cost targets.
"In some casts we will take an axe to costs and in others we'll take a scalpel," Carter said.
Carter stressed that Toyota does not plan to cut back on the support for the introduction of the third generation of its popular hybrid, the Prius.
Carter also said Toyota was keeping an eye on the market and estimates that between 900,000 and 1.1 million Americans have postponed plans for buying new vehicles as a result of the economic downturn.
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