Toyota Could Trim Production, Still Set New Record

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According to recent reports, Toyota Motor Corporation is expected to manufacture fewer vehicles in 2012 due to a struggling European market. This follows a company statement to suppliers in August that the Japanese automaker would produce 8.9 million vehicles in the coming year. Nevertheless, the estimated target of 8.65 million units will still set a new record, outpacing the previous mark of 8.53 million automobiles in 2007.

Toyota Trims Production

Despite cutting back production, Toyota Motor Corporation will still set new record.

The quoted figure is approximately 20 percent higher than the output predicted by most analysts. Toyota will presumably finalize its production plans for 2012 and submit them to major parts suppliers in the coming weeks.

The news marks the second straight year that Toyota will likely fall short of its early projections. At the start of the year, the automaker predicted it would manufacture 7.7 million vehicles, but production was stymied by the myriad of issues resulting from the tsunami in Japan and floods in neighboring Thailand. However, the creation of new manufacturing plants in emerging markets such as China and Brazil will help increase their presence in Asia and South America as well as contribute to the projected record output in 2012.

In addition, Toyota has plans to introduce new entry level cars priced at about 1 million yen ($12,900) to satisfy buyers in less developed countries. The company predicts that sales from these vehicles will increase their market share in these areas to 10 percent. As for Japan, despite the weakened economy Toyota intends to maintain a production level of 3 million units, as cuts in automobile taxes and a return of eco-car subsidies will provide a boost to sales.

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  1. […] it is also focusing on using more local components for manufacture to reduce costs.Related Posts:Toyota Could Trim Production, Still Set New Record Toyota Production Still Suffering from Parts ShortagesJapan Earthquake Will Hurt Toyota Sales, […]

  2. Will says:

    yes .
    the thing toyota is more focused on is Cost. that’s why
    “they introduce new entry level cars priced at about 1 million yen ($12,900) to satisfy buyers in less developed countries.”
    a good move from toyota .

  3. Mike T says:

    I would say . Toyotas are excellent cars. Quality control is important to any automaker, Toyota’s are so well known that other businesses emulate it. The “Toyota Way” is the management philosophy that has resulted in such great cars. The greatest core of this approach is to focus on long-term goals at all costs, even if they are more expensive than short-term profits.

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