Toyota Could Trim Production, Still Set New Record
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.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.
Filed Under: Auto News