Toyota Motor said Tuesday (26/9/00) that it is planning to cut costs by 30 per cent on development, production and marketing of all its future vehicles, writes the UK’s Financial Times (27/9/00).
Quoting Toyota Chairman Hiroshi Okuda – addressing both investors and industry analysts in London – the FT says that the cost reduction coincides with both a reform of the company’s global procurement programme alongside an increased use of information technology in research and development. The move would – in spite of any market slowdown – assist Toyota in defending its market share, according to Mr Okuda.
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Although Mr Okuda did stress that Toyota would continue to manufacture both cars and engines within the UK, he said that trends in the currency exchange may shift procurement of parts to the continent, while taking steps to improve distribution. Toyota`s european profits have been affected by the weakness of the euro against both the yen and sterling, says the report.
The FT also reports that senior managers at Toyota’s UK subsidiary said that the cost-cutting move would not apply to existing output at their plants in the Midlands and North Wales, with the Group seeking annual productivity improvements of 5-6 per cent.
