Toyota plans to cut the cost of producing compact cars by US$1bn a year as demand is likely to grow during the global recession, a newspaper said.
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The automaker plans to use common platforms and parts for most of its compact cars by 2012, saving JPY100bn annually, the Nikkei economic daily reported.
The cost-paring programme will start in Japan with models such as the Corolla and Vitz (the domestic version of the Yaris) and will later be implemented overseas, the paper said without naming sources.
The paper said Toyota had long relied on large and luxury vehicles to drive profit growth but demand for small and eco-friendly cars was set to expand significantly as the global crisis causes consumers to reduce spending.
The company would rework its profit structure so it could earn high profits even on small models. This would also enable the company to aggressively cultivate demand in emerging markets.
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