Toyota likely to suffer losses
December 24, 2008 – 4:23 pm by Rachit Hirani
Toyota is expected to make losses this financial year. This will be the company’s first-ever loss since 1941. The company is suffering these losses because their largest market, North America, is undergoing an unprecedented recession.
This November, Toyota has reported a fall of 33.9% in sales in the U.S. market alone, which is not as much as the average decline of the three giant US automakers. Toyota’s yearly figures are down by around 13% which is comparatively better than the current market slowdown which is approximately 16%.
Toyota has set an example for its mass production techniques, “The Toyota Way”. The Toyota Way consists of 14 basic priniciples, and the company makes use of ERP systems like lean manufacturing, KANBAN, Just In Time (JIT) and Supply Chain Management, to name a few. This may be the only reason they have been able to successfully control the extent of their losses, unlike other manufactureres who were caught unaware when the recession hit. Toyota is expected to make a profit of only $555million, while last year’s profit was $19.2billion.
Tags: Market slowdown, Toyota, Toyota loss, Toyota suffers losses
2 Responses to “Toyota likely to suffer losses”
as toyota has been suffering from a month or 2 i would try to launch a new car named tata raves a new luxury car but i have just planned of it. i would take opportunity of toyota to defeat them so i can bring back my sales of tata motors higher.many indians are but looking for tata motors.so i will try to make raves car a cheaper. thankyou
By ratan tata on Dec 25, 2008
nice car
By brijendra on Feb 17, 2009