Toyota drops 2009 sales forecast

Source: Manufacturing Digital

Date :8/28/2008 3:55:12 AM

Japan’s largest auto maker has lowered its outlook for 2009 to 9.7 million vehicles from its previous forecast of 10.4 million as demand continues to weaken.

The move will come as a significant setback in the company’s bid to break General Motors' 77 year reign as the largest carmaker by sales in the world.

However, GM’s performance is also faltering under the pressures facing the auto manufacturing industry, and recently announced a restructuring program in an attempt to safeguard itself.

"We are looking at the current shift towards fuel-efficient cars (in the United States) as a structural change in demand," Toyota President Katsuaki Watanabe told a news conference.

"We intend to respond quickly and flexibly to this environment."

Part of this response includes the imminent manufacture of Toyota’s hybrid Prius model to meet growing demand for fuel-efficient models,matching its scaling down of production for trucks and SUVs.

Watanabe also said Toyota is planning to produce a next-generation electric vehicle in the early 2010s.