Toyota plans to reduce domestic production costs by 20%

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According to a report in the Wall Street Journal, Toyota Motor Corp executives have revealed that Toyota Motor Corporation must reduce its domestic automobile production costs in Japan to allow auto exports to maintain profitability. "If production costs can be reduced by about 20%, we will become more competitive," said Atsushi Niimi, executive vice president of Toyota Motor Corporation. "Through 2013, Toyota's new models must meet this standard. ”

Sakai Dun also said that if Toyota Motor Corporation could not drastically reduce auto production costs, the company had to consider the transfer of its compact car production capacity to Japanese overseas factories.

Compared with Honda and Nissan, Toyota suffered a greater impact from the appreciation of the yen, because Toyota's factory production in Japan accounted for a larger proportion of its global vehicle production. Half of Toyota Motor Corp.’s cars are manufactured in the Japanese domestic market, compared with 25% of Toyota’s Japanese rivals Honda and Nissan.

Toyota has said that the company will adopt a series of methods to improve the optimization of production processes in Japan to reduce the utilization rate of vehicles that reach the break-even point.

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