Toyota Crisis Essay

954 Words Apr 22nd, 2011 4 Pages
Toyota and the Economic Crisis in 2008

2010 Camry RECALLED Toyota had aimed to sell 10 million vehicles a year by 2010 but suffered a severe set back when it t was stung hard by the global financial crisis in 2008 and 2009. Toyota sold 7.56 million units in fiscal 2008-2009—enough to outperform GM and make Toyota world’s largest automaker but 1.34 million less than the previous year. Toyota had originally forecast sales of 9.85 million in 2008 and 10.4 million in 2009. It sold 7.81 vehicles in 2009, down 13 percent from the previous year. Toyota posted a $4.61 billion loss in fiscal 2008, the first time in 71 years it posted a loss. The previous year it made a profit of $22.7 billion. The loss was a
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Things could have been worse. Reasonable sales in China, elsewhere in Asia and Russia offset slow sales in Japan, the United States and Europe. By August 2009, things had picked up enough that Toyota began making plans to restart weekend production at plants that produced the Prius and other cars. By September it had resumed hiring temporary workers. Toyota returned to profit in the third quarter of 2009. The company reported a ¥2.1 billion profit after losses in the previous three quarters. Toyota cars were the top sellers in the “Cash for Clunkers” program in the United States. In October sales climbed five percent for the first time in 15 months.
Toyota’s Response to the Economic Crisis in 2008 2010 Corolla RECALLED

Toyota responded to the crisis by shutting down production of its large vehicles for several months, switching a factory that made SUVs into one that made Priuses, and scaling back production in India and other countries. Toyota President Katsuaki Watanabe said, “We are facing unprecedented emergency circumstances.” With demand of automobiles low, Toyota reconstructed its production operations by setting up hybrid cars as the core of its manufacturing. Toyota downgraded it sales forecasts for 2009 from 10.4 million to 9.7 million to less than 8.5 million to 6.3 million and took out loans from the government. Previous efforts to cut cost by $3 billion a year no longer seem sufficient. Despite the set backs Toyota insists it will

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