Toyota expects global output down by 20pc
The global economic crisis is slowly upsetting every sector. After steep losses reported by major electronics’ companies, the dying demand has now started to influence the automobile sector too. The world’s biggest automaker Toyota Motor Corp. has planned to cut its global production by 20 percent this year in next business year to March 2010.
Down by 1.7 million units, the company has planned to build only 6.5 million vehicles in the financial year 2009-10, in comparison to the 8.2 million units built during 2008. This more than 20 percent fall is also seen as the company’s lowest production volume since 2003 and 2004.
The Japanese automobile manufacturer Toyota has very recently overtaken Detroit rival General Motors to become the world’s biggest car maker. A Toyota spokesman said the company had not drawn up an official forecast yet. However the company is expected to take this step to cope up with the ceasing demands worldwide.
Toyota’s output in Japan could go below 3 million, and this could also be the company’s least domestic output since 1979 when it manufactured only 2.9 million units.
The car manufacturer last month also forecasted its first-ever annual operating loss of 1.7 billion US dollars (150 billion yen).
