Toyota's grand plans

Posted by: Ian Rowley on September 20, 2006

Toyota CEO Katsuaki Watanabe today showed once again that the Japanese auto giant has no intention to take it easy on struggling rivals. Speaking in Tokyo, Watanabe outlined plans to increase sales from 8.85 million units this year to 9.8 million units in 2008. To do that, Toyota is planning to raise sales to 3 million North America and increase sales by about 30% in Europe and 70% in Asia (not including Japan). In Japan, Toyota expects almost flat sales but hopes to raise its market share—no small ambition given it already has 44% of the market. If all that wasn’t enough, Toyota is also aiming for a 10% operating profit margin, although Watanabe didn’t specify when. That could come sooner rather than later. Today, Toyota upped its unconsolidated (it doesn’t make consolidated half-year forecasts) operating margin forecast for the six months through Sept 30 to 9.8%.

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Reader Comments

Andy

September 21, 2006 01:05 PM

I have no sympathy for automakers that promote gas guzzlers such as GM and Ford.

Herault

September 22, 2006 06:44 AM

Americans who have no sympathy for the big three should reflect on how another small country was wiped out industrially and now nurses a chronic mfg trade deficit due to importing 80% of their new passenger cars. Old Englande where engineers need to relocate to Germany because that country believes in investment in strategic industries like autos. If US excutives could improve their vision by not making the FORD 500 then Detroit could be the centre of an industrial renaissance. Even a basket case like FIAT is storming ahead after a visit to the sanitarium. New blood is needed with people qualified like the new breed of European auto executives who understand the nature of the business and seem to often had a spell with BMW AG.

Jesus

September 23, 2006 11:14 PM

I think the USA should ban foreign vehicle imports until domestic companies turn a profit.

sim t

October 3, 2006 11:57 PM

i love toyota

Carfree dude

February 19, 2007 05:52 PM

When you sell something no one wants, you must change your products or watch the market desert you. All that this shows is that capitalism is working as it was intended, and the Big Three have lost their competitive advantage. Fair is fair, change or go out of business.

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Want the straight scoop on the auto industry? Detroit bureau chief David Welch , Dexter Roberts and Ian Rowley bring daily scoop, keen observations and provocative perspective on the auto business from around the globe. Read their take on such weighty issues as Detroit’s attempt at a comeback, Toyota’s quest for dominance and the search for an efficient car.

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