Toyota Motors Reduces Purchase Price of Steels in F2009

Mitsuo Kinoshita, vice-president of Toyota Motors, said Toyota’s consolidated sales volume in fiscal 2009 starting April is expected not to exceed 7.32 million cars, prospective sales for fiscal 2008, at a press conference to report 9-month financial result on 6 February. Mr. Kinoshita also said the firm will offer price cut against steel makers to reflect lower iron ore and coal prices in fiscal 2009.

The firm’s annual operating loss is estimated to become 450 billion yen for fiscal 2008 from previously expected 150 billion yen. Car market significantly shrank worldwide and yen exchange rate rose rapidly against other currencies. The firm’s consolidated sales are likely to total 7.32 million cars through fiscal 2008, to decrease by 220,000 cars compared with the previous estimation in December 2008.

The firm targets to reduce constant cost by 10% or around 500 billion yen by stoppage or postponement of capacity expansion and new plant construction. The firm implements one-shit working at 27 productive lines among 74 lines in the world for January-March while stops domestic plant operations for 14 days. Mr. Kinoshita said the firm aims to finish inventory adjustment until the end of March 2009, lowering the inventory level as much as the end of March 2008. The firm will decrease investment to below 1 trillion yen in fiscal 2009 from 1.5 trillion yen in ordinary years.