Toyota hits sales bump
BY DAVID HASSALL | 29th Aug 2008
The revised forecast means that the Japanese giant will not achieve its plan to break the 10 million vehicles sales barrier for the first time next year.
At the same time, Volkswagen has surged to third place among the global car-makers, pushing the troubled Ford Motor Company back to fourth place and underscoring the problems afflicting the vital US market.
Proving that even the world’s most profitable car company is not immune from the US economic meltdown, Toyota Motor Corporation – which climbed above Ford for second place in 2003 and then claimed top position from General Motors in 2007 – yesterday downgraded its sales forecast for 2009 to 9.7 million.
This will almost certainly soon end Toyota’s run of increasing overseas production levels, which stands at 79 consecutive months after another record in July.
Earlier this month, Toyota shares hit a three-year low after the company announced a 4.7 per cent drop in profit in the first quarter on the back of a 38.9 per cent decline in revenue and a plunge in profit from its US operation.
Toyota president Katsuaki Watanabe, who last year predicted sales would reach 10.4 million in 2009, admitted that its general forecasts had been incorrect.
“The economic environment, crude oil prices as well as the material cost trend was not accurately forecasted by us, and we initially thought there would be a greater number of vehicles sold,” Mr Watanabe said at a press briefing.
Mr Watanabe said that sales in Europe are expected to decline by 3.8 per cent this year, forcing Toyota to reduce production at its assembly plant in the UK (cutting back from two shifts to one for five months) and an engine plant in Poland.
In the US, Toyota has slashed production of its Tundra pick-up and Sequoia SUV.
Despite the downturn in Europe, VW sales increased by 7.2 per cent in the first half of this year to 3.31 million vehicles, pushing it past Ford with 3.22 million.
Ford’s figure could diminish further with the transfer of Jaguar and Land-Rover sales to Tata Motors from June as well as falling demand in the US.
“We are delighted that the Volkswagen Group has made it to the global automobile industry's top three for the first time,” said VW chief executive Martin Winterkorn.
“This shows that we are on the right track with our ever-stronger international presence and, above all, our product program. We will systematically push ahead with our growth course even in the present difficult market environment.”