Toyota Motor Company is being sent into crisis mode this week as profits in both North America and around the world have plummeted. The automaker now expects its global operating market to sink 73.6 percent, resulting in a mere $5.83 billion profit for the current fiscal year.
It is the recent Wall Street meltdown that has been blamed for Toyota's slumping sales. "This is an unprecedented situation," Executive Vice President Mitsuo Kinoshita said here today while delivering financial results. "Every week, the environment gets worse."
Now company president Katsuaki Watanabe is chairing an Emergency Profit Improvement Committee to make sure Toyota stays within its financial limits from this point on. Details are thus far unknown but it has been said that this committee will review everything from pricing to the product pipeline.
Toyota's new adjusted outlook calls for a 68 percent drop, some $5.34 billion, in net income for the year. This monumental readjustment is less than half of the company's earlier forecast of $11.7 billion.
Source: Automotive News