Toyota Motor Corp. (NYSE:TM) recently ended the inactivity on refurbished manufacturing process that was there for 2 years. Under this process the automaker company shared components amongst the vehicles which were produced by Toyota Motor Corp. (NYSE:TM). The automobile company announced that it will manufacture half the quantity of vehicles until the year 2020 and will focus on cutting costs to the minimum in the upcoming years.
The management at Toyota Motor Corp. (NYSE:TM)declared that under the banner of the new program which is being called as “Toyota New Global Architecture”.Toyota Motor Corp. (NYSE:TM)will launch the first car which will become the platform for mid-sized sedans similar to the Toyota Prius.The Vice President of Toyota Motor Corp. (NYSE:TM)Mitsuhisa Kato said that the company will also launch its luxury brand under the same program.
Earlier in the days Toyota Motor Corp. (NYSE:TM)used to be the pioneer in production processes. Although Toyota Motor Corp. (NYSE:TM)is famous for introducing manufacturing proficiencies like “just-in-time” as well as “continuous improvement”, however this time it is following the footsteps of the German company Volkswagen AG.Mr. Kato said that Toyota Motor Corp. (NYSE:TM)is utilizing this time to rebuild its manufacturing as well as developmental procedures.
He said that the automobile company is striving to alter its structure and trying to become more efficient. Toyota Motor Corp. (NYSE:TM)’s management did not comment on the amount of savings the cost cutting techniques will gather, however it is anticipated that it will be a significant amount. Toyota Motor Corp. (NYSE:TM)had always been confident as far as its processes were concerned and the company was positive about its global growth in the market as well.
However, the automobile company had to face some crisis in the beginning of the millennia which shook its confidence to some extent. Although Toyota Motor Corp. (NYSE:TM)’sproducts are not only affordable but they are reliable as well, and the products undergo an effective manufacturing process, however all processes need to go through an update every now and then. In 2008 when the global economic recession occurred the sales of automobiles suffered a lot.
Due to the recession Toyota Motor Corp. (NYSE:TM)’s costs increased because of the excessive production. Toyota Motor Corp. (NYSE:TM)was expanding its global operations at the timeand the company had more vehicles in the market than the demand which lead to the loss of the company.
For the first time in 7 decades Toyota Motor Corp. (NYSE:TM)had to go through an operating loss. In 2012 Volkswagen released its new production plan which allowed manufacturing of 9 various brands including Audi and Skoda amongst others. Volkswagen managed the cost of the production in a year’s time.