Sunday, April 11, 2010

Toyota to change production structure to boost profitability

TOKYO, March 25 (Xinhua) -- Toyota Motor Corp. is to change its production structure to let each plant produce specific vehicles, in an attempt to increase the com- pany’s efficiency and profitability, said reports from the central Japanese city of Nagoya on Thursday.

Under the plan, the automaker will produce vehicles in a single plant. Currently, Toyota in certain cases produces its models in stages at a number of different factories. The new production models will also see the produc- tion of the company’s various types of vehicles, such as compact cars and minivans, consolidated into specific factories.

According to the reports, the company will look to equip a number of plants with the hardware to produce com- pact cars, for which it expects demand to grow in the future.

The announcement of the plan comes in the aftermath of a series of recalls due to faults with cars that could cause fatalities that caused the company’s senior man- agement to reflect on their business model.

Recently, Toyota President Akio Toyoda publicly apolo- gized for the faults and said that his company’s massive international expansion over the past few years went against the corporate ethos that Toyota had developed over the years.

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