The Big Three aren’t alone in their troubles as Toyota also faces necessary restructuring to help cut costs and weather the current sales slump. That being said, Toyota is far from declaring bankruptcy like some of its Detroit-based counterparts thanks to popular vehicles and healthy cash reserves. But with an $819 million loss in the first quarter of this year, forecasts are still looking a bit bleak.
One of the biggest changes at Toyota this year is the appointment of a new president, Akio Toyoda, the grandson of the company’s founder. Since taking the reins of the company in June, Providence Used Cars points out that Toyoda has already voiced his frustrations with Toyota’s performance, and has already begun making sweeping changes to top management.
Toyoda had long been a fixture in the company’s U.S. operations, where he has earned respect from dealers and corporate employees alike. Many including Boston Toyota dealers believe that his leadership will likely bring a new vitality to the troubled automaker. Regardless, he’s likely to move quickly in his efforts to curb costs.
One reason why Toyota vehicles remain in high demand is due to their reliability and value – not because they look sexy or are particularly entertaining to drive. From a product development aspect, Washington DC Toyota dealers expect that this is one thing that will likely change as a result of new management in addition to aggressive cost cutting. However, Toyota cannot afford to alienate the customers that buy Toyota vehicles because of their practicality. It’s a fine balance that Toyota must achieve to maintain its role as the world’s top automaker.
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See Akio Toyoda’s next moves at Toyota in the News.