Toyota Likely to Cut Japan Sales Target

TOKYO, July 13, 2006; Reuters reported that Toyota Motor Corp., Japan's largest auto maker, is likely to revise down its annual domestic sales target after the market proved weaker than expected, the Asahi newspaper reported on Thursday.

The paper said Toyota was likely to cut its 2006 target to "more than 1.7 million units" from 1.78 million and would make an announcement on July 20.

Nissan Motor Co. said last month it could miss its annual sales target by 5 percent, citing an unfavourable shift in demand to the minivehicle segment.

A downward revision by Toyota would come at a time when Japanese police have brought a criminal case against three current and former company officials on suspicion they delayed filing a recall report despite knowing of a vehicle defect for eight years.

Toyota has said it is cooperating fully with the police but stands by its view that it followed proper guidelines in filing the recall.