Toyota Looking To Cut Costs By Trimming Line-up Offerings
Tokyo November 13, 2018; The AIADA newsletter reported that Toyota's North America CEO, Jim Lentz, is looking to chop unpopular nameplates from the U.S. lineup as bosses in Japan order him to restore sagging profitability to record levels.
Facing the knife now is any model falling out of favor as customers swarm to crossovers, SUVs, and trucks. In a word: cars.
According to Automotive News, that spells an uncertain future for such vehicles as the subcompact Yaris, Toyota 86, Lexus RC coupes, and even the Prius C hybrid, the five-door Prius' smaller sibling. "We are taking a hard look at all of the segments that we compete in to make sure we are competing in profitable segments and that products we sell have strategic value," Lentz said in Tokyo last week after Japan's biggest automaker reported an increase in quarterly profits.
Lentz is racing to shore up profits as Toyota buckles down on cost control around the world. Toyota CEO Akio Toyoda wants fatter margins so the company can plow profits back into developing the costly technologies needed for next-generation electrification, connectivity and autonomous driving.