Toyota Motor Cutting Costs in Effort to Maintain Profits
TOKYO (AP) _ Toyota Motor Corp., Japan’s largest auto maker, said Tuesday it is pursuing a cost-cutting program aimed at preventing further profit declines despite stalled sales in Japan and abroad.
Toyota’s net profit for fiscal 1991, which ended in June, fell 44.8 percent to $1.90 billion from the previous year. It was the second consecutive year that Toyota reported a large profit decline.
Takashi Kusumoto, a Toyota spokesman, said the company hopes to prevent any further profit decline with a cost-cutting program thjat ″covers possibly all conceivable ideas and suggestions, excluding any personnel reduction.″
He said the program, started last year, includes reducing capital investment, cutting costs for parts and other materials, curbing car development projects and reducing overtime for clerical and factory workers.
He would not elaborate, but said: ″We are endeavoring in many, many aspects to maintain the same level of profits this year despite the worldwide difficulties faced by auto makers and the yen’s appreciation (against the U.S. dollar).″
About 50 percent of Toyota’s exports are valued in dollars, causing the level of repatriated profits to drop as the U.S. currency weakens against the yen.