Toyota aiming to lower the break-even point for its Japanese operations

Article by Christian A., on December 27, 2010

According to the latest reports, it appears that Toyota is planning to lower the break-even point for its Japanese operations. A top executive said last week that the Japanese manufacturer is planning to do that through a slew of improved manufacturing processes.

For those who don’t know, Toyota President Akio Toyoda also said that he wants to maintain its production in Japan at 3 million vehicles per year in order to protect jobs but also the tradition of manufacturing, known as "monozukuri".

Apparently, Toyota is more exposed to a firm yen than its other Japanese rivals, Nissan and Honda because most of its vehicles are produced in Japan.

Regarding Nissan, it seems that the manufacturer has been more aggressive in pursuing ways to shield itself against a strong yen and decided to import more parts as well as cars from overseas.

“We're trying to be able to operate at 85 yen (to the dollar) and 70 percent capacity utilization," said Atsushi Niimi, executive vice president in charge of manufacturing.

Nimi also added that some improvements in processes could reduce Toyota’s capital spending by 40 percent. [via autonews - sub. required]

Topics: toyota, japan

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