Toyota restructures, cuts out the flab

Subscribe to our RSS feed or get updates by Email for all the latest spy photos, videos, news and reviews!

Toyota reported a loss of $819 million for the first quarter, though the automaker did trim its loss forecast for the full financial year by about 18 percent. Still and all the results are bad any which way you look at them and the future does not seem too bright either. As such Toyota is going through a restructuring exercise so that it can reduce its potential and future losses.

Out of the top management, at least 40 percent have been reassigned or retired. Toyota has five executive vice presidents and of these, four are new and have also be given responsibilities of a particular global region.

The company is also considering pulling out of Nummi, its joint venture with GM which has pulled out of its half of the deal. However, Nummi workers and unionists are obviously against the move and claim the workforce is one of the best in the country. Union leaders want Congress to provide Toyota with incentives to keep the plant going.

Source: NYT