Toyota Will Exceed Their Own Expectations

Toyota finds another 3% in production output

By Brendan Moore

10.03.2007

A newspaper in Japan, the Mid-Japan Economist, has reported that Toyota plans to produce 8.74 million vehicles worldwide in 2007, which will put it 270,000 units over its own previously announced forecast. Toyota would not confirm the report, and the newspaper would not cite its source, but the Mid-Japan Economist itself is 30% owned by Toyota Corporation, so the report is considered reliable.

Toyota said in late 2006 that it would produce 4.27 million units in Japan and 4.2 million units in overseas plants (excluding subsidiaries Hino and Daihatsu). The new plan, as reported by the newspaper, calls for 4.25 million units made in Japan and foreign output of 4.49 million units. Additionally, this production, combined with the Hino and Daihatsu output, will put it ahead of General Motors for the No. 1 auto producer spot in the world.

If the new forecast holds, it will be the first time in Toyota’s history that it will produce more vehicles overseas than in Japan. Toyota is experiencing the same high level of demand for its vehicles in the rest of world that it does here in the U.S., and has been on a global building spree in order to satisfy demand for its products. Toyota, however, tends to play it close to the vest in terms of discussing any expansion plans, not wishing to stir up any anti-Japanese sentiment in any of the countries it is currently building production plants in, particularly if those countries already have a domestic car industry.

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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3 Comments

  1. (sigh) Toyota’s sales keep going up and the number of interesting cars goes down accordingly.

  2. Somehow I just knew that someone would make some comment about how boring Toyotas are. Since all your friends and neighbors are the ones buying Toyotas, that must mean you know a lot of boring people. If boring means having a super-dependable car that doesn’t break down and leave me somewhere and drain my checking account with a ridiculous amount of repair bills, then I’ll take boring everytime.

  3. Now if wonder how long the trend will continue? If a economic slowdown or even a big recession happens, that’s a factor who can force to revise the plans.

    Then there this article about VW who aims to overtake Toyota by 2015. With VW who’s firmly installed in China and South America, they could be very close to their goal, also VW could buy or acquire or “merge” with other automakers to achieve their goal (and to, at least to my eyes, block the path of Carlos Ghosn of Renault-Nissan who probably thinks of the same idea)

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