Toyota Losing Money but Vows To Continue Environmental R&D Efforts
By John O'Dell May 8, 2009
Toyota reported its first financial loss in decades and is forecasting another hefty loss for this year, but the still world's largest automaker is protecting product development and R&D that pertains to small cars and advanced technologies, particularly those related to the environment and energy.
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Toyota says it won't abandon advanced vehicles such as this electric car concept.
"We will maintain a high level of R&D in areas we consider indispensable to our future -- advanced, cutting-edge technologies in environment, energy and safety," Takahiko Ijichi, Toyota Motor Corp. senior managing director, said in a conference call Friday morning with analysts and media.
Ijichi said Toyota will continue work to cut costs in its development and production of compact vehicles and hybrids. The next-generation Toyota Corolla will be a model for such cost-cutting, he said. And lessons learned on the Corolla, which initially launches in Japan followed by the U.S. and Europe, will be transferred to all other Toyota and Lexus models.
He said Toyota is continuing cost reduction of its hybrid systems. He noted that size and weight reductions of the new third-generation Toyota Prius reduced costs by 30 percent compared with the second-generation model. Toyota has said it plans to introduce as many as 10 new hybrid models by 2010 and a battery-electric city car by 2012.
Not only will Toyota keep spending on green initiatives, it intends to accelerate development next-generation technologies in environment, energy and safety, with environmental goals topping its priorities list, Ijichi said.
Its goals include the commercialization of plug-in hybrids, mass-production of small battery-electric electric vehicles and the development of next-generation alternative fuel vehicles including fuel-cell electric cars and vehicles use biofuels.
Michelle Krebs, Editor, AutoObserver.com
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