Toyota Considers Revamp Of U.S. Operations To Stem Losses, Reports Say
April 08, 2009
Toyota Motor Corp. is considering a reorganization of its U.S. operations, pulling
sales, marketing and manufacturing under one powerful executive in an effort to stem its current losses, reports say.
The possible reorganization, reported by the Detroit News Wednesday and confirmed by AutoObserver sources, comes as Akio Toyoda, grandson of the company founder, is about to take over as president and CEO in Japan.
Nevertheless, a Toyota spokesman denied the reports. "I've heard no discussion of such a move, and don't think that will happen," Irv Miller, group vice president of communications for Toyota's U.S. sales unit, told Bloomberg News at the New York auto show. "Our relationship with the manufacturing company is already very close."
At the same time, Yoshimi Inaba, who retired in 2007 and went to work for Japan's Nagoya airport, returns to the automaker to take a yet-unspecificed position in the U.S. Inaba is likely to assume the role as Toyota's top U.S. executive in charge of the now-separate sales operation based in California and the Kentucky-based manufacturing operation that reports to Japan. He likely would have offices on both coasts. To date, Toyota's New York post, once held by now Chrysler President Jim Press, has been largely ceremonial.
A major challenge facing Toyota executives as part of their effort to stop losing money in the U.S. is what to do with the Toyota Tundra and the Texas plant that makes it. The Tundra came into the market as pickup truck sales began their precipitous slide -- a slide that continues in dramatic fashion in 2009 with Toyota losing money on every one. The truck is built at a new plant in San Antonio that came in over budget and has not been running at full capacity. In fact, it was idled for three solid months last year.
Toyota executives are also faced with what to do with a plant it has under construction in Mississippi. It originally was going to build the Toyota Highlander, until SUVs fell out of American favor, and then it was set to assemble the Toyota Prius hybrid, but hybrid sales have been soft with low gas prices.
While Toyota won't confirm the rumored reorginization or what Inaba's role will be, Toyota's top executives are expected to decide how to structure the U.S. operations, unnamed sources told the Detroit News.
Posted by Michelle Krebs at 10:54 AM under Personalities , Rumors , Toyota | Comments (0) | digg this | Seed Newsvine
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