Toyota Cuts Sales By Over 3.5%
The economic woes and reliance on trucks in North America is bringing down Toyota on a global level. Toyota announced today that it’s cutting worldwide production estimates by 350,000 cars to 9.5 million for 2008. This news also helped bring Toyota to its lowest stock price in almost three years.
Toyota has been cashing in on profitable trucks for decades in the U.S., but it seems the reliance on this may result in as much as a 27% decline in net income this year. In fact truck sales have slipped so far, that Toyota will suspend work on the Tundra pickup truck and Sequoia sport-utility vehicle at its factory in the U.S. for three months starting August 8. Unlike the domestic automakers, Toyota has established economical alternatives on their lots. So even though their sales are slipping, they are likely to not fall as far as the Big Three.