Well, it's finally official. After dropping its 2008 sales expectations, Toyota Motor Corp. has reduced its bold (and record setting) 2009 worldwide sales outlook of 10.4 million vehicles to a more reasonable 9.7 million.
Even as the world's most profitable automaker, the rising costs of raw materials and fuel, combined with the ailing North American automotive market, has proven too much for the Japanese company to withstand without consequence.
"The economic environment, crude oil prices as well as the material cost trend was not accurately forecasted by us, and we initially thought there would be a greater number of vehicles sold," president Katsuaki Watanabe said at a recent company meeting.
North American sales are expected by officials to hit 2.7 million this year and will likely remain at the same estimated level for 2009. Last year, Toyota sold 2.83 million cars in the region.
Also mentioned by Watanabe were Toyota's plans to reduce production in the dwindling European market. Much like what it did here in the U.S., one of two shifts at its plants in the U.K and Poland will be cut for a limited time beginning next month in order to curb a surplus of product.
Source: Automotive News (Subscription required)