Case Study

Case Study- Toyota

Done by: Shawn Lim and Kendrick Loo

How is the giant car manufacturer company, Toyota, coping with the economic downturn?

Once a booming business for the giant car manufacturer company, Toyota has ended up being challenged by the economic crisis. Poor sales and slowing growth in emerging markets, combined with the ever incresing cost of raw materials and unstable oil prices had forced Toyota to rake a smaller income equivalent to one third of it's net income last year. The US credit crisis affected it a lot, dropping it's net income by sixty eight percent. They are also expecting a drop in number of sales of around seven hundred thousand vehicles.

Toyota is coping with the decreased sales by planning to increase development of hybrid cars and to adjust current pricing to suit the economic downturn. “We are aiming to increase our vehicle sales and profits by launching attractive products, stimulating market demand and revising pricing,” said Toyota’s Sendior Managing Director Takahiko Ijichi.

Though Toyota is not impervious to the economic squeeze, its still having healthy profits, compared to other car manufacturing giants such as Chrysler, who had filed for bankruptcy, Toyota is still doing quite a good job, for now.