Toyota president takes 30 per cent pay cut
June 26, 2009 by Karl Peskett
Toyota’s new president, Akio Toyoda, grandson of the giant carmaker’s founder, is taking drastic steps to stop the company bleeding money.
In an effort to show leadership, Mr Toyoda announced yesterday that he would be cutting his salary by a whopping 30 per cent in the first year. His target is to cut fixed costs by 800 billion yen by March of next year.
“The new Toyota sets sail in very stormy waters,” Mr Toyoda said at a news conference. But right now we’re working at full speed to cut costs and jump-start sales with the support of various government incentives being rolled out.”
The same conference brought to light the fact that Toyota is facing tough times for the next couple of years.
“We want to do everything possible to avoid a third consecutive year of losses,” Mr Toyoda said.
Executive Vice President Atsushi Niimi said, that although things are difficult, plant closures were not an option.
“Right now, the market is very tough. But in two years, or at most three years, it will recover so we want to make sure we have the means to meet demand them”, said Mr Niimi.
The new Prius, for example, has had more than 180,000 sales in Japan alone since its launch, meaning demand is still strong for certain vehicles, and Toyota is re-organising itself to deal with lower sales, but higher technology cars.
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$10.3 bill Aust reduction nin costs in 9 months?? That is going to cause a lot of pain somewhere. Especially on top of the turn around faced in the first quarter this year. Please note that I am not being negative to Toyota so call off the dogs, it just seems that these days being number 1 in volume is a dangerous game. Especially if youy go chasing it at all costs as the previous Toyota management did. Reading between the lines on this article, the new management may now chose to leave established markets (where a long term player has led for so long) well alone. Tundra and T100 have cost loads of money for negative returns, whilst Fseries conitnues to rule the roost. Lexus has gobbled up lots of revenue but still has hardly made a dent (sales figures, not refering to quality or engineering) globally. F1 burned cash faster than a two up game on Anzac Day.
It is these sorts of decisions that will pull them back into the black and more than likely give them vehicles to get passionate about.
I hope Hyundai are listening and taking notes so that they too don’t fall prey to the Neon crown of volume
Frontman,
Regarding the previous Toyota management, yes, global profit increase was prioritize, but the Toyoda-san has mentioned that he plans to take Toyota back to roots and focus on regaining what was lost during the transition to be No.1 in the world.
Lexus will continue the way they are, cut backs on USA based “truck” looks to be high priority.
Also, the focus on greener cars and other forms of drive train will continue…. also revisiting “exciting” cars as Toyota has clearly sacrificed that for “mass” daily drivers…
F1 budget will get cut… if not eliminated in the future, its a LUXURY that only makes sense when MONEY is good.. but when its rare… its just a way to burn cash…
specifically they can do research and technical development on their own and not use the F1 competition to do it in…. its 15 times cheaper… if not more.
This guy would be so lucky!
Not just because of his name or that he holds the top job of the top auto company on the planet.
The FACT that he gets to burn around in a V12 Toyota Century, best dang car on the planet.Full Stop!
Cheers
F-0
Management have to lead given the breadth of pain the motor industry is experiencing and will continue to experience in the years ahead.
Something the Detroit three should have done years ago.
Akio Toyoda … a man who inspires confidance.
Sounds like good leadership. It’s not all about money. Caring for the company’s reputation and solving problems are relevant.
Kudos to Mr. Toyoda!
Honorable people the Japanese, unlike America or China…
I truely appreciate the honour of the Japanese people that they upheld. Examples such as Mr Toyoda, and the likes of CEO of JAL airline taking a pay reduction in order for the company to survive is a truly remarkable effort. Unlike the capitalist corporation that we have here in the western world.